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Digital transformation strategy for small businesses

October 30, 2023

Trends & Views

Businesses that have embraced digital transformation dominate the market today. Small businesses are also harnessing the power of digital transformation by modernizing business models, optimizing internal processes, and creating value. According to Cisco, they are expected to increase GDP by around $2.3 trillion, accelerating digital transformation initiatives.

Start with baby steps

When developing your digital strategy, thinking about the big picture will help you explore the possibilities and all viable solutions to discover more about what your business can gain from the digital transition. This will set the stage for subsequent efforts and help you gain the support of teams and leaders.

Using the right technology and a basic plan will help digitize your business, but investing in too many digital channels early on is risky. It is best to have a broad perspective while keeping the execution focused.

Follow the right steps, take your time, and find an effective strategy to start your efforts. It will be simpler to prioritize your tasks and focus on the immediate results you can improve. Businesses can only achieve the desired change if there is a maximum limit to the number of changes made at the same time.

Prioritizing strategy over technology

The introduction of technology is a strategic step towards digital transformation. However, this move will be viewed defensively if it does not align with what people want and believe. This is because most businesses prioritize multiple technologies instead of integrating change into the entire business plan.

An MIT Sloan Management Review and Deloitte study on digital business found that the power of digital technologies is not the technology itself but how businesses integrate it to improve their operations. A distinct business strategy plan and a leadership team prepared to lead the transition can set small businesses up for success.

Focus on corporate culture

It takes something more tangible than software, artificial intelligence, or other innovative technologies to effectively foster a culture of digital transformation. The right technology will trigger organizational change, but only if it is supported by a team that is fully committed to embracing it. According to McKinsey, employee resistance is the main reason digital transitions usually fail, at a rate of 70%. Small business teams are usually resistant to notable change, so any transformation can be challenging if it is not accompanied by proper communication, continuous training, recognition, and constant feedback from all stakeholders at every stage.

#Cloud     #Digital Transformation     #SMB    

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