Key Digitization Challenges faced by SME’s
In the fast-paced digital age, small and medium scaled enterprises (SMEs) are struggling to keep up with the changing market landscape. Digitization has completely transformed day-to-day operations, and if done correctly, it can improve efficiency many-fold.
SME development is an integral part of the manifesto of the current Government. This showcases how much the government recognizes the important role of SMEs in economic revival. However, for SMEs to truly grow, digitization is a necessity.
Some of the key digitization challenges are outlined below:
Lack of Digital Tools
SMEs are facing difficulty with regards to meeting customer demands. The necessity of immediacy and accuracy are the things that are improving customer retention.
Digital transformation is no longer a novelty nowadays. Failure to innovate is leading SMEs to fall by the wayside. In most of the business, lack of visibility into team member’s skill-set often considered as the biggest challenge faced by SMEs when undergoing a transformation— as is lack of time and consistency. These challenges faced by SMEs are best tackled through the use of technology
By adopting Enterprise Resource Planning (ERP) Systems, leaders can have a bird’s eye view about the ongoing processes in their particular organization.
Lack of Digital Talents:
The factors of increased competition, and workforce shortage have become the key challenge faced by SMEs in their quest of digital transformation. Hiring and training the right talent, which also has the required skill-set is a huge challenge for SMEs, especially if they have financial constraints.
The Digitization process can be a nightmare if you don’t know what you’re doing. Every day there’s a new acronym and a new tool to understand and utilize.
Therefore, finding qualified talent who has been involved in sales, PR, and e-commerce can have long-term benefits as compared to hiring digital talent that has experience in just a digital-related position.
Absence of the Agile Mindset
Many SMEs are still stubbornly clinging to older, more traditional methodologies, and ignoring the massive advantages that can come from newer, faster practices.
For business owners that are eager to thrive in this age of rapid change, they must be bold enough to reinvent their business models and embrace technologies.
The Agile method is the new way to document, and conduct your business.
Loss of intellectual property is among the top concerns for businesses looking to build their customer-base online. While the concern for cyber security may be present, the follow through to ensure protective measures is often absent.
SMEs have a competitive edge in this regard, as they have a greater level of agility and flexibility when compared to larger organisations.
As part of digitization effort, SMEs should be more vigilant and take steps to implement their cyber security defenses. Ensuring that there is a comprehensive recovery strategy that is effective against evolving cyber threats is vital for SME growth in the new age.
Start your journey for Digital Transformation with the help of a free advisory consultation with Prudential Solutions. Get in touch with us at firstname.lastname@example.org