Agencies, consultants and service providers have been announcing the digital transformation for years. For all those who think it’s just a trend, here are some provoking thoughts which might give you a new impulse.
Digital transformation is for everyone!
Did you already start with digital change? Just a little bit? Then it’s about time to move on. As a recent study by InterSearch shows, competition is not asleep: 81 percent of German SMEs state that the digital transformation has been largely implemented in their companies. 28 percent of the companies have their core business completely converted to digital processes
These figures prove that digital transformation is more than just a recent trend. It is already a reality for many people and is seen as a bridge to the future. It does not matter what size the company is. Digitization is for everyone. That is why the last stragglers should now also become active and take advantage of the various opportunities.
Practical example: There is a lot to learn from trading companies
OTTO, known as a major mail order company, changed its business model at an early stage and digitized it. In the meantime, the traditional company has become one of the three top-selling online retailers. The list is headed by AMAZON. The young company ZALANDO is ranked 3rd. Everyone knows the TOP 3 and has something to do with them today. Despite the American origin of AMAZON, the digital offer has made sure that this company has changed the market permanently.
As a result, small and medium-sized businesses are put under pressure in many areas with digital products and services from the large corporations. In addition, purchasing behavior is changing. This is evident, for example, in the customer’s emancipation to inform oneself about products and, above all, prices. This applies to both B2C and B2B. Purchasers in the company also use the Internet to search for suppliers and to compare prices. In addition to the digital services of the big players, more and more start-ups are putting the medium-sized businesses under pressure. The reason for this is, on the one hand, new offers that meet the digital wishes and requirements of the target group. On the other hand, start-ups are convincing with a new approach that addresses the following three questions:
- How can I offer the same quality products at lower prices?
- How can I make the product attractive to my generation?
- And how can I address the young decision-makers in my target group in a modern way?
The answers to the above questions will be found in digital technologies and digital processes. They will base their corporate strategy and structure on this digital foundation and thus achieve a high degree of automation, which will have a positive effect on fixed costs in product calculation. With lean, ERP-supported business processes, the innovative company keeps administrative costs low. To survive in the marketplace in the future it will take the following:
- low process costs
- innovative (digitalized) products
- modern marketing
It is important to work continuously on these points. The first step is the development of a digital strategy with the development of digital business models, the development of digital potentials for existing products and the development of digital market and customer access. Any company can make these considerations. The answers to these questions are individual and form the first step towards keeping pace with tough competition.