Digital transformation - or optimizing the use of data - remains a headache for many SMEs. Especially in the process and manufacturing industries, established companies find it difficult to let go of old and familiar practices. However, this issue also affects the service sector. "It has been working well for years" is certainly no longer a guarantee that business processes or products will meet future requirements. Customer needs are changing, and they also have different expectations for interactions with suppliers. Automation, robotics, and artificial intelligence are revolutionizing the efficiency of business processes. Those who understand this and innovate can participate in this revolution and gain a competitive advantage.
Digitized business processes offer the opportunity to collect much more data about those processes and analyze where delays occur. By gathering data from customer interactions, you can anticipate changing needs earlier and respond accordingly. Well-structured digital processes are also flexible and can be easily adapted to changes.
The benefits are clear. However, when digitally transforming a business, there are quite a few dangers and challenges to consider.
- Delay: Don’t put off starting until tomorrow; digitalization is a process that takes time. Trying to move too quickly is a recipe for failure, as the organization might not keep up. However, waiting too long to start the project increases the risk of losing customers and revenue.
- Human factor: Change is challenging for many people and often evokes resistance. Digitalization and the shift to autonomous or semi-autonomous processes pose a threat to employees on the shop floor. Involve them from the very first steps of the process. Engage in dialogue to understand their perspectives. Explore how their current work is structured and discuss the proposed changes. Take their experiences and feedback seriously, and incorporate them into the transformation plan.
- Lack of insight: Inventory and analyze all business processes. In many organizations, it's not clear exactly what is involved in delivering products or services. Review everything and document this information meticulously, preferably with the help of an external expert experienced in such processes.
- Fear of innovation: You know what you have, but especially with radical innovation, you don't know what will happen. Transformation requires significant investment, both financially and in terms of manpower. If the organization is currently performing well, it's tempting to leave things as they are. However, standing still is not an option in this era of rapid change. Conduct research, talk to industry peers about their experiences, and try to overcome that reluctance.
- Unfamiliarity with the range of digital solutions: When you don't know what's possible, you also don't see what can change. It is crucial to evaluate the options at the beginning of the journey for opportunities and risks.
- Insufficient digital skills: Many entrepreneurs are dissatisfied with their own abilities in handling data. Digitizing means more data. The prospect of a growing mountain of data can be daunting. Invest in modern software for data management and analysis and seek help in setting it up. Data engineers and data analysts can set up the right dashboards to make crucial decisions. With no-code and low-code software development, it's increasingly easier nowadays for experts in content or management, even without extensive programming experience, to create new dashboards.
- Staff shortage: The tight labor market affects organizations in two ways. A shortage of employees engaged in operational tasks is just one reason to take digital transformation seriously. It leads to more efficient processes, thereby relieving employees. It usually makes their work more interesting because digitization and robotization can help reduce the number of repetitive tasks. However, experts needed to guide digital transformation are also scarce. All the more reason not to hesitate to launch the digitalization project.
- Lack of financing: Transformation will require investment, but ultimately yields significant benefits. Improved efficiency leads to cost savings, and well-digitized processes enhance customer satisfaction and loyalty. Enhanced understanding of internal processes provides management with greater control and improves organizational agility.
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At the upcoming Data Expo, interesting solutions and products will also be presented for SMEs. At the Jaarbeurs on Wednesday, September 11, and Thursday, September 12, you can gain essential knowledge, explore technological possibilities, and establish valuable contacts to take new steps forward. And not just in the realms of AI or Cloud: attending Data Expo helps you find answers to all your data-related challenges. Visitor registration is free and can be done here.
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