As an entrepreneur, executive manager or someone in charge of sales and marketing of a small or medium enterprise you would surely have come across terms such as "digital transformation in business", "the digital age", “digital transformation technology” and many more.
As a business owner, you might not be a techie or nerd, and may even sometimes feel overwhelmed by all the new technological advances that are popping up. We understand these challenges. Ultimately you run your business and that's what you are great at doing.
But within all these technological advances are opportunities to take your business to the next level. We therefore believe that small and medium enterprises need a partner. Someone who is at the pulse of the tech world. And someone who can act as a trusted advisor to work out a growth strategy and enable new growth opportunities with modern, easy-to-use technology solutions.
That's what we do at N3 Services. We're a partner and advisor. That tech stuff is our game and we are passionate about making that grow your business.
In this article we want to unpack what it means to digitally transform your business. And more importantly, some of the opportunities that could take your business to the next level.
Put simply, digitization refers to the transformation of analogue data into digital data.
Analogue data refers for example to your handwritten notes in a physical notebook, your measurements, calculations, quotations, proposals, or invoices written on paper.
Digital data on the other hand, refers to computer readable, and processable data. For example, your notes in a word processor like Microsoft Word or similar, or your measurements and calculations in a spreadsheet such as Microsoft Excel or Google Sheets.
You can still find those books of sequentially numbered quotation, invoice, or receipt templates in the local stationary stores. The fact that they are still there, means that there are still people who buy them. That’s people who have not yet digitized their business.
Digitalization refers to a process, rather then just data. A process is a series of defined tasks which convert some input into an output, and thereby add value. For example, the process to replenish your inventory stock.
Digitalizing such a process, means on one hand, that data is digitized, and that we introduce technology into the process. The objective could be manyfold from automating some or all the steps in the process to reducing costs, reducing the time it takes to execute the process or ensuring a consistent quality, just to name a few.
In the example above this could look like this. The inventory system automatically recognizes when stock on hand falls below the minimum inventory levels and raises a purchase order with an integrated supplier. Once goods and invoice are received and confirmed into the system, the payment is automatically scheduled and executed in accordance with the stored payment terms with the supplier.
Digital transformation takes digitalization further. Digital transformation employs emerging digital technology to create new business processes and new customer experiences, which wouldn’t otherwise be possible.
Fully digital banks, such as Revolut, Bank Zero or Thyme are examples of digital transformation. They do not operate branches across the country as traditional banks would have. Instead you can bank locally, or internationally around the clock from your smart phone. You can open or close account, create or disable virtual payment cards, convert currencies etc. with a few clicks on your smartphone from any place and any time. These are services and experiences which were traditionally unthinkable.
Digital transformation strategies and projects can be hugely complex, and costly too. But they don’t need to be.
As an owner or manager of a small or medium enterprise you shouldn’t resign from digital transformation because of the perceived or potential complexities it may bring. You would be losing out on an array of opportunities that could grow your business further. Moreover, you’d be losing out on being part of the future the world is headed to. And being part of that future, is essential for your business to prosper.
With the right partner you can craft a digital transformation strategy and project that is tailored to your unique needs and ambitions and fits your budget.
In the next section we want to introduce some easy options you should seriously consider for your business to take advantage of the opportunities a digital future offers.
A website is one of the simplest ways to present your business in the digital world. You might already have one, which you built yourself, or someone has built for you some time ago. If you already have one, you should ask yourself:
If you do not have a website yet, or are unsure about any of the above, you should engage your digital transformation partner. This is usually a low hanging fruit you should grab to reach more potential customers and drive more revenue.
But just putting a website on the net, will unfortunately not do the trick yet. There are around 1.14 billion websites across the world-wide-web at the time of this article and this number is growing every second. You are not alone out there in the digital space, and if not done correctly, chances are, that winning the lotto is more likely than your customers finding you.
For a website to be of high-quality, solid performance and standing out for the right audience, requires a professional approach. Both in terms of the technical architecture of your site as well as the content you are putting out there. We have summarized some of the most important aspects in a separate article here.
The bottom line is, if your website project is not approached in a holistic and professional manner, your investment is likely not going to pay you the return you deserve.
If websites are not your domain, we strongly advise that you engage a competent partner to support you in making the project a success for your business.
On a last note, over 80% of all websites are not active, and out of the rest many are not regularly updated. Your website should therefore not be a once-off purchase. It should be a continuing partnership with someone who supports you to keep the site up to date and up to the latest standards as technology changes. Otherwise, it may soon disappear in the big black hole of inactive websites on the net.
This is often also a low hanging fruit you should consider. Your online footprint represents your brand and how your clients and potential clients perceive you and your service. It is thus important that you manage your online presence to ensure it accurately reflects what you stand for and want to represent.
Depending on how you are managing your online presence, you might even be surprised how much about your business is out there, which you are not aware of. If that’s the case, it’s high time you take control.
Reputation Management is critical for your success in the digital space. You should be in control of what people say about you. If customers leave negative reviews about your products or services, you should respond quickly and offer a channel to resolve the issue. It shows prospective new clients that you care and take pride in your service or product. Equally, you should acknowledge positive reviews and compliments people publish out there.
You should also ensure your listings are consistent across all business listing sites. It makes it easier for people to find and identify you. If different contact numbers and email addresses appear across different listings, your potential customers are more than likely never going to get in touch with you.
Managing social media accounts and placing online adverts can drive a lot of valuable traffic to your website, get you in touch with new clients and ultimately boost your profits. It is however important that your social media posts and engagements are relevant across the various channels and consistent with your brand and the services and products you offer.
You should also track your online advertising spent and the returns you are achieving. Digital processes generate invaluable data, which can help you to improve and optimize your advertising strategy and approach and get the best returns from your budget.
With our Client Business Centre, you can conveniently manage all the above in one central place.
You can link your social media accounts, schedule posts across multiple platforms, and centrally manage all your business listings, customer reviews and responses. And you can access your online advertising intelligence to compare your digital add performance across Google and Facebook and compare their returns on your investment. It’s an easy and simple step to manage your presence and reputation in the digital space. And it’s entirely free.
Mobile applications have been growing by more than 25% year on year over the past years. It is something you should seriously consider in your digital strategy.
The growth of mobile applications is mainly the result of the smart phone penetration across society, which has grown tremendously. At today’s smart phone saturation, it is very likely that all your customers have a smart phone and are used to interact with mobile apps. This provides you with virtually endless opportunities to revitalise your customers’ experience and your engagement with them. And it can also introduce substantial productivity gains and cost savings into your business.
Let’s assume you are running a restaurant in the traditional way. People call a number you have published somewhere to reserve their preferred table or order their take-away or delivery of their food and drink choices.
With a mobile application, people can book their table, order their food and even pay you straight from their mobile phone, 24/7 from any place, whether you are open or not, busy on another call or otherwise unable to attend to their call for a service. This is not only a more contemporary experience for your customers to engage with you but boosts your productivity at the same time.
Remember, whilst the customer is calling you, both their and your time is consumed to convey their service request to you, and you still need to capture that somewhere into your booking or ordering system. If the customer does it all from his or her smart phone, your time is freed up to be used for other more value adding activities.
You can also engage with your customers through the app, increase your customers’ loyalty to your business and increase their return frequency. Your app could include loyalty stamps which customers can collect and redeem for a discount voucher or something similar.
You can announce your specials, or special events to your customers via push notifications on their smart phone. Your customers can then book their table with you and even pre-order their preferred meals or drinks. The app will directly contribute to your bottom line.
Let’s look at an example. If you have 500 customers who have downloaded the app, you can run your special campaigns directly to them on their phone, via a push notification. If only 5% or 20 people take up the offer, and your average customer spends $20 per visit at your establishment, then your app campaign generates around $500 of revenue for just 1 push notification.
This is just one example for a restaurant. But the same principle applies to any business and the opportunities are literally endless. Apps are extremely adaptable, and fully customizable to your business needs, regardless of the industry you are in.
If you choose the right partner, mobile applications can completely revive they way you do business and how your customers engage with you.
At N3 Services we have collectively nearly half a century of experience in process re-engineering and best practices coupled with our cutting-edge technology solutions and ongoing support to assist you. Enabling your business to grow, is our mission.
Once you have decided to pursue some digital transformation opportunities, you probably need to decide whether you do it yourself, get someone to help you or a combination of both.
Do-it-yourself is an option if you have the skills, competencies and above all, the time, to not only design and build your desired technology solution, but also to maintain it in the future.
If this is not your core business, seeking help is generally better. And if you factor in the opportunity costs, of what you could have earned whilst spending time on the development and maintenance of your tech solution, it is more often than not, more cost effective to seek professional help.
When you consider professional assistance, we strongly advise that you are not just looking for someone to assist you with your immediate need, but someone you can also count on tomorrow. That’s what we mean with a partner. It’s a partnership over the journey of your digital transformation and growth path.
Other suppliers might initially be cheaper but may not be in the long run. It is important to set things up right from the beginning with your growth plans and vision in mind. Your solution should be scalable and adaptable as your business grows and its needs change. Also, technology changes continuously and for your solution to deliver the expected performance it must keep up with these changes, adapt and evolve within its wider ecosystem, and thereby also enable new emerging technology for your business’ benefit.
For a small and medium business this can quickly become overwhelming, consume too much time and effort to attend to, and eventually lead to frustration and resignation. When you work with a partner, who shares your digital strategy and vision, this should not happen. You can focus on your core business, the stuff you are the master off, and leave the technical stuff to a partner who supports you along your digital transformation journey.
There are a few things we recommend that you should look out for when choosing a partner for your digital transformation journey.
Kicking-off a project to create something new is always exciting and full of many expectations. This phase of initial excitement, or as we call it, the initial “honeymoon”, will generally soon subside once work is underway.
To avoid disappointment and frustration as work continues after the initial honeymoon, it is important that the initial scope of work, the objectives and expectations are clear to both you as the business owner or responsible manager, as well as your partner on the project.
A good partner should act as an advisor and provide you with competent guidance on the feasibility and limitations of the project’s scope and objectives. It is important that what you agree on is realistic and achievable within a time frame that is reasonable.
Ensure that you have a clear understanding of what the intention of your project is and that you receive competent advice from your partner with regards to the design, implementation, and future maintenance of the solution. That initial mutual agreement and understanding can save you a lot of frustration, and money.
Your partner should have a good understanding of the complexities relating to your project’s development and implementation. One of the best approaches to managing complexity is to break the total scope down into smaller chunks.
In most cases “big bang” approaches tend to be less successful then a structured and phased approach. Trying to develop and implement all at once can often push your project beyond the budgets set aside for time and money.
It is generally better to break the scope up into phases and then agree on a phased approach to reach your end goal. Your partner should advise you on how to best structure the development, testing and implementation of the components that make up your project and ultimately achieve your goal.
Some partners tend to be overly optimistic and keep promising anything the customer wants to avoid losing the business. This is very risky for both you and your partner. Such projects often derail and never get implemented properly to no-one’s satisfaction.
Be cautious when your partner seems overly optimistic. As stated above, your partner should be an advisor who guides you in the planning and execution of the project to ensure a successful outcome.
As the initial phases of your project are delivered and you start experiencing the functionalities of your emerging digital capabilities, you might have many new ideas about what one could do in addition to the initial scope and agreement.
Your partner may also come up with proposals on how the solution could be enhanced and improved to provide users with a better experience. A good partner is at the pulse of developments and emerging trends and can advise you how this could benefit your project.
Such improvements are extremely valuable to your digital transformation and the growth of your business. However, they can also jeopardize the success of your project. It is important that you and your partner manage the pipeline of changes to the original scope carefully.
It is generally better to launch an initial version of the solution that meets the originally agreed scope, and then upgrade the solution as you go along. It is better to continuously improve a good solution that is working and delivering results, than continuously trying to perfect a concept that is never going live.
Again your partner should advise you on the best approach to manage changes, and prioritize the changes with you based on their costs and benefits for your business.
Your journey does not end after the solution is implemented and live. Technology is being upgraded all the time and your solution needs to adapt to these changes to remain operational, relevant and deliver results. Your solution needs to be maintained and where necessary upgraded to the latest standards.
Most small and medium-sized businesses don’t have internal technical resources to manage digital solutions. Your partner should be available and support you beyond the implementation and go live to make sure your digital products are working optimally. It let’s you focus on your business and its new performance, which technology has enabled, whilst having peace of mind that the technical aspects of keeping things running smoothly are taken care of.
Inevitably, you will have to manage some features yourself, such as announcements of a special event or promotion or updating certain content on your business profile or website. Your partner should give you options how much you want to do yourself, and how much you want to outsource as a service.
In addition, your partner should empower you with intuitive tools to manage your part of the solution. Little is more frustrating than having a great digital product, which is difficult to use and manage. Ask your partner to demonstrate you the tools and solutions he has available to help you managing your digital products once they are up and running.
Hopefully by now we could show you that there is no reason to feel overwhelmed by the rapid technological advancements that shape today’s business landscape. Most importantly, there is no reason why your business should not benefit from these developments and the opportunities they provide.