4 Digitalisation Advantages for Small Businesses

Today, digitalisation is a buzzword for businesses, but it is also a long journey that can face resistance from employees and stakeholders alike.

Nonetheless, forward-thinking small businesses are optimistic about the impact of digitalization on their bottom lines.

## 1. Customer involvement A sizable proportion of consumers are digital natives, and their numbers are rapidly growing. Naturally, businesses with an online presence have an advantage when it comes to appealing to this specific demographic.

However, digitalisation extends beyond simply creating a company website, Facebook page, or Instagram account. The magic of digitalisation is in the data it generates. Digitalisation generates insights that assist businesses in better understanding their customers and determining the effectiveness of marketing campaigns.

This is especially useful for small businesses with limited marketing resources. Online advertising is less expensive than traditional newspaper or magazine advertising. It is also more targeted. Businesses can target different types of customers based on their age, location, and preferences.

Web data gathered from customer interactions with your online assets can also provide valuable insight into who your customers are and what they like about your company.

## 2. Process optimization When asked to name the most important benefit of digitalisation, one-third of those polled said they wanted to improve the efficiency of their business operations.

There are numerous cloud services available on the market that can assist businesses in managing workflow, easily accessing data, and consolidating key applications. Previously, these programmes were only available to larger organisations that could afford hardware and internal IT teams.

"What was previously reserved for large companies with large budgets is now available to businesses of all sizes thanks to the cloud," said Mr Gerald Leo, Director for Commercial Partners and Small Medium Enterprise Group at Microsoft Singapore.

## 3. Product and service transformation Based on direct feedback from customers, digitalization could open an owner's eyes to new revenue streams and improvements to current products.

These insights may ensure the longevity of a business by allowing you to meet changing customer expectations. You can increase customer satisfaction through service improvements by remaining attentive to your customers' needs.

When it comes to transforming products and services, it could be as simple as using accounting software to generate an invoice automatically. The next step could be to add an e-commerce function to your company's website or to improve a product with an app.

## 4. Employee empowerment Employees' time can be freed up from manual processes, allowing them to focus their efforts on activities that will help the business grow. Employees and managers who are resisting digitalization may simply require direction. Going digital may appear to be a difficult task without training and know-how, especially for older employees.

Internal programmes and briefings that explain why digitalization is required can help calm nerves.

Small businesses can also apply for grants, such as the SMEs Go Digital programme run by the Infocomm Media Development Authority. They should also go to the SME Digital Tech Hub to learn about new technologies like artificial intelligence.

Every company's journey to digitalisation is unique. It is critical for businesses that have not yet taken the first step.