It would not be inaccurate to claim that digital transformation has had an impact, in some conceivable way, on almost every single person in this day and age. While this is certainly true for individuals, it is doubly true for enterprises of all sizes and scopes.
How Digital Transformation has Revamped Business Models
In recent times, the implementation of digital transformation in the global business landscape at large has led to tremendous advancements in terms of production and benefit. The business process has also become significantly more streamlined and quick, and the typical company’s practical output has increased measurably.
Business operations in particular have benefitted enormously from digital transformation. What used to take hours, days and even weeks in the past, has been quickened to the point of completion within minutes. Old business models have been scratched out and brand new ones, developed around the new digital infrastructure, have been put into place in companies across the globe, opening up a world of opportunity to the small and medium sized business.
3 Ways in which Digital Transformation Facilitates SMEManufacturing Growth
According to research conducted by the MIT Center for Digital Business, the companies which have already embraced and put into effect digital transformation are up to 26 percent more profitable, as compared to their immediate competitors in the industry. Not only this, but they also have a market valuation that is 12 percent higher. These numbers clearly demonstrate the benefits of digital transformation towards growth and profitability.
But while business models and operations advance with the aid of digital transformation, it is SMEmanufacturing that experiences the most growth.
To that end, following are 3 ways in which digital transformation can facilitate manufacturing growth in small and medium enterprises.
Manufacturing Processes become Digitized
In the literal sense, all the manufacturing that happens within the small and medium sized enterprises begins to operate within the digital infrastructure, and there is minimal human involvement across the manufacturing chain. This serves a dual purpose; as in it promotes additional production and enables the workforce to be dedicated towards expansion and progression into a larger enterprise.
Better Technology Enables Better Output
As mentioned earlier, companies who embrace digital transformation become more profitable. This occurs due to the adoption of better, more efficient technology, which enables higher production numbers, thereby increasing profits and decreasing production time.
Enterprises become Better Informed of their Customer’s Preferences
With the advent of the digital age, enterprises have become better informed of all the big and small needs of their customers. Predictions are no longer necessary, as direct feedback on social media, through surveys and reviews, have helped various small and medium enterprises grow and transform themselves and their operational processes completely.
All in all, the advantages of digital transformation in today’s ultra-competitive marketplace are vast and numerous. For smaller and medium sized enterprises, this means finally being able to compete on an equal plane with much larger entities, and enjoying success at a much more rapid rate than ever before.