Digitalization and digital transformation

Digitalization and digital transformation: how SMEs are shaping their future

"We've always done it this way." If this sentence was once a sign of experience, it is now a warning signal. After all, the digital transformation has long since become a reality. Large corporations have been investing in the digital transformation for years. However, small and medium-sized enterprises (SMEs) in particular are facing the challenge of keeping pace.

Digitalization not only harbours risks, but above all great opportunities. The potential benefits are manifold and range from greater efficiency and flexible working methods to improved customer loyalty and even new business models.

It is essential for SMEs to establish digital structures in order to remain fit for the future. After all, technological leaps and crises are a constant part of everyday life. But how can this be achieved? And which technology is the key to digital transformation in SMEs?

Digitalization and digital transformation: definition and differentiation

Digitalization and digital transformation are not the same thing. A definition helps to understand the difference:

• What does digitalization mean? Digitization refers to the process of converting analogue information into digital form. This includes, for example, the scanning of documents or the use of digital tools to support existing processes.

• What does digital transformation involve? Digital transformation goes much further: it describes the far-reaching change in business models, processes, products and corporate culture based on digital technologies. It is therefore not just about new tools, but about a holistic new way of thinking.

Many SMEs confuse digitalization with digital transformation, but it is essential to differentiate between these two terms. Those who only digitize existing processes are not exploiting the full potential that theoretically lies in this change. Transformation means questioning processes, redesigning customer experiences and strategically realigning the company, all on the basis of digital possibilities.

What challenges do SMEs face?

The hurdles that SMEs face are manifold. There are technological, organizational and cultural stumbling blocks. These include outdated IT structures, an inconsistent database or unclear responsibilities that slow down the transformation. Change is also culturally challenging, for example when employees are afraid of change or management fails to communicate a digital vision.

In addition, SMEs are often affected by a lack of resources. Unlike large companies, they often do not have digital teams. There is a lack of IT specialists, budgets for modern solutions or simply a lack of time to deal intensively with digitalization. The result is a lack of digital strategy, which leads to frictional losses or isolated solutions that ultimately do more harm than good. Processes are then digitized but not transformed. A long-term roadmap is necessary in order to proceed in a targeted manner.

In addition, the jungle of tools is overwhelming, as the market offers countless software solutions. From CRM systems and project management tools to AI-based analysis platforms, companies are spoiled for choice. But which of these tools are really relevant?

Without a strategic orientation, the multitude of tools can be more confusing than really helpful. IT security and data protection are also key success factors in digital transformation. SMEs in particular often underestimate the risks, which range from cyber attacks to data protection violations. Sustainable digitalization therefore requires secure infrastructures, clear access rights and a basic understanding of regulatory requirements.

New mindset as the key to transformation

A new mindset is an important key to achieving transformation. This includes several aspects:

• The right "digital mindset": Technology is only the tool, the basis for change lies in the mindset. A digital mindset means openness to change, the willingness to experiment and the readiness to put customers at the center of everything you do. Without openness towards technology, it is not possible and change can only succeed if the mind is ready for it.

• The role of leadership and corporate culture: Managers should act as role models when it comes to digital transformation. They should communicate visions and actively support change. Transformation can only succeed if the corporate culture is geared towards innovation, learning and openness.

• Involve employees: Even if change begins at the executive level, the employees are the ones who carry it forward. It is therefore essential to involve them at an early stage, take their fears seriously and provide them with the necessary skills. After all, change management is a critical success factor and more than just a nice try.

The managed digital workplace as a key technology

The digital transformation for SMEs can succeed with a managed digital workplace. A managed digital workplace is a centrally managed, cloud-based working environment that provides all the tools, data and security mechanisms that employees need for their daily work. It combines communication and collaboration solutions, access to company applications, security features and device management in one holistic system.

This technology offers numerous advantages for SMEs. These include

• Security thanks to centralized updates, access controls, backup systems and security guidelines. Sensitive data is thus reliably protected.

• Scalability, as new employees or locations can be integrated quickly. This solution is therefore ideal for companies that are growing, as their system remains performant.

• Efficiency, as processes are standardized, which increases productivity and reduces manual effort. IT failures also occur less frequently.

• Mobility, as employees can work securely from anywhere. This is ideal for hybrid working models as well as for home office solutions.

As a managed digital workplace is managed by a specialist provider, the internal IT of SMEs is relieved of operational tasks. This frees up capacity for strategic issues and allows them to focus on other things.

Five steps to digital transformation

SMEs can take the path to digital transformation in 5 steps:

1. inventory & target definition

The process begins with an analysis and SMEs need to ask themselves: Where do we stand? It is important to clarify which processes are running how and what weak points there are. The digital goals the company is pursuing should also be recorded. Only those who know where they stand and where they want to go can develop a suitable digital strategy.

2. selection of suitable technologies and tools

Suitable technologies that can contribute to the digital transformation are then identified based on the objectives. Everything from collaboration tools to automation solutions can be helpful. It is important that these are not introduced in isolation, but are embedded in a holistic concept.

3. training and involving employees

New tools are of little use if they are not accepted and understood by employees. Training should therefore start at an early stage and employees should be actively involved in the selection process. This increases acceptance and, in the long term, productivity.

4. rethink processes and not simply digitize them

One mistake that companies often make is to simply digitize analogue processes 1:1. The key to a successful transformation is to fundamentally question existing processes and then redesign them. The focus should be on simplicity and efficiency, with the benefits for customers at the center.

5 Remain agile thanks to continuous development

Digitalization is not a project that is completed on a specific day, but a continuous process. New requirements, technologies and customer needs require regular adjustments and SMEs should be prepared to develop in an agile, flexible and continuous manner.

Digital resilience as a competitive advantage

By strategically positioning themselves digitally, companies benefit from greater crisis resilience thanks to their digital infrastructure. After all, cyberattacks and market changes are not uncommon and the global Covid-19 pandemic in 2020 has shown how quickly everything can change. Companies with a digital infrastructure can react faster, enable their employees to work remotely and have the opportunity to flexibly adapt their business models. A digitally well-positioned SME can offer employees more flexibility, experience greater efficiency in their day-to-day work and work in an even more customer-centric way thanks to digital channels. In a volatile market environment, this is a decisive advantage.

The role of the partner: why external support is crucial

Digital transformation is much easier with an experienced partner at your side. Providers such as Dinotronic not only have the necessary technical expertise, but also a deep understanding of the challenges faced by SMEs. Dinotronic's Managed Digital Workplace provides companies with a secure, scalable platform that steers their work in new directions. Dinotronic provides companies with holistic support during the transformation, both during the initial analysis and during implementation in operations and beyond.

The advantages of a holistic service approach are obvious. Customers benefit from advice and receive support with strategy development, technology selection and change management. The fast and smooth introduction of the solutions is also part of the service. During operation, proactive monitoring, regular updates and 24/7 support ensure stability and security. Regular reviews, training and constant further development also promote continuous growth.

Conclusion: digitalization is a strategic necessity

Digitalization is no longer a field of experimentation, but a strategic necessity for SMEs that want to remain competitive in the long term. However, real transformation requires more than just the right technology. It requires a new way of thinking, clearly formulated goals and competent support.

A managed digital workplace can become the cornerstone of the digital infrastructure. It makes work secure, efficient and ensures that an SME is more competitive and future-proof. With an experienced partner like Dinotronic, SMEs can successfully shape their digital journey.

Are you ready for the digital transformation? Contact us and discover how a Managed Digital Workplace can transform your business.