4 phases of digital transformation

Digital transformation is a process that begins with an internet presence and is consolidated with the automation of operations.

Many SMEs believe that only online stores need to make their digital transformation. Confusing electronic commerce with the concept of “ebusiness” or digital company is a very common mistake.

“When we talk about a digital transformation, we are talking about a much broader concept than simple electronic commerce,” explains Luna, who has been advising SME owners on strategic decision-making for more than 10 years.

One of the reasons for this confusion is that digital transformation is a very “ethereal” concept for SMEs, who see it as something distant or ambiguous. "Today everyone is talking about digital transformation, but the big question for the owner of the SME is how to land it, what it is and what it implies," he questions.

In an interview with SME Expert, Luna clarifies what digital transformation is and what it is not, as well as the objectives that SMEs could achieve with this type of modernization.

                         

1. What is digital transformation?  

“Basically, the digital transformation must consist of digitally transforming three major functions or major aspects of the SME. This is so that the owner of the SME can land it and can perceive it within his day to day.

“In a first phase, it is the so-called digital presence. Nowadays, to be close to the market, to be able to make yourself known in the market, you need an important digital presence. Today, if you are not on the internet, you do not exist. It's that easy, if you're not on the internet, you don't exist. Therefore, you need a digital presence, which goes far beyond having a website.

“In a second field is what is the digitization of processes. All your internal processes in the company, in the SME, you have the sales process, the operational process, the customer service process, the collection process, etc. You, as an SME, should focus on the digitization of these processes.

“And in a third aspect is everything related to automation. You have to make sure that all this digital presence and all this digitization of processes is integrated into automation.”

2. Sometimes it is thought that digital transformation is only for e-commerce or technology companies...

“It's good that you touch on the subject of e-commerce because when we talk about the concept of e-business we are talking about a much broader concept than e-commerce. Basically, e-commerce is the act of selling or trading online. It involves a part in digital presence and the online sales process, but it is only one of the processes that the company.

“So when we talk about a digital transformation towards an e-business or electronic business , we are talking about a much broader concept than simple electronic commerce”.

3. How does this transformation contribute to combating the mortality of SMEs?

“The common denominator of this entire process of digital presence, digitization of processes and automation is the generation of information.

“The business environment is changing at an impressive speed. Therefore, as an SME owner or as an entrepreneur, what I need is to have the information as quickly as possible to be able to interpret what is happening and make decisions accordingly.

"Then the ultimate goal of this digital transformation is to be able to count on timely , fast and accurate information that allows me to make decisions almost immediately."

4. You have been working with companies for many years. In your experience, what are the typical problems or challenges of Mexican SMEs?

“Definitely, with so much time working with SMEs, a reality that I have seen is that the owners of SMEs live it in the operation. They put on the hat of business operations director and often lose sight of putting on the hat of general manager.

“And in their role as CEO they should be reviewing indicators, reviewing information, defining strategies and making the decisions they consider appropriate for the success of SMEs.

“Then they get involved in this operation, on a day-to-day basis and suddenly -when they least expect it- the competition has already taken them away, the market or the needs of the market have already changed and it is already too late for them to react to the change in the environment”.