strategic.tools

Digitalization of Small and Medium Enterprises

SME’s (Small and Medium Enterprises) go through several stages on their digital journey. The main findings of a Deloitte study* on the use of digital tools in the SMEs segment are made public. A total of 1,000 small and medium-sized business owners, as well as top executives from companies, were interviewed for the report.

According to the survey, fundamental digitization is present in 23% of all enterprises in this area. 41% have a moderate level of internet engagement. A high or advanced level is held by 36% of SMEs. Customers’ engagement grows as a result of digital tools, according to the executives of organizations with a high and advanced level of digitalization. At the same time, such businesses have a fivefold improvement in their chances of attracting overseas clientele.

Companies with a high level of digitization have a better understanding of their customers.

New markets are opened as a result of innovation. There are many more fresh product and service development concepts. According to experts, businesses with a high level of digitalization are three times more likely to penetrate new markets.

Almost all businesses communicate using digital means. Sales management tools are used by less than half of SMEs – 40%**. Email – 75 %, company website – 68 %, social networks – 53 %, video conference – 36 %, and smartphone application are among the most popular digital communication platforms – 24 %. SMEs employ cloud-based technologies for internal management and logistics – 67 %. For these goals, corporate social networks proved to be the least popular – 19 %). Customer relationship management (CRM) tools accounted for 30% of the total, while intranets accounted for 24%, internal software to connect sales and supply-chain processes accounted for 21%, and enterprise resource planning solutions accounted for 20%.

The tools that businesses employ to manage sales are critical. Approximately 40% of SMEs sell their products online. They do this by using websites or marketplaces. 30% of all businesses have their own website. CMEs are sold through marketplaces in 20% of cases. 60 % of internet retailers use client data gathered for their own purposes in order to increase loyalty and revenues. 40% of small businesses sell them in their shops. Internal communications, logistics, and sales management can all benefit from digital solutions, as previously mentioned. Now let’s have a look at the advantages of corporate digitalization. The rise in customer satisfaction is the most favored (60 percent). This can be aided by a more personalized approach, customer service, chat bots, and a variety of other methods. A decrease in operational costs was observed by 22% of CMEs. Attracting new consumer segments, offering products and services, and so on are all major advantages.

The following were identified as the most important tools for attracting customers: the corporate website, social media, CRM, SEO, and a mobile app. All digital technologies are designed to help you earn more money. As a result, the key growth drivers, according to the poll, were existing customers – 61%, existing products or services – 41%, new customers – 80%, and new products or services – 31 %.

by The Editorial Board

^*Final Report, Deloitte Financial Advisory, 2019

^**In brackets is the percentage of surveyed companies that gave positive answer