How can you successfully achieve the digital transformation of your SME? Here is some advice from Marc K. Peter, author of a recent guide on the subject.
Integrating digital technologies to optimize operations, enhance decision-making, and strengthen competitiveness—these are the principles of digital transformation. For small and medium-sized Swiss enterprises, this technological shift holds crucial significance, as it provides them with the opportunity to remain relevant and competitive.
What does digital transformation entail? How does this concept differ from digitization?
Marc K. Peter: Digital transformation refers to a comprehensive process of change with the goal of preparing an SME for the digital era. The aim is to introduce models, products, and services to the market with the assistance of IT tools and digital marketing. On the other hand, digitization aims to optimize and automate business processes. It is thus part of an overarching digital transformation.
Where do Swiss SMEs stand on this matter today?
Peter: Our research shows that only 50% of Swiss SMEs conduct an annual market analysis that also takes into account new technologies. Barely half of Swiss SMEs have developed a digital strategy or a digital master plan. However, SMEs have the ability to test cloud-based technologies much more quickly than large companies and can establish themselves in the market amidst competition. SMEs should exploit the potential of digital technologies more and contemplate how they could strategically use data for the future use of artificial intelligence.
What is the purpose of the "Digitaler Masterplan für KMU" guide that you recently published?
Peter: This practical guide summarizes the key findings of research on SMEs in recent years and offers a five-step method as well as a practical workshop design canvas. Seven action areas of digital transformation, including customer orientation and the use of data and new technologies, are explained with numerous examples and two case studies. Checklists and workshop models then enable SMEs to independently develop a master plan and digital strategy to implement their digital transformation.
What are the main opportunities of digital transformation for an SME? Is it a process applicable to any business?
Peter: Yes, every business, regardless of size or industry, can embark on digital transformation, for example, using the workshop canvas presented in the guide. It allows for reflection on new digital channels for customer requests, as well as how to use data for digitization and the development of products and services, and automation of marketing for more effective communication in the market.
And the major challenges in this regard?
Peter: According to our studies, the biggest challenges facing SMEs are the lack of time to implement a strategy and a lack of specialized knowledge. The manual aims to fill these gaps and provide SMEs with essential tools in a simple and understandable manner. The book also shows how collective knowledge and employee experience can identify potential for new digital projects. In many cases, employees know exactly what the SME could do to improve.
Where should a company start?
Peter: The first step is to discuss the seven action areas of digital transformation in one or more workshops using the book's checklists. Ideas and project proposals from these meetings should then be structured, discussed, and prioritized in a workshop organized with the management. The goal here is to assess whether the SME has identified market potential and whether it has the necessary resources (time, staff, and money) to carry out digital projects. The projects selected by the management should then be documented in the digital master plan, which will serve as a digital strategy and a planning and communication tool for the next two or three years.
Any advice for an entrepreneur looking to embark on or deepen the path of digital transformation?
Peter: It is imperative to plan digital transformation with employees and, ideally, with customers. It is also important to find a strong technological partner who can share their experience and knowledge with the company. Finally, it is worth investing in ongoing training for employees to anchor digital skills in the company so that the transformation can be successfully implemented.
