10 Reasons why Small Businesses should Invest in Digitalization
As of January 2021, there were 4.66 billion active internet users worldwide – 59.5 percent of the global population according to World Bank statistics. Of this total, 92.6 percent (4.32 billion) accessed the internet via mobile devices. This being an incredible milestone for the modern world, no sector wants to be left behind. 60% of small businesses that have undergone a digital transformation have created new business models. 55% of startups have adopted a digital business strategy, compared to 38% of traditional companies. 89% of all companies have already adopted a digital-first business strategy or plan to do so. Technology has enabled small business owners to leverage limited capital in smarter and more effective ways. In some cases, using technology provides greater efficiency and versatility, making it a natural progression for processes you may have in place for your business.
In many ways, small businesses are now investing much of their operational costs towards digital transformation. Digitalization has brought together a convergence of performance, where more than one task can be handled at a centralized hub. Although in an aerial view we all embrace digitalization as of impact, there are a few business executives who still believe in the traditional ways of operation, and here are some of the reasons why they need to understand by investing in digital migration.
1. Convergence of all markets in the video
Print media, while still relevant, is a less potent force than it once was. Today’s hunger for visual content is inherently digital and to connect with your target audience you have to provide engaging marketing materials that are video-based. Digital channels and touchpoints are the best way to deliver such communications.
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2. Market Taste of New age preferences
In the age of the digital native, analog approaches to promotional as well as internal communication will seldom provide the results you need for success. An average university student in Kenya prefers online shopping to random roadside sell-outs.
3. Age of Smartphones
Smartphones have reshaped everything the world needs by consolidating the market into one focal point of interactivity. By investing in your mobile offerings, from applications to mobile-optimized landing pages and social media content, you stand to accelerate your business’s success in an increasingly digital age.
4. Technology has raised many franchises above average
The vast majority of small businesses across sectors are on the path to digital transformation. If you fail to embrace the digital age and all it has to offer, you could fall behind the pack and risk becoming obsolete in the long run.
5. Eases management of businesses
A good percentage of small businesses feel their CEOs’ practical understanding of emerging digital technologies to be solid or above average. If you feel that your understanding of digital methodologies and technologies in the digital age is lacking, now is the time to upskill.
6. Builds creative business strategies for future
Small businesses often have a belief that the Internet of Things plays a pivotal role in their digital business strategies, with manufacturing and high-tech leading all other sectors. By investing in the power of the internet of things and its business-enhancing benefits, in addition to a host of other emerging digital technologies, you have the greatest advantage of accelerating your commercial success, exponentially.
7. Digital transformations boost revenue
With this being the primary goal of business growth and acceleration, this is a clear-cut case for investing in digital transformation. Every small business’s goal is to achieve maximum wins within the shortest time as it focuses on expanding.
8. Increase in young population attached to digital migration
With over half of the world population being under 30-years-old, there are more digital natives (or indeed, budding digital natives) than ever before. To continue appealing to this new generation of digitally-minded consumers, investing in digital transformation on a continual basis is nothing short of essential.
9. The Covid-19 pandemic necessity
As a necessity, the Covid-19 pandemic made small businesses begin operating remotely. In 2020 and an extension of 2021, most businesses won revenue from their digital interactivity. Without a doubt, digital technologies will become all the more sophisticated in the not-so-distant future. To remain relevant and continue to foster growth, embracing the power of digital is typically now a necessity rather than a far-flung luxury.
10. Reduced cost of marketing
Today’s marketers plan to boost their digital budgets without increasing overall marketing spend, essentially reallocating their current budgets into digital channels. The wealth of digital channels, platforms, and touchpoints available to today’s businesses is on the rise and by investing in such outlets, you stand to enjoy a healthy level of ongoing business success.
It’s clear that digital transformation is the most sustainable means of commercial success today, tomorrow, and long into the future. As a small business owner, this should be part of your itinerary as you focus on achieving some of the goals and objectives of your business. Most traditional firms are slowly undergoing a metamorphosis to meet the demands of the market.
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The biggest advantage small business need to bank on is the existence of faster internet. Lately, a 5G broadband network was introduced in Kenya, at the same time mobile phone manufacturing firms are pushing for gadgets that can multitask easily to save time and any other wastage. Employees can be managed remotely, the workflow can be improvised by the touch of a button, and so much more can be achieved through digital transformations. If you haven’t done so already, you must embrace the unrivaled power and potential of digital transformation now, before it’s too late.
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