Five common mistakes when digitizing a business | be where you are

If a business wants to survive in the physical world, it has to increase its presence in the digital world, either to sell more or simply to optimize its production processes. This is a maxim that large companies have internalized in the last two decades, but that many small companies are still assimilating. Almost half of Spanish micro-SMEs (less than 10 employees) and 25% of small companies (those with between 10 and 49 workers), do not have Web pageaccording to data from the Institute of Economic Studies (IEE), an institution created under the auspices of the Spanish Confederation of Business Organizations (CEOE).

Carmen Magpiedirector of European funds at Banco Sabadell, who will participate in the webinar Do you want to digitize your business? Take advantage of the help of the Digital Kit, organized through Banco Sabadell’s HUB Empresa, points out that commerce acts as the backbone and promoter of the country’s social, economic and cultural activity, and that, for this reason, its digitization is vital. Many companies are experimenting with this process, although they are facing economic limitations. For this reason, to promote them in their objective, the State is launching plans aimed at modernizing the sector, such as the Digital Kit Program, which seeks to contribute to the digitization of small and medium enterprises (SMEs)) through grants of up to 12,000 euros from the Next Generation EU European fund.

Alberto Díaz, responsible for alliances and digital transformation for Grupo MásMóvil companies and who will also participate in the webinar, explains that these aids are being vital to digitize SMEs, and highlights the importance of accompanying an expert, such as the bank advisor, on this path, to avoid making mistakes that prevent it from doing so successfully. “Many companies acquire technology, but then they are not able to digitally change the business, an ongoing process in which technology is a necessary enabler, but the key is to totally transform the company,” he says.

These are the five most common mistakes made by SMEs when going digital:

BUG 1

Act without prior analysis

SMEs have the advantage of being able to undertake significant transformations in a short time, thanks to their small size. But to apply these changes well, they must be clear about the company’s capabilities, says María Ricard, a management consultant and expert in digital transformation. “You have to be careful, promote the right leadership, question the business model and work the different areas of the company as interdependent units,” she adds.

Before acting, SMEs must take their time and analyze. To help companies in this task, the Acelera Pyme website, dependent on the Ministry of Economic Affairs and Digital Transformation, offers a self-diagnosis test with which they can find out their weaknesses and request the specific plans of the Digital Kit Program.

BUG 2

Think more about technology than about people

“The digital age is a new attitude, and the main axis of a transformation is not technology, but people,” says Ricard. Today there is much talk of technology as a synonym for change, but it should not be based solely on the acquisition of the latest computer equipment, for example.

“Today’s technology will be obsolete the day after tomorrow. What achieves a real change in a company are the people”, highlights this expert. Therefore, the training of employees is essential so that they remain updated and know how to adapt to innovations.

“It is a process that not only involves the implementation of new technologies, but also the awareness and training of employees in digital skills,” explains Lorena Ramírez, expert professor in SEO at IEBS Business School. The Digital Kit Program allows the hiring of digitizing agents, which are technology companies that help the organization achieve its change objectives.

BUG 3

Seek immediate return

“You don’t have to think how much it’s going to cost digitize the company. The question is how much it will cost not to do it”, summarizes Ramírez. The entrepreneur must assume that the online store, one of the main business showcases, requires some time to take off, it may be that the first quarter the profits are discreet. But this is a long-term change.

BUG 4

Neglect dealing with the customer

Not having the customer in front of you does not mean that you do not have to take care of their experience. Especially after a few years in which potential consumers have become accustomed to buying online and are more aware and critical. “The consumer compares his shopping experience regardless of the sector,” says Díaz.

In an environment in which there are large competitors with good service, such as Amazon or Inditex, SMEs must take care of the details. But it is not about being administratively efficient, the client demands a close and committed treatment from online businesses. “He hopes that the company will be more humane, that it behave ethically, committed and sustainable”, highlights this expert. Something that the Digital Kit Program takes into account since it gives the possibility of acquiring products and advice to improve customer management.

BUG 5

The experience does not end with the sale

Normally the consumer’s journey runs smoothly in the digital realm, but when a problem arises that’s when a company’s reliability and reputation are tested. “In their need to be competitive, companies have had to adapt their after-sales service, which includes returns, technical service, queries and complaints,” says Urraca. “They have seen how good service increases the value of the company by the consumer and generates more sales,” she adds. It is more advisable to lose a sale than to lose a customer. This is also contemplated by the Digital Kit Program, which has plans to manage the available information and improve its services through the implementation of data analytics tools.