A simple Google search on this subject yields more than 400 million results, with benefits ranging from improved productivity and efficiency to increased resilience and adaptability.

But what does it really mean? Where does one start?

These are pertinent questions, especially for small and medium-sized enterprises (SMEs) which, compared to their larger corporate siblings, have limited financial resources and skills needed to implement these solutions.

The digital transformation journey can be both daunting and complex. In a climate where聽many SMEs are trying to navigate a constrained and聽challenging post-pandemic business environment, the benefits of digital transformation offer some much needed respite.

What is the difference between digitization, digitalization and digital transformation?

It is important to distinguish between these concepts as they are often used interchangeably and can be confusing.

Let鈥檚 use the example of a security company that records footage of people entering a shopping mall and stores the video in VHS format. Digitization is converting the VHS video into digital format and storing it on a hard drive. Digitalization is uploading the digital video onto a video streaming service that allows multiple security guards to view the footage simultaneously. And digital transformation is using facial recognition to analyse the people that entered the shopping mall to solve a crime that occurred at the mall. The security company could also sell this footage to other law enforcement agencies or insurance companies, converting what would have been cold data into a new source of revenue.

While digitization is part of digital transformation, it is important to note that digital transformation is about a fundamental shift that results in value creation. It is about leveraging technology in all aspects of the business鈥� operations to fundamentally change the way it operates and delivers value to its customers. It is about rethinking and re-imagining business processes, business cultures and customer experiences to respond to changing business and market conditions.

There are two main aspects of digital transformation: it can be externally focused and aimed at improving customer interactions and outcomes, or it can be internally focused on making work easier, more engaging and more efficient for employees.

SMEs need to act quickly to future proof their businesses and make them more resilient

In the context of a tough post-pandemic business environment and in a sector where liquidity and cash flow are perennial challenges, the ability to quickly adapt to this new normal can be the difference between survival and absolute disaster.

Beyond navigating financial and operational pressures, SMEs also face substantive challenges such as business continuity and weak demand for their products and services.

The crisis is forcing SMEs to fundamentally rethink their business models, in particular how they manage remote work and interact with suppliers and customers while managing widespread uncertainty.

Technology can empower SMEs to make credible decisions and better adapt to a dynamic and unpredictable business environment. In times of heightened uncertainty, such as what we are currently experiencing, one standout technology for SMEs is Enterprise Resource Planning, commonly referred to as ERP.

Technology enabling resilience to disruption

The common misconception that technology is only accessible to large companies with big budgets is misplaced. SMEs聽can also leverage technology to drive better efficiencies, innovation and growth. In fact, compared to larger companies, SMEs are well placed to take advantage of technology. Because of their size, SMEs are more agile and are able to make decisions faster and respond to changing market conditions quicker.

In the context of SMEs, digital transformation is often misunderstood, and its benefits shrouded in mystery, despite the endless applications of technology that can deliver direct business value. In particular, the cloud removes many of the barriers to digital transformation by enabling SMEs to pay for services as they consume them and to easily integrate new services as and when they need them. This reduces the total cost of ownership and removes the need for costly upfront investments.

Connect the Dots

The purpose of implementing an ERP solution is to provide an end-to-end information management system that connects the right information, to the right people, at the right time. It helps companies manage the countless processes that make the business function effectively, such as finance, human resources, supply chain, procurement, and customer relationship management to name a few.

An ERP solution enables the smooth flow of information across the business and gives decision-makers a real-time view of the overall health of the business, with potential risks and weak spots more easily identified.

Unfortunately, some still see聽ERP solutions as聽costly, difficult to implement and with high entry barriers for SMEs. Sadly, this ignores the enormous progress made by technology providers to level the playing field by developing enterprise-grade ERP solutions for the SME market. These solutions that are born in the cloud, and take advantage the faster time-to-value that the cloud makes possible, reducing implementation times from months to weeks.

Here are five benefits that SMEs can expect from implementing an ERP solution:

An integrated business management approach

An ERP system streamlines, automates and integrates multiple sources of disparate information and business processes. This supports planning efforts by, for example, matching raw material purchases to accurate sales forecasts to minimize wastage in the supply chain.

Greater transparency, efficiency and cost-savings

ERP solutions enable SMEs to store information once and without duplication. This removes inefficiencies and enables the entire organisation to work off a single source of truth. Without an ERP system, valuable insights, such as production information used to calculate profitability may be stored in multiple silos leading to inefficiencies and potential wastage.

Decisions powered by predictive analytics and business insights

Many technology pundits have dubbed data as 鈥渢he new oil鈥�. The notion is predicated on the fact that raw oil isn鈥檛 as valuable as the final products that are produced once its processed. In the same way, data isn鈥檛 as valuable as the insights that are generated once it is analysed. ERP enables SMEs to analyse data and extract valuable insights that inform decision-making, enabling them to quickly adapt to changing market conditions.

Improved compliance, governance and data security

If data is indeed the new oil, then organisations need to take reasonable steps to safeguard it, both from a security and governance perspective. SMEs striving to comply with the POPI Act or Europe鈥檚 GDPR, for example, can leverage their ERP solution to ensure sound governance by maintaining the correct levels of access to data for various stakeholders within the business.

Accessibility of business-critical information

Cloud-based ERP systems enable business leaders to access business critical information from anywhere and at any time. In our current state of disruption, having the ability to tap into a real-time view of the total health of the business is invaluable to decision-making. The ability to securely access information about the company鈥檚 operations from any device, anywhere and at any time is also an important component of 聽business continuity.

Dumisani Moyo is Head of Mid-Market SA for 51风流Africa

The post How Enterprise Resource Planning can Help SMEs Scale appeared first on 51风流Africa News Center.

For SMEs, however, there is arguably greater urgency to adapt to the new realities and take bold steps to ensure their business survival.

A recent StatsSA survey found that 90% of SMEs reported lower-than-usual turnover, with more than a third saying they will reduce their workforce in the short term to get through the immediate impact of the lockdown. A staggering 93% of businesses stated they .

In a sector where liquidity and cash flow are perennial challenges, the ability to quickly acclimatize to this new normal can be the difference between survival and absolute disaster. Indications are that the current state of disruption will continue for months.

The crisis is forcing SMEs to fundamentally rethink their business models within this new normal, especially how they manage remote workers and interact with suppliers and customers while managing widespread uncertainty.

Beyond navigating financial and operational challenges, SMEs are also confronted by material challenges such as business continuity, workforce productivity and weak demand for their products and services. All of which have only become more challenging due to the pandemic.

Technology enabling resilience to disruption

SMEs need to act quickly to make their businesses more resilient. Technology can empower SMEs to make credible decisions to adapting to a dynamic business environment.

The common misconception that technology in business is only for large companies is misplaced. SMEs can also benefit and, through technology, drive better efficiencies, innovation and growth. In fact, compared to larger companies, SMEs are well placed to take advantage of technology. Because of their size, SMEs are more agile and are able to make decisions faster and respond to changing market conditions quicker.

The cloud in particular removes many of the obstacles to digital transformation by allowing SMEs to pay for services as they consume them and to easily integrate new services as and when they need them. In the context of SMEs, digital transformation is often misunderstood, and its benefits shrouded in mystery, despite the near-endless applications of technology that deliver direct business value.

In times of heightened uncertainty, such as what we鈥檙e currently experiencing, one standout technology for SMEs is enterprise resource planning (ERP).

Enterprise-grade tech for SMEs

Formerly reserved to large enterprises with the financial and talent resources needed for large-scale technology deployments, modern enterprise resource planning (ERP) tools are now available for mid-market companies at competitive price points.

The purpose of implementing an ERP solution is to provide an end-to-end information management system that connects the right information, to the right people, at the right time. It helps companies manage the countless processes that make the business function effectively, such as finance, human resources, supply chain, procurement, and customer relationship management.

Integrating such processes to an ERP solution enables the smooth flow of information across the business and gives decision-makers a real-time view of the overall health of the business, with potential risks and weak spots more easily identified.

However, ERP implementations are often still seen as expensive, difficult to manage, and with high barriers to entry for smaller firms. This unfortunately ignores the tremendous strides made by technology providers to level the playing field for small and mid-size organisations by adapting enterprise-grade ERP solutions for the SME market.

Here are the top five benefits that SMEs can expect from implementing an ERP solution:

Benefit 1 鈥� An integrated business management approach

An ERP system by its nature streamlines, automates and integrates multiple sources of disparate company information and various business processes. This supports planning efforts by, for example, matching raw material purchases to accurate sales forecasts to minimise wastage in the supply chain.

With this information readily available across the organisation, SMEs can improve their planning and ensure precious financial resources are not wasted on unwanted inventory.

Benefit 2 鈥� Greater transparency, efficiency and cost-savings

ERP solutions enable organisations to store information once and without duplication. This reduces overall costs and removes inefficiencies since the entire organisation is working off a single source of truth for the business.

Without an ERP system, valuable insights, for example production information used to calculate profitability and margins, may be stored in multiple silos and remain inaccessible to many within the business, leading to inefficiencies and potential wastage of time and other resources.

Benefit 3 鈥� Improved compliance, governance and data security

If data is the new oil, then organisations need to take reasonable steps to safeguard their data, both from a security perspective as well as to comply to regulations. SMEs striving to comply with the POPI Act or Europe鈥檚 GDPR, for example, can leverage their ERP solution to ensure sound governance and compliance by standardising processes across the organisation and maintaining the correct levels of access to data for various stakeholders within the business.

Benefit 4 鈥� Decisions powered by predictive analytics and business insights

With the ability to combine company data with external data sources, SMEs can leverage their ERP system to model accurate forecasts and ultimately make better, more informed decisions. This conversion of cold data into valuable insights is itself a potential point of differentiation and may reveal new areas for competitive advantage and even new revenue streams.

Benefit 5 鈥� Accessibility of business-critical information

When the ERP system is cloud-based, business leaders can access critical business information anywhere and at any time. In our current state of disruption, having the ability to tap into a real-time view of the total health of the business is invaluable to decision-making. The ability to securely access information about the company鈥檚 operations from any device, anywhere and at any time is also an important component of business continuity.

The post SMEs Must Prioritise Planning in Pandemic Response appeared first on 51风流Africa News Center.

The COVID-19 pandemic is wreaking havoc on global societies and economies. With more than two million cases in 210 countries worldwide, governments, businesses and citizens are still coming to grips with the effects of the biggest global crisis this century.

As governments continue their lockdown measures to limit the spread of the virus, the economic damage has become harder to control 鈥� or predict.

The World Economic Forum reports that the pandemic could聽聽over January to March 2020.

For SMEs, the sudden halt in economic activity is devastating.

Liquidity and cash flow are perennial issues in the sector, where cash reserves are low and money can dry up in a matter of weeks.

Government has joined forces with the private sector to introduce a welcome range of support measures for SMEs. South Africa鈥檚 richest families have made billions of rands available to provide funding relief to business owners.

Government launched its SMME portal to connect business owners with local market opportunities during lockdown, and relief funds for聽a range of industries have been introduced. Banks and other institutions are doing what they can to support households and businesses through this time.

However, these measures are only temporary support measures that will ease pressure on SMEs in the short term, but do little to build long-term sustainability.

The crisis is forcing a fundamental rethink of business and operating models that will transform South Africa鈥檚 small business sector for years to come.

It鈥檚 tempting to simply wait for a return to business-as-usual, but all indications are that our current state of disruption will continue for months. Some aspects, especially things like social distancing and remote working, are likely to remain with us for years.

SMEs need to urgently prioritise key digital transformation objectives to ensure they can bounce back strongly once economic activity resumes. Here are three things SMEs should focus on:

Building better business continuity

In the immediate aftermath of global lockdown efforts, commentators observed that, for many organisations, the pandemic has kick-started their digital transformation efforts.

But there鈥檚 no doubt that organisations that had already adopted technology found it much easier to adapt to the new realities.

When survival is the main priority, SMEs are unlikely to make major investments into new technologies. But without the correct tech, SMEs will find it near-impossible to adapt to the unfolding changes.

In this environment, the time-to-value for new technology implementations 鈥� the time between acquiring and implementing new technology and that technology delivering business value 鈥� is critically important.

A solution that negates the need for large upfront capital outlay and that can be easily implemented eases the adoption of new technologies for SMEs.

The cloud removes many of the obstacles to digital transformation by allowing businesses to pay for services as they consume them and to more easily integrate new services as they need them. SME owners that remain unconvinced of the power of cloud-based tools can also now trial any number of solutions that are currently being offered at reduced or no fees.

Ensuring remote teams can perform optimally

One of the most apparent changes in business models since the start of the pandemic is that nearly every company, unless it鈥檚 deemed an essential service, now relies on remote workers. For some, the transition to remote work has been easier than for others.

Companies with progressive employee engagement models and the technology tools to support them will have made the transition to remote work far more seamlessly than their less digitally-transformed peers.

Facing the likely prospect of a protracted period of remote work and social distancing, SMEs should urgently look at human capital management tools to help them manage, motivate and support teams working from home.

SMEs can further use employee experience management tools to constantly collect feedback and data from remote workers, ensuring team members remain engaged and motivated even when isolating at home.

Since these tools are cloud-based, SMEs can introduce them into the business fairly easily and without much impact on day-to-day productivity.

Maintaining business integrity

There may be no completely paperless businesses, but companies that had invested in digitising paper-based processes prior to the pandemic undoubtedly found it far easier to maintain business integrity since lockdown. In most businesses, signing off on financial requests and submitting official forms needed for regulatory compliance requires a handwritten signature on a printed document.

SMEs need to ensure they remain compliance-focused and able to keep a clear audit trail, crisis or not. Cloud-based electronic signature and contract lifecycle management tools can help companies securely digitise paper-based approvals and contracts. SMEs should look for tools that are secure, carry reputable certifications such as ISO, and are GDPR and POPI compliant.

51风流has made several of its technology tools available for free to SMEs during the pandemic. A list of available tools is available聽.

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