17 May How Digital Transformation And Pivoting Can Save SMEs in 2019
For the longest time, the United States was ruled by big retail companies such as Radioshack, Macy’s and Payless; however, 2017 was the year they all fell apart. Forbes reports that Payless alone closed 400 stores in what was dubbed as “The Great Retail Apocalypse” and it caused business experts to analyze what was happening. The initial thought was there was a deep recession occurring, however, the numbers didn’t add up—the overall retail spending continued to grow steadily along with the GDP and there has been wage growth 18 months prior to the phenomenon. Experts then reviewed trends surrounding The Great Retail Apocalypse and found out that its main cause was that e-commerce and social media disrupted brick and mortar businesses, leading to their demise. The world was turning away from the traditional model and is leaning towards a technologically-driven one.
Towards Digital Transformation
If your business possesses or leases factory production facilities, warehouses, and retail shops for your operations, then you could be susceptible to the same fate as these brick and mortar business. It is important then for your company to understand and navigate the digital disruption that needs to occur. To put it simply, digital disruption is changing the way your industry operates in a new and effective way, with the help of technology. Here are some ways that digital transformation can help you:
1. You’re Always Connected
E-commerce’s greatest strength is its ability to reach its market the fastest way in the shortest time. Being connected allows you to spread awareness about your brand, monitor what your customers want, and at the same time, make critical business decisions at any time.
2. Your Company is Efficient and Cost-Effective
With the level of technology available in the market, traditional brick and mortar businesses like yours can automate basic processes to save time and money.
3. You Gain Information and Insight Easily
The beauty of utilizing technology for brick and mortar businesses is that most existing business technologies give live analytics and similar tools for owners to study and predict their consumer behavior. This way, they can pivot their businesses to be more innovative and proactive in their practices.
Doing Business With Ease
Perhaps one of the biggest takeaways that experts concluded from The Great Retail Apocalypse is that the inability to pivot your businesses and make crucial decisions hurt your businesses the most. The best example of pivoting is how Netflix shifted from being a video rental store, to become a streaming site that disrupted the traditional business model. For them to do that, they had to have money on hand to redirect their funds into their prototype projects.
It’s a good thing that we at Acudeen Technologies Inc. are here to help with the cash flow for local businesses. In our platform, we empower local businesses to raise their capital swiftly and improve their cash flow through receivables discounting. This means that through we help SMEs by finding them a funder who buys their outstanding invoices (representing money owed to a creditor) for less than face value, providing the opportunity for their businesses to immediately redirect their funds wherever it’s needed. By collaborating with a business like ours, you assure that your company is always ahead of the game and that you have a hand in where your business is going to.
These, among other benefits, are reasons to believe that digitization can help ease the transition of your company from a traditional business model, to a more modern and agile one. Digital transformation is the way to position your company as a market leader in these times when there is no difference between “digital” and “real” world anymore. It’s time to adapt or be left out.