Digital transformation for SMEs helps businesses optimize work efficiency and increase competitiveness in the market. In the following article, Viindoo introduces the most detailed information about digitization in small and medium-sized enterprises.
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Digital transformation for SMEs is an inevitable trend today
“46% of digital businesses have recorded strong growth in annual revenue”
According to the Publication Office of the EU
Digital transformation in small and medium enterprises incorporates modern technologies into an organization's production and business processes to increase business efficiency, improve customer experience and create a competitive advantage in the market.
In small and medium enterprises, digital transformation is done through things like re-evaluating the value chain, restructuring the company, rethinking business orientation, and connecting with customers.

In today's digital era, traditional transactions or meetings through face-to-face form have begun to tend to shift to technology platforms such as Meet, Zoom, Online Banking, E-wallet, etc,...
Customers today have had a significant change in purchasing behavior. The demand for information about products and services is gradually increasing. Along with that, new digital transformation trends have gradually penetrated into other aspects of the business, forcing organizations to change their working methods such as working, communicating, and collaborating remotely.
Small and medium enterprises (SMEs) have realized this to make changes to suit the needs of customers. Businesses are also growing faster to catch up with the market, breaking away from the boundaries of the traditional business environment.
In addition, the digitalization process also gives small and medium enterprises an equal business environment. At that time, small businesses can optimize costs, and efficiency, thereby being able to compete with larger, older organizations in the market, expanding the market,...
Benefits of digital transformation of SMEs
Save costs and improve efficiency
Cost is an important issue for any small to medium business. Switching arguments helps businesses restructure business processes in the direction of simplifying and optimizing operations. From there, this process can increase work productivity and speed up task completion time. As a result, working efficiency is increased, and costs and operating time are significantly reduced.
The application of advanced technologies such as artificial intelligence AI, automation, and machine learning can help businesses track and analyze customer behavior more specifically and accurately. This technology helps businesses manage buyer interactions with the company website, providing the ability to accurately assess potential customers. From there, it is possible to forecast sales more accurately.

Enhancing the customer experience
Digital transformation of small and medium enterprises can solve the difficulties that customers face when interacting with businesses. By improving the customer experience through digital transformation, SME businesses can collect and analyze information on key shoppers. This can be done with tools like data analysis, feedback gathering, and marketing automation.
Small and medium-sized organizations can use that data and information to improve omnichannel service, deliver personalized products, and new channels of interaction using chatbots, self-service, and manage customer relationship management.
Increase customer experience
Increased competitiveness, agility, and innovation
Thanks to cloud-based solutions, the line between established businesses and small companies is blurring. SMEs can compete with larger businesses.
The cloud platform enables small and medium-sized businesses to scale. This allows SMEs to compete and grow while maintaining flexibility and efficiency, delivering quality products.
In the past, SMEs faced numerous barriers to market entry. Lack of capital can make SMEs limited in their ability to scale quickly and lag behind in technology. The emergence of cloud solutions allows SMEs to remain competitive, saving a lot of costs compared to before to maintain operations.
Increased competitiveness
Difficulties in digital transformation for SMEs
Although digital transformation is an urgent process, successful digital transformation is not an easy task. The process of digital transformation for small and medium-sized businesses faces countless difficulties and challenges.
A survey of 1,000 small and medium enterprises by VCCI has identified the four biggest difficulties and obstacles that businesses face in the digital transformation process, specifically:
Problems | Ratio |
Lack of resources in digital technology application | 85.2% |
Lack of digital technology infrastructure | > 81% |
Lack of specialized human resources to access digital technology | 77% |
Lack of experts or reliable, qualified companies | 65% |
Similar difficulties also appeared in the survey of the Enterprise Development Department, specifically:
Problems | Ratio |
Lack of investment costs, digital technology application | 60.1% |
Changing business practices, lack of human resources inside digital transformation enterprises | 52.3% |
Lack of digital infrastructure | 45.4% |
Lack of authentic information about digital technology | 40.4% |
Obstacles in integrating digital technologies | 38.5% |
Leadership lacks understanding, lack of commitment | >32% |
These are the main barriers for SMEs in the digital transformation process. For that reason, the number of businesses applying digital technology to their business processes is still small. Therefore, finding solutions to these difficulties is the primary focus of SMEs for successful digital transformation.

Comprehensive digital transformation solution for SMEs
Selecting the right technology to apply to the business
Choosing the right technology to apply is an important issue in the digital transformation of SMEs. This ensures that the technology is suitable for business operations and processes and saves costs and improves operational efficiency.
A suitable technology application needs to satisfy factors such as rapid data mining, scientific record management, and management of all business processes on a single digital platform,...
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Empowering employees to use data
Data is the most important factor in any business organization. This is the factor that drives the correct decisions in business. Enterprises should decentralize the right to extract and exploit information for employees without restrictions. These will help company employees better understand the activities, customers, and cooperation partners of the business.
Along with that, empowering employees to use data also contributes to increasing communication and information exchange between individuals and departments. Since then, the connection in the work is enhanced. In addition, when a situation arises like a customer needs information, employees do not need to consult their superiors but have a data source to respond quickly.
Synchronous and seamless enterprise system
An effective business always requires a seamless, synchronized process and parts. This will help increase the efficiency of digital transformation for small and medium enterprises. Work processes are also gradually being automated, activities are also coordinated more smoothly.
Different applications in the enterprise such as production management, accounting, customer relations, and human resources, ... should be integrated into a single system so that all departments in the enterprise increase the connection. linked together. The cooperation between individuals and departments has also increased, and operational efficiency has been increasingly optimized.
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In the above article, Viindoo has compiled detailed information about digital transformation for SMEs. Hopefully, the above information will be useful and help your business to make more breakthroughs in your digital transformation journey. Follow us to learn more about effective digital transformation solutions.
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