How SMEs can face the challenges of digital transformation

Roland Berger published a study exploring the challenges of digital transformation in Spain and its effect on the economy. In the study, Joan Rosell, president of the Spanish Employers Confederation (CEOE), declared that “Countries that do not push their digitalization process will not be in the circle of creation of wealth”.

The implementation of digital transformation through the adoption of the latest and cutting-edge digital technology not only allows companies to reassess their business strategies by creating new plans that lead to organizational changes, but also generate higher revenues. As a result, any company has a better chance to impact the various entrepreneurial ecosystems by accessing new business opportunities to participate in the global economy.

Spain is currently just in the 45th position in the ranking of the most digitized economies.  However the study also reveals that Spain’s economy could increase its value by €120 billion by 2025 by way of the Digital Transformation process.

Although the pandemic has accelerated the digital transformation process, many companies have not yet made the leap, daunted by factors such as costs, technical limitations, lack of knowledge or simply resistance to change.

By tackling the opportunities offered by technology, the Spanish economy could be digitized. It is a challenging task and one of the reasons the Spain 2025 Digital Program was created. An ambitious plan designed to develop sustainable technological change to turn digital transformation into the driving force behind the recovery and growth of the Spanish economy.

The digitalization plan for SMEs 2021-2025 includes these core initiatives:

• Basic Digitalization for SMEs

• Change Management Support 

• Disruptive innovation and digital entrepreneurship

• Support for industry digitization

• Coordination, synergies and reform

Within these strategic areas, these two are key: disruptive innovation and support for industry digitalization.

The first one refers to the redesign of processes and the development of new products, services and business models based on data and the adoption of key technologies for digitalization in the various productive sectors. In the context of digital transformation, disruption means a change in the traditional business model, which allows the company to improve its conditions and performance. For instance, companies in the finance, insurance and consulting sectors must look beyond the technologies that keep them relevant and expand their perspective, to create new solutions and services for their customers that are better, more efficient and productive.

Industry digitalization involves the development of programs designed for specific industry sectors, such as tourism, commerce and manufacturing. In the tourism sector, the plan includes developing programs to enable companies to adopt technological solutions and innovations to improve their business models, increase their productivity and ensure their long-term sustainability and profitability.

The manufacturing sector in Spain is diverse and productive, but it needs to embrace digital transformation to improve its competitiveness. How? By assessing the digital maturity of each company and leveraging information and data from manufacturing processes to structure new business models that increase safety, operational efficiency and reduce costs.

How to face the challenge of digital transformation in Spain

A panel organized by Byte Spain to discuss the state of digital transformation, highlighted that the role of the CIO has changed.  Aside from being responsible for IT performance, the CIO is also the driver of an organized digital transformation process. CIOs need to think about what they want to change and how to measure the benefits of that change.  They need to not only have clear goals and a wide vision of what is happening in their companies and industries, but also the economy as a whole.

The success of digital transformation will depend on having qualified talent to successfully carry out the process. On many occasions that involves having a technological partner capable of creating and developing state-of-the-art digital solutions and products tailored to your needs and that will allow your company to improve its performance, effectiveness, lower costs and improve productivity. The combination of the know-how aligned to a common goal will help consolidate the best plan for the company.

The development of innovative and flexible solutions by a strategic partner, together with a change management plan that reflects the company’s objectives and execution stages, is key to success. The transformation of the company must be a continuous process that allows it to evolve with the times and changes in consumers.

Are you ready to start the digital transformation process and increase your company’s productivity, efficiency and revenue? Contact Us.