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Driving Digital Transformation in SMEs

14. January 2025
By Berias

BERIAS.newsblog

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Driving Digital Transformation in SMEs: Practical Insights for Managers and Business Owners

Digital Transformation is no longer optional, it’s a necessity for survival and growth. As highlighted by Wang and Zhang in their groundbreaking 2025 study published in Socio-Economic Planning Sciences, Digital Transformation offers SMEs the tools to enhance innovation and improve organizational performance sustainably. Yet, despite the evident benefits, achieving meaningful Digital Transformation remains elusive for many businesses.

This article breaks down actionable steps managers and company owners can take to successfully navigate their Digital Transformation journey, leveraging insights from the study and real-world practices.

Better Understand Digital Transformation in SMEs

Digital Transformation is more than adopting new technologies; it represents a profound shift in how businesses operate and deliver value. Wang and Zhang describe it as a strategic reconfiguration of resources, processes, and business models, driven by digital technologies. For SMEs, the stakes are particularly high. Embracing Digital Transformation can mean staying competitive in a volatile, uncertain, complex, and ambiguous (VUCA) world.

Yet, only a fraction of firms report significant results from Digital Transformation efforts. The challenges range from limited resources and resistance to change to technological mismatches and environmental pressures. Addressing these challenges requires a focused approach grounded in three critical drivers identified in the study: technology, organization, and environment.

The Three Pillars of Successful Digital Transformation

Investing in the Right Technology

Technology forms the backbone of Digital Transformation. SMEs need to:

Adopt Scalable Tools: Select technologies like cloud computing, artificial intelligence, and big data analytics that align with your business’s goals and scale with your growth.
Prioritize Security and Reliability: Ensure the technology provides robust data security and integrates seamlessly with existing systems.
Emphasize Usability: Choose tools that are user-friendly to drive adoption across teams.

A little Advice: Start small. Invest in a single, impactful technology such as customer relationship management (CRM) software or e-commerce platforms. Demonstrate measurable success before scaling up.

Creating Organizational Readiness

Even the best technology won’t yield results if the organization isn’t ready to embrace it. Wang and Zhang emphasize the role of leadership and culture in facilitating change.

Leadership Commitment: Leaders must champion digital initiatives and allocate necessary resources.
Foster an Innovative Culture: Encourage employees to experiment with digital tools and embrace change.
Upskill Your Workforce: Invest in training to equip employees with the skills needed for new technologies.

Actionable Tip: Set up cross-functional teams to lead pilot projects, combining expertise from different departments to test and iterate digital solutions.

Leveraging the External Environment

External factors, including industry trends, customer demands, and government policies, significantly influence the success of Digital Transformation.

Stay Informed: Monitor changes in customer preferences, technological advancements, and regulatory policies.
Capitalize on Support: Utilize government incentives, grants, or partnerships aimed at supporting digitalization.
Collaborate with Partners: Work with tech providers, industry peers, and research institutions to share knowledge and resources.

Actionable Tip: Join industry forums or networks to stay updated and leverage collective expertise to overcome shared challenges.

The Role of Environmental Dynamism

Environmental dynamism, a term used by Wang and Zhang to describe the volatility and unpredictability of a business’s external environment, acts as both a challenge and an opportunity. In highly dynamic environments, businesses are pushed to innovate faster and adapt quickly.

Adapt Strategies: Use digital tools to collect real-time market data and adjust strategies promptly.
Enhance Agility: Develop processes that allow rapid response to external changes.

Useful on the way: Implement scenario planning to prepare for different environmental shifts, ensuring your digital tools are flexible enough to accommodate changes.

Linking Digital Transformation to Innovation and Performance

The study highlights a clear connection between Digital Transformation, innovation capabilities, and organizational performance. Digital Transformation enables SMEs to:

Enhance Decision-Making: By leveraging big data, businesses can make informed decisions faster.
Foster Open Innovation: Break down organizational silos and collaborate across teams or with external partners.
Achieve Sustainable Growth: Optimize resource use, reduce waste, and deliver value across economic, social, and environmental dimensions.

Important: Regularly measure the impact of Digital Transformation initiatives using key performance indicators (KPIs) such as cost savings, innovation rates, and customer satisfaction. That will help the team to understand the importance of the transformation.

Practical Recommendations for SME Managers

Here are some concrete steps managers and business owners can take to drive Digital Transformation effectively:

Start with a Clear Vision: Define what Digital Transformation means for your business and how it aligns with your strategic goals.
Engage Your Team: Involve employees early in the process to foster buy-in and gather diverse perspectives.
Use Data Wisely: Leverage data analytics tools to identify trends, customer preferences, and operational inefficiencies.
Test Before Scaling: Pilot digital initiatives in one area before rolling them out company-wide.
Build Resilience: Incorporate flexibility into your digital tools and processes to adapt to future changes.
Celebrate Small Wins: Recognize milestones to maintain momentum and demonstrate the value of DIGITAL TRANSFORMATION initiatives.

Closing Thoughts

Digital Transformation is not a one-size-fits-all solution. For SMEs, the journey requires deliberate planning, commitment, and adaptability. As Wang and Zhang’s research underscores, the right combination of technology, organizational readiness, and environmental awareness can unlock unprecedented innovation and performance.

The path to Digital Transformation may be complex, but the rewards are clear. By taking strategic, actionable steps today, SMEs can build a sustainable, competitive edge that lasts well into the future.

Source

Cited Study: Wang, S., & Zhang, H. (2025). Enhancing SMEs sustainable innovation and performance through Digital Transformation: Insights from strategic technology, organizational dynamics, and environmental adaptation. Socio-Economic Planning Sciences, 98, 102124. https://doi.org/10.1016/j.seps.2024.102124

Dieser Artikel wurde verfasst von:

/wp-content/uploads/2022/04/image20.pngTobias Hess

CEO

Tobias Hess ist Gründer und Senior Consultant bei BERIAS.

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Micro Consulting The key for Solo Entrepreneurs, retailers, and start-ups

21. October 2024
By Berias

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Micro-consulting: The key for Solo Entrepreneurs, retailers, and start-ups

In a business world characterized by rapid change and uncertainty, solo entrepreneurs, retailers, and startups face unique challenges. Adaptive Micro Consulting from BERIAS offers a solution that goes far beyond traditional coaching. Short, focused consulting sessions not only create clarity in tasks and strategies, but also achieve fast, measurable results.

Clarity and focus: faster decisions for entrepreneurs

While traditional business coaching is often designed for the long term, Adaptive Micro Consulting focuses on specific challenges and offers immediate solutions. This allows entrepreneurs to act faster and make informed decisions without engaging in lengthy analysis processes. Studies show that targeted consulting approaches such as micro-consulting for SMEs enable greater efficiency and faster implementation as they address specific problems and offer flexible solutions. (https://www.maven.co/2023/04/02/the-ultimate-guide-to-microconsulting and https://www.mckinsey.com/industries/public-sector/our-insights/beyond-financials-helping-small-and-medium-size-enterprises-thrive)

Compared to conventional business coaching, Adaptive Micro Consulting goes further: it provides concrete action recommendations and helps implement operational measures directly. This differs from many coaching programs focusing on long-term personal development and abstract concepts. The focus on practical, implementable solutions makes the consulting approach ideal for smaller companies that want quick results (https://www.gtaaccounting.ca/blog/benefits-of-business-consulting-for-small-businesses).

Added value through targeted automation and process optimization

A key element of Adaptive Micro Consulting is process optimization and automation support. Many small companies are faced with the challenge of working more efficiently and reducing costs at the same time. This is where consulting comes in, helping to improve internal processes through modern tools and digital strategies. According to McKinsey, SMEs can increase their efficiency by up to 30 % through targeted digitalization, which leads directly to greater competitiveness (https://www.mckinsey.com/industries/public-sector/our-insights/beyond-financials-helping-small-and-medium-size-enterprises-thrive).

Case studies: How start-ups and retailers can benefit from Adaptive Micro Consulting

In practice, it has been shown that companies that rely on short, focused consulting approaches can react more quickly to market developments. One example is retailers who have reduced operating costs through warehouse management automation tools and digital marketing strategies. These flexible solutions enable small businesses to compete in a competitive market without spending huge budgets (https://www.gtaaccounting.ca/blog/benefits-of-business-consulting-for-small-businesses).

Conclusion: Why Adaptive Micro Consulting is the right approach for small companies

Adaptive Micro Consulting from BERIAS offers clear added value for solo entrepreneurs, retailers, and start-ups. A flexible, solution-oriented approach helps not only to create clarity in tasks and strategies but also to achieve real results. This makes it an attractive alternative to traditional entrepreneur coaching – especially for businesses that need quick, tangible results.

Sources:

Maven: The Ultimate Guide to Microconsulting Maven
McKinsey: Helping Small and Medium-Size Enterprises Thrive McKinsey & Company
GTA A GTA Accounting

This article was written by:

/wp-content/uploads/2022/04/image20.pngTobias Hess

CEO

Tobias Hess is founder and Senior Consultant at BERIAS.

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Why micro-consulting is the future for SMEs

28. September 2024
By Berias

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Micro-Consulting: Agile solutions for dynamic markets

In today’s rapidly changing business world, small and medium-sized enterprises (SMEs) face the challenge of responding quickly and flexibly to new market demands. While traditional consulting models often require long-term commitments and high costs, micro-consulting offers a new, innovative solution: short, focused consulting units that deliver immediate results. Especially in industries such as automotive or healthcare, where digital transformation is unavoidable, micro-consulting provides valuable support.

Flexibility and cost efficiency through focused consulting

The concept of micro-consulting aims to offer highly specialized, one-hour consultations that not only relieve the customer financially, but also in terms of time. Instead of lengthy analyses and long-term projects, micro-consulting focuses on solving specific problems in a short space of time. For companies, this means maximum flexibility and results that can be implemented immediately – a decisive advantage, especially for SMEs that do not have the resources for traditional consulting projects.

According to a study by McKinsey, the demand for agile and flexible business models is increasing. Companies that focus on agility achieve up to 30% higher efficiency gains and are better able to respond to market changes. Micro-consulting is therefore a decisive competitive advantage for SMEs that are under cost pressure and need to implement innovations at the same time.

Stay agile: How micro-consulting supports companies

In industries such as the automotive industry, which is currently facing massive upheaval – such as the switch to electric vehicles and the digitalization of the entire value chain – companies must remain agile and adaptable. This is where micro-consulting shows its strength. Through short, intensive consulting sessions, SMEs can react quickly to technological changes and optimize their processes. A car dealership that wants to increase its sales figures can use a targeted micro-consulting approach to develop the best growth strategies for the German market without making a long-term commitment. Micro-consulting not only helps with strategic alignment, but also with the implementation of solutions that accelerate digital transformation. Automation solutions for car repair shops are an example of how targeted consulting services can have a direct and measurable impact. Companies today need to know: How can I digitize my car dealership? Micro-consulting provides them with the answers – quickly and feasibly.

Growth through flexible consulting: The change in the consulting market

The evolution of the consulting market towards flexible and modular offerings reflects the growing needs of SMEs. Studies show that companies are increasingly turning to “on-demand” consulting services to solve specific problems without having to make a long-term commitment. This new form of consultancy enables companies to buy in expertise when and where it is needed. Especially in the automotive industry, where process optimization and crisis management are essential, this represents a significant advantage. A report by SkillQuo emphasizes that micro-consulting is becoming increasingly important in response to the growing demand for fast, flexible and cost-effective consulting. For SMEs in Germany, which are under pressure from increasing competition and technological challenges, micro-consulting can be the key to success.

Conclusion: Micro-consulting as a solution for dynamic markets

The future of the consulting market lies in flexible and modular offerings that enable companies to adapt quickly to changing market conditions. Micro-consulting offers SMEs the opportunity to obtain highly specialized expertise in the shortest possible time and implement it directly. In a world where time is money and agility is the key to success, micro-consulting is an indispensable resource for companies that want to remain competitive. Whether process optimization in the automotive industry, digitalization of car dealerships or the introduction of automation solutions for workshops – with Micro-Consulting, companies receive exactly the advice they need, quickly, cost-effectively and tailor-made.

Sources:

McKinsey Company. “Why Agility Pays.” Published on September 22, 2023. McKinsey.
GigExchange. “What is Micro-Consulting?” Published on September 20, 2023. GigExchange.
SkillQuo. “Micro-Consulting: The Evolution of Management Consulting.” Published on September 15, 2023. SkillQuo.

This article was written by:

/wp-content/uploads/2022/04/image20.pngTobias Hess

CEO

Tobias Hess is founder and Senior Consultant at BERIAS.

You can find more articles in the BERIAS.newsblog

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Digital transformation with a small budget

26. September 2024
By Berias

BERIAS.newsblog

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How small automotive companies can compete with the giants

There’s no doubt about it in the automotive industry: the digital transformation is in full swing. From the rise of electric vehicles to online car sales, the market is changing faster than ever. This poses a particular challenge for small and medium-sized enterprises (SMEs). How can a small car dealership or garage compete with the large, well-financed corporations? The answer lies in the clever use of digital tools and automation – without huge budgets.

Why digital marketing strategies and optimized customer experience are crucialAt a time when more and more cars are being bought online, a strong digital presence is essential. According to a report by PwC, 84% of global automotive companies emphasize the need to prioritize digital strategies. For small businesses, this means integrating digital marketing tools such as targeted advertising and customer platforms to optimize the customer experience and increase sales. For car dealerships in particular, it is important to not only rely on traditional on-site sales, but also to become more present online in order to keep up with the big players (PwC Report).

A car dealership can strengthen its online presence with targeted advertising campaigns that are tailored to the needs of customers and by using analysis tools to understand customer behavior. This makes it possible to better reach potential customers and retain them in the long term. Automation in customer service, such as chatbots or automated email campaigns, are other tools that help SMEs to achieve a high level of customer satisfaction without much effort.

Successful examples: Digital transformation without huge budgets

There are already many small automotive companies that have managed to fight their way to the top with affordable digital solutions. According to a report by Capgemini, more and more small firms are turning to cloud-based solutions and low-cost automation tools to boost their operational efficiency. One notable example is the use of agile digital platforms that allow even smaller businesses to increase their reach while managing their inventory more efficiently (Capgemini report). For example, a small car dealership could use cloud solutions for inventory management to keep track of its stock, process orders more efficiently and save time and money. The automation of processes such as appointment scheduling or invoicing can also contribute significantly to reducing costs and improving service.

The ROI of digital marketing and automation

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Cost savings through automation

Increasing sales through digital marketing

Saving time through digitalization

Customer satisfaction through digital processes

Digitalization is not just about keeping up with the big players, it also offers an opportunity to increase profitability. According to an analysis by PwC of small and medium-sized enterprises in Europe, digital transformation can lead to a significant return on investment (ROI), especially when automating customer service and marketing processes. By automating key processes such as inventory management and digital marketing, small businesses can not only save costs but also remain competitive without sacrificing service quality (PwC SME report). For example, a garage could use automated email marketing campaigns to regularly inform its customers about new offers or services. These measures not only increase turnover, but also improve customer loyalty – all with minimal effort.

Conclusion: Staying competitive with digital transformation

For small and medium-sized companies in the automotive industry, digital transformation is not a luxury, but a necessity. By making smart use of digital tools and automation solutions, even small companies can increase their efficiency, reach their customers better and ultimately compete with the big players in the industry. Whether it’s process optimization in the automotive industry or increasing sales at the dealership, digital solutions are the key to staying competitive in a rapidly changing market.

Sources:

PwC. “The Digital Transformation of SMEs in Europe.” Published in 2023. PwC report.
Capgemini. “Digital Transformation: The Automotive Industry’s Road to Recovery.” Published in 2023. Capgemini report.
PwC. “Auto Industry Transformation.” Published in 2023. PwC Auto Report.

This article was written by:

/wp-content/uploads/2022/04/image20.pngTobias Hess

CEO

Tobias Hess is founder and Senior Consultant at BERIAS.

You can find more articles in the BERIAS.newsblog

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