Mr. Ruwan Maldeniya recently appeared on ITN Digital to present "What is Digital Transformation?" and highlight its importance for small and medium-sized businesses (SMEs) in Sri Lanka. SMEs form the backbone of the Sri Lankan economy, contributing over 50% to the nation's GDP. Digital transformation, he emphasized, is key to unlocking immense benefits and driving sustainable growth for these enterprises.
What is Digital Transformation?
Digital transformation involves integrating digital technologies into all aspects of a business, fundamentally reshaping how it operates and delivers value to customers. It is more than just adopting technology—it’s a strategic shift that includes:
• Optimizing processes to enhance efficiency.
• Improving customer experiences through personalization and convenience.
• Driving innovation to remain competitive in a rapidly changing digital world.
• Re-thinking business models by aligning People, Processes, and Technology (PPT).
This transformation requires changes not only in technology but also in business culture, workforce engagement, and operational models to thrive in today’s digital economy.
Why Should SMEs Embrace Digital Transformation?
Key Areas for Digital Transformation in SMEs1. Stay Competitive: Affordable digital tools level the playing field, enabling small businesses to compete with larger enterprises.
2. Meet Customer Expectations: Modern customers demand seamless digital experiences, including personalization and convenience, such as online shopping, digital payments (e.g., LankaQR), and engagement on social media.
3. Enhance Operational Efficiency: Automation reduces time and costs, allowing businesses to focus on strategic growth.
1. Customer Engagement
• Social media platforms like Facebook, Instagram, and TikTok are invaluable for engaging directly with customers. These platforms foster loyalty and help boost sales through targeted communication and marketing.
2. Digital Payments
• Adopting digital payment solutions like LankaQR simplifies transactions for customers, reduces reliance on cash, and streamlines accounting processes.
3. Online Presence
• Establishing an online store with a credible “ .lk “domain name enhances accessibility and builds trust among customers.
4. Operations and Productivity
• Tools like Google Workspace improve communication and collaboration. Cloud-based solutions, such as workflow systems and customer service systems, reduce paper usage and lead to faster response times for customer queries.
5. Data-Driven Decisions
• Data analytics tools like Google Analytics help businesses understand customer behavior and preferences. SMEs can use this data to create targeted marketing campaigns and adjust strategies based on buying patterns.
Real-Life Examples of Digital Transformation
The COVID-19 pandemic highlighted the importance of digital transformation. Businesses that adopted online ordering and delivery services managed to survive, while many that resisted change were wiped out from the market. Today we find numerous restaurants successfully grow their operations by leveraging online ordering and delivery platforms.
Getting Started with Digital Transformation
If you’re wondering where to start, it’s best to begin small. Pick one process—for example, switching from cash payments to LankaQR payments. Focus on areas where you will see the most impact, such as customer service or order processing. Remember, help is available: attend awareness sessions, workshops, and seek advice from experts. Leverage free tools to build your digital capabilities and continuously gather knowledge.
Conclusion
Digital transformation is about achieving growth, efficiency, and stronger customer relationships. Start today by taking small, actionable steps, such as creating a social media presence or accepting digital payments. The digital landscape offers vast opportunities, and it’s time for Sri Lankan SMEs to seize them, grow beyond borders, and thrive in this new era.