The digital transformation of the business structure is an important challenge for entrepreneurs and owners of small and medium enterprises. Connectivity offers organizational and cultural opportunities and is increasingly intertwined with business models. We tell you what it consists of and how you can develop a digital transformation process in your business.

Throughout history, many milestones have changed the way business is done in various societies. In ancient times, barter was the main modality. Then money appeared (first in the form of coins and then paper money) and then developed into methods such as checks and bank cards, among others.

In the current era, digital banking is one of the main tools for conducting financial operations. In the commercial sector, for example, companies manage collections and payments through electronic means such as technology-enabled devices. contactless (phones, watches…), virtual cards, or other accounting and administrative software applications.

In the case of SMEs – small and medium enterprises – digital transformation also brings opportunities for higher economic performance (higher productivity, lower production costs or higher sales, for example). Therefore, if you have an SME or want to boost your business by leveraging technology, the first concept you should know is digitization.

What is digitization?

In general, enterprise digitization is the process of changing or adapting the functions and operations of the analog world to a digital environment. For example, if business accounts are recorded in a ledger paper ledger and stored in a filing cabinet, with digital transformation, such accounting can be done on a computer. In this way, thanks to digitization, information is available to be consulted online, anytime and from anywhere.

Chances are, when you think about digitizing your business, the first thing that comes to mind is to create a web page. However, it is only one part of a larger digitization. For a company to be considered digital, it must change, where possible, aspects related to its business model: the production chain, administrative management, consumption or payments, among others. It is a process that involves planning and investing capital but in the long term will result in savings, productivity or a more customized profile.