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Digital transformation this 2020 has proven to be the key to survival. If small and medium enterprises are planning to venture into 2021 not just to survive but to succeed, it is time for them to adapt. COVID-19 has drastically transformed the playing field being harsh to traditional businesses and even providing opportunities for those more modern companies that were able to adjust to digital transformation.

As Charles Darwin’s survival of the fittest has finally risen within the playing field of business, small and medium enterprises need to adjust if they are going to venture into 2021 with the hopes of turning things around. One thing about the pandemic is that although the vaccine is around the corner, it is still unknown as to how long the economic effects of the pandemic will way out.

It is important to keep a sharp eye on a couple of things expected to happen in 2021 in order to not become left behind when things pick up potentially faster than they did this year. The key to digital transformation is to know what happens next and adapt before it does.

2021 digital transformation trends to watch out for:

1. Digital transformation investment has increased

Investors have seemingly driven away from traditional business and have put their investments in companies that have the upper edge due to their digital transformation. One example of this is the increase in investment for companies like Tesla, Facebook, Google, Amazon, and more.

2. The future in contactless solutions

While most companies were initially forced to provide remote working solutions, although the majority of them had a hard time initially, some of these companies were able to adjust and this has even become more beneficial for them. Contactless solutions do have pros and cons but once a company is able to adjust to more contactless solutions, this is where the automation process can pick up. A post by Stanford even suggested that 42% of workers in the US resulted to remote work.

3. The switch to virtual interaction

As the pandemic started, Zoom started to kick off and become even more successful as it has become one of the key tools to help people communicate with one another. This, in itself, is proof of how useful technology is. Now, with businesses having to adapt to the whole setting of the pandemic, digital transformation service providers have become more profitable as well.

4. The acceleration of technology

While the demand for digital transformation grows, technology has also reportedly grown with it. The 5G expansion is one of the most evident results of how digital transformation has increased the need for something more, something faster, something futuristic. With the level of digital transformation growing, the demand for better technology accelerates as well.

5. Scenario planning investment

One thing that is certain is that 2021 will be different due to COVID-19 not just for the small and medium enterprises but the entire industry in general. The realm of 2021 is still unknown especially regarding how the economy would turn out. This is why there has been an increase in scenario planning software that will allow companies to be better prepared should something similar to this situation happen again.

6. Omnichannel retailing

Diversification is very useful since it keeps everything in a safe amount of exposure should things turn sour. An investment tip is to not put all your eggs in one basket and this can be seen even in omnichannel retailing. The pandemic has shown that the companies least affected by COVID-19 were those companies that were able to function through omnichannel retailing.

Digital transformation is currently what keeps a number of industries afloat. Although this might be a foreign subject to some, the adjustment process is something very doable for companies that follow a few necessary steps.

How to effectively adapt to digital transformation:

1. Do the needed research

It is important to do the needed research as to the different parts of digital transformation, which parts are most important, and how those parts function. Make sure to have at least the basic knowledge of digital transformation before going further and doing something that might not be beneficial for the company.

2. Have a clearer vision of what needs to be achieved

It is important to nail down why digital transformation is important for the company and what is the ideal output in order to relay this to the digital transformation service supplier. It is also important to lay down the expectations as to when the digital transformation process should be completed either this year or 2021.

3. Find the best digital transformation service supplier

Instead of going directly for the most expensive digital transformation service suppliers, it would be better to find a company that can personally attend to the company’s needs. Sometimes, bigger companies do not notice small or medium enterprises especially since they are not paying top dollar for their services. On the other hand, their services might also contain other unnecessary digital transformation services that might not be necessary for the company and could just result in additional costs.

4. Discuss and come to a realistic agreement

Although coming up with an Amazon-like or Facebook-like system would be ideal, it is important to understand that these companies spent billions of dollars on their digital transformation system in order for it to be this good. It is important to come to terms with the digital transformation service provider in order to come up with a realistic expectation of what can be expected from the digital transformation.

Small and medium enterprises actually have it good since their company is still not yet as big as other major companies so the digital transformation process is more attainable. This advantage can be utilized in order to come up with a better company in the end.


ICTS is a Vietnam-based software development boutique that focuses on cutting-edge technologies. We help SMEs (small and medium enterprises) digitalize their business and handle the digital transformation in the most professional way, at a reasonable budget.

Contact us and discover what benefits we can bring to your digital transformation project.

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