Recently, the term “Digital Transformation” has come up frequently and is often discussed. What exactly is this?

Digital transformation is a process of combining various technologies of the Internet with traditional operating models, transforming in different areas such as branding, business operation, customer experience, sales & marketing, and becoming a sustainable development focusing on customer’s value and it’s user experience. Due to the fact that it includes many aspects of Internet technology, therefore the scope is very broad.

In fact, digital transformation has different meanings for different enterprises. Enterprises can improve their competitiveness through different digital transformation models, and their strategies and solutions can also be very different.

Four directions of Digital Transformation

1. Make good use of new communication technology

Using the most popular online communication technology is the simplest digital transformation solution. No matter what industry you are, you need to communicate well both internally and externally. In terms of internal management, even after the peak period of the epidemic, many companies still use different communication tools to manage their teams, such as Microsoft Teams, Google Meet, Zoom, Whatsapp Video, etc., in order to increase the efficiency between departments. Work from home with virtual meetings can definitely improve the quality of cooperation instead of using phone call. Externally, making good use of various private messaging tools such as WhatsApp, Facebook Messenger, Facebook/YouTube Live, etc., can improve the interaction with customers or clients more effectively and instantly. At present, many websites embed Chatbot feature, which can respond quickly to customers 7×24.

2. Adopt electronic payment solution

Online payment has become an indispensable device in the retail industry. Currently the most popular electronic payment platform in Hong Kong are Octopus card, credit cards, etc., the emerging Apple Pay, Alipay, WeChat Pay, Google Pay and FPS are also being used by more and more people. According to the latest online mobile wallet research, It shows that the penetration rate of mobile wallets has increased from 65% to 89%. In 2020, “Cash” transactions in Hong Kong accounted for 9% of in-store consumption, there are  17% decreasing. It is also expected that in 2024, e-wallets will replace credit cards as the most popular online payment method in Hong Kong, accounting for 37% of the total transaction value. It can be seen that adapting of e-payments solution is one of the most important step in digital transformation. More importantly, for better customer experience, companies should consider adding more than one electronic payment solution for customers to choose.

3. Online shopping

Online shopping is an irreversible trend. In future, more and more physical stores will transform into online shopping. Online shopping is not the same as building a website. Many start-up companies now know how to make good use of the Internet to do business, such as using Facebook Live / Youtube Live to promote products, or as simple as setting up a customer group on Whatsapp to promote sales. Online stores generate higher revenue than brick-and-mortar stores. Opening a store on an online shopping platform seems easier than setting up a physical store, and step by step enterprises need to adapt different Internet technology to deal with online charging, delivery, or customer service etc.

4. Artificial intelligence, big data, cloud computing

Artificial Intelligence (Artificial Intelligence), Big Data (Big Data) and Cloud Computing (Cloud Computing), commonly known as ABC, are the three most important technologies in future.

For ordinary SMEs, Cloud Storage & computation are the most important digital transformation that needs attention. It not only helps companies manage and back up data, but also protects company data security. At present, Microsoft, Amazon AWS, and Google have provided different economy Cloud solutions, which are very suitable for small and medium-sized enterprises. In addition, the construction of cloud storage is now getting extremely easy, as long as you choose the right platform, simple steps of registration, you can start using it. Its cost is also much lower than traditional servers (base on how much you use), and it has greater flexibility to upscale / downscale at any time.

Finally, using cloud storage can also make file transfer within the company more convenient, and it is easy to set permissions/share objects. Recently, due to the epidemic, many employees need to work from home. Employees can share documents through the cloud, and can update/backup the content at any time, and colleagues can also read them in real time.