The increasing cost of digital business transformation

Posted by Lisa Williams on March 28th, 2019

Digital transformation is a sweeping change in the modern business world which cannot be ignored. A large number of business organizations have undergone this digital transformation in the last few years and most of them have benefitted from it. Similarly, a large number of medium business organizations are also undergoing this transformation with the hope that this move would strengthen their market position.

However, it is true that the number of small business organizations which have undergone or are undergoing digital business transformation are not at all satisfactory. There are a number of theories which try to explain why the small business organizations are not interested in joining the current bandwagon of digital business transformation. One theory says that the small business organizations are not aware of the benefits of this transformation due to limited intelligence feed. However, it is very difficult to assume that those small business organizations that work in close partnership with large business organizations are not aware of the changing technology.

There is another theory explaining the aloofness of the small business organizations towards digital transformation. It is the fact that the digital transformation services are highly expensive. It is true that there are a few agencies which help in digital transformation for a small fee but when it comes to quality digital transformation services, the business organizations need to set aside a huge chunk of their operational budget. Hence very few small and medium sized businesses put aside such a huge chunk of their budget for digitally transforming their business, especially if they are not doing that badly without being digitally transformed. Some people argue that although the digital transformation process is expensive, the returns would exceed the expenditure. This is definitely true. However, it would be much easier for smaller businesses to take the call of undergoing a transformation if they could pay for the services in smaller amounts.

The good news is that a few firms have introduced the idea of payment in instalments. The question does arise as to if these firms would do justice to the expenditure. This is why you should hire a digital consultant who would analyse the requirements of your business and would suggest the best and cheapest service for you.