Throughout our ever-changing business environment, the term “digital transformation” is frequently bandied about. It’s a catch-all term for new emerging digital technologies that aim to improve business processes, boost efficiency, and satisfy customers.
Most customers expect businesses to have a strong online presence, such as through the use of social media platforms, the presence of a website, and the creation of high-quality content. Nevertheless, as digital technology is becoming more widely used, businesses may face compliance issues.
Keeping compliance at the forefront of a company’s mind, rather than putting this on the flip side, will protect it as it digitally transforms. Here are some best practices for digital transformation that can assist a small or medium-sized business (SMB) in providing a smooth, legally compliant digital transformation.
Important elements in a digital transformation
Many businesses today provide digital solutions to their existing and prospective customers. According to new PwC data, 60% of executives say digital transformation will become a key driver of growth in 2022. Businesses invest in artificial intelligence (AI), cloud computing, 5G, and the Internet of Things (IoT) to transform digitally.
Before embarking on a digital transformation, determine which shifts or initiatives would yield the greatest return on investment (ROI). This will ensure that the change is effective in assisting your company in meeting its objectives.
These are some of the key components of a detailed digital transformation:
Leadership and strategy
No significant shift can occur unless a leader is identified. Employ the correct individuals and executives to work on a digital transformation strategy.
Data.
Utilizing data analytics to determine problem areas in your institution will best prepare the digital transformation crew to develop a strategy, decide which functions to streamline, and implement other necessary changes.
Process improvement.
Every company has procedures that can be improved. The primary objective should be to improve workflows, tasks, and procedures to achieve the best possible results.
The Advantages of a Digital Transformation
Even though this is a partial overview about what it requires to digitally transform, it includes a large number of the elements required for successful transformation. Digital transformation can provide numerous benefits, including:
Increased productivity and decreased stress
Increased business agility More opportunities for business growth
Profitability is more likely.
increased customer engagement and satisfaction
Take into account remote work as a component of your digital transformation.
However one reason how digital transformation is becoming critical for all kinds of organizations is the significant shift to remote work that Americans are experiencing as a result of the pandemic.
It is expected that 70% of today’s workforce will continue to work remotely by 2025, that’s not far off. Without first undergoing a digital transformation, how can companies adjust to a remote business model? Remote employees who use home or public Wi-Fi networks and their own devices to work can expose institutions to much more intense and frequent cybersecurity threats.
Best practices for digital transformation to stay compliant
Remaining legally compliant should really be a top priority for any small or medium-sized business that wants to stay in business. Studying and understanding compliance can be intimidating for entrepreneurs or those just starting out in business. Here are some steps that companies can take to stay compliant throughout a significant digital transformation:
- Engage legal advice and fulfill with them on a regular basis.
Legal compliance must be prioritized, and recruiting the best legal counsel can provide your company with critical information to ensure compliance.
- Maintain current knowledge of state and federal regulations.
The following are a few key areas of compliance that businesses should be aware of, as per the U.S. Small Business Administration (SBA):
Internal specifications
State filing requirements continue to exist.
Permits, licenses, and recertifications
ongoing federal filing obligations
The internet is brimming with information about SMB compliance. It’s also a good idea to think about hiring a professional to help with compliance management. Human resources (HR) experts are typically knowledgeable about compliance, so use them as a resource as well.
- Automate as much as possible
There are numerous automation programs available, such as TurboTax or QuickBooks. These services are frequently updated in order to comply with adjusting laws that apply to SMBs. Adjustments in accounting or tax laws, for example, are typically reflected in this type of automation software. If your company is going digital, leveraging automation services will be a crucial component of basic business operations.
In an ever-changing business world, digitally transform and stay compliant.
A digital transformation could be a wise decision that assists businesses in improving their operations, streamlining business operations, and ultimately improving their bottom line. As digital technology advances and evolves, businesses that are slow to adopt new technologies risk losing their competitive advantage.
Being compliant in all areas of business is critical when undergoing a digital transformation. These pointers will assist you in remaining in compliance with state and federal regulations in order to prevent liability issues or legal ramifications.
