But what can digital transformation do for your business? And once you’ve decided to go ahead, what’s the most effective way to implement it?
Online you can find many descriptions of digital transformation. In a nutshell, it includes all those changes that a business needs to adopt in order to take advantage of the opportunities offered by digital technologies, such as digital platforms, the Internet of Things, cloud computing and AI. This means that digital transformation requires ongoing training of staff – whether business owners or employees – as well as considerable investment in infrastructure.
According to recent data from the European Commission on the Digital Economy and Society Index (DESI), which tracks the digital progress of the economy and society of EU member states (taking into account mainly data of the previous year), Greece performs below the EU average on the integration of digital technologies into business activities. For example, only 39% of small and medium-size enterprises (SMEs) have at least a basic level of digital intensity compared to the EU average of 55%. However, 20% of SMEs in Greece sell their goods and services online, above the EU average of 18%.
The need for digital transformation is growing in sectors of the economy where the digital footprint is wider. For example, the tourism industry in the wake of the recent COVID-19 pandemic was forced to swiftly reshape its model in order to face the challenges. The signs indicating that a tourism company needs digital transformation are:
The number of visitors is dropping
If it’s not temporary, as it was, for example, during the health crisis, then the reduced number of tourists is a warning that: (a) visitors are evidently not satisfied with the services they receive and (b) competitors do it better. In any case, hotel owners need to take measures, starting from expanding their digital footprint, which will give them immediate access to more potential customers.
Any decision – whether big or small – is based on... experience
Experience is obviously a good thing. However, when it comes to a constantly changing industry, such as tourism, experience is probably not a “silver bullet”. Perhaps the most important advantage of technology is that it enables the input of data that can be subsequently exploited by businesses. For example, data on the profile of visitors could lead to certain decisions regarding the design of a tourist establishment or choices related to activities, food, entertainment, etc., thus significantly improving the experience of customers, whose needs have changed considerably in recent years.
There’s too much paperwork
When the number of documents handled in a hotel is large, then it’s clear that digital organization is needed. This will benefit staff, as it significantly minimizes the likelihood of human error, while also reducing customer service response times, thanks to the automation of certain processes.
Digital enhancement of competitiveness
If you have a tourism business you need to be aware of the means and tools used by your peers, regardless of whether they’re domestic or incoming competitors. You can’t afford to be left behind by technological advances, since this could mean your business will lose customers, who today have higher expectations. By monitoring or even adopting best practices already deployed by other businesses, you’ll be able to enhance your services and, accordingly, retain or attract more visitors.
The key to digital transformation in your business is to set priorities, based on your specific needs. If, for example, you’re facing problems with revenues, you might need to review your business model, or if you’re having issues with customers and associates, then, perhaps, you should change your engagement strategy. In any case, digital transformation cannot be achieved overnight. It requires ongoing information, result orientation, as well as adaptability if the initial plan needs to be modified, especially over the years.
NBG, having itself invested in a successful digital transformation strategy in recent years, has the experience and expertise to guide businesses to a better and sustainable future, in line with their goals and objectives.
Sources: European Commission, Policies