Information management – The digital transformation in SMEs

Today we start with the articles focused on the digital transformation for SMEs. In these articles we will talk about the key points to take into account when digitizing this type of companies. Today we start with the management of information and its benefits.

Digitalization and information management

Digitization is important and can be done for small businesses or organizations following some simple guidelines. Basically, most well-established companies have adopted digitization. However, there are some companies that have not yet understood the value of the digital transformation. Start-ups and small-scale enterprises tend to avoid digitisation, and with it, perform poor information management. They fear a high investment and have no clear idea of the benefits of digital transformation. The following section will analyse the benefits of digital information management for small and medium-sized enterprises or SME.

Less paperwork – Saving physical space

With digital transformation , a company can considerably reduce paperwork, as all data can be generated, processed and managed digitally via computers. Database-based information management can replace thousands of physical files. Over time, companies generate a large amount of data. Most companies have to store this data securely in order to be able to use it later. Data loss can be seen as a financial loss for businesses. In addition, the lack of availability of important data will make the decision making process inaccurate and difficult. The business will suffer from the lack of vision of the business owners or managers. The digital transformation protects the data and at the same time reduces the hassle of taking up a large physical space to store it..

Paper Information Management
Paper Storage

Data security

As already mentioned, the digitization of a company can offer excellent data security. With a seamless digital infrastructure information management , it is possible to protect data from various types of damage. Data could be protected from physical damage. Paperwork usually breaks down into its own time-limited process. Over time, companies begin to lose data. With the digital infrastructure for data storage and processing, there would be no such nuisance.

There are some security challenges in the digital platform, although they can be overcome with appropriate measures. In general, digitization provides greater data security than the conventional process of storing or managing data. The possibility of losing data is minimal. In addition, backing up digital data is simpler than backing up conventional paper data.

Profitable for small businesses

Small businesses can easily achieve profitability with digital transformation. Paperwork involves a lot of costs. There would be printing costs, paper costs and many more. More importantly, it is difficult to manage these data without making a good amount of investment. For physical security and data protection, space is also required. Regular maintenance is required to prevent damage to documentation. With sharp contrast, digital data is easier to manage. No additional maintenance costs are required. No particularly large investment is required to protect the data or files from the possibility of loss. Thus, in general, the digital transformation is very profitable for small and medium sized enterprises.

Environmentally friendly

Y is that digital data processing and management are environmentally friendly data management methods. It reduces the use of paper and therefore protects nature and the environment. In addition, it is important that small and medium-sized enterprises respect the environment, especially if they wish to obtain certain state-sponsored benefits and tax exemptions.

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