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4 actions to reinvent SMEs in the face of digital acceleration

By implementing these actions, small and medium-sized businesses can better take advantage of the opportunities in today's market.

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process. Opinions expressed by Entrepreneur contributors are their own.

The measures implemented by the authorities to contain the COVID-19 pandemic have had important effects on different economic sectors in the country. In September 2020, according to INEGI data, there was a decrease of -8.06%, compared to the 4.9 million micro, small and medium-sized enterprises ( SMEs ) in May 2019 .

During recent years, the market was already moving towards digital transformation, however, the pandemic forced companies to accelerate their digitization and turn around their operations. From one day to the next, which represented new growth opportunities, has become a challenge: transform to continue being relevant to your customers.

In his study "The digital business at its maximum speed" Chubb, a property and liability insurance company, identified four actions for the reinvention of SMEs in digital acceleration.

By implementing these actions, small and medium-sized businesses can gain a greater understanding of the trends driving digital acceleration, and will be better prepared to take advantage of the opportunities in today's market, to grow and remain competitive.

1. Build digital experiences: Direct digital communication with the customer provides the opportunity to offer personalized experiences. To reach their consumers, in the right place and time, companies must implement easily accessible digital solutions and processes.

According to 45% of the companies surveyed by Chubb, their priority in the next three years is to deliver products and services flawlessly and at the customer's request; 46% seek to adapt their products, services and communications to multiple generations; while 24% do not believe that using direct forms of digital communication will impact their performance.

2. Value the power of data and protect it: Three out of four study participants said that embracing artificial intelligence is their top priority in the next three years. Using this technology offers companies different market perspectives to adapt or modify their products and services, as well as optimize processes to improve the experience of their customers.

As companies evaluate the development of mechanisms to collect and use their customers' data, they must also invest in technology and adapt processes to protect the information collected and reduce the different cyber risks that the digitization of the business entails.

3. Implement a flexible work model: 32% of companies consider that offering flexible work solutions to their employees is one of their greatest challenges. Optimizing remote work and achieving more collaborative processes through the use of new technologies will allow them to adapt and be more competitive in the current environment. Implementing a flexible work model can help increase productivity and lower operating overhead.

4. Expand their products and services to commercial platforms: 44% of the SMEs surveyed recognized that collaboration with the major players on commercial and social platforms is their greatest challenge today. Small and medium-sized companies seek to sustain and expand their business with a partnership that promotes their e-commerce model, and allows them to survive in today's market.

Adapting your business models and work processes is a matter of survival, so having adequate and timely advice, which allows understanding and helps mitigate the possible risks that digital acceleration has brought, becomes essential.