What Small Businesses Need to Know About Digital Transformation and Disruption Although a small business's digital transformation may not be as large an undertaking as it would be for a big corporation, it is every bit as significant.

By Daniel Newman Edited by Dan Bova

Opinions expressed by Entrepreneur contributors are their own.

Although a small or medium-sized business's digital transformation may not be as large an undertaking as it would be for a big corporation, it is every bit as significant.

Some small businesses think their size creates some kind of immunity when it comes to digitalization. They assume, because they are "small," they don't need to undergo a digital transformation to maintain a solid book of business. This couldn't be further from the truth.

Digitalization is changing everything about life today – from consumer purchasing to how we conduct business. As more devices become connected to the Internet, more brands have started to create content and customer connections that cater to the buyer no matter where they are. And In today's market, every company is now responsible for living up to the "anywhere, everywhere" consumer expectation.

Digital transformation and disruption

Digital transformation refers to the company decision to deliver that seamless digital experience to consumers and to maintain an evolving customer relationship with new platforms and solutions. In practice, it means using data-driven analytics to get a better understanding of a target market, and then using that information to digitalize the internal and external processes to cater to the needs of the consumer.

Related: With Videos and Visuals Rising on Social Media, Data Mining Is Also Increasing

The result of digital transformations may or may not be considered a digital disruption. Digital disruptions are the larger phenomena that take place in society and change the way people do things in their daily lives. Mobile banking, for instance, might be considered a digital disruption. It provides value to the customer and changes the way people work, but it also is a concept that revolutionized an industry. A software update probably wouldn't be a digital disruption but any digital tool that is ultimately driven by consumer need could be considered one. As a small business, you may be affected by digital disruption, and you may have the opportunity to cause one -- or both.

Transforming your small business

Your company's digital transformation may not look like another company's. A transformation isn't about adopting every trend in the marketplace. Rather, it is a fundamental change in your business that adds value to the customer experience.

For example, going mobile may be a key part of your company's transformation. More people access their mobile devices before making a purchase than they do a desktop or laptop. Companies that successfully digitalize their businesses make sure that responsive web design creates a seamless experience on every device a consumer might use. It fundamentally changes the way your consumers interact with your brand, transforming your business from a legacy enterprise to a digitalized company.

Related: 3 Big Data Roadblocks and How to Tackle Them

Although a small or medium-sized business's digital transformation may not be as large an undertaking as it would be for a big corporation, it is every bit as significant. Digital transformation is vital for enterprise survival and growth.

Start making changes and ask for guidance and feedback from existing customers as well as employees who interact with customers on a daily basis. By focusing on the customer experience, you can make the digital changes necessary to streamline your business interactions online and in-store.

Once your company has made key digital changes, remember that the process is ongoing. Encourage innovation in your business and strive to evolve with the digital world in real time. Technology isn't slowing down and businesses that stay relevant will have to keep up with the changing tides. Reach your customers by staying technologically current. Keep them by remembering what sets your brand apart.

Related: 5 Ways Startups Can Leverage Big Data for a Competitive Advantage

Daniel Newman

President of Broadsuite

Dan Newman is the president of Broadsuite where he works side by side with brands big and small to help them be found, seen and heard in a cluttered digital world. He is also the author of two books, is a business professor and a huge fan of watching his daughters play soccer. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

'Gradually Stop Using Contractors': Duolingo Is Replacing Contract Workers With AI

Duolingo is taking an "AI-first" approach, meaning it will assign AI tasks previously completed by human workers.

Business News

The Duty-Free Loophole on Cheap Goods From China Closes Friday. Here's How It Will Affect Your Wallet.

Since 2016, the de minimis provision has allowed items worth $800 or less to be imported into the U.S. without paying tariffs.

Business News

Walmart Wants to Help U.S. Entrepreneurs Get Their Products on Its Shelves. Here's How to Get Your Stuff in the Door.

Retail giant Walmart is launching a new program to help small businesses sell more American-made products.

Side Hustle

This 34-Year-Old Was 'Wildly Un-Passionate' About His Day Job, So He Started a 9-Figure Side Hustle: 'Be an Animal'

Will Nitze asked his boss if he could work half his hours for half the pay in order to build his own business.

Business News

Here's How Much a Typical Google Employee Makes in a Year

Compensation for the median Google employee was up 5% in 2024 compared to 2023, according to a new U.S. Securities and Exchange Commission filing.