Family businesses play a huge role in our economy. According to statistics, family firms provide more than 70% of the world’s GDP overall and employ 75% of the global workforce. But most family businesses have been using outdated legacy systems, which has a highly negative effect on their growth. Digital transformation has become a crucial component of growth in this digital age.
Need for digital transformation in family-run businesses
Expanding Business Online
The Covid-19 epidemic has demonstrated the value of having resources online. Having everything online, from products to customers to employees, was crucial because it was impossible to go outside. It became difficult for the traditional family-run businesses as they were operating offline for many years and were not ready for the change. Consequently, becoming digital was necessary. Ecommerce also grew rapidly, so in order to stay profitable, family-run businesses have to embrace the change.
According to eMarketer, global eCommerce sales will reach $6.17 trillion by 2023.
We should be mindful of the lessons learned from the epidemic as we continue the ongoing process of digital transformation.
Meeting investor expectations
Traditional family-run businesses struggle with the need for comprehensive KPI measurement and data insights. In the digital era, investors are seeking clear and transparent insights on which they can rely before investing. So for this, businesses need digital capability which is vital in terms of insights and forecasting so that they can win over investors.
Traditional family businesses with old legacy systems are more vulnerable to cyber-attacks because of limited digital capabilities. The majority of legacy systems are incompatible with today’s technology, such as cybersecurity tools and cloud-native workflows. Due to the lack of backups and support from modern security protocols usually built into a modern system, this data could be lost very simply. In this digital age, solutions like modernized IAM are assisting firms in staying secure.
Mobile App – Crucial for business success
More people than ever are making purchases online today. Because they are simpler to use, mobile applications provide a more convenient way to communicate with businesses. Availability of all the information at your fingertips makes a great customer experience. Mobile apps also offer a very personalized experience by leveraging user profile information. Because mobile apps make it easier to make purchases, more sales are generated as a result, which helps to improve profits. Therefore, family-run businesses that use mobile applications outperform their competitors.
EVP (Employer Value Proposition)
The employer value proposition (EVP) is all about giving employees more opportunities and incentives to contribute to your larger employer brand. In this era, everyone wants to upgrade their skills. People are therefore choosing their careers depending on the digital capabilities and technologies of the organization.
Organizations are rushing to become data-driven businesses as it can open the gate to many big opportunities. These organizations are generating more revenues by unlocking customer insights. By using these insights, they are able to create a highly personalized and better customer experience which in turn increases sales.
More businesses are moving to the cloud as it can create numerous benefits for companies. This technology reduces the overall cost of doing business by reducing the cost of infrastructure, maintenance, and management. Cloud solutions are no longer seen as nice to have; rather, they are becoming essential as we transition to a more sophisticated digital environment.
Digitise Your Family Business with KoreCent’s Cloud-Based ERP
Digitising a family business may seem like huge work but not with the right partner and right solution. With the help of our cloud-based ERP, organisations are now able to take advantage of digital possibilities they never thought possible.
Some benefits of cloud ERP solutions include:
- Fewer infrastructure costs
- Automatic upgrades
- available anywhere, anytime
- compatible with other tools
- Easy access to information
- Decreased operating costs
- More secure
Contact us today to start your digital transformation journey with us.