Power of IoT in SME Digitization Case Study 2022

Running Head: POWER OF IOT IN SME DIGITIZATION
Power of IoT in SME Digitization
Name of the Student:
Name of the Organization
Author Note:

POWER OF IOT IN SME DIGITIZATION1
Introduction
The advent of 21st century’s digital transformation has created an immense platform for
businesses rapid growth and success with modern day digital facilities changing the entire
working procedure of a business (Abdollahzadegan et al. 2013). Renovation in the process of
doing business has been occurring at a fast pace across businesses from large-scale to small and
medium scale enterprise. Digital makeover has different types of benefits, which include,
connection between similar businesses, breaking of barriers between individuals doing business
as well as efficient ways of engaging with target customer has become easier with the use of
modern day technologies. This change in working structure of businesses to make them digitally
efficient requires a digital platform (Alshamaila, Papagiannidis and Li, 2013). Companies using
these digital transformational procedures with active social media engagements, data analytics
and cloud based services are likely to garner more public attention making profits to businesses
overall.
Strategizing is an important factor in case of small and medium enterprises before
implementing digital transformation within the working structure in an organization. Integration
of technologically enhanced facilities requires a business model for the transformational
procedures, actively engage audience and implement digital changes to capitalize in a market
based on customer necessities and demand (Tehrani and Shirazi, 2014). There are various
important factors, but for small and medium enterprises success through the use of Internet of
Things (IoT) in improvising their digital strategy require cloud based services, digital mode of
transaction and effective use of social media to carry out campaigns to actively engage with the
customer (Ross and Blumenstein, 2015). These factors provide a strong digital presence for
businesses growth in the vast digital sphere, however, there are certain risks associated with

POWER OF IOT IN SME DIGITIZATION2
digital transformation, which include protection of customer data, secure methods of payment for
digital transaction and active feedback mechanisms for customers in order to improve facilities
related to customer satisfaction in small and medium enterprises.
Discussion
SMEs have started to use digital platforms to expand their business. This has paved way
for a diverse list of opportunities in an organization to implement cloud-based services, digital
modes of payment including internet banking, credit card and debit card facilities amongst
others. The digital world is expanding, which implies that the consumers nowadays use internet
to buy, sell or invest and in order to catch their attention digital marketing is required. This will
help small and medium enterprises to develop marketing strategies to interested audience for
products as well as specific services provided by the organizations. However, this rising
competition leads to trends in the market place, where customer data is jeopardized due to
potential hacks occurring in the system; safe and secure methods of transaction in a digital
platform is of utmost importance. SMEs need to look after all these factors while in the process
of digital makeover in their organization so that in the process no hurdles turn up, which might
be a fatal problem for the enterprise in the future (Awa, Ojiabo and Emecheta, 2015). The use of
these technologies as well as their implication into the digital work force in an organization is
associated with benefits as well as challenges.
Cloud Based Services
Small and medium enterprises (SME) are considered as the pivot of social and economic
development of a nation. Increase of SMEs provide scope for employment opportunities,
development in rural areas as well as increase in product export of a country (Hussain, 2013).

POWER OF IOT IN SME DIGITIZATION3
Innovation of small and medium enterprises with digital technologies bring about a modification
in the entire working paradigm of a business. This in turn contributes to the various modern
technological innovations in the digital sphere (Shemi and Procter, 2013). Cloud based services
are a new development to cope up with the challenges faced by enterprises. Cloud services
provide small and medium enterprises with affordable technological solutions at a cheaper cost
used by large business organizations to facilitate in business solutions.
Cloud services include use of certain applications and processes, email services, network
security, online storage facilities; however, rate of adoption for cloud services is quite slow in
SMEs. Most importantly, the use of cloud computing as a resource needs to be strategized before
implementation (Stankovska, Josimovski and Edwards, 2016). Cloud based services provide
with scalable options to every small and medium enterprises. The rise in Information Technology
has provided businesses to gain advantage over other competitors through adoption of cloud
based services to facilitate in strategic advancements, benefits both economic and technical,
however funding and cost estimation is a barrier for small and medium business ventures. The
advantage in cost management lies in terms with operational expenditure (OPEX) and capital
expenditure (CAPEX), which popularized the adoption of cloud based services in businesses of
small and medium scale (Öztamur and Karakadılar, 2014). The design for cloud based services
are done in a way to withstand failures related to hardware and recovery of any disaster,
moreover infrastructures used for cloud services depend on a divided, vigorous and scalable
option to store data in different available physical locations, which are accessible from any
internet enabled devices (Karimiand Naghibi, 2015). Employees will be encouraged to
collaborate with one another from any location as well as share important information related to
business queries, both from management as well as customers.