We would like to invite you to the conference "Transformation of Science and Business in New Economic Reality", which will take a place on November 25-26, 2021.
The conference will feature a presentation delivered by PhD Ramona Rupeika - Apoga,
Professor of Finance
Ramona Rupeika-Apoga is a Professor of Finance at the University of Latvia and the Head of the Department of Finance and Accounting. She has led and participated in several studies and research projects internationally and locally. She has more than 15 years of pedagogic experience in Latvian and European higher education institutions with specialization in Risk management, International Finance, FinTech, and Digital transformation of SMEs. More information
Digitalise or die: the digital transformation of companies
COVID-19 has significantly speeded up the process of digital transformation in Europe. Companies that were previously hesitant to digitalize their businesses can no longer wait to do that to prevent them from disappearing from the market. Digital transformation is not just about going online or doing e-commerce. Digital transformation is a process that changes the entire business model of companies and that needs to be supported by an ecosystem, a dedicated digital strategy, and digital skills. At the same time, successful digital transformation requires companies to address a number of resource challenges. Digital transformation can require new and sometimes significant investments in the company, employees, and customers, all under budget constraints.
Prof. Ramona Rupeika-Apoga will present the research results based on data collected from the owners and CEOs of 434 SMEs, which are registered in Latvia, and responded to an online survey carried out during February/March 2021. The main conclusion is that the degree of digitalization of Latvian small and medium-sized enterprises is rather low. For example, over 80% of surveyed companies still use telephone and email for business. The survey results convincingly showed that the most acute problem in Latvia is the lack of funding. 72% of all surveyed SMEs said they did not have enough money to drive digital transformation in companies. The second obstacle was the lack of digital skills among entrepreneurs, 69% of companies consider this a burden, but this was not as acute as the lack of funding. In terms of the impact of digital transformation on business in the next five years, the vast majority of entrepreneurs believed that digital technology would have a positive impact on business (93% of SMEs), but would require digital technology to remain competitive (91% of SMEs).
The research findings provide some practical implications for SMEs for better planning and managing their resource actions, which are essential steps towards successful business transformation.
This research is funded by the Latvian Council of Science, project DigiSMEs, project No. LZP-2020/2-0061.
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