Module 3-Transitioning to the Digital World Final LK

Module 3: Transitioning to the Digital World

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Table of Contents

MODULE 3: TRANSITIONING TO THE DIGITAL WORLD .................................................................. 4

1. W HAT CAN WE T RANSITION ? ......................................................................................................... 4

2. E-C OMMERCE B USINESS M ODEL ................................................................................................... 5

2.1 Finance ..................................................................................................................................... 7

2.2 Human Resources ................................................................................................................... 7

2.3 Information Technology ......................................................................................................... 7

2.4 Operations ............................................................................................................................... 7

2.5 Marketing ................................................................................................................................. 8

2.6 Sales ......................................................................................................................................... 8

3. E MBARKING ON M Y D IGITAL J OURNEY ........................................................................................... 9

3.1 Define the Offering ................................................................................................................ 11

3.2 Choose a Domain and Register it ........................................................................................ 12

3.3 Setting up the Website ......................................................................................................... 12

4. S UMMARY ................................................................................................................................... 17

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Module 3: Transitioning to the Digital World

At the end of this module, you will be able to:

 Use the business diagnosis done in the previous module to understand what can be transitioned to a digital format.

 Define your offering.  Register a domain.

 Understand how a website gets hosted.  Install WordPress and Set up WordPress.  Choose your website design according to your corporate design.

1. What can we Transition?

In the previous module we learnt about the online ecosystem that a business operates in. Figure 1 below describes the basic business operations that all businesses need to have in order to conduct and sustain business. The better the business is able to harmonise and co- ordinate these processes the more successful the business is likely to become. It is therefore quite crucial the small business owner is able to look objectively at the business to identify its strengths and weaknesses.

Remember the model we have previously looked at.

Figure 1: Basic Business Operations

Finance

Sales / Retailer

Franchise

Traditional business

Marketing

HR

Operations / Manufacturer

IT

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We completed a diagnostic survey of our businesses in Module 1 for the purpose of finding out what the strengths and weaknesses of our businesses are. It is important to realise here that transitioning your small business to an online medium will not automatically remedy all your problems. For example if you do not have a clear customer service plan in place on paper, moving to an online medium will not resolve your problem, it will exacerbate it. Not surprisingly most small business owners are constrained by a lack of resources both financial and non-financial. Most small businesses are unable to hire full time staff to look after every business function. It is therefore necessary to craft innovative solutions that these functions are still fulfilled albeit without full time staff being hired to do so. How then does the small business innovate? The answer lies in being able to find the most appropriate technological solutions without having to “break the bank.” Figure 2 is a development of Figure 1 and goes on to describe a basic e-commerce business model and how small businesses can implement this.

Activity 15

Converting traditional processes to online processes

In your group take a look again at the diagnostic survey you conducted of your business in Module 1 and then using the results of the diagnostic activity discuss which processes you think you can automate. Don’t worry about how to automate these processes now that will come later.

2. E-Commerce Business Model

Now that you’ve applied your mind to how to convert your traditional business processes to an automated one let’s re-visit the e-commerce model we looked at in module 1.

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Finance : Accounting packages e.g. Sage that is cloud based

Sales : Selling online using payment gateways and social media sites

HR : Automated policies & Procedures and payroll

My smalll business

Marketing : Digital using social media to drive traffic to your website; tracking traffic

IT : Networking & Google Tools make online offices possible

Operations : Automated policies and procedures

Remember, online solutions are only as good as the people implementing them. If you introduce automation into the business make sure you /staff is trained to use it.

Figure 2: E-Commerce Business Model

The above model is referred to as an e-commerce model because it shows a set of processes that can be used to convert the basic business model shown in Figure 1 to the above model that makes it possible for a business to transact with its customers online. However, we learnt in Module 1 that business processes need to work in harmony with one and other and therefore it makes sense to look at the business in its entirety rather than concentrating on marketing or sales only. Let us now briefly describe each process in order to understand the potential to convert to an online solution. Never introduce new software or hardware unless you are sure that it will improve your business and save you costs in the future. Equally, don’t allow cost to be the only factor in your decision to go for automation or not. Always conduct a proper cost-benefit analysis before deciding for or against the introduction of new technology or software.

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2.1 Finance

Managing your businesses finances is probably the most important process of all. From the safety of your computer you can now generate income statements, balance sheets and cash flow statements without enlisting the services of an accountant. This is made possible by accounting and finance packages such as Sage and Quick Books which integrate seamlessly with your payroll. Banks have automated their processes to make it possible for clients to receive feedback on loan applications within 24 hours. Here it is important to realise that what you put into a system is what you will get out. In other words the quality of your reports is dependent on entering financial and accounting data regularly, consistently and accurately. If you cannot do this rather stay with your accountant/bookkeeper until you have built enough capacity to do so. Human Resources can be challenging for small business owners. In a country where labour relations is highly regulated, compliance to codes of conduct requires attention to detail. Automated HR systems now make it possible to link payroll services to HR services which allow for leave days to be automatically calculated and leave payouts to be accurately calculated. The value add with these services make it possible for a busy small business owner to comply with Skills Development Levies submission, Employment equity and submission of employee tax, Value Added Tax and income tax. Bear in mind though that if these processes are currently working well and you have an accountant and an HR staff member, you need not immediately automate these processes. The old maxim applies here: “If it ain’t broke don’t fix it.” Not many small businesses are in a position to employ an IT person full time. Most will outsource this as they need it. It is a vital function to be performed and money spent on this function is well spent. Good IT services ensure an automated (smart) office with full networking capability and access to the Cloud for back up and related services. With the current energy crisis in South Africa not expected to get better in the near future it is important to invest in power generators, uninterrupted power supply (UPS) units and inverters to protect your infrastructure and prevent damage to it. Technology and associated software together with customised applications will form the backbone of your digital existence. It is important to have a clear and coherent IT plan which incorporates your plan to conduct business in the digital world.

2.2 Human Resources

2.3 Information Technology

2.4 Operations

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A multi-function printer makes it possible to have paperless solutions that enable us to save paper and use automated services for scanning, emailing and storing information. In the digital age large amounts of data are generated which can be stored, indexed and is easily retrievable, unlike in the old days of large lever arch files that took up more storage space than any small business owner could afford. Disaster management processes require data to be stored offsite which through a smart office is achieved by a few clicks of a mouse.

Equally the good old switchboard has become digital and now can be operated remotely and in the cloud. This is made possible by VOIP (voice over internet protocol):

VoIP is a telephone connection over the Internet. The data is sent digitally, using the Internet Protocol (IP) instead of analogue telephone lines.”

2.5 Marketing

For the purpose of this training programme we are going to select the website as the central component of the e-commerce strategy and explore how to use the website as the central tool in driving your marketing, sales and ultimately making a profit for your business.

A digital marketing strategy is well within the reach of every small business owner provided there is a clear and coherent marketing plan on paper. Digital marketing allows us to speak directly to the target group we want and this interactive process makes it possible for small business owners to design, develop, implement and monitor a digital marketing strategy. A digital marketing strategy though comes with added responsibility and added risk. The age of social media operates at breakneck speed and once something has a digital footprint it is very difficult to erase.

2.6 Sales

Sales is the life blood of any small business and buying

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and selling online has exploded as an industry since Covid-19 first appeared. Applications such as Pipedrive and Saleforce have made it possible to integrate business processes that make it possible for business owners to operate their sales campaigns from the comfort of their phones or laptops. Online payment platforms such as Paypal and Paygate have made it extremely easy to transact online with your customers within a safe and secure environment.

This brief description of e-commerce processes is aimed at the functions of the business and how they can be optimised to generate a profit for the business owner. However for the purpose of this training programme we are going to select the website as the central component of the e-commerce strategy and explore how to use the website as the central tool in driving your marketing, sales and ultimately making a profit for your business.

3. Embarking on My Digital Journey

The digital journey for taking your business online has become relatively inexpensive and importantly sophisticated technical skills are not required. This is not to say that web development and graphic design have become obsolete skills, far from it, but the ability to set up an e-commerce website has made it possible for business owners to go live quickly, efficiently and most importantly inexpensively.

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Activity 16

Instructions:

a) Look at the example of this organisation’s digital journey and discuss what you see about their digital journey. b) In a group discuss your own digital journey for your small business and pay attention to the different parts of it. c) Use the brown paper given to you by your facilitator as your canvas and using the flash cards and pens draw your business’s digital journey.

Now that you have completed your digital journey take a look at Figure 4 below that describes the Digital Journey we will follow together:

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My digital journey

Define offering

Convert traffice to sales

The birth of the initiative

Dirve traffic to my website including social media

Set up your core offer

Content marketing

3.1 Define the Offering

The digital journey is not a journey of technology and software only but the ability to sell goods or services at a profit to your business. It is therefore important that you come up with an offering that is important to you that you value highly because then you will pursue it with passion:

3.1.1 Niche Selection

Choose an idea or product that is niche. A niche product will sell because there is a demand for it. But how do we know what is in demand?

A specialised but profitable segment of the market e.g., a niche market for solar lights

3.1.2 Google Trends

To find out what is demand we turn to Google Trends which gives us an idea what the most popular search topics are.

Therefore to do a search for solar lights, scan the QR code below and you will be able to see how popular searches for “solar lights” were over a 12 month period. If you cannot scan the QR code then click on this link: https://trends.google.com/trends/explore?geo=ZA&q=solar%20light

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3.1.3 Settle on your idea or Product

Your final decision need not be “cast in stone” but rather see it as a “trial and error” exercise. It may take you many attempts before you can find something that sells and sells well. However after doing your research you need to settle on one particular idea or product in order to test it on your digital journey.

3.2 Choose a Domain and Register it

Choose a domain name that is easy to remember something that is catchy and does not contain difficult characters. A domain is similar to a physical address where people can visit you at home or at work.

Check if the domain name you have chosen is available: www.domains.co.za or on www.godaddy.com

If it is not available the site will tell you what domains are available and you have the choice of reserving your domain name for a small fee. When your website is developed you can then elect to go live.

A domain name is the address at which people will find your

website on the internet: www.solarlights.co.za

3.3 Setting up the Website

Setting up a website no doubt requires technical skills that we don’t all possess. However sites such as godaddy.com and 1-grid.com offer you free domain registration if you choose one of their hosting packages. For the purpose of setting up your website we shall choose to install WordPress.

Your website would need to be hosted by a web-hosting company.

WordPress is an Open-Source project which means you are free to use it at no charge at all.

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3.3.1 Install WordPress

Click on the link to find out about the ABC of websites from WordPress.

https://www.youtube.com/watch?list=RDCMUCvP5cfpfIgkb0Dt8o7Qt21A&v=39LxsfiF34w&fe ature=emb_rel_end

Instructions:

a) Click on the following link: https://wordpress.com/sites

b) Click on My Site

It will take you to the page below:

c) Click on Create Site

d) Give your site a name: My Site is called Solar Lights

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e) Click on Continue

f) Choose a Domain

g) We are given a choice of domain to choose from.

Let us choose the free one:

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You will have noticed that our website address still has the words WordPress and a number in it. If you want to customise your domain you will have to purchase a hosting package from a service provider.

Congratulations you have now created your own website:

https://solarlights966442987.wordpress.com/

h) Edit Your Homepage

a partner go through each menu item starting with the home page and working your way through. Thereafter click on Home Page on the left hand side of the screen as seen below:

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i) Launch your Site

Welcome to the Digital World!!

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4. Summary

In this module we have reviewed the different models between traditional and online business to help you understand how the two business models are different and where there are similarities.

You have started the process to create your own website. Congratulations!

As part of this process we have looked at how to define your offering, how to register a domain and understanding how a website gets hosted.

You have installed WordPress and set up WordPress. The next step is to continuously improve and work on your corporate design.

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