Technology 4.0 with the breakthrough of the Internet and artificial intelligence has impacted and drastically changed most activities in small and medium enterprises (SMEs). In the exciting period of technology application and digital transformation, what opportunities and challenges do SMEs face? How have businesses in each field changed? Let’s find out with A2Z Tech through the article below!
Opportunities and challenges for businesses in the face of 4.0 technology trends
1. Optimizing production processes
In the age of technology, smart factories are connected to a wide network with modern and intelligent production lines. Technology is completely replacing the traditional production process, each stage is set up and coded with almost absolute precision. From there, creating quality products, accurate to every millimeter. The production process is therefore optimized in terms of time and quality.
2. Improve productivity and product revenue
Technology 4.0 helps SMEs improve productivity and product revenue. The production line is mainly by machinery, at this time, labor only plays the role of machine operator, so there is no need for as much as before. Enterprises not only save human costs, but the quantity and quality of products are also constantly increasing and improving. Increased productivity, reduced costs, and increased product revenue will gradually bring SMEs to great success.
3. Highly specialized
Based on their advantages in terms of scientific and technological capacity, each country and enterprise specializes in the main research fields, as well as cooperates with each other to bring the highest efficiency to each other. your business. Mastering that operating rule, SMEs can create branded products that when it comes to everyone knows it’s their company’s product.
4. Competitive environment for mutual development
The increasing demand of customers in the 4.0 era requires businesses to constantly explore new products and production processes. The same product line, but each company has different production processes, packaging designs, and brands. It is this competition that affirms the vitality of products and businesses.
5. Opportunities for linkage and cooperation at home and abroad
In the current globalization context, countries have strengthened links and cooperation in science and technology. SMEs can use it as a stepping stone to:
- Effectively exploit and apply available products and services about your business
- Access to external resources: capital, human resources, machinery,…
- Opportunity to participate and contribute inventions and creations
1. Challenges in the production process
Human needs are constantly changing and developing, leading to technological products made with shorter life cycles. The receipt and change of new products, tools and new production methods must be timely if enterprises do not want their products to be outdated and outdated.
2. Challenges in human resources
The application of technology to production requires highly skilled and skilled labor to operate and use modern equipment and machinery. This also widens the gap between unskilled and highly skilled workers. If there is no proper human resource allocation policy, it will give rise to issues of fairness and rights of employees in enterprises.
3. Challenges in management activities
The new era opens up many opportunities, but if the manager does not grasp the time and regulate it properly, it is easy to make mistakes. Enterprises must have a specific plan in terms of products, investment costs, and reasonable human resource allocation. Some typical issues that SMEs need to pay attention to:
- Protection issues, intellectual property is being seriously infringed
- Cybersecurity issues inside and outside the enterprise
- Depends on machines that exclude intellectual ability to think and create
The transformation of businesses in the new trend
ENTERPRISE FOR SALE
Artificial intelligence (AI) helps businesses analyze the market on a huge Big Data database, keeping customer needs and purposes in mind. On that basis, we will know which sales model and products are suitable for customer needs. Technology 4.0 also helps businesses know the effectiveness of the model when analyzing purchase history, the time of the most purchases, the most purchased objects so that businesses can have solutions to navigate products accordingly. suitable.
The use of media has changed the sales process, saving time and money for both businesses and buyers. If before, businesses that want to introduce products must have campaigns to distribute leaflets, put up billboards… Now, 4.0 technology connects to the global Internet, advertising social networks on Facebook and television. , the sales website is increasingly popular and effective.
ENTERPRISE OF SERVICES
If you are using social networks like Twitter, Facebook, Instagram, Youtube, LinkedIn, this is a huge data source for service companies. Through these websites, service providers understand the needs of customers through advertising videos, through views, online likes on a certain topic or field.
AI is applied in the service sector through chatbots, self-answering questions and answering customer questions.
BANKING SECTOR – INSURANCE
Bank is transformed by digital technology to help users. If in the past, transactions were done directly at banks, today there are ATMs, convenient payment services via VISA card, credit card or online payment via mobile phone. using PayPal, Apple Pay,…
For insurance companies, the application of 4.0 technology allows business owners to build insurance packages, store information, and customer benefits in a timely manner. quickly.
The above are some examples of business transformation in new trends. The 4.0 technology revolution has been affecting all fields. Enterprises need to grasp and promptly change with new trends to develop.