The world is developing rapidly, and technological advancements have revolutionized our daily lives, labor markets, and business environments. In the past few years, the trend of digital transformation has dramatically changed how businesses operate. Digital transformation involves integrating digital technology into all areas of business in order to improve business processes. Sometimes even new businesses are created and developed as a result of digital transformation.
Digital transformation of the economy has been a new reality for a long time, but it has only become a topical issue in Armenia in recent years, especially after 2020. However, research and programs conducted by “BSC" Business Support Center (BSC) indicate that there are still a lot of gaps to be filled in the field.
In order to stimulate economic growth and ensure Armenia’s competitiveness on the global stage, the government and various international organizations are investing in digitizing companies. In recognition of the importance of digital transformation for a competitive and modern economy, BSC Business Support Center has made it a top priority.
BSC understands that the process of digitization can be challenging and complex, especially for small and medium-sized enterprises (SMEs), which is why we have developed and implemented a number of programs aimed at empowering and digitizing SMEs since the beginning of 2022.
The first large-scale project was implemented within the framework of the Center for International Private Entrepreneurship (CIPE) “Strengthening Associations and Improving Access to the Digital Economy for the Recovery of the Armenian Economy" project. By highlighting the main challenges Armenian Micro, Small, and Medium Enterprises (MSMEs) face in the digitization process, this project aims to assist them in overcoming these barriers and benefiting from the digital economy. The project was implemented with the direct involvement of business unions, associations, commercial and industrial chambers.
Within the framework of the project:
– A research was carried out and the needs of MSMEs were highlighted, based on which a number of recommendations were provided, which are already in the process of implementation.
– The guide “Using the potential of the digital economy" has been developed for trainers and consultants who are directly involved in the digitization processes of companies․
– A series of TOT courses were held, the purpose of which was to familiarize associations, unions and industry professionals with the guide and the online Armenian language course developed by CIPE.
– Conducted digitization training for more than 50 MSMEs․
In addition, three videos were developed to raise awareness of digitization among SMEs, in which invited experts participated, including Hayk Chobanyan, the head of the UATE (Union of Advanced Technology Enterprises), Elvina Asatryan, the head of Digital Factory’s marketing department, and Gevorg Mantashyan, the deputy minister.
As part of the “Shaping the Digital Economy Agenda in Armenia" project, which was developed based on the results of the research mentioned above, the project and collaboration with CIPE are continuing this year.
This year within the framework of the project:
– Public-private cooperation platforms will be developed in different formats (online and offline)․
– A series of guidelines for SMEs will be developed to further facilitate the digitization process․
– A series of webinars and trainings will be organized․
– Awareness campaigns will be carried out among the public and organizations․
– Also, 20 SMEs will be selected and will be given free digitalization consulting, as a result of which the companies will have a digitalization strategy.
The aim of the next project was to find out the current digitalization level among SMEs and key barriers, which prevent them from joining the digital economy. A needs assessment has been conducted. The need assessment has been implemented in the frames of the RECONOMY regional inclusive and green economic development project funded by the Swedish International Cooperation Development Agency (Sida), implemented by HELVETAS Swiss Intercooperation in partnership with the Union of ICT Employers (UEICT) and other organizations in the Eastern Partnership and the Western Balkan countries.
The main objectives of the research were to investigate the target sectors of the project (hospitality, agriculture, manufacturing) and:
– to find out the current level of SME digitization in the given sectors,
– to assess the level of awareness of SMEs regarding digital literacy and digital tools,
– define the needs and priorities of SMEs in the digitization process,
– as well as identify the main obstacles and ways to solve them․
As a result of the research, it was found that the main problem of the RA economy, particularly SMEs, is the low level of business and digital literacy on the way to digital transformation, and the BSC Business Support Center organized a series of courses for more than 300 small and medium-sized businesses to help them learn about digital business transformation.
The courses were mainly presented in four areas:
– Digital marketing,
– Online sales,
– Automation of business processes,
– Cyber security․
Continuing to implement measures aimed at the level of literacy, our partner UEICT launched this year the upstart.am platform, which offers free courses designed to increase entrepreneurial and digital literacy in small and medium-sized businesses based on the findings of the research.
BSC recognizes the importance of digital transformation in the transformation and development of the economy and continues to expand its services to include digital transformation services for international and private companies.