What does digital transformation mean for SMBs?

Digital transformation is a term that has been bandied about for the last few years, but what does it actually mean and why should small to medium-sized businesses care? Yes, technology has changed in the last few decades and we’ve switched from pagers and fax machines to smartphones and cloud-based collaboration tools. But what tangible impact has this had on day-to-day business?

On a personal level, you are probably so used to being contactable anytime from anywhere, that it’s hard to imagine a time before mobile phones and the internet. As your workforce gets younger, expectations are similarly rising. Millennials walking into a new job, even with a small company, will expect a laptop and mobile phone as standard, considering them basic tools of the trade. The work day is no longer confined to the hours of 9-5, with over 70% of mobile workers sending their last email of the day from home. On a global scale we are doing more – and doing it faster. In the old days, correspondence with one person could last weeks and months by snail mail to resolve a single matter. Today, how many emails do you get through in a single day solving a multitude of questions and problems?

Being a small, growing company doesn’t make you immune from the changing face of business. If anything, you’re expected to embrace digital transformation with arms wide open precisely because you are small. You’re no longer tied back by hefty on-premise infrastructure with lengthy deployments at exorbitant costs. Software as a service models have made it affordable and easy to pay-as-you-go with flexible terms, so you’re not held back by the size of your business. And with customer acquisition being the number one priority for small and medium-sized companies this year according to an SAP and IDC study, cloud technology is helping start-ups to perform with speed and agility and even compete with the giants in their industries.

So what areas of your business have changed thanks to the digital revolution?

Think about how the systems in your business have evolved in the last ten years. This could be collaboration software and calendars for employees. At 60%, these have the highest penetration within SMBs according to the SAP research. Customer relationship management (CRM) software comes next followed by eCommerce platforms that allow customers to order from you online at any time of day while streamlining the backend process for the business. Enterprise resource planning (ERP) to manage the financials of a company is also growing, as well as the rise of HR and marketing automation tools. And let’s not forget social media and all the online channels you’re expected to have a presence on too. In fact, recent research revealed that most SMBs use a minimum of three cloud-based tools and this number is only expected to rise.

Another surprising finding from the SAP study is the positive impact technology is having on SMBs. Up to 87% said the investment had met or exceeded their expectations in terms of their growth goals. The biggest benefits this achieved for the business was providing ease of information access wherever employees are, achieving compliance and giving employees more flexibility. When we recently spoke to finance directors at the FD Surgery in May, they said that implementing new technology was their biggest priority for the year ahead. Recognition of the importance of technology investment is certainly on the rise as businesses realise they can’t simply rely on the way things have always been done if they want to compete successfully in this digital era. And it’s easy to see why. Think about the impact technology has for a growing company that:

• Doesn’t have to wait for someone to be in the office before an order can be placed
• Keeps business moving even when employees are on the road
• Impresses clients with an always-on, professional online brand
• Has automated checks and balances in place that make processes much quicker
• Employs happy staff who appreciate the company’s flexibility and modern approach

And what does this mean for your business? A more productive workforce offering better customer service, a quicker sales cycle that is not bogged down by manual processes and paperwork. Not to mention decreased costs and increased sales, which in turn means growth and a competitive edge in the marketplace.

You’re already adopting and enjoying so many fruits of the digital age, often without realising – and digital transformation is not as scary as it sounds. So, are you still resisting change and which areas of your business are ripe for transformation?