Digital transformation powering SME high-growth

SME success over the next two years will depend on an organisation’s ability to embrace innovation, and use and leverage digital and cloud technologies, according to several newly-published reports.

The Asia-Pacific Small Business Survey 2021-22 suggests that ‘Small businesses in all markets are more likely to expect to grow in 2022 than was the case last year.’ Moreover, ‘High growth small businesses are much more likely to be using technology, focusing on customer satisfaction, innovating, exporting and seeking professional advice.’  

Digital Transformation is often used as an umbrella term to describe the reimagining of businesses in the digital age, a process of using digital technologies to create ‘new, or modify existing, business processes, culture, and customer experiences to meet changing business and market requirements.’ (Salesforce) There's more and more evidence out there indicating that the SMEs that are integrating digital transformation into their daily operations are stealing march on their rivals.

Digital adoption critical

Digital transformation does not simply seek to ‘digitise’ for the sake of using a technology but, instead, is predominantly driven by either improving operational efficiency, improving customer experiences in interacting with the business and consuming the product/service, or adding value to new or existing customers that gives an edge over competing businesses.  

SME Trends for 2022: New Tech and Giant Expectations from Salesforce, explains that digital adoption will only grow in importance. ‘In an age when staying connected with both employees and customers is key, SMEs who are growing are more likely to be focused on strengthening their digital capabilities than those who are stagnant or declining. Tech is a key differentiator between companies who can level up in the new climate, and those who are lagging behind.

‘Growing SMEs are more likely than stagnant or declining SMEs to say technology drives their customer interactions, the growth of their customer base, employee productivity, and cross-functional collaboration. 

‘Those business trends are startling in their clarity: successful companies leverage technology to improve and evolve while declining businesses don’t. There’s no such thing as a ‘magic bullet’ in the business world, but for SMEs looking to move into growth mode, the first part of the blueprint is clear.’ (Salesforce)  

MYOB’s 2022 Technology Snapshot shows that 45% of SMES have looked into how new technology can help their business, with a similar number looking to improve their digital capabilities in the next 12 months – particularly in the areas of sales, administration and how they communicate to their customers. 

The pandemic conversion

Not surprisingly, the pandemic has affected the speed of digital transformation roll outs for SMEs. ‘Overall, 43% SMEs said the impact of the pandemic and restrictions on their business meant they had to digitise, while 30% said digitising made their work easier and less complicated.'

Forbes has some helpful advice for SMEs sitting on the digital fence – don’t hang around, or get left behind. ‘Many small businesses do not have a strong digital presence. Success in the next ten years will be driven by your ability to use and leverage the digital and cloud technologies in use today, and your willingness to stay on top of whatever technologies your customers are using.’

Digital Transformation can seem daunting. Many SME owners and leaders feel that it's not relevant to them or their business. However, the chances are that you are already immersed in many of the processes and behaviours associated with digital transformation.  

What is clear is that digital adoption is crucial for New Zealand's businesses to gain a firm foothold in the way they do business in 2022 and beyond.  

Get good advice, skill-up when you can and develop an understanding of the rewards that a complete DT rollout can bring to your organisation. It will help you unlock lucrative opportunities to deliver innovation and compete on a more even footing with larger firms.  

For information on how The Icehouse programmes, workshops and coaching and advisory services can help your business, click here.

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