More and more, a digital transformation is becoming necessary for companies of all sizes to stay relevant.
However, small and medium businesses tend to shy away from digital transformations more often than they should. They might see the value in a digital transformation but feel intimidated by the size or cost of the undertaking. Or they may just not be sure which approach is best to take.
So what does an SMB digital transformation look like? Why are they essential for companies planning for the future? What digital transformation challenges can SMBs expect to encounter, and what solutions are available for overcoming them?
Why SMBs are wary of digital transformation obstacles
For small and medium businesses, the stakes can be very different.
- Their technology budgets might be stretched thin already.
- They might not have a steady enough cash flow to see a major project through to completion.
- Customer service complaints resulting from issues in transition can have a significant impact on revenue.
- They may worry about staff buying into new processes.
Digital transformations don’t have to be all-consuming projects, and they definitely shouldn’t be something SMBs fear. A transformation carried out well can deliver a great deal of value to any small business.
Digital transformations integrate business systems
One of the core functions of a digital transformation is to introduce integrated IT tools into every essential business operation. Then, connect those integrated systems to streamline workflows between operational units and provide deeper insight into how well those activities are completed.
When you connect business services, like inventory management, accounting, and customer service, you break down administrative silos that build up over time in any organization. No more cross-system errors or human entry mistakes.
They encourage collaboration
Breaking down silos through digital transformation also better connects the people within your organization.
Bring together stakeholders throughout your organization when you’re still in the planning stage. Any business team that might benefit from your transformation should have a voice. Collect their requirements and concerns, and make sure you account for them in your transformation plan.
They simplify work
Many SMBs shy away from a digital transformation because they assume it means introducing new, complex IT into the workplace. Not so. It will consolidate many redundant systems into a single, unified platform.
You will be able to train operational staff on fewer tools. Your support staff will also have fewer to maintain. As a result, workflows will be simplified, which can significantly impact small business operations.
They connect every layer of your organization
A digital transformation doesn’t just provide tools for operational staff. It will also benefit supervisors, directors, and executives in their day-to-day lives, especially if you consolidate systems using service management software.
Supervisors will gain access to informative daily reports. Directors will get powerful performance analytics tools. Executives will gain a better 30,000-foot view from all of this valuable, new business intelligence. Each layer of your organization will benefit and be able to work together more closely.
Top 3 obstacles to successful digital transformations
The benefits of a digital transformation are clear, yet many SMBs fail to see theirs to completion. These are the three digital transformation obstacles that we’ve seen SMBs struggle with the most. Fortunately, there are reliable solutions to each.
Lack of a strategic plan
Many digital transformations fall apart because the new systems the company tries to implement don’t align with how they operate or with their business objectives. Remember: a good digital transformation shouldn’t force you to change the way you work. Instead, it should make the way you work even better.
Solution
Once you have a plan in place, get those stakeholders back together and figure out what you need to transform in your current operations to meet your new goals. Once those things are determined, you should look at transformational technologies, like IT Service Management (ITSM) software. With your goals set first, you’re more likely to find the one that fits your SMB’s particular needs.
Employee pushback
People don’t like change. That is a fact of life. Your employees may push back against a digital transformation simply because it represents a change in their routines.
Solution
Seek employee buy-in starting in the planning stage of your digital transformation. Get input from representatives of all operational business units that will need to use your new systems.
Then also include plenty of training opportunities along the way. Likewise, supervisors and managers will be much more likely to stick to new processes when they see the insights they can gain on company performance using ITSM reporting tools.
Tight budgets
SMBs frequently struggle with having the funds necessary for significant capital projects, like digital transformations. Budgets are tight. Revenue streams can be volatile.
Solution
Find a solution built for the needs and budgets of SMBs. Consider using solution as a service that allows you to distribute costs over time. You’ll only pay for the amount you use each month. Scale up or down as your budget permits.
Want to see how OpusApps can help you overcome the obstacles in your digital transformation? Schedule a free demo today.
