Member Article

Embracing digital transformation: Top tips for SMEs

Adrian Overall, CEO at CloudTalent

The UK economy relies heavily on the strength of its 5.4 million SMEs which account for £75 billion in annual turnover[i] and act as key drivers of growth, innovation, employment and social integration. SMEs, more than larger organisations, have benefitted from digital transformation as it has decreased the number of barriers and reduced the capital investment needed to create new businesses, and has allowed them to compete with larger, more established players in their markets.

Creating a digital culture:

Small and medium businesses need to realise that digital transformation is not just about making sure they have the latest or right technology, nor simply replicating the physical workplace online – it involves something far more all-encompassing. Companies know that they need to create a digital workplace, but outdated internal cultures, organisational uncertainty and the rapid pace of change are just some of the barriers they are facing when it comes to embracing the future. Indeed, it’s not surprising that in a recent study of 100 senior level IT leaders by CloudTalent, over 90% admitted that digital transformation was bringing about levels of pressure never before experienced in their work lives, and less than half felt their company was making good progress with the process.

Demonstrating the Return on Investment (ROI):

To combat this and drive the adoption of a digital workplace, people and processes need to align and fully engage. This is the same for any company, regardless of size or sector. Smaller businesses, by nature, are more agile in adapting to and fulfilling this process, but in all cases, change must start from the top; CEOs, founders or managing directors - the person in charge must be a role model and driver of this business transformation. Leadership must make sure they articulate the benefits of digital change to all employees – such as revenue growth, greater cost savings, productivity, and agility – and show how a digital strategy can assist wider business goals. Only by taking a holistic approach can a digital workplace be successfully created.

Upskilling your workforce:

A large part of this approach is alleviating employee concerns, such as privacy and security, via engagement. Not all employees are on the same level of digital literacy, or adaptable to change, so they need to be offered tailored support. Giving people tools is one thing, showing them how they can benefit from using them is another. In larger businesses, HR departments will often be responsible for managing this change in behaviour: ensuring employees are using the digital tools and are using them correctly. In doing so, the chances of success can be dramatically increased, ROI can be boosted and maximum business value can be delivered.

All businesses must recognise that not all staff are alike. Old habits die hard; many employees will either cling to the way they have always done things or they will have greater difficulty adapting to more modern tools and processes. In the largest companies, such reluctance can be hidden or worked around. In small or medium businesses it is vital for everyone to be on board.

It is hard to ignore the potential of digital transformation: Uber, Skype, Spotify, WhatsApp, Netflix, and Airbnb are just some of the examples of SMEs coming in and disrupting entire industries – how did they do it? It all starts with the digital transformation of the entire business model.

[i] House of Commons Briefing Paper: Business Statistics, December 2015

This was posted in Bdaily's Members' News section by Adrian Overall .