90% of respondents to Moore UK’s recent survey of owner-managed businesses said that investment in digital transformation is part of their strategy for the next two years. Businesses are still recovering from Coronavirus and facing rising costs, inflation, the effects of Brexit and the war in Ukraine. Could adopting new technology be key to survival? The top three areas businesses plan to digitally transform or further transform in the next two years are the customer experience, financial outsourcing and cyber security, according to the survey.
It’s important businesses harness technology to maintain a competitive edge. Businesses that invested in technology over the last few years have benefitted from increased flexibility in operations. The need for this is most likely driven by hybrid working changes, and more efficient processes that have led to cost and time savings.
For some businesses, their investments in technology have been a requirement to help them overcome shortfalls following a reprieve in activity. Where staff were placed on furlough or reduced operations, the impact of new software implementation and installation was minimised.
Cyber security is an essential component of digital transformation. Prioritising those easily ignored simple operating system updates is a good starting place as a form of prevention. Other easily implemented defences include completing the Cyber Security Essentials programme, as it provides small businesses with a great understanding of what to look out for and maintain security standards.
In the long term, businesses know that digital transformation is an important factor to review. They may already feel the effects of the great resignation, with upward salary pressures to retain talent meaning cost savings need to be found elsewhere.
Add inflation rates at a record highs and an expectation that it will continue to increase, owner-managed businesses are conscious of rising costs in other areas of their business, especially around material inputs and transport costs.
This is where digital transformation could bridge some of that gap. From small changes like interconnected data sources leading to better reporting, to wholesale rethinking of processes and software implementation, investing in technology is likely to be high on the agenda.
Nearly nine out ten businesses (86%) said rising costs will have an impact on their plans to implement digital transformation initiatives. However, it’s likely that digital and technological initiatives will be developed and adopted an at even faster pace rather than being put on hold. With new technologies delivering both cost and time savings, digital transformation will help to offset rising business costs, and could prove to be the solution businesses need to survive.
For more information on what investment in digital transformation could mean for your business, contact us or read more.