Digital transformation done right can change any business for the better. But how do you know what systems or services to buy if you’re part of a small business with no seasoned IT professionals on your payroll?
While large enterprises will benefit from the experience of an IT director with a dedicated technology team, smaller organizations may not have the financial resources to hire an IT director, never mind one. CIOs.
In these situations, it can be difficult to know which tool to buy.
Instead of tapping into the knowledge of a market-savvy in-house IT executive, many SMB management teams have to make their own technology spending decisions.
Laurie McCabe, co-founder and partner at technology analyst SMB Group, suggests the results can be best matched.
“In our surveys, one thing we consistently find out is that small businesses say just figuring out which solution will best help their business is the top technology challenge. their.”
With limited access to IT market expertise, many SMBs use the web search method. In an age of increasing technological options, hitting technique and that hope can hardly produce great results, says McCabe.
Her firm’s research shows that companies with fewer than 100 employees struggle to enact successful digital transformation strategies: “And the reason for that is bandwidth.”
Here’s the big problem: while small businesses should be using technology to harness their inherent agility and beat slow business competitors, too many SMBs lack the specialized technical know-how to make timely and effective IT spending decisions.
So, how can these smaller companies boost their tech position? Here are five suggestions from the experts.
1. Consider a temporary fix
With many SMEs feeling the heat right now due to inflation, recessionary pressures and rising bills, McCabe says that appointing a permanent chief technology officer is a way off the list of priorities. .
“The first gut check for small businesses is to ‘turn the lights on’ – they want to keep the people they already have, don’t be afraid to appoint someone senior,” she said.
One way to fill the gap is to appoint an IT leader on a consultative basis. The need for temporary CIO expertise 83% increase from 2020 to 2021according to Business Talent Group.
Some smaller companies may choose to think about appointing a virtual CIO (vCIO), where a contractor acts as the organization’s IT leader in a remote or virtual capacity.
Recruiter Nash Squared suggests that working with a vCIO allows companies to attract a knowledgeable executive without the hiring process and costs that come with a fixed hire.
2. Join industry associations
While some small companies may look to hire an IT director on a temporary basis, McCabe says most will want to avoid hiring an expensive consultant.
“There are a lot of venture-backed tech companies with a CIO or someone with a similar title, but not the majority of small companies,” she said.
For SMB owners and managers who want technology expertise without the high fees, McCabe suggests a different route.
“I’m a big fan of industry associations and regional tech boards. They can be really cool because the people in these organizations are in businesses like yours,” she said. .
“Because of networking, so you have people to call and say, ‘Hey, I’m trying to solve this problem. Did you get this working? What did you do?” And sometimes what you will learn is that someone else has tried something and it really doesn’t work. That in itself is priceless. “
3. Search for specialized programs
Tina McKenzie, chair of policy and advocacy at the Federation of Small Businesses (FSB), says the successful adoption of technology in the workforce is more important for businesses than simply buying technology.
“Leadership and management skills as well as digital skills are very important, these skills should go hand in hand with digitalisation,” she said.
McKenzie says there’s a range of plans small companies can use to build their expertise: “Yes partnership with organizations like Google partnering with SMEs to develop the skills they need in this space. “
The FSB also encourages UK small businesses to try Help to grow: Digital is a government-backed initiative to help small and medium-sized businesses select, purchase, and integrate software.
In the end, McKenzie just came bootcamps skills was established by the UK government as a fast and effective way to improve digital skills. “This is an initiative that many SMBs have found useful. We want to see these initiatives maintained and enhanced in the long run,” she said.
4. Going out and coming back
It’s easy to get bogged down by the day-to-day worries of running a small business, especially in a time of growing macroeconomic pressures.
However, it is important for your team to get involved in the wider community and talk to different people and organizations to improve both the market perception and the market perception of your business. .
“The challenge for smaller organizations is to develop brand and trust,” said Bev White, CEO of Nash Squared. “Where there are so many players, how can you stand out from the crowd when few people can know who you are?”
Her company’s research shows that twice as many SMBs (23%) as in larger companies (10%) are extremely or very effective at spreading good ideas and suppressing bad ideas. think quickly.
SMEs should be on the lookout for new ways to find technology solutions to business challenges, so go to conferences, attend meetups and attend professional events .
5. Be prepared to approach big businesses
Looking beyond enterprise firewalls does not mean staying with the confines of the small business sector.
More and more blue-chip businesses are realizing that smart ideas can spring up from any type of organization, including smaller ones – and your business could be the next.
David Schwartz, Vice President of PepsiCo Labs, said his company is always looking in the market for smart solutions to its business challenges – and his company likes to think about how both sides can be. benefit from a closer relationship.
“Startups told us, ‘We’d love it if we could have an expert from your team spend a few months sharing how things work, so we can perfect it.) more what you want,” he said.
“And then you see people PepsiCo thinking ‘that’s what we want.’ It’s all about learning and focusing on where the two can succeed together.”
