Digital transformation can be a hugely beneficial process for small businesses, giving them the foothold they need to establish themselves in the market. But that first step can be the most difficult.
Much of the guidance and advice related to digital transformation It comes with built-in expectations, including two that are critical: that the company interested in what is being offered understands where and how digital transformation can provide the greatest advantage, and that the company has in-house technical experts who can oversee, monitor and work on any digital transformation projects.
These are risky assumptions when you consider that smaller companies, with a handful of employees or a hundred, may not have any tech specialists on staff or any board members with specific technology expertise. What can such a company do?
Determining the scope of a project without internal experts
The first thing any small business leader should do when looking at a digital transformation project is to recognise what the precise needs of their business are. Some key operational signs will become apparent, as Ham Patel, EMEA COO at Oracle NetSuite, explains. Patel suggests three clear signs that a business is ready for digital transformation:
- When you have data to protect, including intellectual property or customer data.
- If and when the customer’s load has exceeded the capabilities of their existing systems, requiring constant maintenance or actively triggering downtime.
- When critical processes such as payment systems periodically throw errors.
“Disjointed legacy systems “Manual processes can prevent small businesses from making timely decisions and can easily lead to errors and inefficiencies. By identifying specific pain points, small business leaders can make the case for undertaking a digital transformation exercise.”
Features for a non-tech-savvy executive
If there is no one in the management team with detailed technical knowledge, it is perfectly possible to manage and complete a digital transformation project, but some key skills are required to achieve it successfully.
Dr Clare Walsh, Director of Education at the Institute for Analytics (IoA), explains: IT Professional what she defines as the three key areas of knowledge that senior management needs to achieve this: an awareness of current digital trends and technologies relevant to their industry, an understanding of how digital transformation can drive strategic business outcomes, and an awareness of the risks associated with digital projects, including cybersecurity. Data privacy and operational potential lack of time.
Gaining fundamental knowledge in these areas and keeping it up to date is crucial. Digital transformation doesn’t stand still and the business needs to adopt a spirit of “continuous improvement” to reap the rewards on an ongoing basis, Walsh explains. The work to achieve this “doesn’t need to involve hands-on technical training, but key decision-makers need to understand the benefits and risks behind the decisions they are making,” he adds.
He suggests that C-suite members and other senior managers join professional networks, read industry publications, and establish an advisory board of digital experts who can offer ongoing advice and guidance. The advisory board can help monitor projects as they develop, as well as analyze the success of completed projects, identify new projects, and even keep an eye on what competitors are doing when it comes to digital strategy.
Patel also offers some advice in this area, suggesting that senior executives should “do some real analysis” skills gap Analytics to know exactly where to focus your time and efforts. It’s also worth comparing your workforce’s skills to market standards and those of your competitors. Are others undergoing digital transformation that your company lacks capabilities for?
Digital transformation and “enthusiastic amateurs”
It is not uncommon to allow or encourage people who are technically competent but do not have a qualifying technical role to participate in the organization’s technology implementation. This can be helpful, particularly when those people are enthusiastic and willing to learn, but there are also pitfalls.
Those companies that support their “enthusiastic fans,” sometimes referred to as ‘citizen developers’As they move towards and through digital transformation, they must realise that they have responsibilities to the people involved, to the organisation as a whole and to the wider aspirations for digital transformation as they do so. Walsh suggests that companies can exercise their responsibilities in five key ways:
- “Training: Provide free access to comprehensive training programs on digital transformation principles and tools.
- Free up time: Adjust your workload to have enough time to focus on digital transformation tasks.
- Management Support: Provide strong support from senior management to validate their role and decisions.
- Access to resources: Make sure they have access to the necessary resources, including budget, tools, and external expertise.
- Mentoring: Bring them together Technology Mentor who has experience in digital transformation. Perhaps reach out to your local university’s IT department to get pointed in the right direction to find a mentor.”
The bottom line is that digital transformation projects can be successfully completed by smaller organizations that lack in-house technical expertise.
But to achieve lasting success, leaders must ensure that their approach is well thought out and treated with a great deal of respect. The company can leverage internal expertise and enthusiasm with the right support, and its management team can augment existing skills through external resources, such as an advisory board. If we view digital transformation as key to business success, consider it a critical asset, give it respect and give it the necessary resources, then we can successfully achieve it.