A Guide To Digital Transformation For Small To Medium Enterprises (smes) In Australia

By Author: BarryBTS
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Small and medium enterprises (SMEs) are the backbone of the Australian economy and the most innovative parts of any industry. Most of these companies recognize the urgency of digital adoption. They are looking to remain competitive and propel growth with technology.

The problem being: they often don’t know where to start. What’s not clear to many business leaders is what digital transformation means.
Is it just a catchy way to say moving to the cloud? Are there specific steps needed to be taken? Is there a need to hire a consulting service for creating new jobs? Is it really worth it?
Let’s break it down for you.

What is digital transformation?

Digital Transformation will look different for every company. Because of this, it can be hard to pinpoint a definition that applies to all.
In general terms, digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. It is also a cultural change that requires organizations to continually challenge the status quo, experiment, and get comfortable ...
... with failure.
This could mean walking away from long-standing business processes that companies were built upon in favour of relatively new practices that are still being defined.

For small businesses just getting started, there’s no need to set up your business processes and transform them later—you can start as soon as now. Building a 21st-century business on paper isn’t sustainable anymore.
Thinking, planning, and building digitally sets you up to be agile, flexible, and ready to grow.

Digital Transformation in Australia

Australian small businesses lag behind the rest of the APAC region when it comes to digital transformation, according to a research done by CPA Australia.

According to their Asia-Pacific Small Business Survey, Aussie SMEs were the least likely to use social media for businesses, to invest in tech, to begin or increase online sales during the pandemic or to review their cyber-security protocols.

They tend to prioritise activities “associated with growth.”
This can be attributed to the modest investment of the Australian government to help their small businesses go digital.

Benefits of digital transformation
"The adoption of digital tools is no longer a nice to have, but a critical business decision for SMEs," says MYOB chief executive officer Greg Ellis.

According to a report from MYOB in the beginning of 2021, Gen Y SMEs (aged 25-39) are most positive about business this year, with 53% expecting more profit.

The biannual Business Monitor found Millennial SMEs are the group most likely to be digitally enabled, with 84% having either a website, social media presence or both for their business.

The views of 1,000+ Australian SME owners were monitored for the research, which found that Generation Y SMEs achieved more profitability in 2020 (40%) compared to the national average (26%).
Overall, 35% of all respondents moved more of their business online after COVID-19 hit. Eighty-three percent of those who did say it helped their business stay afloat during the pandemic.

According to Forbes, Digital transformation improves both customer interaction, as well as employee productivity. It’s safe to say that today’s employees expect the business tools they use at work to be as good as, or better than, what they use in their daily life.
Businesses that provide a first-class digital experience for their employees are better able to attract, hire, and retain the best talent.
By arming themselves with the newest digital transformation tools for SMEs, organizations can benefit in other important ways, such as streamlining business operations, reducing costs, and improving employee productivity.

How SMEs can start with their digital transformation
While every business is at a different stage in its digital evolution, there are basic technologies that companies—especially SMEs—should embrace to ensure continued success. We recommend starting your research on the following:

1. Mobile Cloud Computing
2. Invest in Artificial Intelligence
3. Data-driven decisions
4. Flexible Working Time
5. Cybersecurity

Conclusion

Digital technologies are radically transforming customer expectations and the way business is conducted across various industries. Enterprises looking to accommodate the shift to digital-specific initiatives must evolve their strategies and models to keep up.
Technologically empowered businesses seize the benefits of digital transformation for themselves instead of watching them happen for others. The first step is to identify key trends and tools allowing companies to improve their digital engagement.
With the right range of digital solutions, medium-sized businesses can refine customer insights, scale their services, and empower teams to build a more efficient, versatile, and prosperous SMEs of the future.