Why SMEs have the most to gain from digitisation

Written by Marius Stäcker, CEO, ToolTime

Offering the promise of building competitive advantage, improving the customer experience and lowering costs, digital transformation was one of the hottest topics of 2023 across the business community. And it looks set to hold that position as 2024 progresses and further technological advancements set in. However, while 89% of large companies globally have a digital and AI transformation underway according to McKinsey, for SMEs with fewer resources to call on, the path to digitisation is a harder one to tread.

Particularly for those in more traditional sectors such as construction, landscaping or plumbing which are often still reliant on pen and paper, or Word and Excel, the absence of digital know-how or talent can make the concept of digitalization seem like an insurmountably steep learning curve. Not only that but, there can sometimes be a reluctance to embrace change to shake up the status quo, with many reverting to ‘the way we have always done things’. However, these businesses – frequently ham-strung by skilled talent shortages, overwhelming levels of paperwork and rising costs due to inflation – are in fact those with the most to gain from digital efficiencies.

Why digitization?

There is no denying that it’s far easier for small businesses to stay on top of day-to-day workflows without the help of digital tools than it is for their larger, more bureaucratic counterparts. But that does not mean that there’s no place for digital efficiency. In fact, digitalization can be a game changer for SMEs, eliminating time-consuming paperwork, building better internal and external communication processes and achieving organizational and planning efficiencies to save both time and money.

In the UK, one fifth of small businesses are suffering from long standing gaps in the labor market that prevent them from expanding, according to 2023 research from the Federation of Small Businesses, making it more timely than ever for SMEs to find ways to overhaul business processes to free up time and energy. For any business that wants to grow, or for those facing a lack of skilled labor, it’s imperative to become more efficient from an administrative perspective in order to spend more time doing the work that pays rather than getting bogged down in back office tasks.

Between quote and invoice creation, appointment scheduling, supply orders, team tracking and client and employee communication, admin and paperwork can become unwieldy, confusing and a time drain. Professionals in the home services trades for example can spend around 4-6 hours a day on tasks such as scheduling, inventory, invoicing and overall workflow management. This is all time that is not revenue-generating, but is vital to ensuring a smooth customer service that generates all important repeat business.

Digitisation in action

By implementing new digital tools that bring centralization and standardization to everyday tasks, it’s entirely possible to find a number of efficiencies. In fact, ToolTime’s own research shows that up to 30% of working time can be saved by digitizing paperwork, streamlining administration, and increasing visibility of work being carried out. And it doesn’t have to be complicated or hard to roll out. The availability of cloud-based software has made digitals tools easier than ever to get hold of, as well as bringing the cost of digital adoption down. The cloud allows everything to be managed entirely remotely from a range of devices, enabling an entire team to input and access required information whenever it’s needed, and from wherever they are.

For businesses that balance both office-based and field workers in particular – or that have embraced remote working – this is invaluable. No longer are administrative processes dependent on information being accurately relayed from one person to another via phone, email or messenger. Instead of needing to submit and file physical paperwork, the centralization of everything in one digital filing system brings an end to paperwork chaos and manual data entry, and ensures everything is where it needs to be for weekly, monthly or even year end reporting and accounts.

Appointments can be scheduled by the office to automatically appear in the right team member’s schedule. Visibility on where everyone is and when can help with effective operational planning. Documentation relating to jobs can be uploaded to the system to then be used for the creation of invoices or quotations without multiple data entry. Workflows can be streamlined, while customer communications become easier and more transparent; an increasingly important consideration amidst the cost of living crisis that has meant all outgoings are scrutinized and checked against competitors.

Staying current

Aside from working efficiencies, digitalization will also become vital when it comes to recruiting young talent to further overcome talent shortages. The ability to interact via social media will be a key means of recruitment compared to traditional techniques, as well as offering authentic insight into company life for customers and new team members. Moreover, with one in four consumers not considering using a company that they can’t find online, a good structured website is a vital port of call for potential customers and employees alike.

Moving towards digitisation

Although SMEs might be behind the curve when it comes to digitalization compared to larger peers, 2024 will be a key year for that to change. The fact that everyone has a smartphone, is familiar with app functionality and drive sharing capabilities thanks to the likes of Google means that digital tools are becoming far more accessible than ever before, with less skepticism around new digital platforms. What is needed is for digitisation to be further de-mystified and made easy for SMEs.

The term digital transformation implies wholesale change, but it doesn’t have to be all or nothing. Simple plug-and-play solutions which bring automation, centralization and communication to administrative processes can optimize everyday operations for huge time and effort savings. The tools are out there to help streamline workflows and eliminate paperwork chaos, as well as offering back office support to get SMEs on the path to adoption and success. The key is to find the right solution that covers all the bases for your business – not just to increase operational efficiency, but to improve competitiveness and create greater opportunities for scalability and growth potential.

Why SMEs have the most to gain from digitisation

Why SMEs have the most to gain from digitisation

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