Using the latest technology to improve systems and boost efficiency is something most small businesses strive for, but it can often fall down the priority list.
Whereas successful large companies often have teams dedicated to investing in technology to improve productivity, SMEs do not have that luxury. However, business owners should stay on top of the latest developments because adopting technology – even products that have trickled down from big businesses and become more affordable – can improve growth prospects and profitability.
The productivity problem
Productivity is a real issue for the UK economy, especially as it recovers from the COVID-19 pandemic. While productivity – measured as gross domestic product per hour worked – increased by 0.4% in 2020, Britain still lags behind many other developed economies when it comes to the average output of its workers.1
For small businesses, part of the problem is that they often do not have the opportunity, scale or financial capacity to acquire the sort of technology that can improve productivity.
Solutions for SMEs
So what can you do? While it might seem impossible to adopt some of the technology solutions used by large corporations, there are, in fact, many products designed specifically for SMEs – many of which can have a positive impact on productivity.
One good example of small businesses adopting technology to improve their productivity is robotic process automation (RPA), whereby manual business processes are automated. This applies to processes such as bookkeeping, expenses management and customer services. While it is not simply replacing humans with machines, it does allow for repetitive tasks to be taken up by artificial intelligence, thus allowing staff to get on with activities that add more value to the business.
Another example is buying software that allows your business to operate in the cloud. This means data is stored on servers hosted by data centres, rather than on local hard drives or, in some cases, in physical files in filing cabinets. Buying these solutions improves access, security and efficiency, while reducing the overheads required for storage.
“The right software solution can help automate various processes within a business,” says Dani Attard, Managing Director of Comgem, a software business based in Bridgend, Wales, which develops products to help small companies improve their marketing, back-office and ecommerce capabilities. “This means businesses can save time and money and have their staff members focus on tasks that will be adding value rather than repetitive administration tasks.”
Embracing change
Despite what might appear to be the clear advantages of adopting technology, many small businesses are resistant to change. Sometimes this comes down to cost, but it can often be a reluctance from some parts of the business to buy into something new and transformative, which Dani describes as a “cultural shift”. This problem can be overcome through clear communication and an understanding of the return on investment provided by the implementation of new software.
There are some obvious areas to focus on when investing in new technology to boost your SME’s productivity, and it’s always worth seeking the counsel of experienced business advisers.
“The quickest areas for improvement are automating repetitive data tasks and syncing of data between systems,” says Dani. “This could be pushing web orders into your accounting platform or updating products. These are tasks that typically take time away from other added-value areas.
“Another way in which technology can assist is ecommerce. By implementing a business-to-business ecommerce portal, businesses can actually build better relationships with their customers as they move away from being an order taker to harbouring longer-term customer relationships and building a detailed picture.”
Using the latest technology to improve systems and boost efficiency is something most small businesses strive for, but it can often fall down the priority list.
Whereas successful large companies often have teams dedicated to investing in technology to improve productivity, SMEs do not have that luxury. However, business owners should stay on top of the latest developments because adopting technology – even products that have trickled down from big businesses and become more affordable – can improve growth prospects and profitability.
The productivity problem
Productivity is a real issue for the UK economy, especially as it recovers from the COVID-19 pandemic. While productivity – measured as gross domestic product per hour worked – increased by 0.4% in 2020, Britain still lags behind many other developed economies when it comes to the average output of its workers.1
For small businesses, part of the problem is that they often do not have the opportunity, scale or financial capacity to acquire the sort of technology that can improve productivity.
Solutions for SMEs
So what can you do? While it might seem impossible to adopt some of the technology solutions used by large corporations, there are, in fact, many products designed specifically for SMEs – many of which can have a positive impact on productivity.
One good example of small businesses adopting technology to improve their productivity is robotic process automation (RPA), whereby manual business processes are automated. This applies to processes such as bookkeeping, expenses management and customer services. While it is not simply replacing humans with machines, it does allow for repetitive tasks to be taken up by artificial intelligence, thus allowing staff to get on with activities that add more value to the business.
Another example is buying software that allows your business to operate in the cloud. This means data is stored on servers hosted by data centres, rather than on local hard drives or, in some cases, in physical files in filing cabinets. Buying these solutions improves access, security and efficiency, while reducing the overheads required for storage.
“The right software solution can help automate various processes within a business,” says Dani Attard, Managing Director of Comgem, a software business based in Bridgend, Wales, which develops products to help small companies improve their marketing, back-office and ecommerce capabilities. “This means businesses can save time and money and have their staff members focus on tasks that will be adding value rather than repetitive administration tasks.”
Embracing change
Despite what might appear to be the clear advantages of adopting technology, many small businesses are resistant to change. Sometimes this comes down to cost, but it can often be a reluctance from some parts of the business to buy into something new and transformative, which Dani describes as a “cultural shift”. This problem can be overcome through clear communication and an understanding of the return on investment provided by the implementation of new software.
There are some obvious areas to focus on when investing in new technology to boost your SME’s productivity, and it’s always worth seeking the counsel of experienced business advisers.
“The quickest areas for improvement are automating repetitive data tasks and syncing of data between systems,” says Dani. “This could be pushing web orders into your accounting platform or updating products. These are tasks that typically take time away from other added-value areas.
“Another way in which technology can assist is ecommerce. By implementing a business-to-business ecommerce portal, businesses can actually build better relationships with their customers as they move away from being an order taker to harbouring longer-term customer relationships and building a detailed picture.”
Using the latest technology to improve systems and boost efficiency is something most small businesses strive for, but it can often fall down the priority list.
Whereas successful large companies often have teams dedicated to investing in technology to improve productivity, SMEs do not have that luxury. However, business owners should stay on top of the latest developments because adopting technology – even products that have trickled down from big businesses and become more affordable – can improve growth prospects and profitability.
The productivity problem
Productivity is a real issue for the UK economy, especially as it recovers from the COVID-19 pandemic. While productivity – measured as gross domestic product per hour worked – increased by 0.4% in 2020, Britain still lags behind many other developed economies when it comes to the average output of its workers.1
For small businesses, part of the problem is that they often do not have the opportunity, scale or financial capacity to acquire the sort of technology that can improve productivity.
Solutions for SMEs
So what can you do? While it might seem impossible to adopt some of the technology solutions used by large corporations, there are, in fact, many products designed specifically for SMEs – many of which can have a positive impact on productivity.
One good example of small businesses adopting technology to improve their productivity is robotic process automation (RPA), whereby manual business processes are automated. This applies to processes such as bookkeeping, expenses management and customer services. While it is not simply replacing humans with machines, it does allow for repetitive tasks to be taken up by artificial intelligence, thus allowing staff to get on with activities that add more value to the business.
Another example is buying software that allows your business to operate in the cloud. This means data is stored on servers hosted by data centres, rather than on local hard drives or, in some cases, in physical files in filing cabinets. Buying these solutions improves access, security and efficiency, while reducing the overheads required for storage.
“The right software solution can help automate various processes within a business,” says Dani Attard, Managing Director of Comgem, a software business based in Bridgend, Wales, which develops products to help small companies improve their marketing, back-office and ecommerce capabilities. “This means businesses can save time and money and have their staff members focus on tasks that will be adding value rather than repetitive administration tasks.”
Embracing change
Despite what might appear to be the clear advantages of adopting technology, many small businesses are resistant to change. Sometimes this comes down to cost, but it can often be a reluctance from some parts of the business to buy into something new and transformative, which Dani describes as a “cultural shift”. This problem can be overcome through clear communication and an understanding of the return on investment provided by the implementation of new software.
There are some obvious areas to focus on when investing in new technology to boost your SME’s productivity, and it’s always worth seeking the counsel of experienced business advisers.
“The quickest areas for improvement are automating repetitive data tasks and syncing of data between systems,” says Dani. “This could be pushing web orders into your accounting platform or updating products. These are tasks that typically take time away from other added-value areas.
“Another way in which technology can assist is ecommerce. By implementing a business-to-business ecommerce portal, businesses can actually build better relationships with their customers as they move away from being an order taker to harbouring longer-term customer relationships and building a detailed picture.”