Title: Mastering Digital Transformation: A Guide for SMB Leaders to Stay Ahead Technologically
Claire Rutkowski serves as the Chief Information Officer at POWER Engineers, a renowned figure in the corporate world currently engrossed in discussions surrounding digital transformation and maturity strategies. Generative artificial intelligence, automation, and data analytics are three popular strategies being discussed. However, smaller and medium-sized businesses (SMBs) often feel left out due to budget, staff, and time constraints.
According to the 2022 McKinsey data, the disparity in technology spending between various SMB sizes is stark. SMBs with fewer than 25 full-time equivalents (FTEs) typically spend an annual average of $33,000 on technology, while SMBs boasting 501 to 1,000 FTEs generally invest $2,330,000 annually.
Embracing digital transformation as an SMB can be an intimidating journey, but the necessity is paramount for survival. Delaying this vital step may lead to your company lagging behind, making it gradually harder to catch up. Research from Deloitte highlights the benefits of digitally mature companies, as these firms are more resilient, adaptable, and financially successful.
To help SMBs navigate this transformation, consider the following:
- Focus on what digital transformation means for your specific organization. Emphasize customer experience or operational improvement, depending on your immediate needs.
- Ponder the build versus buy conundrum. Generally, purchasing technology from vendors proves more effective for SMBs. Create a strategic plan and prioritize high-impact digital investments to prevent getting sidetracked by distractions.
- Incorporate digital transformation into your company's overall strategy, recognizing its value as a people-driven initiative. Engage your team, emphasize the benefits, and aim for a collaborative environment.
Digital transformation is not merely about technology; it involves changing the way your company operates and engages with its customers. By following these steps, SMB leaders will future-proof their companies and overcomes the commonly perceived barriers.
Claire Rutkowski, being the Chief Information Officer at POWER Engineers, often shares her insights on digital transformation strategies during industry discussions. Despite the widespread adoption of digital strategies by larger corporations, Claire frequently advocates for smaller businesses, emphasizing the importance of digital transformation for their survival.