Digital transformation is costly. That’s no secret. And, for most mid-size businesses, money seems to be the biggest obstacle standing in the way.
Except…
It doesn’t have to be that way. There are plenty of smart business technology strategies that mid-size companies can use to modernize their businesses without overspending. You just need to know where to spend money and where you can cut corners.
But you do have to spend some money. 70% of digital transformations fail. Most of those failures are chalked up to poor planning.
If you want your transformation project to be successful, you have to plan carefully. Budget carefully.
Ready to learn how?
Let’s dive in!
What you’ll discover:
- Why Mid-Size Businesses Need To Modernize
- Adopting a Budget-Friendly Approach to Digital Transformation
- 5 Smart Tips for Digitally Transforming Your Mid-Size Business
- Avoid These 4 Common Digital Transformation Mistakes
Why Mid-Size Businesses Need To Modernize
The average mid-size business has companies that have been digital-native from day one stealing their market share. If you don’t have a business technology strategy in place to hang with the big boys, your business will fall further behind each year.
The problem?
Big companies have big budgets. They can afford to buy every new software program and platform that hits the market. Mid-size businesses aren’t blessed with unlimited budgets.
However, mid-size businesses can level the playing field by partnering with professional IT modernization services. Outside firms can give mid-size businesses access to world-class IT guidance without the financial burden of creating and maintaining an internal IT department.
Businesses with a robust digital strategy will earn anywhere from two to six times higher returns on their shareholders than those that don’t modernize.
To put it bluntly: digitization is no longer optional. If you want to stay in business, you need to modernize.
Adopting a Budget-Friendly Approach to Digital Transformation
Most businesses approach digital transformation with a broken window mindset. Replace everything and start from scratch.
Yeah…don’t do that.
The easiest way to keep costs low?
Think of digital transformation in phases. Modernize as you go. Carefully budget for each piece of the transformation and develop a long-term strategy to implement new technology over months or years.
It’ll save you a ton of money. And it’s far less likely to fail.
Think of renovating a home. You don’t take an axe to the whole house on day one. You take care of the foundation before you start tearing down walls.
Business technology should take the same approach. Fix the things that are broken before you try to do too much at once.
5 Smart Tips for Digitally Transforming Your Mid-Size Business
Following are five digital transformation tips that every mid-size business can use to get more value out of their business technology spend.
1. Prioritise Cloud Migration
Moving your servers and services to the cloud is one of the best ways to save money as you modernize. Without the need to purchase and maintain expensive on-premise servers, your business can save tons of money on IT costs by moving to the cloud.
Want to know the best part?
Cloud technology services typically use a subscription-based model. Pay a set amount each month and you can access all the computing power you need. This means no more large upfront capital expenditures on hardware. And it scales up or down depending on your business needs.
Start simple by moving your email, file storage, and team collaboration tools to the cloud. These are typically quick wins that won’t cause too much disruption to your day-to-day operations.
2. Automate Repeatable Processes
Bet you spend way too much time in your business dealing with repetitive tasks. Invoicing customers, data entry, following up with leads, and compiling reports all take away from important time your staff could be spending growing your business.
Thankfully, there are a ton of affordable (and often free) tools that can completely automate these processes.
Automation benefits?
While it’ll take a small time investment up front to clean everything up and create the automated systems, your business will enjoy free time for employees, reduced errors, faster processing time and lower labor costs.
3. Train Employees on New Tools
Here’s a secret that most businesses don’t realize…
No matter how good your new technology stack is, if your employees don’t know how to use it, your digital transformation won’t succeed.
Only 35% of digital transformation projects are successful. A huge part of that failure comes down to human error and employees not knowing how to use new technology.
Don’t let it be you.
Make sure you always train your staff on new tools. There are plenty of affordable resources for training. Set aside a budget for training just like you would when purchasing new software or technology.
4. Use Freemium/Open Source Software
Did you know that there are plenty of free project management, CRM, and analytics tools out there?
You don’t always have to spend money on premium software to get the job done. Take advantage of all of the free and open-source software options available to you.
Here are just a few free platforms every mid-size business should consider:
- Project management: Trello, Asana (free versions)
- CRM: HubSpot (free version)
- Analytics: Google Analytics
- Communications: Slack (free version)
5. Audit What You Already Have
This tip is by far the cheapest thing on this list. Yet, it can help you save so much money as you begin your transformation journey.
How many software programs do you already pay for that your business doesn’t use? Or could do without?
Take stock of what your business already has. See where you can trim the fat by uninstalling software you don’t use, and better leveraging software you already own.
Avoid These 4 Common Digital Transformation Mistakes
Digital transformation can be tricky. But by avoiding these four common pitfalls, you’ll be setting yourself up for success.
Attempting to do too much at once. This point has come up a few times for good reason. Seriously. Take things slow. Digital transformation is a marathon. Not a sprint.
Under-budgeting for security. Don’t cheap out on security. There are a ton of affordable options for security software. And the cost of one data breach will destroy any savings you think you’ll accumulate by buying cheaper tools.
Not knowing your ROI. Every piece of technology you buy should have measurable results. If you can’t quantify how a new software tool is helping your business, then you shouldn’t have bought it.
Not having a plan. Planning doesn’t just mean sketching out a basic transformation strategy. You should have a plan for every technology purchase. At least a high-level budget and KPIs to measure success.
Wrapping Up
Digital transformation isn’t cheap. But it doesn’t have to bankrupt your business either. Mid-size businesses can compete with larger competitors by carefully choosing what they spend their money on.
Let’s review…
- Prioritise cloud migration whenever possible
- Automate repetitive processes to free up employee time
- Invest time into training employees on new software
- There are tons of free software options for mid-size businesses
- Audit your current software stack and cut out the fat
Digital transformations are won by the businesses that spend the smartest, not by those who spend the most.
Modernize your business the right way.
