The Biggest Digital Mistakes SMEs Make When Competing Globally
The competitive pressures of today’s global market means that small- and medium-sized enterprises (SMEs) need to seek out any advantage. For many businesses, these advantages are often found in new technology, which has become widely available in every region and to organizations of every size. This expanding availability is matched by their increased sophistication, as new technologies allow SMEs to track every aspect of their supply chain and productivity, react to shifts in demand, help their teams become more efficient, and offer greater value to customers.
Despite these benefits, many business leaders still fail to get much value out of digital tools. This can be the result of poor implementation, a misunderstanding of the capabilities of a tool, a lack of strategic oversight, and many other factors. Often, the pressure to seek out advantages can create a counterproductive desire to pursue digital transformation for its own sake. Other times, organizations may feel pushed to follow industry trends without understanding the exact capabilities of a tool and whether it makes sense for them.
Here are some of the biggest mistakes that SMEs make when adopting new digital tools:
Assuming New Tools are “Plug and Play”
While some tech tools and services can be implemented relatively seamlessly, these are the exception, not the rule. The sort of sophisticated systems that SMEs use often require significant implementation and improvement, and it may be a long time before any direct benefits are realized.
SMEs with limited budgets or narrow margins may not have the resources and time to devote to the fine-tuning of new technology, and may struggle to see value in it. Additionally, some new technology tools may require significant assistance from third party vendors or an in-house technology specialist, which can be costly.
Implementing Without a Strategy
Whether a new tool is a help or a hindrance may not be clear unless you incorporate them strategically with key metrics and benchmarks to measure success. Many SMEs think of technology as necessarily additive, and that more technology always creates greater efficiency, better returns, more flexibility, and so on. However, the reality can be very different, depending on how the technology is implemented, whether the team uses it properly, and most importantly, how it offers a return on investment.
Having measurements and a strategy in place is essential for successful implementation. Successful SMEs can use these to identify key issues like data bottlenecks, under-utilization, and uneven adoption. Having no strategy, on the other hand, means that the SME is blind to these issues and is assuming benefits that may not have materialized.
Following Trends and “FOMO”
The pace of development and the enthusiasm for new tools can pressure SMEs to a trial or purchase of new technologies without exploring whether they make sense for the business. This pressure can lead some to overlook the specific requirements and issues with a new tool, and to agree to use it without understanding any potential downsides. It may lead some SMEs to overlook a less trendy tool that could be better suited to their unique needs.
This is sometimes described as a “fear of missing out” (or “FOMO”), as new tools are often marketed as paradigm shifts which will reward early adopters. Having an experimental approach can be a good way to see if a new social media platform or HR tool makes sense, rather than adopting tools based on buzz and marketing. Often, having patience can be rewarding, as early adopters sometimes must contend with several rounds of bugs and patches before the tool is stable.
Lack of Internal and External Communication
Another common mistake that SMEs make is incorporating new tools without taking the time to communicate with their team, clients or customers. The sudden introduction of a different platform can be jarring, as it changes internal workflows and may force customers into changes that they dislike. If an SME fails to communicate proactively about future changes, they may suffer reputational damage, lose customers and frustrate their employees.
Developing a communications strategy is not just an important way to reduce friction and increase team buy-in, but it can also lead to productive discussions about why the tool is necessary in the first place. It can also spark useful conversations about any concerns the team or customers have regarding these changes. Although this step might mean a longer implementation cycle, it can also frontload any potential issues and allow the SME to proactively solve them.
Moving Too Quickly
One of the most common and damaging mistakes that SMEs make in this process is moving too quickly. This can mean setting unrealistic implementation timelines or canceling old tools before the new ones have been deployed, or it can mean changing staff training and composition before the technology has been fully vetted.
Some SMEs rush in order to realize the benefits of a new technology, only to find that it isn’t as performant as they believed. This can create regrettable situations where staff members are retrained or laid off in anticipation of a new tool, only to be rehired when that tool does not deliver the expected benefits. The net result of rushing the process can be negative, as the damage to team morale and reputation outweighs any productivity gains.
Implementation Done Right
In order to realize the benefits of new technology, SMEs can benefit from an accretive, experimental approach based on clearly-defined metrics and goals. While moving fast and having flexibility is important, enjoying lasting benefits requires more than just being an early adopter. What works for one business, industry or region may not work for another.
It’s critical that SMEs embrace the benefits technology can bring, but do so in a way that is driven by returns and value rather than trends and a desire to keep up with the times.
Through our global network of more than 300 World Trade Center (WTC) businesses across nearly 100 countries/territories, WTCA can help SMEs and business leaders connect and collaborate — learning from each other and using new technology to achieve lasting benefits. Join our upcoming "WTCA Sector Salon: Innovation and Technology" to connect, exchange ideas and look for growth and collaboration opportunities specific to the sector. This networking opportunity is free to attend, and open to WTCA Members and their business networks. Register here.Â
