Digitalisation in small businesses: A practical approach

As digitalisation continues to reshape the business landscape, small businesses face a unique set of challenges in adopting new technologies. Unlike larger enterprises, small businesses often lack dedicated IT teams or the resources to manage complex digital transformations. The good news is that even without extensive IT support, small businesses can successfully navigate this journey.

The Starting Point: Assessing Digital Readiness
Many small business owners already use digital tools like cloud-based accounting, POS systems, or online marketing. However, the extent of digital integration varies depending on the owner’s tech experience, industry, and business needs. A key first step is assessing both the business’s digital readiness and the team’s ability to use these tools effectively. This dual approach ensures that the business is not only equipped with the right tools but also that the team is prepared to use them effectively.

Identifying Opportunities for Digitalisation
Digitalisation varies for each business. Some focus on streamlining internal operations i.e. using digital tools to make tasks easier for staff, freeing up time for more value-added activities while others may choose to improve customer communication through email or expanding into eCommerce, while others use data to improve business performance. The key is to start small, targeting specific problems or processes where digital tools can bring direct improvements to ease their pain points, rather than getting overwhelmed by all the options available.

Early Wins: Building a Foundation for Future Initiatives
A key strategy for small businesses starting digitalisation is to focus on early wins – cost-effective, low-risk initiatives that show quick results. These successes build confidence and lay the groundwork for bigger projects. For example, replacing paper-based or Excel-driven processes with digital tools can automate routine tasks thereby minimising errors, and improving overall efficiency.

Hoey’s DIY, a hardware store in Castlebellingham, partnered with Lean BPI to implement a cloud-based solution for realtime order tracking, allowing staff to monitor status of any order via phone or tablet regardless of location, schedule rework, capture job photos, and send automated SMS notifications. This system has improved their operational efficiency and customer satisfaction.

Closing the Gaps: Integrating Digital Systems
Many businesses, even those partially digitalised, still rely on manual processes due to gaps in system integration, which can be especially challenging for small businesses. A practical approach is identifying these gaps and finding digital tools that integrate smoothly.

As small businesses expand into online sales, integrating legacy in-house systems with cloud platforms has become a common challenge. Previously, this required costly solutions, but advances in digital tech now offer affordable options. For example, Robotic Process Automation (RPA) can bridge the gap by automating data transfer between systems, such as syncing an in-house POS with an online sales platform, ensuring accurate inventory management across both.

A Strategic Approach to Digitalisation
Small businesses can simplify digitalisation by taking a strategic approach – assessing readiness, targeting key improvements, and focusing on early wins. A problem-solving mindset is also crucial and ensures digital tools address specific challenges and enhance processes, making efforts purposeful and aligned with business goals.

Government Supports
The Digital for Business programme is a free initiative from the Local Enterprise Office that has recently been expanded to enterprises employing up to 50 staff. Through expert consultancy, businesses receive guidance on analysing their existing digital systems to identify gaps, optimise current tools and select innovative solutions to enhance efficiency and improve overall business performance.

The Path Forward
Digitalisation offers small businesses tremendous opportunities to improve efficiency, enhance customer experiences, and unlock new growth avenues. By taking a measured, problem-solving approach, small businesses can successfully navigate the digitalisation journey.

The goal is not just to adopt recent technologies but to integrate them in a way that drives real value for the business. Small businesses that embrace digitalisation position themselves to thrive in an increasingly digital marketplace, ensuring long-term success and competitiveness.

JOHN O’SHANAHAN
Managing Director of LeanBPI

For further information visit www.leanbpi.ie or contact John O’Shanahan at johnoshanahan@leanbpi.ie, 087 7444887

This Business Support article featured in the September/October 2024 issue of The Hardware Journal.