In a world where technology continuously changes, small companies must be creative to stay afloat. Prioritizing digital transformation in all areas of business and adopting new processes are just a couple ways leading firms stay ahead of these changes. Redefining their software, customer experience, and the technologies used to facilitate digital transformation have become critical steps for top companies to be more efficient in collecting better data. As a result, they see increases in both productivity and revenue.

Knowing all this, many key stakeholders and decision-making administrators in companies still associate this crucial procedure with a tumultuous launch of complicated technologies, hindering any potential digital transformation. However, they are not alone.

Tech Challenges Impact All Businesses in Familiar Ways

Many businesses find themselves standing secluded when the world around them is turning non-stop. Aberdeen surveyed 300 small businesses in the healthcare, professional, and retail field to grasp the full extent of their provocations when facing a rapidly changing technological environment. These challenges are the hurdles they’re running into, and the data shows that these are the top three current challenges that small businesses face on the technology side of things – data security, lack of in-house technology experts, and technology not being user friendly enough. 

Acquiring new technology solutions involves accounting for several things, from cost to how these changes still line up with their business goal. But with a plan to overcome these three challenges, small businesses will be better prepared to evolve their technology infrastructure and keep up with the increasing pace of innovation.

Data Security Concerns

According to a recent Aberdeen research, 28% of respondents say that data security concerns are one of their top three challenges with implementing new technology solutions. Cybersecurity and privacy issues are roadblocks to digital transformation for many companies in a time where there are vulnerabilities ambushing from every direction possible at sensitive information. Launching new digital solutions means shifting away from in-house computer servers and integrating all of a company’s data into a single systemization.

Due to the budgetary constraints small businesses have, it ties their hands as to how they can arm themselves with strong malware protection and shield themselves form viruses and other real-time threats that can potentially penetrate their trade-secrets and sensitive client information. When asked, 68% of small businesses report that they use data back-up and recovery-solutions. This is a reactionary approach/tool that helps businesses retrieve lost data, but it doesn’t prevent it from happening in the first place.

In contrast, detection and responses capabilities, which are more proactive in addressing threats have far lower adoption rates among these small businesses. The difference in adoption rates for these two solutions may insinuate that small businesses are taking a more cost-effective reactive approach as opposed to a preventative, proactive approach when it comes to the use of information security technology across their company.

Lack of In-House Technical Expertise (Lack of IT Competencies)

Out of the small businesses surveyed, 20% reported that the second top challenge their company faces in the technology transition is the lack of in-house IT personnel. Several fundamental problems tied to digital transformation consist of lack of IT assets and terrible resource management planning. In terms of IT assets, a scarcity of qualified IT professionals and a talent war in a competitive market are two hurdles to a smooth digital transformation.

Many small businesses depend on a small sized IT department compared to larger businesses and often because of that, they find themselves short on the level of professional IT experience. This lack of level in IT evolution often leads to disorganization in business operations. That being said, the result of lack of in-house technical expertise can create inadequacies operationally and lead to loss of revenue, decrease in productivity, atrocious client service experience, security risks may escalate, and more than likely disjoins its business goal. These smaller businesses who don’t have the same financial capabilities that larger companies have to hire experienced IT personnel continuously find themselves feeling cornered, isolated, and left with a department that lacks the required level of knowledge to adhere to the evolutionary technological world.

To combat this lack of experience, 58% of small businesses are leveraging IT service providers. Partnering with a trusted provider to gain digital transformation or technology expertise can make a big difference for small businesses who are looking to grow and expand their operations.

Not User-Friendly Enough

Of the three top challenges small businesses face with new technology implementation, not being user-friendly enough was ranked third on the list by 19% of respondents. When thinking about employee productivity and what drives their engagement to decline, the answer is by creating hurdles for them to jump over. No one really wants to struggle with tools their company gives them to do their job effectively. Software that baffles employees will only lose digital transformation support and buy-in. User-friendly technology is supposed to be just that user-friendly, simple for everyone to use. Choosing user-friendly technology helps lay a foundation for everyone within the organization that best meets everyone’s needs.

Take Steps to Prepare for the Future Today

 Making the perfect client-user experience is one important reason that customers will return. A smooth interface experience between human and technology will guarantee a positive reaction and client satisfaction will be achieved. If companies do not live up to their clients’ expectations, the client will not give a second chance to that system interface because the system was too difficult to navigate. Satisfied consumers act as the best marketers!

It’s no question whether technology will continue to present challenges and force businesses to have to make key point decisions on what direction their business will take. When it comes to the evolution of technology, businesses that don’t adhere to the digital transformation will more than likely have a difficult time competing with those organizations that are adhering to the future of technological advancements.

The real question is, is your company ripe for those changes that are already here?