Technology’s use and adoption in recent years aren’t confined to bigger businesses anymore. It has penetrated small businesses that have emerged as significant contributors to the global economy. While impacting a small business’s routine operations, technology extends itself to the finance, HR, and strategic realm. So, let’s assess technology’s positive impact on small businesses.
How Does Technology Impact Small Businesses?
From increased responsiveness to enhanced customer satisfaction, these seven impacts convey the significance of technology for small businesses.
1. Increased Business Agility
Every year, millions of small businesses emerge on the global business horizon. But unfortunately, about one-fifth fail to survive in the first couple of years.
One can conveniently blame poor strategy or the dearth of investments for the failures of these businesses. But what about the lack of business agility, which determines a company’s response to market changes?
Many businesses close as they fail to keep up with the evolving market. But adopting technology can make a difference. Technologies like predictive analytics help companies make informed projections, devise survival strategies, and respond to a situation in time to stay relevant.
Integration of intelligent technologies further enables more aligned product innovations, quicker product development, and drives business growth.
2. Improved Workforce Collaboration
One of the keys to success in the modern world is fruitful workforce collaboration. Advancements in communication technologies enable small businesses to organize their teams, mobilize them and foster collaboration. Communication channels like teleconferencing, VOIP systems, etc., allow remote interactions and connect multiple teams together to collaborate, brainstorm and innovate.
3. Automation and Reduced Workforce Costs
About 80-85 percent of small businesses rely on manual processes across various verticals. These processes slow the workflows down and hamper productivity, which could further negatively impact the business.
Operating in a rapidly changing and the demanding world requires businesses to automate many of their repetitive routine processes. It helps them expedite many of those otherwise manually handled processes.
However, while speed is one aspect, automation also helps free up resources and reduce workforce requirements. With fewer people required to manage routine operations, small businesses can save significantly on workforce and use their human resources to handle more complex and strategically important tasks.
4. More Focused and Informed Decision-Making
Instinct-based decision-making is pretty prevalent among small businesses. But in an uncertain market, instinct or impulsive decision-making doesn’t help. Small businesses need intelligent analytics that enable them to leverage data, convert them into business-ready insights and use them to make informed decisions.
Accordingly, integrating technologies like data analytics can help. It can help small businesses study consumer buying patterns, market direction, industry trends, etc., and make decisions aligned with these elements to compete better.
5. Sophisticated Data Storage Solutions
Physical data storage has become redundant. They not only consume physical space but also demand a considerable investment for operations and maintenance. Let alone building new to handle the growing data storage and management needs. Here, technology can come to the rescue.
Modernizing IT infrastructure can help small businesses eliminate legacy systems and switch to the cloud. Over 50 percent of SMBs have identified the need for cloud storage systems and have already moved to them. Cloud storage helps small businesses save money, manage data seamlessly, and scale quickly.
6. Strengthened Cybersecurity
Small businesses are the most vulnerable to cyberattacks and threats. It is because hackers are well aware of the inadequacy of competent cybersecurity measures. Per reports, slightly over 60 percent SMBs have experienced cyberattacks in 2021. All the attacks might not have been successful or damaging. But it surely shows how vulnerable small businesses are to cyberattacks.
A single cyberattack could bring a small business to its feet! But integrating technology can help tighten cybersecurity. Doing so via data encryption, building solid firewalls, incorporating Zero Trust measures, multi-factor authentication, authority-based access, etc., can help small businesses tackle cyberattacks better.
Of course, cybersecurity surely demands a significant investment. But if the situation demands so, small businesses cannot afford to avoid it.
7. Enhanced Customer Satisfaction
Improved customer satisfaction is the collective result of incorporating the right technologies in the business ecosystem.
It includes automation, business analytics, data analytics, predictive analytics, efficient CRMs, communication channels, cloud storage, etc.
The time, costs, and efforts saved in managing legacy systems or manual workflows can be directed to something more crucial for the business – customer satisfaction! The technology precisely helps small businesses do that.
Are you a small business looking for productive technology adoption? Datafortune can help. Our technology consulting and data management solutions can help you adopt the right technologies and help derive optimal value.
Our extensive experience and expertise within the technology realm enable us to strategize technology for you and help you gain a competitive edge. We are here to help you as your technology partner. Please write to us at firstname.lastname@example.org to connect with our technology experts.