In order to adapt to the increasingly competitive business environment, many SMEs are quickly embracing new technologies. Your success as a small business owner depends on how well you can utilize new technology as they become available. How you view technology can significantly impact whether or not you view it as an expense or an investment.
There has been a significant increase in the number of small and medium-sized businesses (SMEs) adopting various forms of technology, such as using automation to do repetitive work, using cloud technology instead of physical servers, and so on. Now, let’s keep reading to discover the importance of the digital transformation of SMEs in Australia.
Technology Innovation Grants: Why SMEs Need Emerging Technologies
Even if you aren’t aware of them, small and medium-sized enterprises (SMEs) can gain a lot by adopting new technologies. According to the estimates of the World Bank, SMEs account for more than half of all jobs worldwide and 90% of all firms. The numbers keep growing each year. To avoid falling behind, small and medium-sized enterprises (SMEs) always seek newer technology innovation grants to increase their bottom line without lowering standards.
Boost Agility & Adaptability
According to McKinsey, a whopping 70% of agile firms are in the upper quartile of organizational health. But what is the definition of agility, exactly? Rapid change is possible in any business. An organization’s ability to seize opportunities is reflected in this measure. Due to a lack of resources common to larger businesses, SMEs’ agility is a crucial trait that allows them to keep up with rapidly evolving technologies and even gain an advantage over their rivals. As an illustration, Artificial Intelligence (AI) systems excel at providing on-time client deliveries, regardless of the conditions.
Contribute to The Business Growth
One of the most critical ways IT can help a company expand is by generating new income and enhancing existing processes. Many of the latest technological tools are fantastic for growing the company’s sphere of influence and discovering new avenues for growth.
Bring Greater Efficiency
By leveraging information technology, businesses may complete procedures faster and cheaper. Efficiency is also improved through minimizing waste, performing tasks accurately, and streamlining processes.
Make Informed Decisions
Big data and machine learning are two cutting-edge technologies that can be used to better understand and predict key business trends. When you have accurate information, you can make informed decisions about where to allocate your funds. In the manufacturing sector, for instance, such technology can be used to foresee the breakdown of machines.
Reduce Operating Costs
A company can dramatically reduce its operating and marketing costs by putting money into technology. One example is the low cost of online advertising. Furthermore, the cloud eliminates the requirement for the associated expenditures of maintaining physically located servers.
Compete Globally
We live in a time when businesses everywhere must utilize technology to compete. In practically every industry, companies in the United States, the United Kingdom, Europe, China, and elsewhere employ today’s technical advances to increase productivity and quality. To fall farther behind the competition would be disastrous for Businesses. The only viable option is to implement cutting-edge technological methods.
All About Technology Adoption and Innovation Program in Australia
During the coming year, the Australian government hopes that SMEs will increase their investment in digital resources. In order to promote any technology adoption and innovation program in Australia, the federal government is offering tax incentives worth $1 billion.
Here is how the program functions: For every $100 that small and medium-sized enterprises (SMEs) invest in digital economy sectors like cybersecurity, cloud adoption, web design, and flexible-work solutions, they are eligible for a $120 tax credit. It’s a 20% ROI, dollar-for-dollar. Those types of returns are unthinkable in today’s financial markets. Nevertheless, most company heads have no idea what digitalization incentives exist right now, whether they qualify, or how they may benefit from them.
Technology executives in Australia’s SMEs should consider how they can accommodate the growing demand for more versatile schedules. We hired the research firm Frost & Sullivan to conduct an interview-based survey. They spoke with IT decision-makers in organizations throughout the United States, Australia, the United Kingdom, Germany, Ireland, Italy, and India, with fewer than 1,000 knowledge-based employees. The poll, which was conducted between February and March 2022, revealed the following:
- Hybrid scheduling and remote work can enhance productivity and brighten business culture but can also complicate things like deploying and handling information technology. Companies that lack sufficient resources and appropriate technologies find themselves in an even more precarious position. Three-quarters of those polled (including 84% of Australians) agreed that flex work increased the burden for IT professionals.
- Two years after hastily integrating remote-work capabilities, many companies realize that their IT stack needs to be updated with redundant systems. In fact, according to the Frost & Sullivan poll, nearly all businesses intend to centralize their remote-work technologies by 2022.
The government of Australia is benefiting from the rising wave of technological investment. IT and telecommunications spending, according to Gartner, is projected to reach 67 billion dollars in 2022, growing 10% from 2021 and much more than double the worldwide average of 3.2%.
Opportunities to increase output, broaden market share, and keep talented workers around can all be found in the digital realm. Australian small and medium-sized enterprises (SMEs) would be well to take advantage of these tax breaks while they are still available, as the tax break expires in June 2023.
Importance of Digital Transformation of SMEs in Australia & Ways to Boost IT
When investing in computer hardware and software, a well-thought-out plan is essential. Examine the market situation thoroughly before making any purchases. Where is all this expansion happening? The key to success is knowing where you excel and where your rivals fall short.
Make some room in your schedule to evaluate the difficulties you’re having with your staff. The question is why people leave or stay. Would it be beneficial if employees were allowed to work from home occasionally? Looking for some further inspiration? According to research by Frost & Sullivan, the following are the most common justifications given by Australian businesses for spending money on IT:
- Value for money (34%)
- Help with IT process automation (34%)
- Ease the stress of IT management and administration
- Improve both efficiency and dependability (a 20% gain)
- Raise output by workers (18%)
Leaders who are fluent in using new technologies place a premium on time-to-value or the speed with which their companies can reap the benefits of those technologies in the form of a return on investment and a competitive edge.
The Takeaway
Emerging technologies have become indispensable to the growth and survival of small and medium-sized enterprises (SMEs). Technology can help SMEs improve their agility, efficiency, and decision-making capabilities and reduce operating costs. Furthermore, technology can aid SMEs in competing globally, and with government grants for new technology, it is an excellent opportunity for the digital transformation of SMEs. The success of SMEs in this digital era depends on how they view technology – as an expense or an investment. Therefore, it is essential to understand that investing in technology can help SMEs grow and thrive in today’s competitive business environment.
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