How Technology Can Improve Business Performance

Technology is a vast and ever-changing field which can feel intimidating as a small business owner. However, there’s no denying that digital tools present huge opportunities for entrepreneurs, if only they learn to harness them correctly.

The world is in the midst of a huge digital transformation and a paper published by Gartner Research suggests that every industry will be transformed by digital business by the year 2025. Therefore, it’s important to learn how to make technology work for your business and use it to increase performance and drive growth. Let’s take a look at how to leverage technology to improve your business performance and maximise growth.

Organisational Agility

In an uncertain post-pandemic world, organisational agility is more important than ever. When the covid-19 crisis first hit, the businesses who fared best were the ones who were able to remain agile and pivot as swiftly as possible. Research by MIT found that agile businesses also tend to grow their revenue 37% faster and generate 30% more profits.

Businesses who have a good knowledge of technology and are open to trying or innovating new solutions enjoy increased organisational agility. Scalable software subscriptions, CRM programs and intuitive digital marketing tools further help with this.

Real-Time Data

Financial management platforms such as Sage, Xero and Quickbooks provide businesses with accurate data that gives them a clearer insight into their financial situation, allowing them to make more effective and profitable decisions. Staying informed helps enormously with sustainable business growth, so this is a huge advantage for small businesses.

Meanwhile, digital marketing analytics can help you to grow your business by helping you identify which strategies work and which don’t, which enables you to attract more customers in the future.

Greater ROIs

The Federation of Small Businesses found that 85% of small businesses believe that investment in new technologies is a key factor in business growth. Technology allows you to get more from your staff by automating or simplifying processes to free up time and reduce stress. This is enormously helpful when it comes to staff morale, which is another key driver of business performance and growth. It also allows staff to use their time more effectively and focus on more important tasks. In fact, the Telegraph newspaper reported that businesses who adopt new technologies can see up to an 84% increase in productivity.

Low Up Front Costs

Many cloud-based platforms and applications have low up-front costs, which is ideal for startups and small businesses. Furthermore, cloud subscription services don’t come with ongoing maintenance or management costs, which further helps to reduce the financial burden.

Saving Space

There are several different ways in which technology can help businesses save space - and therefore money. Firstly, by permitting staff to work remotely, businesses can reduce the size of their office space and save money on rent, which makes a significant difference to their bottom line. Secondly, digitizing files greatly reduces the amount of storage space necessary, allowing businesses to repurpose that space or relocate to a smaller premises.

Accounting

Using cloud-based accounting software presents several benefits for small businesses. For one thing, these programs can help cash flow by making invoice management fast and seamless. They can also automate complex calculations and provide valuable financial insights into how your business is faring.

Summary

Advancements in business and financial technology present huge opportunities for small business owners to improve their efficiency and financial performance. Access to real time data can be used to improve marketing practices and make smarter, more profitable decisions. Meanwhile, more opportunities to work and collaborate remotely can improve productivity and morale whilst saving space and reducing costs. In the wake of the covid-19 pandemic not even the staunchest of luddites can deny the importance of technology for small business growth and performance.