Thousands of businesses use technology in their everyday lives; ranging from emails, social media, and a variety of software. It is no secret that technology has become integral to businesses. But is it too relied upon? According to a study conducted by Deloitte, proper use of digital tools can improve your company’s performance yet – outdated technology can have extremely negative effects. We have discussed technology in the past, but what about the future? It poses the question: how much is your technology costing you?

Technological Barriers

According to the report, three fundamental barriers prevent businesses from utilizing digital tools;

  1. Human capital, 
  2. Costs and financing, 
  3. Privacy and security concerns.

Depending on the demographic and digital literacy of employees, employers could assume the price of retraining workers on new software to be costly. Yet, not updating or changing your software can result in negative long-term effects. This includes wasting time and labor due to slow and unresponsive software, or employees not utilizing digital tools because they lack responsiveness.

Similarly, it is a common misconception that digitizing your company is extremely costly. Technological solutions may have short-term costs – however, they result in long-term efficient solutions.

Cyber attacks and security breaches are examples of common concerns that businesses and individuals have when using technology. Considering “61% and 54% of SMEs have experienced cyber-attacks and data breaches, respectively” it is important to be cautious and properly use digital tools. Although your Security-Operation-center may be expensive, a security breach is infinitely higher. 

Effects of Efficient Use of Technology

Although there may be barriers in digitizing your business – overcoming them has been proven to be super easy and extremely valuable. Deloitte’s study reports that 85% of all SMEs have found their digital tools to help their business in at least one way. In comparison to their less digital peers, businesses that utilize more digital tools report that they;

  • Employ twice the number of people,
  • Have a higher likelihood of experiencing revenue growth, 
  • Are more likely to experience customer growth, 
  • Produce more innovative practices.  

This can be accomplished easily through the use of communication and both internal and sales management tools such as; a company website, cloud-based software, and an e-commerce website. This meaning the more advanced and user-friendly your digital tools are, the better. 40% of the growth of some companies is attributed to the proper use of these tools. Partnering with the right company to help implement these tools is essential in making it easy and effective.

Technology Tools
Digital tools such as; company website, cloud-based software and e-commerce website are beneficial

The True Cost of Using Digital Tools and Technology

Businesses that “are not taking full advantage of digital tools suggests that there could be barriers that are preventing these businesses from adopting technologies that could otherwise lead to substantial growth and performance dividends.” Utilizing the available technology has had extremely positive effects on 85% of small businesses. Finding and addressing the concerns of utilizing digital tools in your organization is the first step in improving your business’s performance. Ensure your business is using the most efficient tools, including; search engine optimization, resource planning tools, and corporate social networks. This will help improve customer satisfaction and reduce costs simultaneously. Whether it be, not using technology or a lack of utilizing available tools, this can have costly consequences to your business. So, how much is your technology costing you? Consult with an expert here at Sangwa Solutions to discuss what tool your business could benefit from.

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