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SMEs are dragging their feet over digital transformation

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(Image credit: Shutterstock / Blackboard)

Despite the various benefits of digital transformation, small- and medium-sized enterprises (SMEs) in the UK are dragging their feet, new research suggests.

According to a report from UK-based bank NatWest, based on a survey of 1,000 SMEs, only a fifth are open to the idea of digital transformation.

However, similar companies that have already undergone transformation report a range of advantages. These companies are 2.5 times more likely to experience a 20 percent (or more) increase in revenue, while SMEs that use two or more technology solutions or tools can expect a 25 percent increase in productivity.

Almost half (42 percent) of “tech-open” SMEs reported higher productivity, while a similar percentage (43 percent) reported higher confidence in their ability to set the right business strategy, as compared with just 11 percent of “tech-closed” firms.

For Lynne Darcey Quigley, CEO and founder of  credit management platform Know-it, there’s also a hidden benefit that should not be neglected: the ability of digital transformation to pick up momentum.

"[With digital transformation], it becomes not only easier to introduce, adopt and embed new tech innovations in the future, but also becomes more exponentially beneficial," she said.

Sead Fadilpašić

Sead is a freelance journalist with more than 15 years of experience in writing various types of content, from blogs, whitepapers, and reviews to ebooks, and many more, across sites including Al Jazeera Balkans, TechRadar Pro, IT Pro Portal, and CryptoNews.