Digital technology refers to the use of electronic devices to store, process and communicate information. Popular examples include Customer Relationship Management (CRM) software and Artificial Intelligence tools. These tools can significantly improve productivity and efficiency.

This article will outline what small businesses should consider before investing in digital technology.

When considering the cost of implementing digital technologies, you must consider both the price of the solution, and the amount of time it will take to implement it. Some systems, for instance, a physical server, may have a large initial cost with small ongoing maintenance fees, whereas others like the following example of cloud-based CRMs may be predominantly subscription-based.

Customer Relationship Management (CRM) systems are a tool businesses can use to manage customer interactions to gain insights into their target audience. Before implementing a CRM system, your business should consider the costs of the tool’s implementation. These include:

• Implementation fees and return on investment (ROI)
• Monthly subscription fees
• Add-ons, like mobile app integration
• Additional costs for each separate user

Your business should also consider how much time it invests in implementing a CRM tool. Examples of aspects that could take up employee time include:

• Preparing the data (e.g. contact information)
• Tailoring the CRM to your business
• Training all relevant staff to use the tools

Time investments required when implementing CRM systems can also come at a cost to your business. Preparing data, tailoring systems, and training employees takes time and resources.

Implementing digital technology can take some time to get right. It is generally broken down into two stages:

1. Planning and preperation

The length and size of the project are defined, and resources are allocated. For instance the number of employees needed, the budget, and timeline of the project.

2. Integration and Implementation

Technology is integrated into existing systems and processes. The integration process could involve outlining how technology will be used, testing it and training employees to use it efficiently.

The implementation time can vary depending on multiple factors, including the digital technology’s complexity, the business’s size, and the level of integration needed.

Investing in training and support can provide a key opportunity for your business to grow and improve. When implementing new digital technology, considering the time and resources necessary for the proper training of staff can lead to a smoother adoption and improved results. This investment can ultimately pay off by increasing employee engagement and efficiency.

User-friendly technologies, like mobile apps for businesses such as Square and Slack, can provide a cost-effective solution for businesses looking to implement digital technologies. These technologies require less training and can be implemented faster. This will reduce the amount of time and resources your business needs.

Whilst managing solutions in-house can be beneficial for some businesses, for complex tasks it might actually make more sense to hire an expert to manage this process for you.

Technology experts can bring value to your business where digital technology wouldn’t be able to. By outsourcing to them, your business would benefit from specialised skills and knowledge. This may lead to increased efficiency and effective implementation of digital technologies. Technology experts also are up to date with the latest technology and expertise. This would allow your business to keep up to date with industry trends.

Digital technology can benefit small businesses by bringing increased efficiency, security, and internal communication. However, it is also important that your business considers the costs involved, including costs of digital technology, time investment and ongoing maintenance costs. Providing training and education to employees on how to use the technology is also vital in ensuring the success of digitisation.

The Lincoln Be Smarter programme offers grant funding and academic consultancy if your business is interested in adopting digital technologies. This is perfect for small businesses looking to navigate the world of digitisation. Get in touch today!