It is now the case that all businesses are digital in one way or another or need to be. But digitalisation and adopting new technologies like artificial intelligence (AI) are fraught with difficulty and not cheap.
How can family-owned SMEs digitalise without breaking the bank or indeed the business?
Digitalisation in business at its simplest means the automation and integration of technology across all areas of the organisation from operations to communications to how their people work to how it delivers products and services, says David Lee, chief technology officer, PwC. “But today, with the advent of AI and GenAI, there is a huge opportunity for these technologies to completely transform and disrupt businesses to enhance productivity, competitiveness and sustainability in the long run.”
We live in a digital age where younger generations, the customers and workforce of the future, know nothing but digital engagement through instant access to online content and levels of convenience that have never been experienced before, says Alan Lavery, director of applied intelligence, GenAI lead, KPMG in Ireland.
“For business leaders this presents a challenge in adapting business models to meet these evolving demands, however, those that move quickly to this new way of life and the needs of future generations will reap the benefits of loyalty and increased engagement with the products, services or expertise that they offer,” Lavery continues.
“A robust digital strategy will require investment but with controlled implementation, the return on that investment will bring significant gains in productivity, customer engagement and workforce enhancement.”
In today’s highly competitive market, digitalisation is no longer an option but a necessity for businesses seeking to thrive, Bronagh Riordan, AI and data partner at EY Ireland says. “As technologies such as AI continue to advance, businesses that fully integrate digital technologies into their operations will be better positioned for long-term success.
“However, to maximise its potential, businesses must have clarity on how and where digital and AI can add value to their business, while proactively addressing additional capability areas such as workforce upskilling, change management and cybersecurity while also fostering a culture of continuous digital evolution.”
The technological landscape is shifting at an unprecedented pace, offering a multitude of opportunities for business leaders to test and adopt data and digital solutions that align with their strategic priorities, says Lavery. “Artificial intelligence stands out as one of the most influential and widely discussed technologies today. With massive investment pouring into AI, technology giants are racing to develop solutions that promise to transform businesses across every sector.
“AI has the potential to drive significant improvements in operational efficiencies, customer engagement, revenue growth, and cost reduction, making it a critical component of any forward-thinking business strategy.”
While digitalisation offers growth opportunities, there are potential barriers that could slow down adoption, says Riordan. “When facing limited financial resources, businesses could consider several options which include, scaling digital solutions gradually, using lost-cost tools, adopting cloud-based and subscription services, automating repetitive tasks and leveraging government funding mechanisms and SME programmes.”
Family firms can digitalise their business without breaking the bank by trial-running the technology in a small way, says Lee. “Increasingly, AI capabilities are being embedded into standard collaboration and business applications.
“So, a good starting point is to engage with your existing software providers and understand what AI capabilities they have in their products and how businesses can experience these on a trial basis. They also need to ensure that they have the right use cases where change will make a measurable difference and test it in baby steps and upskill your people to trust it.”
However, Lee says, this will not happen overnight – it will take time. “Manage the expectations of your people. It’s about the journey. Many businesses, small and large, are realising that safe and successful deployment and sustained adoption of AI and GenAI is a complex process that requires planning and co-ordination across the organisation.”
