Small businesses contribute massively to the growth of emerging economies. In Nigeria, SMEs account for 48% of the national GDP, 96 per cent of businesses, and 84 per cent of employment.
Following the COVID-19 pandemic, a survey by the in 2021 showed an increase in demand for more adoption and integration of digital technology among SMEs.
According to the survey, 97% of global companies have accelerated the adoption of technology to scale through the pandemic, however, only 23% of SMEs were able to dedicate resources to new digital tools.
As the world becomes increasingly digital, it is crucial for SMEs to adopt technology platforms that align with their business goals and drive their operations.
With numerous options to select from, it can be challenging for SMEs to choose the right technology platform.
In a chat with Kehinde Ogundare, Country Manager of Nigeria, we learnt about what SMEs should look out for before adopting tech platforms.
From cost to usability and privacy risks, we covered key factors that can help SMEs in making informed decisions when selecting technology platforms.
Whether you’re a startup or an established SME, these insights will equip you with the knowledge you need to navigate the tech landscape and select the best technology platform that will drive your growth.
In your opinion, what are the most important factors SMEs should consider before adopting a new technology platform?
There are 3 major factors I believe SMEs should look out for when considering the adoption of a new technology platform.
The first is COST, as many companies run at a loss while trying to adopt new technology.
SUSTAINABILITY comes second because SMEs need to answer this question, “Can the new technology be sustainable without becoming obsolete?”, “Does the new adoption have the ability to upgrade into a new technology like Artificial Intelligence in years to come?”
The final factor is SCALABILITY! As SMEs will eventually evolve, they will need new software to make them scale.
How can small businesses ensure that the cost of adopting a new technology platform aligns with their budget and financial goals?
Most technology solution providers won’t tell you of the hidden charges in their products, thus the onus lies in the hands of SMEs to obtain all the necessary information before purchase. You can’t be spending extra to manage your organization than the profit you are making.
Do proper research on the new technology you plan to adopt, understand their pricing scale, and get to know if there are add-ons as well.
At Zoho for instance, our pricing is available for users and potential users to see on our website.
What are some of the potential costs associated with adopting a new technology platform that SMEs should be aware of?
The excitement in technology drives people to transition from old to new tech. There is no way a business will plan to scale without infusing technology into its transition.
However, there are costs associated with implementing new technology for beginners.
The first is the PRODUCT COST. Assuming you plan to use Zoho CRM for your customer relations management, we give you the option of subscribing monthly or yearly.
IMPLEMENTATION COST is next, you need to implement some processes to fit your business. Zoho does some for free while you need external services for some implementation.
Finally, there is the TRAINING COST. Unless your employees are willing to adopt the technology, it will soon become obsolete. How can you pay a lot for training and your employees won’t use what they have learnt post-training?
You need to invest in your employees, so they can optimally maximize the benefits of new technology.
How can SMEs ensure that the technology they adopt is aligned with their business goals and objectives?
It is important to do proper research irrespective of adoption. At Zoho, we do consultations with our clients by understanding their needs.
Are you trying to optimize the sales process, HR, and marketing activities? What pain point do you want this new software to address?
Identify these pain points and find the software that addresses them. If you don’t know what you are looking for, everything will look interesting to you.
Can you speak to the importance of quick adaptability when it comes to adopting new technology in the SME space?
Spending months adapting to a new technology that your employees are barely using can be disastrous as you will keep on paying monthly or yearly depending on the subscription plan the new technology came with. You need to know if your employees understand the technology.
Is it user-friendly? Don’t forget that your employees are humans, not machines. Your newly adopted technology must not be too complex to use.
To ensure a quick adoption, ask yourself, is the new technology customizable? Will it help me get a return? Does it fit your business goals?
How can small businesses ensure that their data and customer information are protected when adopting new technology platforms?
At Zoho, one of our key objectives is data privacy. Data has to be protected and cleaned to be sensible. You need to know your data centre and be aware if your data vendor is selling and tracking your data.
For your customers, you want to keep a certain level of privacy. Zoho has a feature on all its applications that restrict permission for an individual user.
We ensure that your level of access depends on the role of your job.
How important is usability when it comes to adopting new technology, and how can small businesses ensure that their employees can effectively use the new system?
There are two steps to this process, first, there must be an evaluation of the technology. For instance, using Zoho CRM to manage the sales pipeline, you need to carry your staff along, seek their opinion, and test multiple platforms, then if it is widely accepted, then you go ahead to roll it out to your organization.
Secondly, there must be training and orientation because switching to new technology might prove difficult for your staff.
If they get stuck, you are losing money. After deciding it is important to train and retrain on how the technology will optimize and drive productivity, create a channel of communication to carry them along.
How can SMEs ensure that new technology platforms can be easily integrated into their existing systems and processes?
Based on my experience, the best way to integrate is by using an API. If you are trying to incorporate, but you have an existing technology, the next step to take is to connect both rather than using them in silos.
When making an enquiry about a new technology, ask for the possibility of integration with a new one. At Zoho, all our applications are integrated.
What can be the social and cultural impact that adopting new technology platforms can have on small businesses and their communities?
When you adopt new technology, it gives you a sense of living in the moment, i.e., you have the ability to run your business anywhere in the world. Businesses have evolved over time, therefore we shouldn’t be worried about any cultural impact.
However, for its social impact, you have to be mindful of what you push out. You need to keep up with the new trends for your cultural and social relevance.
What advice do you have for SMEs who are considering adopting new technology platforms in the near future?
Firstly, you need to highlight what you need from the system. Afterwards, you do your research on the provider that you intend to get the technology you want to adopt.
Is the provider a registered company? At Zoho, we have a consulting team dedicated to new businesses. Your business has the potential to scale when you infuse technology. Lastly, you have to consider the cost as well.
Featured Image: Kehinde Ogundare, Country Manager, Zoho Nigeria
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