Recent economic changes like fuel subsidy removal have necessitated increased spending on business operations. For example, businesses that rely on a consistent power supply now have to spend more on petrol, as the infrastructure for an uninterrupted power supply in the country is still being built.
Furthermore, small and medium enterprises (SMEs) that need to transport goods across different locations also experience increased expenditure. Many businesses have also resorted to staff layoffs or implemented remote work structures to reduce operational costs.
However, these solutions only provide temporary relief, and businesses must embrace innovative and digital solutions for long-term effectiveness.
Digitisation; the solution to navigating challenging economic realities
According to Head-Clients Technology (financial services & industry) for Microsoft Africa, Mr. Wole Odeleye, while speaking to Sun News Online at a CIO Club Africa summit 2022, “full digitisation of business operations can lead to better customer experience and provide data-based insights. It also encourages collaboration while ensuring updated knowledge and skill sets.” However, Mr Odeleye also noted that “mergers and acquisitions, partnership, divestments, and restructuring are limitations to its costs.”
Adopting digitisation as a means to navigate Nigeria’s harsh economic realities will enable SMEs to achieve the following;
Agile business operations: Firstly, with the push to work remotely comes the challenge of handling and safeguarding critical files and information. Thankfully, digital solutions like cloud storage and analytics, collaboration software and others help facilitate a smooth shift to a hybrid or fully remote work setup. Moreover, according to a Mcfee survey, 52% of organisations reported better data security after adopting cloud services compared to using onsite IT set-up.
Enhanced data management: Alongside agile business operations and Security benefits, digitisation also unlocks enhanced data management. Today, businesses rely on data to make informed decisions, necessitating continuous data collection, analysis, storage, and retrieval. Often, these tasks are commonly manual in nature, resulting in time wastage in laborious paper-based workflows.
Adopting a digital solution like InfoDocs facilitates the automation of processes under one roof. This integration of business systems and documentation allows effortless data access for internal organisational efficiency.
Streamlined workflow and customer service: Many businesses have been forced to lay off some staff leading to workflow inefficiency because of the remaining employees taking up additional roles. In most cases, these employees may not possess the necessary skills in these new departments and have to learn on the job, which can lead to challenges and reduced productivity.
Fortunately, with digitisation, companies can implement end-to-end process flow configuration that supports image and form-based data entry using a tool like InfoFlow. This enables you to streamline processes and eliminate inefficiency while delivering better customer service to improve revenue growth with a limited workforce.
Innovation and competitive advantage: With the ever-growing business population in Nigeria, SMEs cannot continue complaining about economic hardships. In fact, the longer you wait for things to return to normal, the higher the chances of losing your marketing edge. Instead, adopting digital solutions provides real-time data analysis, to identify market opportunities before their competitors. This proactive approach empowers SMEs to stay ahead in the competitive landscape and seize growth opportunities.
How can SMEs adopt a digitisation strategy?
Firstly, SMEs must assess current economic realities and how it affects their business operations. This includes reviewing your budget and identifying areas with increased spending and repetitive business processes. An in-depth analysis gives an overview of where to focus for maximum growth.
The next step is to develop a digitisation strategy involving stakeholders. This allows strategy to align with business goals and brings in long-term organizational benefits. This should also detail your digital transformation approach including timelines and milestones. This allows you to focus on critical areas first without obstructing efficient customer service.
Although it may be cost-effective to implement a digital transformation drive in-house, the long-term consequences of making mistakes may ruin business growth. Therefore, it is best to partner with experts in digitisation to ensure the adoption of effective tools. For instance, Intelics Solutions provides access to integrated digital solutions such as cloud storage services, InfoDocs, InfoFlow, InfoScan, InfoStore, Call Center Services, etc. These services include guidance and support from a team with diverse industry experience.
What next?
Nigeria, like many countries of the world, is undergoing a growth process that comes with various challenges. Unlike large enterprises, SMEs often have limited resources, meaning maximizing every penny is a top priority.
CEOs of SMEs must acknowledge the reality and become champions of digital transformation in their companies. Embracing digital solutions is no longer optional; it has become a necessity to stay competitive and relevant in the current business landscape. Taking proactive steps towards digital transformation will enable SMEs to overcome hurdles, improve operations, and position themselves for success in a rapidly evolving market.
Article written by Satyamohan Yanambaka
