How businesses can survive and thrive in the digital age

Digital technology is crucial for businesses to succeed, however many are struggling to adapt to the digital world, which can cost money.

According to a recent report by accounting software provider Xero, Beating the ‘digital drag’, the smallest businesses in the UK could generate an additional £77.3 billion in revenue (almost £15,000 on average per business) and create 885,000 new jobs if they digitised at the same rate as the top 20% of tech adopters.

Overcoming the ‘digital drag’

Digital drag refers to the energy and resources businesses lose when they fail to adopt digital tools. This can lead to increased costs, reduced productivity and missed opportunities. Just as people have embraced smart boilers to take control of their home’s heating, businesses are also beginning to recognise the benefits of adopting digital tools, and like the energy efficiencies gained through a smart boiler in your home, overcoming the digital drag can be straightforward for businesses and provide many advantages.

Businesses can transition into the digital era by taking a few simple steps: 

• Identify digital needs
• Choose user-friendly and affordable digital tools 
• Train employees to use digital tools effectively 
• Adopt a digital mindset that prioritises innovation and change 

Like those who resist replacing their old boilers with smart ones, some businesses may cling to the mindset of “we have always done it this way.” This resistance to change can hinder innovation, lead to inefficiencies and jeopardise customer satisfaction. 

Advantages of adopting digital tools and practices

Overcoming digital drag provides businesses with numerous benefits including: 

• Increased revenue:  Automating tasks, improving customer service and expanding market reach can boost revenue. 
• Reduced costs: Eliminating manual processes, minimising errors and enhancing efficiency can lower expenses. 
• Improved productivity: Digital tools can automate tasks and provide real-time information, leading to increased productivity. 
• Greater customer satisfaction: Enhanced customer service and convenient interactions can foster improved customer satisfaction. 

The digital age is here to stay, and businesses that fail to embrace digital tools are likely to struggle to compete. By embracing this new technology, business owners can level the playing field, and achieve sustainable growth. Just as smart boilers have revolutionised home heating and cooling, digital tools can transform businesses, enabling them to thrive in an ever evolving landscape. 

If you are a business owner seeking to overcome digital drag, Armstrong Watson can provide expert guidance and support. As Xero’s largest UK accounting partner, with more than a decade of experience working with the software company and a deep understanding of best-in-class apps from Xero’s app marketplace, Armstrong Watson can help you select the right tools for your business, maximise Xero’s potential through training and support, and help integrate Xero with other apps and software.