Digital transformation strategy for small business

With hybrid work models now firmly established across Australian businesses, a digital transformation strategy for small businesses has become essential for long-term success. According to Salesforce's 2025 Small & Medium Business Trends Report, 76 percent of SMBs are now increasing their technology investment, recognising digital tools as key growth enablers. While initial adoption of new technology may have been ad hoc in nature, the shift towards cloud-powered solutions presents an opportunity for small businesses to create digital transformation strategies that will support smarter ways of working into the future.

Benefits of digital transformation

Some people in your business may still be asking why you should implement a digital transformation strategy for small businesses. Aside from the obvious need to enable employees to achieve their business goals wherever they're located, there are numerous other benefits to digital transformation, including:

• Increased efficiency
• Increased productivity
• Reduced environmental footprint
• High return on investment
• Improved workplace safety

As well as the direct benefits to your business, digital transformation is also necessary simply for keeping pace with your competitors. Research shows that highly digitally engaged businesses earn 60 percent more revenue per employee and grow 28 percent faster than businesses with poor digital engagement. So now's definitely the time to take action.

Challenges of digital transformation

It's worth noting though, that while digital transformation has accelerated, you can still expect to face some challenges as a small business, including:

1. Employee resistance
2. Lack of quality data
3. Lack of an overall digital transformation strategy
4. Lack of internal digitisation expertise
5. Limited budget

None of these are game changers though (we're about to solve some of them!), and in fact, they're fairly common amongst small businesses. If you find yourself facing any of these challenges, see our blog for ways to overcome them.

Digital transformation strategy for small businesses

1. Create a team

Who is going to drive your digital transformation strategy in the business? Obviously IT needs to be involved, but it's also worth including people from different departments and levels of your organisation. Business silos can hinder innovation and prevent you from shifting focus quickly, so involving a broad range of people will ensure your digital transformation strategy meets the needs of the whole business from the start.

2. Identify your budget and time

There's no doubt about it, one of the biggest problems small businesses can face in their digital transformation journey is limited money and time. Work out what you can reasonably commit to now, dollars and hours, and create your strategy around this. Just remember, in today's competitive landscape, you may have to have some flexibility and invest slightly more now to stay ahead tomorrow.

3. Identify key areas for transformation

What are the most pressing issues for your business? Is it enabling seamless customer interactions across digital channels, or equipping employees to collaborate effectively from anywhere? In all likelihood, you'll have a number of key issues that you're facing right now, as well as some less demanding problems. List them all and then work out what your short-, mid- and long-term priorities are.

4. Consult with staff

Digital transformation involves a major shift in the way your organisation works, making people critical to the success of your efforts. Consulting with staff should give you key information, such as staff work needs and challenges, where employees are losing the most time in their day due to poor processes or technology, and how customer experience can be improved. Not only will this help clarify your priorities further, but it will also help staff understand why digital transformation is necessary and how it will benefit them.

5. Consider your future needs

Digital transformation isn't a one-and-done kind of process, but an ongoing push to improve your business operations through new technology. So while it might be easy to only think about your current needs, if you want to get the most benefit out of your strategy, you'll have to look towards your future as well. What growth rate are you currently experiencing? Where do you expect/want to be in 5 years? How will emerging technologies, such as AI and automation, impact you? How are your customers' needs and expectations changing? These are just a few of the questions you should consider.

6. Get expert guidance and support

While a large business may be able to engage digital transformation consultants, this isn't feasible for every small business. However, that doesn't mean you don't have access to guidance or support. Kyocera's ICT services can provide the infrastructure support and expertise needed to inform your strategy and help you identify the best solutions to achieve your goals.

7. Partner with the right tech/service partners

Finally, with all the information you've collected to create your strategy, it's time to choose technology and service vendors to come on your digital transformation journey. When evaluating partners, small businesses should look for vendors who:

• Understand your industry or business model
• Provide insights on your customers
• Invest in technology, including AI and machine learning
• Have robust integrations
• Prioritise customer care
• Challenge you to drive change

Building a resilient and productive hybrid work environment requires the right hardware, software and processes. Download our Guide to Hybrid Workplace Strategy for a step-by-step strategy for implementing an effective hybrid work model that equips your employees to work anywhere, any time.

KYOCERA Document Solutions supports Australian and New Zealand businesses on their digital transformation journey with innovative products and software solutions.