Digital transformation: How to get your small business future ready

Transcription

1 Digital transformation: How to get your small business future ready Laurie McCabe, Cofounder, SMB Group, 11/17/17 WiFi: QBConnect Password not required

2 CPE Process CPE Credit In order to receive CPE credit Be sure to sign in or scan your badge for this session You must stay in the session for the duration of the training This session is eligible for 2 hours of CPE CPE certificates are ed directly to you within 4 weeks of the conference date to the same address you used to register CPE Credit CPE credit administered in coordination with 2

3 About today s speaker Laurie McCabe Cofounder, SMB Group Laurie brings more than 25 years of experience in the IT industry to her current role at SMB Group. Laurie has built widespread recognition for her capabilities and insights in the small and medium business (SMB) market in several areas, including cloud computing, mobile solutions, business solutions, social networking and collaboration, and managed services. 3

4 Agenda Digital transformation What is it? What s driving it? How to start thinking about digital transformation Using technology to streamline and reinvent your business Q & A 4

5 What is digital transformation, and what s driving it? Times and conditions change so rapidly that we must keep our aim constantly focused on the future. Walt Disney

6 Familiarity with and feelings about digital transformation Are you familiar with the term digital transformation? What feelings does the term digital transformation evoke for you? Motivation 39% Have not heard of this term 29% Have heard of it, and understand what it means 26% Optimism Excitement Enthusiasm Uncertainty 38% 34% 29% 23% Have heard of it, but don t know what it means 45% Confusion Anxiety Pessimism Other 14% 13% 9% 5% Source: SMB Group SMB Digital Transformation Study, small businesses with 1 to 50 employees, 280 respondents 6

7 What is digital transformation? For the the survey, we defined "digital transformation" as how businesses use digital technologies to create new/modify existing business processes, practices, models, culture and customer experiences. 7

8 Trends driving digital transformation The new workforce Rising customer expectations Regulatory uncertainties Creative destruction 8

9 The new workforce 9 9

10 Baby boomers retire, millennials enter their prime Millennials will comprise the majority of the workforce by 2025 Source: Gallup, How Millennials Want to Work and Live 10

11 Growth of the gig economy Percentage of contingent workers in the U.S. workforce U.S. SMB plans to hire salaried employees and external contractors 43% Hire more salaried employees Both Hire more external contractors No plans to hire 36% Customer service 50% 21% 16% 13% Sales 47% 18% 21% 13% Workforce and payroll management 46% 19% 11% 23% 17% Business intelligence and analytics 43% 22% 18% 17% Marketing 40% 22% 19% 19% 1989 Today 2020 Accounting, financial and/or enterprise resource planning (ERP) 39% 22% 17% 22% Sources: U.S. Bureau of Labor Statistics and U.S. Census; Intuit Contingent Workforce Forecast 2015 Source: SMB Group s 2017 SMB Routes to Market Study 11

12 Rise of remote workers More employees are traveling for work 68% of small businesses say 10% or more of the workforce travels for work* 14% expect this to increase in the next year* U.S. business travel spending expected to rise by more than 5 percent to over $318 billion in More employees work from home 41% of small businesses say 10% or more of the workforce telecommutes at least one day a week* 18% expect this to increase in the next year* Sources:* SMB Group SMB Collaboration Study +VISA 12

13 Rising customer expectations 13 13

14 Customer expectations are rising I expect companies to understand my needs and expectations. 89% 72% Attitudes Towards Social Media Among Millennials Social media has given me more power as a consumer 64% Business Buyer Consumer Technology makes it easier than ever to take my business elsewhere. 82% 70% Social media is absolutely critical or very important when seeking assistance from a company I use social media to voice my opinions about brands and products I am more likely to purchase products/services recommended on social media 57% 55% 53% Source: State of the Connected Customer, Salesforce Research, October

15 Customer experience is king Customers are already 57% of the way through the buying process before they contact a potential supplier. Once they do connect they need: Customer experience will overtake price and product as the key brand differentiator by 2020.* To feel that you understand their needs A smooth, easy purchase process Great service from presales to post sales Sources: *Customers 2020 Report ^CEB Marketing Leadership Council 15 15

16 Today s customers have a self-service mindset Customers are already 57% of the way through the buying process before contacting a potential supplier Some will have completed as much as 70% of the decision-making process before reaching out to a vendor (CEB Marketing Leadership Council) Need to feel that you understand their needs Want a smooth, easy purchase process Expect good service presales to post I prefer not to interact with a sales rep I prefer gathering information online on my own 59 % 53 % Source: Forrester; 224 US B2B buyers and sellers 16

17 Regulatory uncertainty 17 17

18 Sharp turns ahead Turbulent political climate Exactly how tax, labor and other regulatory changes will unfold is still unclear Onus is on the business to stay on top of regulatory twists and turns 18

19 Repeal? Rollback? Tweak? Small businesses pay $2,830 more, per employee, than larger firms to comply with government regulations.* *Source: Office of Advocacy of the U.S. Small Business Administration (SBA) 19

20 Creative destruction 20 20

21 Technology accelerates the creative destruction cycle Average company lifespan on S&P Index (in years; rolling 7-year average) Sample companies entering and exiting S&P 500 since 2000 IN Facebook Regeneron TripAdvisor PayPal Netflix 2015 OUT Eastman Kodak JC Penney Sprint US Steel Avon 21

22 Use IT Technology or Lose It Which statement most closely reflects your company s view of how technology relates to your business?^ Technology solutions help us run the business better 36% of small businesses strongly agree/agree that digital technologies are changing their industry Do you agree or disagree? Technology solutions help us to significantly improve business outcomes Tech solutions support basic business needs, but no significant impact on business outcomes Technology solutions fail to deliver the business results we need more often than not 9% 23% 32% Sources: *SMB Group SMB Digital Transformation Study ^SMB Groups SMB Routes to Market Study, Source: SMB Group s 2017 SMB Routes to Market Study 22

23 But businesses are concerned about the digital future Concerns about the future:^ of small business respondents say they do not have a well-defined digital business strategy Feel threatened by digital startups Have seen new competitors enter the market as a result of new digital technologies Are unsure of what their industry will look like in 3 years Fear becoming obsolete in 3-5 years 78% 62% 48% 45% Sources: *SMB Group SMB Digital Transformation Study ^Dell EMC and Vanson Bourne, Embracing A Digital Future Survey,

24 How to start thinking about digital transformation for your business It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change. Charles Darwin

25 Digital transformation phase Which best describes your company s activities regarding digital transformation?* Reasons for lack of a digital transformation strategy* Our company is too small 42% Currently implementing 24% No activity/plans 27% We need help to figure out what path will work for us 29% It s not necessary for our business 27% Currently planning 49% We don t have money to invest in this area 23% It s not necessary in our industry 17% Sources: *SMB Group SMB Digital Transformation Study, 25

26 Evaluate how the ground is shifting around your business Identify what s changing Business models in your industry Competition Customer needs Performance/position in your industry Channels Technology 26

27 Identify and prioritize your top business drivers What are the top three drivers for your company to invest in digital technologies to support your business? Attract new customers 45% Reduce costs Respond to rising customer expectations Improve employee productivity Streamline operations Keep up with competitive pressures 39% 37% 33% 32% 28% Comply with changing regulatory standards Capitalize on new product/market opportunities 19% 19% Attract/retain employees Respond to investor demands Improve response to market disruptions 10% 9% 13% Source: *SMB Group SMB Digital Transformation Study 27

28 Pinpoint specific business initiatives Is your company currently investing in, planning to invest in, or have no plans to invest in a digital technology solution to help achieve the following business goals? Current Goal Long-term (12-24 months) Goal Not a Goal Improve employee productivity/re-skill employees 47% 31% 23% Improve decision-making 44% 26% 30% Personalize/improve customer experience 41% 35% 25% Enter a new customer market (e.g. new geography, new customer segment, etc.) 34% 31% 35% Add a new sales channel (e.g. online, partner, new location, etc.) 34% 28% 38% Improve/accelerate development of new products/services 33% 32% 35% Create a new line of business/deliver a new product or service 32% 30% 38% Improve new employee recruitment 30% 28% 42% Support changing regulatory and compliance requirements 30% 35% 35% Automate repetitive manual tasks (e.g. order entry, billing, payments, etc.) 30% 40% 30% Automate physical systems (e.g. energy, water, security, etc.) 19% 32% 48% Sources: *SMB Group SMB Digital Transformation Study 28

29 Identify obstacles and prepare What are the top three drivers for your company to invest in digital technologies to support your business? We don't have adequate IT skills/staff to support new technology We don't have enough money to adequately fund it It's hard to figure out which solutions will best help us 36% 36% 36% It's difficult to integrate new digital technologies with existing systems Decision-makers haven't set goals in this area 28% 30% We're unsure about how to execute to achieve our goals We don't have enough time to focus on this It's not a priority for decision-makers We have concerns about security issues associated with using new digital technologies Too many people in our company are resistant to change 18% 24% 23% 23% 23% Other 1% Sources: *SMB Group SMB Digital Transformation Study 29

30 Using technology to streamline and reinvent your business I feel that luck is preparation meeting opportunity. Oprah Winfrey

31 Make the connection between employees and growth Refresh your corporate culture and strategy to attract millennials, contractors and remote workers who can help your company grow Only 8% of small businesses rank creating a millennial-friendly work environment as a top 3 business goal 45% say they want to make it easier for employees to work from home 67% agree that mobile solutions are changing how they collaborate Sources: *SMB Group 2016 Collaboration, Communication and Mobility Study 31

32 Put your head in the cloud Top Reasons Small Businesses Use Cloud Solutions More cost effective: 52% Easier/faster to deploy: 47% More flexible: 42% Better security, reliability, etc: 37% Lack internal resources to deploy/manage: 36% Source: SMB Group s 2017 SMB Routes to Market Study 32 11/13/17

33 Focus on growth, not grind Sales & Marketing Financials & Operations Collaboration & HR Automate and integrate repetitive tasks to: Grow revenues Boost profitability Shorten sales cycles Increase repeat business Look bigger and more professional Enter new markets 33

34 Know your customers Having a shared, single view of the customer across departments/roles is absolutely critical or very important to our sales process. * 63% 71% Small businesses using CRM are SMBs Enterprise We have an excellent or above average ability to create a single view of the customer. ^ 66% 46% more likely to forecast revenue increases than those using spreadsheets and contact managers to manage customers + *Source: 2nd Annual State of Sales, Salesforce Research, November State of Marketing, Salesforce Research, March SMB Group 2017 SMB Routes to Market Study Source: SMB Group s 2017 SMB Routes to Market Study 34

35 Get smart Get ahead of the curve with smart applications that embed AI and machine learning Learn, change and predict patterns Converse with users to answer questions and provide insights Save time and make better decisions QuickBooks Online and QuickBooks Self-Employed AI Capabilities Auto Categorization Expense Finder QuickBooks Assistant Automatically categorizes transactions when you import spending activity from bank accounts Helps self-employed keep track and differentiate between personal and business expenses by proactively gathering and scanning bank accounts and credit card transactions AI-driven voice assistant that helps customers trouble shoot in real time 35 35

36 Summary Business growth is a constant goal but the rules of game are changing Business viability depends on agility Evaluate if and how you need to reinvent your business Commit to and invest in the technology you need to adapt and thrive 36

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38 Questions?

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