Irish SMEs must embrace automation and innovation to thrive

'Relying on spreadsheets or hardcopy paperwork isn't helping businesses or their customers'

The focus on contactless payments like QR code payments and online transfers needs to be considered by SMEs that traditionally rely on cash.

Automation and innovation can no longer be overlooked by Irish SMEs — as they distinguish why one business is going to thrive and another is not. 

In a post-Brexit and post-Covid world innovation and flexibility are more important now than ever before.

According to a report, 'Significance of the SME Sector in the Irish Economy', SMEs account for 99.8% of private businesses enterprises and employ 1.06m people in Ireland. 

Despite this high figure, the OECD’s SME and Entrepreneurship Policy report shows that Irish-owned companies' productivity and innovation is dwindling.

Modern technology such as cloud technology and eCommerce opens up a world of possibilities for SMEs. 

Strategies and insights that were once just reserved for large companies with deep pockets are now available to SMEs for a fraction of the price compared to a few years ago.

So where do microbusinesses and small businesses start with trying to introduce innovation and digitalisation to their company?

Instead of attempting too many strategies too soon — this is a brief overview of what to focus on for the long term.

A closer look at automation and innovation

Automation and innovation are no longer buzzwords for multinational companies. 

Affordable digitisation can be achieved by micro, medium-sized businesses, and even individual helpers.

The focus on contactless payments like QR code payments and online transfers needs to be considered by SMEs that traditionally rely on cash; eCcommerce innovation is a major necessity for any small business in the long run.

Irish SMEs are continuing to struggle with expensive transaction fees that accepting credit and debit card payments brings. 

This is often because Irish businesses have yet to fully utilise the powerful effects of accepting digital payments that link to their bank.

Quick Response (QR) code payments involve consumers scanning a static or dynamic code to make instant digital payments from their smartphones. 

This is then directly connected to a business bank account, and payments are accepted instantly. 

This is not just an example of adopting new technology for the sake of it. Instead, it’s exactly the type of technology that benefits both consumers and small businesses with affordability, security, convenience, and ultimate control over their cash flow.

An omnichannel approach 

Irish businesses must approach their sales and marketing on an omnichannel level too. 

If there’s anything that Covid-19 and Brexit have taught us, it’s the importance of having your physical and online presences in sync. 

Cloud technology, for example, is one of the most important drivers of digital innovation. 

It’s time that SMEs in Ireland understand that although they are sole owners of the business or running operations on a small scale, that relying on spreadsheets or hardcopy paperwork isn't helping them or their customers.

Brexit shone a light on just how important it is to have a solid management system in place for a business’ supply chain. 

A solid procurement and fulfillment system is required for SMEs importing and exporting to or from the UK. 

A good rule of thumb would be to look once again into your current procurement process, storage, and fulfillment. 

Then, simplify these operations with the help of innovative technology and simple cloud platforms that instantly integrate with your bank for easier tracking. 

Lack of transparency in any warehouse due to lockdowns or currency uncertainty are potential pitfalls for an SME that already needs a powerful inventory management system in place.

A digital solution future-proof your business

A digital solution for your small business helps to make your company future-proof in the long term. 

Software with a maturity model approach is often the best choice because software like this anticipates your growing needs as your business scales. 

This means that if one day you need straightforward software and you want to grow your workforce five times over the next few months, you can keep critical business data and add the features you need without having to switch software.

Automation and innovation are no longer a secret kept by multinational corporations — but rather a necessary journey that must be taken upon by Irish businesses looking to thrive in this current economic climate.

• Morgan Browne is chief executive of software firm Enterpryze