The so-called Fourth Industrial Revolution is causing every part of the economy to go through a rapid process of digitization. This offers small businesses great opportunities but also great threats. It gives the smallest companies unprecedented reach into new markets, a level playing field in sectors once dominated by major enterprises, and the ability to change the shape of how business is done. But it is also driving change so quickly that those left behind face going out of business. Small and medium-sized enterprises (SMEs), micro-businesses (employing fewer than 10 people) and sole traders which don’t engage in digital are placing themselves in an increasingly vulnerable position. A Workplace Innovation Report concludes that as much as 94% of businesses struggle with their existing applications and software. An almost equal number or 95% also struggle with technology designed to address their business problems.

The collection of these symptoms affecting organisations is also known as ‘Work Rut’. A work rut occurs when teams exhaust or outgrow the capabilities of their appliance applications or enterprise systems, resulting in stalled progress and frustrated employees. This includes everything from spending time on error-prone manual processes and administrative tasks to disparate data sources and off-the-shelf applications

For small businesses who are not in the technology industry, these data points ring very true. But the solution to these problems can be solved with the adoption of customization of technology to suit a business’s personal needs.

It goes without saying that many SMEs are facing significant reductions in customer demand and disruption to their supply chain as a result of Covid-19. These impacts threaten to diminish the scope for SME economic recovery, particularly when compared to larger businesses.

Even before the crisis, larger businesses had an advantage over SMEs in progress on digitalisation and digital innovation. However, Covid-19 has highlighted divisions between SMEs at different levels of digital readiness. More digitally advanced businesses have been better placed to adjust and emerge stronger from the crisis.

Put simply, this could create a new digital divide.

Closing this divide will help SMEs to deal with the impacts of Covid-19, providing benefits to both businesses and the wider economy.

But it is more than just providing SMEs with a ‘technology solution’. It is also about improving the digital capabilities of SMEs and creating new ways of working. Increased access to information and more productive and integrated digital processes also helps foster innovation. It is this kind of innovation that can become the lifeblood of the new European economy.

However, there are a number of different barriers to SME digitisation, not least because they may not have access to digital tools or the organisational capability, resources and finances to effectively digitalise their operations.

In Germany, for example, studies have found that 67% of SMEs cite a shortage of IT skills among employees as an obstacle to digital technology adoption, while 32% blame a lack of adequate financing sources. 

In the long run, SMEs need to master new technologies if they want to stay competitive and thrive in this digital revolution. Digitalisation is a transformation process that changes the entire business model of companies and that needs to be supported by an ecosystem and digital skills. There is a need for EU companies and citizens not only to be users, but to become shapers of technology. By becoming an innovation economy, Europe will stay ahead in the fourth industrial revolution and ensure its future prosperity.

Every business whether it is small or big needs custom software to fulfil their specific business requirements. You need technically advanced solutions to obtain a competitive advantage. Every business has its own working conditions and functions. When it comes to small business, they need to be more adaptive and have to change business strategies as per market requirement.

The dilemma between choosing off-the-shelf software or custom software is a never-ending saga. Off-the-shelf software often falls short of meeting specific needs and bundled with many unused features inside. On the other side, the custom software allows businesses to digitalize their operations and caters needs and requirements as business demands.

Since every business has different requirements, it is very difficult for one solution to accommodate multiple needs at a single time. Custom software is built for a specific group of users within an organisation. These are not like a complete software suite available for any business. These are personalised and has limited users. Custom software is made to ensure that all the particular preferences and business requirements are accommodated.

To gain an extra edge over competitors and achieve business goals regularly, SME’s need to find out ways to improve business efficiencies and reduce operational costs. A custom software enables employees to save a lot of time in doing things manually and can get required information instantly. Sales and Marketing reports, data can be accomplished within minutes. This saves time and allows businesses to utilise their workforce to do other higher-priority work. In short, a custom software can simplify a business model and make business verticals more productive.

So a small business has recognises the need to upgrade their software by building a customised solution but the cost is beyond their budget.

This is quite a common problem for small businesses as the initial cost of customising technology to suit their specific business needs is too expensive. But this should not out a small business off for two reasons:

1. There are long term gains for a business as employees can focus on more value adding tasks and be more productive rather than spending hours working on mundane non productive tasks that generally lead to low employee moral
2. While Off-the-Shelf solutions may appear more appealing and cost effective initially there are two common issues as any upgrades which need to be built are extremely expensive and Off-the-Shelf is never designed to cater for the specific needs of a business.