Do You Know The Digitalization Struggles of Medium-Sized Companies in Western Europe?
After attending THE GROW AI Summit 2024, we're choosing to be honest with what we've observed across medium-sized businesses in Western Europe.
Despite the clear advantages, including process efficiency and enhanced competitiveness, many leaders might hesitate to embrace digitalization. The reasons behind this reluctance go beyond technological issues like poor internet infrastructure.
Let's examine these concerns and explore the practical solutions we can identify as a company with decades of experience in custom software development.
What's Concerning Decision Makers? An Honest Approach.
Cost concerns are a major factor slowing digital adoption. For companies operating on tight margins, digital investments—whether it be new software, hardware, or systems—can seem risky. A study by the European Investment Bank found that around 40% of companies cite financial uncertainty as a barrier to digitalization. These companies often worry about spending significant sums without being sure of the ROI, fearing they won't see the benefits quickly enough.
Solution: ASSIST Software suggests a phased digitalization approach, allowing businesses to adopt new technologies step by step. Instead of making a large, upfront investment, companies can test smaller solutions, allowing them to see the positive impact and expand from there. This reduces financial risk, makes ROI more visible in the short term, and allows companies to scale at their own pace. In addition, cloud-based models, can reduce hardware costs and allow businesses to only pay for what they use, further minimizing unnecessary expenses.
Read more about cloud adoption:
ASSIST Software and T-Systems Join Forces to Accelerate Secure Cloud Adoption for Digital Transformation | ASSIST Software Romania
Cultural resistance within organizations is another significant hurdle. Many medium-sized companies are family-owned or have operated the same way for decades. This creates a level of comfort with traditional methods, even if they are inefficient. Employees, too, may fear that automation or AI could lead to job losses. On the other hand, leaders may lack the knowledge of digital trends to fully understand how emerging tech could help their business. According to a report by McKinsey, 70% of digital transformation efforts fail due to resistance from within the company.
