Digital transformation provides many benefits for SMEs. Let’s debunk the myths that may be holding you back from acting on it. .

Everyone is talking about how digital transformation can increase productivity and competitiveness.

“Innovation and making improvements are essential to sustaining your growth, and digital transformation is one way to achieve this. It will without doubt give you a major competitive edge,” said Éric Waterman, Vice-President, Agri-food at Inno-centre.“ “For an SME, technological solutions and digital transformation can optimize operational efficiency and the company’s overall business performance,” stated George Sabbagh, Vice-President, Technology solutions.

With contributions from three Inno-centre experts, this article seeks to debunk five common and persistent myths about transformation that may be holding you back from taking action:

Myth No. 1: Digital transformation does not need to be integrated into corporate strategy

Digital transformation is not an end in itself but a means to achieve and sustain long-term growth. All the more reason to think about it and incorporate it in your strategic planning.

To get your approach off to a good start, it’s essential to thoroughly assess your needs, resources and objectives, otherwise you run the risk of intervening in areas that don’t add value or that may even slow the pace of your transformation. As an SME, your scope for action may be limited, whether for financial or other reasons. Therefore, you need to focus on the investments that bring you the highest returns in the shortest possible time.

This preliminary step will help you align your digital transformation action plan with the company’s vision, select the necessary technology solutions and engage management and staff to ensure project success.

Myth No. 2: Digital transformation is only for large companies

This is a common misconception! Digital transformation is for all businesses.

Small- and medium-sized enterprises are often more flexible than large companies because of their structure, an invaluable asset when making decisions. It’s easier to get all the executives around the table and clarify the vision and key criteria for ultimately starting your digital transformation process promptly.

In the case of SMEs, the cornerstone of this type of project lies in prioritizing needs to implement the right solutions depending on business objectives, such as improving the supply chain, reducing the environmental footprint, collecting and processing data, etc.

In all cases, whether you are an SME or not, you will benefit from surrounding yourself with specialists to minimize the risks inherent in such a transition and benefit from an objective resource throughout the process.

Myth No. 3: Digital transformation is too costly for SMEs

This is false. Your digital transformation does not have to be costly. It must meet your needs, as well as your organizational structure. This does not mean that you have to spend a fortune. It’s also important to bear in mind that digital transformation is an investment that will have a long-term impact on your productivity while delivering first results quickly.

Still on the fence? There are several options on the market: purchase, rental or subscription to a service. External experts can help you make decisions. Grants are also available from various levels of the Quebec government to help companies increase their productivity and competitiveness.

Myth No. 4: Digital transformation leads to massive job losses

Let’s get to the bottom of this persistent myth now, once and for all! Digital transformation and job losses are not interconnected. Quite the contrary, in fact! Digital transformation, whether through the introduction of automation of certain tasks or the integration of artificial intelligence, to name but two options, will have the effect of enhancing current jobs and even creating value-added positions, an important tool for talent acquisition and retention.

The examples of this are very concrete.

A robot on a production line can address health and safety issues or perform repetitive tasks. The company can focus on staff development and training, and reduce its risk of labour shortages.

Automation helps optimize operations and potentially add shifts, thus creating jobs.

Data collection enables us to process and understand various information about the company, a valuable tool for making better-informed business decisions.

Myth No. 5: Digital transformation requires a high level of technical expertise from in-house teams

No. It requires you to surround yourself with the right people and mobilize resources from the various departments of your SME. Digital transformation is a team and company project, involving more than just management.

By collaborating with a specialized external organization, you will be supported throughout the process while establishing an environment conducive to sharing knowledge and developing in-house skills.

Staff involvement is considered an excellent means of fostering cross-functional engagement and communication, key assets for improving your operational and overall performance, and for fortifying your organizational structure.

Myth No. 6: Digital transformation only helps increase productivity

False: digital transformation has an impact on all company activities and improves its overall performance.

Digital transformation will inevitably have a positive impact on your company’s productivity, mainly by standardizing processes, optimizing shifts and improving the flow of production. It will also help improve communication, reduce health and safety risks and enhance the customer experience, to name a few more examples.

At a time when it is becoming increasingly important to reduce greenhouse gas (GHG) emissions, digital transformation is proving to be a highly advantageous and useful tool. By collecting and analyzing data quickly and easily through the implementation of technology tools, your company has the power to make significant advances in this area, advances that will very quickly enable you to stand out in your market and with prime contractors and investors. In turn, these stakeholders expect companies to take concrete action to help preserve the environment.

In short, digital transformation is a valuable ally in the face of growing stakeholder demands.

Interview experts

George Sabbagh, Vice-President, Technology solutions, brings digital transformation to SMEs in all sectors.

Éric Waterman, Vice-President, Agri-food, supports SMEs in Canada’s bio-food sector.

Jean Beaudoin, Senior Business Advisor
For more than 30 years, Jean has specialized in the continuous improvement and optimization of operations and the supply chain through digital transformation and the implementation of technological solutions for manufacturing SMEs.

Caroline Gagnon, Senior Business Advisor
Specializing in optimizing operational efficiency, she advises SMEs on operational diagnostics, value stream mapping and support for deploying technological solutions to improve operational efficiency and business performance.

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