Is bad digitisation wasting your time and money?

Don’t let it damage your bottom line.

• Businesses lose one full day each week carrying out tasks caused by a lack of software integration.

• Small businesses invest $2.2 billion yearly in digital solutions, yet the majority are experiencing ‘bad digitisation’.

• Local businesses are wasting $1.4 billion annually on unused digital tools.

Australia’s small and medium-sized enterprises, including many automotive and collision workshops, are collectively investing $2.2 billion each year on digital solutions to help improve business operations. However, according to research from the business management platform MYOB, the majority of these businesses find that some of these tools are actually hindering them.

In a survey of 1500 small businesses, 59 per cent say they are currently experiencing ‘bad digitisation’ — where their business and people management software apps and tools run in silos, rather than integrating seamlessly. To put it into perspective, Australian households spend around $660 each year on streaming subscriptions such as Netflix or Kayo, while MYOB data shows the average small business spends 25 per cent more than this on software subscriptions.

The main difference is the streaming services do exactly what is expected: they connect seamlessly with smart devices. The digital systems that small and medium enterprises use, however, often don’t integrate properly and it’s costing them dearly. With rising inflation rates and cost-of-living pressures, owners need to be smart with their spending. Most can’t afford to waste money on services that are not truly helping them.

The financial impact of digital disconnection

More than a quarter (27%) of small businesses surveyed experienced a cost blowout because of disconnected digital tools. Shockingly, these operations are wasting approximately $1.4 billion each year on unused digital tools. One in 10 businesses polled (12%) believe getting rid of software applications they seldom use could save them between $100 and $200 each month, and a similar proportion (9%) estimate it could be a $200 to $400 monthly saving.

Productivity cost

The research also revealed small businesses are currently wasting the equivalent of one working day each week. This equates to approximately 7 hours of labour caused by a lack of integration between their digital tools. Many were found to be wasting valuable time on manual tasks or having to duplicate jobs, such as entering information from one system to another (53%), checking for consistency across the platforms (39%) and editing or fixing errors after information is transferred between systems (21%).

A growing strategic risk

Disconnection also poses a strategic risk. Small businesses say they find it difficult to get a full picture of their overall performance based on the intel from various systems. As a result, many owners find themselves making operational decisions without full visibility, which can have negative consequences further down the line.

Addressing the disconnection challenge

There is a clear need to remove the burden of bad digitisation from businesses and work on creating better-connected systems. Small and medium-sized enterprises are struggling to find systems that truly integrate with each other or identify the one solution that offers all the capabilities they need in one place. The MYOB business management platform addresses this problem.

MYOB is a tool that brings together applications for accounting and tax management, customer management, enterprise resource planning, workforce management and project management into one online platform. It makes your supply chain and employee and project management more efficient; not to mention it increases the compliance and accuracy of your business’s finances.

With everything conveniently in one place online, you get real-time visibility over your entire business, helping you make better, more informed decisions. More than just accounting software, MYOB is a business management platform that houses all your business-critical tools and applications online, making it accessible from any device, anywhere.

The cloud-based solution also bolsters cybersecurity, protecting you from online threats and data breaches. There is a better way to do business. The MYOB business management platform bridges the disconnection gap and gives you the visibility and confidence to make better business choices.

Could it be the digitisation solution you’ve been looking for?

Capricorn Members pay for one month and get six months of MYOB FREE*! Limited time only! Head to cap.coop/MYOB to learn more.

*Capricorn Members (including trial Members) only. Existing MYOB customers not eligible. Offer: Pay 1 month MYOB Business Pro or Lite base subscription and receive a further 6 months base subscription free (during which fees for Premium Features apply). Offer ends 1 May 2024 unless varied by us. Capricorn will earn a referral fee for any referrals of Capricorn Members taking up the Offer. Other exclusions and full terms and conditions visit cap.coop/MYOB