Media Release is also available as a PDF
The Dynamo6 report, which canvassed more than 300 Kiwi SMEs a year on from the onset of COVID-19, found that while there is a large appetite for investing in technology, many businesses may be at risk of overstretching themselves or delivering on poor implementation strategies.
A key finding was that one in three (30%) of SMEs don’t have or don't plan to have a digital and IT strategy, while a quarter (26%) are struggling with or have given up on digital transformation entirely.
“What struck us were the stark differences when comparing the IT challenges and plans of small business against those of their medium counterparts,” says Dynamo6 Founder and Executive Director, Igor Matich.
The report notes that the majority of SMEs in New Zealand are planning to increase their IT budgets this year (56%) – with this figure jumping to seven out of ten for medium-sized businesses. While 42% are keeping their budgets the same, only 2% are decreasing.
The focus of technology investments this year seeks to address core business challenges around driving revenue, customer retention, and operational efficiency. The planned investments will focus on security and risk management and building out data and analytics capabilities.
A Stark Divide in Cybersecurity Priorities
The report found there was a wave of post-lockdown remediation work and difficulty getting employees to adapt to new tools, which often came down to a lack of proper integration plans. Part of this planning, says Matich, is effective investment in cybersecurity—an increasingly critical element of IT. CERT NZ reported 1,431 cyberattack incidents causing a direct financial loss of $3 million to businesses in Q1 2021 alone.
“Despite New Zealand being exposed to some high-profile cybersecurity incidents, investing in cybersecurity and risk management ranked only 12th priority for small business, compared to number one for medium enterprise,” Matich notes.
“While we understand many small businesses are quick to focus on technologies that boost business processes and enhance customer experience, we often see security deprioritised with an ‘ambulance at the bottom of the cliff’ approach employed only when major issues arise. I’m surprised at the huge rate of this pitfall for small businesses in particular, and would urge smaller operators across the country to reconsider their proactive management and funding in cybersecurity.”
Closing the Productivity Gap
Matich hopes the recent uplift in digital technology across SMEs will result in a much-needed boost to New Zealand’s productivity levels, which according to Stats NZ have remained stagnant for almost a decade. To improve this, he points to the potential of cloud software like Microsoft 365 and Google Workspace.
“From my experience, many organisations are only scratching the surface in embedding cloud platforms into their businesses. There are lots of missed opportunities to streamline or automate menial daily tasks, automate business processes, and improve general work collaboration,” he says. “This could be as simple as updating your website, selling your products on Shopify, or moving your ordering or booking process into a better online system.”
For example, one of our retail and property sector clients, Kiwi Property, implemented Shopify and e-gift card solutions to provide their shopping centres like Sylvia Park with a new digital channel to engage with customers.
“What this report has shown us is that while some claim digital transformation has been pushed forward 10 years, there is a smart way for Kiwi SMEs to invest and implement new tools and it’s best done with the bespoke guidance of IT experts,” concludes Matich.
Read the full report here: https://www.dynamo6.com/insights/the-state-of-it-sme-edition/
-- ENDS --
About the Report
This report, produced by Dynamo6, is based on the results of a commissioned research survey conducted by independent research company Dynata. The total survey sample was 319 respondents, conducted between 19 and 31 March 2021. The survey respondents were exclusively business owners and IT decision-makers within a small or medium business based in New Zealand.
About Dynamo6
Dynamo6 is a fresh-thinking technology company. With our blend of IT services – cloud, cybersecurity, modern workplace, digital experience and software development – we empower organisations to innovate in the digital world.
For media enquiries:
Zoe-Louise Bell | marketing@dynamo6.com
