The concept of interim leadership is becoming ever more important in the world of business, as the benefits of recruiting for specific expertise to deliver large-scale transformation or bolster capabilities to reach strategic objectives at crunch points becomes increasingly apparent.

In particular, interim leaders offer a unique solution to mid-cap, founder-led companies that find themselves grappling with the challenge of making themselves as attractive as possible to potential investors. They can help achieve this, while  maintaining the stability that underscores an organisation’s inherent market value.

‘Interims’ can drive rapid transformations and process improvements, bringing much needed experience and energy to make a company fully ‘deal ready’.

Considering this, Andrew McIntee, Director at people advisory firm New Street Consulting Group examines the crucial role interim leaders play in helping high potential businesses attract and secure the best possible investment deal.

Getting the Dynamics Right

Getting leadership dynamics right is one of the most delicate aspects of preparing for an important funding round. While a change in the leadership team just before a sale might hint at instability, the addition of the right kind of leadership skills and experience in the run up to going to market can significantly enhance a business’s appeal. This is where the strategic incorporation of interim professionals can provide the perfect balance.

These seasoned experts bring a level of flexibility and specialised skill often pivotal in maximising the value of a business and getting the best funding partner onboard. From a stability point of view, they do this without the permanence that could cause friction with existing leadership team members or signal unsteadiness to future investors.

Enhancing Value with Interim Experience

Indeed, the interim role is much more than simply acting as a stopgap; interims are experienced specialists who know what investors are looking for and can drive substantial, sustainable improvements and efficiencies that make a business more attractive to private equity firms. This includes everything from streamlining operations to ensuring the company is future-proofed and set for continued growth.

In addition, the flexibility of interim professionals allows them to undertake significant transformation projects – be it cost reduction, operational efficiencies, regulatory compliance, or even spearheading ESG initiatives – without burdening any potential new investors with long-term resource commitments.

When investors come on board, interim specialists can seamlessly move on, allowing new funders to work with the businesses’ permanent leadership on building on longer-term growth plans from a solid foundation.

Making a Business ‘Easy to Buy’

Of course, a key aspect of preparing for investment is making a business ‘easy to buy.’  Often, this involves a range of specialist issues that entrepreneurial leadership teams aren’t always versed in – for example, dealing with regulatory issues, optimising processes, and preparing rigorous deal rooms.

Interim talent is often ideal for helping permanent leadership teams deal with these requirements. While a situation may be completely new to your board, specialist Interims have seen it all before and know exactly what needs to be done and why.

The Commonality of Interim CFO

Given the value that Interims can bring in getting financial processes and reporting in a strong place for scrutiny by potential investors, it isn’t surprising that the CFO role stands out as the most commonly utilised of all interim leaders.

Specialist interim CFOs – typically highly experienced in helping businesses prepare for investment – act as trusted but temporary advisors, guiding the financial strategy to align with the expectations of potential investors. Not only does this help a business be as ‘deal room ready’ as possible, the fact that an experienced interim CFO is on board acts as a positive signal to potential investors in its own right.

That’s because investors will know they’ll be inheriting a well organised financial situation which has been guided by an experienced hand (and, of course, one who will also be perfectly placed to provide a smooth handover to their permanent replacement).

Interim Leadership and Cultural Integration

The smooth assimilation of operations and cultures between investor and investee is essential for the sustained success of the newly funded business. And another area where interim leaders excel is in facilitating post-investment synergies between company and backer.

Interim leaders, with their experience and strategic insight, are experts in helping existing teams identify and smoothly navigate potential culture clashes and operational roadblocks that might otherwise hinder the post-investment integration process.

Interims: A Wise Investment

For founder-led mid-cap businesses eyeing investment, the deployment of interim talent can be a game-changer. They not only bring the expertise necessary to enhance a company’s value and attractiveness to investors, but also offer a level of flexibility and strategic insight that can be difficult to replicate with permanent staff alone.

As businesses navigate the complexities of pre-buyout preparation, the decision to engage interim expertise could very well be the difference between a good investment and a great one.

New Street Consulting Group is the UK’s number one interim service provider^[1] , and has recently invested in a new Academy to tackle the shortage of Interim Management specialists in recruitment. For more information contact its team of consultants here.

Notes to editors
NSCG is a people advisory business that helps organisations find, assess, build, and accelerate teams and leaders who are as good in practice as they are on paper.

The business does this through services which can be accessed individually or as an integrated service, from interim management and executive search through to talent intelligence, leadership assessment and development.

NSCG can tailor solutions to any c-suite challenge with solutions such as finding great leaders, developing strong talent pipelines and building high-performing, flexible teams with all the right skills.

[1] https://iim.org.uk/service-providers/

The CBI urged the government to freeze business rates for another year and to quickly implement targeted support to prevent otherwise viable businesses from collapsing. 

Over the next three months, two-thirds of businesses will face a significant rise in their bills, with a third of those facing increases exceeding 30%.

The CBI also urged the government to offer businesses and the self-employed additional time to pay their tax bills and to provide easier access to loans. 

"Firms aren't asking for a handout. But they do need autumn to be the moment that the government grips the energy cost crisis. Decisive action now will give firms headroom on cash flow and prevent a short-term crunch from becoming a longer-term crisis,” commented Matthew Fell, CBI chief policy director.

"With firms under pressure not to pass on rising costs, there is a risk that vital business investment is paused or halted entirely. That, in turn, could pose a real threat to the UK's economic recovery and Net Zero transition."

[ymal]

Take Coke, with its average ad spend of $4b a year. Wow. However, a vast area of advertising is hitting a spot of difficulty. This may mean that the time is right for another alternative: OOH advertising. 

Web Woes

A few years ago, there was a much-vaunted growth in interest in internet advertising. The future was supposed to be all about interactivity and personalisation, with businesses able to target people most likely to buy, giving their online behaviour a once-over in order to assess affinity. 

Then things started getting tough. Customers started regretting the wholesale abandonment of privacy and made noises about clawing some personal space back. After a while (and some government encouragement), businesses have started to listen. 

Things will come to something of a head in 2023 when Google starts to phase out cookies. These tasty titbits of data will no longer be able to divulge customer information to corporations, leaving marketers kicking their heels or beseeching customers to give up their details voluntarily (known as zero-party data).

Digital Delivery

One of the beauties of internet advertising has been the interactivity it boasted. If only there was a way of using that interactivity at the same time as protecting the privacy rights of the viewer. 

Well, there is. Out-Of-Home (OOH) view advertising can do just this. Such are the possibilities delivered by digital technology that it’s perfectly possible now to have, say, bus stop ads that come to life when viewed by an individual who can stay as anonymous as they like. 

The great thing about digital OOH is that it’s possible for marketers to use them to gather demographic data without the privacy of the consumer being affected at all. 

Digital ads can assess viewers’ physical characteristics in order to place them in the correct socioeconomic, age or any other pertinent segment. The willingness to interact with the ad can then be mapped against this segment, to give valuable information on that demographic’s interest in the product. 

Static Supreme

However, effective promotion doesn’t depend on digital. It’s perfectly possible to deliver impact with static ads too – it just takes creativity. Take Specsavers’ billboard that seems to have been put up carelessly, trapping a ladder behind the poster. The strapline? ‘Should have gone to Specsavers’. Of course. Brilliant. 

Impact with static is more difficult to measure but can be assessed by questionnaire subsequent to the exposure, or by growth in engagement with the website, especially if there’s a QR code somewhere on the piece. 

An End To Invasiveness, Not Information

With OOH advertising, marketers can still elicit valuable customer data, even in a world of enhanced privacy provision. This is why it’s so popular now and becoming more so - £901m was spent on this form of advertising in the UK in 2021, which is remarkable given the lockdown pattern during 2020-21. Overall, OOH advertising triumphs by being a form of promotion that grabs your eye, not your identity.  

Inflation is rising at its fastest rate in 40 years, and this has led to interest rates hitting their highest level in 13 years at 1.25 per cent – as of July 2022. It is widely understood that the increase in money supply during lockdown coupled with skyrocketing energy and fuel prices have been the main contributors to the current levels of inflation. Both of these factors have hurt business growth this year. Below, we explore how these factors affect businesses. 

Interest rates

Interest rates refer to the amount a borrower is charged for borrowing a sum of money. When they rise, businesses will find it difficult. Consumers will have to pay more money on their debt in these situations, which usually leads to them having less disposable income. As a result, your business might find it harder to sell your products or services – especially if you deal in luxury goods. Naturally, if interest rates fall, businesses will discover that customers can spend more. The other issue with rising interest rates is that they make it harder for businesses to acquire loans, which in turn impacts how much they might invest in new ideas and projects. It’ll make any loan you take out more expensive and it’ll typically take longer to pay back, which in turn makes individuals and organisations think twice about their long-term outlook.

Inflation

Inflation can also impact businesses negatively. It refers to the rise in the cost of goods: if inflation occurs slowly, it can be good for business as it encourages consumers to spend in the present. However, sharp inflation can hurt businesses. When inflation soars, the cost of living rises, and employees will ask for higher wages to help them afford essentials. As such, businesses will have to pay higher salaries. But it also affects supply chains too. Businesses will have to pay more for the raw goods needed to make their products or carry out their services. When all of these impacts are combined, businesses will find that they’re spending significantly more money each month.

What steps are businesses taking to cut costs?

When interest rates and inflation rise, businesses usually have to take steps to cut costs. For instance, if a business is interested in purchasing a fleet of vehicles, it’ll look through car lease deals rather than making outright purchases. However, if more dramatic cuts are needed, a business might make the unenviable decision to lay off some of its workforce. This decision can damage the reputation of a company and limit future growth as the business downscales. It’s a tough decision that’s usually made when other, less drastic, cuts have been made without success. 

Rising interest rates can create a difficult financial period to navigate. Consumers will find it hard to make ends meet each month, while businesses will see their revenue fall. But by taking sensible steps to cut costs and find innovative ways to increase revenue, your business can survive and thrive in the future.

[ymal]

In 2021, the Big Five tech giants—Apple, Amazon, Google (Alphabet), Meta, and Microsoft—generated a combined $1.4 trillion in revenue. But as the saying goes, “what goes up must come down,” which is precisely what many analysts believe is occurring, with the recent market crash. Fear is spreading quickly that we may be about to enter an era just as bad as the dot-com burst.

How bad will it really be, nobody knows. But if one thing is for sure, the companies that put plans in place to ride out the storm will certainly fare better than those who do not.

In fact, if we take a look back to the financial crisis of 2008, 14% of public companies managed to achieve a sustained period of growth, largely due to them acting early, taking a long-term approach, and focusing on growth and not just damage limitation. With this in mind, we have created this article with four quick tips that discuss how tech companies can prepare for the unknown and give themselves the best chance of making it out the other side unscathed.

Focus on product-led growth

With client acquisition expenses skyrocketing and a global recession on the horizon, it may be worth contemplating a shift to product-led growth (PLG), a new go-to-market approach that emphasises the product as the key engine for acquiring, activating, and retaining consumers. Instead of spending money on advertising or sales outreach, the product acts as the company's marketing engine.

Most PLG models give priority to the end-user being able to gain easy access to the software, so they can interact with it and give it a try for themselves. The purpose behind this approach is that it creates an environment where the prospect can discover the product's value in a situation relevant to their particular wants and needs. Moreover, prospects are significantly more likely to make the purchase and convert from a lead to a paying customer after they have experienced value personally. 

Fortunately, PLG is simple to achieve with SaaS sales experience solutions like Walnut, which specialises in facilitating high-quality product demos that are engineered to convert from the bottom up. Walnut's principal goal is to provide the most customer-centric experience conceivable by supplying sales representatives with all the tools and capabilities they need to directly appeal to each prospect's specific wants, needs, and pain points.

Walnut does this with its simple, intuitive no-code software, which eliminates the need for back-end teams such as graphic design and IT departments to be engaged in demo production. This gives the teams presenting the demos complete control and creates an atmosphere in which prospects may freely interact with your products in a way that is directly relevant to their requirements, thus facilitating a product-led growth strategy.

Drop unprofitable products/services

During a market crash, cash is tight. Typically, this results in both consumers and businesses looking for methods to reduce expenses, and tech companies should be no different. However, it's savvier to take advantage of a recession by eliminating any excess weight that your company has been carrying rather than cutting back on critical business operations.

For example, if your organisation has multiple MVP dream projects that are depleting your cash reserves, it would be prudent to postpone them until a later date. Remember that a recession is a great time to focus resources on what is already working for the organisation, not experimenting on unknowns. 

Reduce customer churn

As clients' budgets tighten, subscriptions may be one of the first things they decide to cut. To overcome this issue, SaaS vendors could provide clients with incentives or discounts to help them weather the storm. Take Salesforce, for example, which released a new business grant scheme in 2020 designed to help SMBs survive the early stages of the global pandemic.

While you don't have to go that far, things such as modifying subscription prices/plans, providing free trials on paid features, or introducing live technical assistance might help to persuade clients to continue with their existing SaaS solutions until economic conditions normalise. The aim of the game is to provide the most value to clients in order to gain their loyalty and reduce churn.

Don't kill off your marketing

Whatever strategy you use, it is critical that you resist the urge to halt your marketing activities when an economic slump is approaching (which seems to be what most companies like to do). For one reason or another, many organisations erroneously view marketing as a cost centre rather than a profit centre, especially when it comes to B2B companies. 

Unfortunately, organisations that reduce marketing expenditure and trim down content creation rapidly learn that the benefits earned by their marketing team in prior quarters are undone when they are let go or defunded. After all, search rankings deteriorate quickly, bidding strategies become ineffective, and algorithms change. While these companies may be more insulated from the short-term effects of the recession, they will likely suffer in the medium and long run and may find it difficult to recover the momentum they once had.

Conversely, tech companies can use poor economic conditions to their advantage by making smarter marketing decisions. Instead of cutting back, executives should view the recession as an opportunity to leverage a less competitive environment by raising marketing spending. In turn, this could create a competitive advantage over rivals, who could be scaling back and adopting a more short-term approach. 

Final word

Tech companies must use this time to prepare for the worst by implementing strategies to protect themselves from what is to come. Although, as we have touched upon, economic downturns often present an unlikely opportunity for firms to grow. Rather than sitting back and playing defensive, the market crash may actually be a time that tech companies can use to seize a larger market share by ramping up marketing efforts, streamlining their product offerings, and focusing on delivering maximum value to their current user base. 

[ymal]

A perfect storm of negative drivers is disrupting businesses nationwide. The lingering impacts of the pandemic and Brexit, the war in Ukraine, fuel shortages and rising energy prices, a scarcity of labour and rising inflation are among the seismic forces making life and business difficult.

To further understand and quantify the impact of these on the cost of doing business in the UK, Equals Money conducted a survey of 1,000 C-level UK business leaders. 

75% say that the tough current economic ecosystem makes it “challenging” to keep going and more than a quarter (28%) say that it’s “very challenging”, with 20% worried that their companies will fold. A whopping 97% expect to experience knock-on effects to their business due to the soaring cost-of-living for employees and consumers. The key takeaways for business from our research are:

Poor cash flow is troubling most businesses

Following years of disruption, 92% of UK businesses face cash flow struggles, with the top causes in today’s climate reported as:

• Rising energy prices (22%)
• Supply chain issues (20%)
• Late payments from customers or suppliers (18%)
• Reduced customer demand (18%)
• Rising interest rates (18%)

Costs are rising universally

More than half (55%) said their costs have increased consistently over the past two years of the COVID-19 pandemic., As they continue to contend with several interplaying economic challenges, most businesses (65%) expect their costs to increase in 2022, while a quarter (24%) anticipate that their profits will fall.

The five cost areas business leaders report  to have increased the most since 2022 are:

1. Insurance (59%)
2.  Sales and marketing (58%)
3. Technology (58%)
4. Professional services (58%)
5. Tax (57%)

The cost-of-living crisis is biting hard

Almost all business leaders (97%) expect the current cost-of-living crisis to create fresh challenges. The most significant of these is an anticipated reduction in consumer demand, which is listed as a major concern by 37% of decision-makers.

Around a third of firms expect further issues to spring from the cost-of-living crisis, including:

• Difficulty meeting growth targets due to reduced sales (35%)
• Increased in employee turnover (35%)
• Increase in employees requesting pay rises (34%)
• Changes to the prices of their products or services (33%)
• Damage to employee morale (32%)

Brexit and coronavirus are casting a long shadow

Two in five (40%) business leaders report that both Brexit and coronavirus have increased their overall business costs.

Brexit has had the most significant impact on the price of raw materials (43%), imports and exports (42%) and manufacturing and production (42%).

Comparatively, the biggest cost increases following the pandemic are in imports and exports (42%), use of professional services such as accountants, lawyers and consultants (40%) and sales and marketing (39%).

Many business leaders are considering drastic action

Our study shows that nearly all respondents (91%) are taking significant action to mitigate risk, maintain competitiveness and protect their cash flow.

Within this group, two-thirds (65%) have either already pivoted their business (32%) or are currently considering doing so (33%). More than a quarter (27%) of leaders are currently looking to sell their business, while a further 17% have considered selling.

The results of the Equals Money survey are echoed by The British Chamber of Commerce’s recent research, which found firms across the country are under intense pressure from a variety of costs. It reported that three quarters (73%) of them are raising prices in response to the increasing outlay. 

How businesses can respond to financial pressure

There are a number of ways businesses can actively save money during these difficult times:

• Conduct a thorough spend analysis. By looking for repeating costs that add up or expenditures that are larger than they should be, businesses can make a change and save money. In addition to eliminating waste, comprehensive spend analysis can help a business forecast future costs more accurately.

• Check what currency you’re spending in. Equals Money’s research shows that more than half of SMEs pay for a software subscription in another currency, often euros or US dollars. Banks simply don’t offer the flexibility or affordable rates that businesses need, so if your business is spending money abroad on a regular basis, it may be worth partnering up with a currency specialist.

• Review supplier relationships. Examining your supplier relationships comes down to more than just money: businesses also need to consider flexibility and reliability. In light of the economy-wide uncertainty, businesses may even want to consider spending a little bit more for a shorter-term contract. When factoring in the cost and logistical challenge of shipping, it might make financial sense to pay slightly more per unit from a supplier closer to home.

• Stop relying on banks. High street banks are never going to be the cheapest or most flexible option, especially on things like loans, foreign exchange, and expenses. It’s worth taking a little bit of time to explore the rapidly growing marketplace of alternative financial service providers, as finding the right one can mean serious long-term savings.

The challenges the pandemic posed and the resultant financial impacts, together with other events, have made it a tough period for UK businesses. We are not out of the woods yet, and all signs indicate things will worsen before they get better.

With costs set to increase across most key areas, it is even more important to use every tool available now for businesses to control and have visibility over their spending.

 About the author: Simon England is Managing Director at Equals Money.

[ymal]

The survey sampled 500 recruitment agencies, 500 SME employers, and 2,000 office workers – all of which are based in the UK.

Key findings

The research identified that, due to rising operational costs, 34% of SMEs are struggling with staffing costs – which is resulting in a lack of talent uptake. 26% of businesses are also suffering from weak cash flow, making it difficult for companies to progress and keep up with the current changes affecting ways of working.

In terms of what the key evolutions are when it comes to ways of working, employers were asked which trends were the most relevant to the UK market. They elected:

• Four-day weeks - 39.12%
• Five-day weeks - 14.57% 
• Completely remote working - 16.77%
• Fully in-office working - 15.37%
• Hybrid - 37.92%
• Flexible working hours - 43.71%
  

Interestingly, however, employees reported that 71% of them want a four-day work week, standing out above hybrid working (31%) and remote working (28%). 

Perhaps employee demands are outgrowing what employees are currently offering, which may in turn cause SMEs to reconsider the perks and working modes available to staff in order to retain and attract talent.

One thing employees, employers, and recruiters could agree on is that the 4-day working week is likely to become the norm by 2030. So, it could be a question of IF rather than WHEN the prospect of new working modes is properly considered.

Implementing, for example, a four-day week would require a wealth of operational and financial considerations. After all, how will it impact communications, client handling, the supply chain, and cash flow?

Surprisingly, though, 40% of SME employers feel their businesses are ready to offer a four-day week. This outshines the 29% of employers who feel financially and operationally unable to offer a four-day week, while a further 31% of the market remains unsure and may take more convincing.

Financing an operational shift can be challenging, and SMEs highlighted finding cover for workload, reduced output, and compression, as challenges that could worsen their financial situation. These factors must be balanced against current challenges, too, with 30% of SMEs identifying late payments from clients as being a pressure point.

Perhaps the external financing market could hold the keys to strengthening SME finances and enabling an operational reshuffle that could see new modes of working introduced, and new talent joining UK businesses.

About the author: Natalie Kerr is the Commercial Director at NatWest Rapid Cash.

[ymal]

The fast transformation has significantly increased productivity, employee morale, customer satisfaction, and business operations. Today companies can link multiple departments and activities through a single portal. It's easy to operate primary tasks without significant knowledge or professionalism. Companies either hire or outsource IT practitioners in traditional business operations to create business applications.

Businesses that opt to buy off-shelf systems/applications must either adapt to the new system or change their operations. Hiring professionals is quite expensive, leading to many business failures. Today No-code software has introduced new advanced business processes that are easy to adapt and utilise.

No-code system

What is no-code? Why is it important? No-code system is a digital solution for many businesses globally. In layman's thinking, it's an adaptive system that turns basic users and employees into citizen developers. Anyone with basic IT knowledge can utilise no-code software to create significant business apps.

No-code is an advanced technology that helps businesses create applications without hand-coding or traditional coding. The system offers visual graphic features that require a drag and drop process to build an app. The process requires a few days or hours to develop a complete application. It's possible to utilise a single app for multiple tasks or departments.

No-code systems are easy to operate, unlike hand-coding, which needs IT, professionals, or programmers. The coding process is practical and uses visuals for simplicity. Companies should implement no-code platforms to enhance their business operations. This builds the employee's morale as they are involved in the creation process.

No-code systems are pretty involved as they offer the chance to customers to view their needs. Organisations willing to invest in no-code software should get feedback from customers before purchasing a no-code platform. Note each platform is developed with unique features to suit every business needs.

Essential features on no-code platforms

1. Drag and drop interface

The drag and drop feature is the core pillar that allows basic users to develop apps quickly. The feature requires citizen developers to drag and drop application features to create a business app. No hand coding or coding knowledge is necessary to operate the feature.

2. Data connections

No-code systems are designed with different features; some offer database and server systems while others don't. No-code system without the database system allows users to incorporate their preferred database. The no-code software helps in data management and will enable organisations to process their data efficiently.

3. Visual modelling

No-code software has visual graphics features preinstalled to help citizen developers build apps fast. Since the platform has all tools defined with clear images, no creation efforts are required.

4. Easy integration

Modern businesses can quickly implement no-code software on their systems. The software is designed to work with different business software without shifting the normal functionalities. Organisations need to review the type of no-code platform before purchasing or integrating with the existing system. Note each system is unique and provides different features according to business needs.

Benefits of no-code development platforms

1. It saves time and increases agility

Through the pre-installed features, no-code platforms are easy to operate. Citizen developers can create business apps within short durations. No-code systems are easily integrated with another system to offer automation. This saves time through automated tools and increases business agility. Employees get ample time to venture into new projects, which increases productivity.

2. Save resources/cost-effective

Seeking IT developers or coding professionals is quite challenging and costly, especially for startup businesses. Companies outsourced programmers to help in coding and building business applications in the past. A single application took months to develop; it was time-consuming and expensive. Today, businesses can utilise their in-house employees to build an application through no-code platforms. There is no extra cost in building or hiring experts for the development process.

3. Accommodative/collaborative

Both customers and companies have a fair share of no-code development platforms. The platform is inclusive, giving customers the chance to provide feedback. The organisation uses the information to develop an application that aligns with the needs. Basic IT users have the privilege to use advanced technology to build apps.

No-code accommodates all users besides their education level and skills. The visual modelling features are practical, giving citizen developers a chance to establish business apps. The software doesn't eliminate the need for IT professionals. However, it enhances the skills that they implement in the business. IT programmers can help with security details, creating a unique and safe application in the organisation.

4. Increase productivity

No-code increases agility, which in turn increases productivity. The automation process in most business tools helps businesses conduct more services without strain. The software helps increase revenue by allowing employees to utilise technology for their operations. This increases their morale, giving them a reason to produce more.

5. Easy to modify

Unlike traditional coding, which required users to build a new app for different tasks. The No-code system is easily modified to suit the current need. Organisations can use a single app for various services or departments. The developers can change the app anytime without altering business systems. The ease of modification reduces the need to build multiple apps for every task. The no-code platform modification process will require the drag and drop features to create the preferred application quickly.

Conclusion

No-code is the propelling power for many businesses today. The software offers quality features to suit every user regardless of IT knowledge. It's cost-effective, simple, and valuable for companies. No-code simplicity is accompanied by automation, thus improving business operations. Organisations need to invest in good no-code services to attain the best business results. It’s advisable to check on no-code features that align with every business aspect. 

Digital transformation for businesses includes introducing new technology and software, as well as adapting organisational structures and mindsets to the modern digital culture. What are the potential benefits that make digital transformation so valuable, and are there any downsides?

The Need For Digital Transformation

The ever-evolving digitisation of our society is no new phenomenon. Our hobbies, social lives, education, and jobs are shifting more and more into virtual spaces. While many of us still remember life before the internet as it is today, the new generation of digital natives grew up with the internet and all its perks and pitfalls. They are navigating modern technology with ease akin to breathing.

Naturally, young people are a huge target market and the newest or next additions to the workforce. When trying to appeal to them or fully make use of their potential, any business – whether it is part of the IT sector or not – is forced to adapt and use modern tools such as management software and apps. And yet many small- to mid-sized companies still struggle with the implementation of digital strategies and digital transformation is one of the biggest risk factors in the eyes of directors, CEOs and senior executives.

The Upside Of Digital Transformation

Many traditionalists are still wary of digital solutions to long-established methods. They are getting in the way of their own company’s potential to work more effectively and cut costs. Digital staff management tools, such as online staff rota management, allow employees easy and intuitive ways to take part in their schedule planning.

Even a simple tool like this can have unexpected impacts:

• Staff happiness increases: Employees feel more valued and have an improved quality of life when they have a say in their rotation and shift planning. This way, they can shape their work hours to be more compatible with their private life and families.
• Roster effectiveness increases: A staff management software has many possible components such as time recording, employee credentials and training, vacation times and many more. A good programme will access its sister-application’s data and use it to optimise its own service. This reduces mistakes like double-booking shifts or overlooking employee absences. Ultimately, the software makes use of any possible information to offer the best solution to current company objectives.
• Costs reduce: By eliminating human error and optimising factors such as staff schedules, management apps can help to prevent under or overstaffing. This cuts unnecessary costs like paying for unnecessary workers or making up for the consequences of lacking work power.
• Menial tasks decline: Many management software tasks run entirely automated after being set up once. When an app helps to finish tasks quicker, the workers who are responsible for things like schedule planning can free up time for more important tasks that suit their personal strengths and interests.

The Risk Factors Of Digital Transformation

If so many executives consider digital transformation a risk factor, that means there must be a potential for negative consequences when introducing digital strategies to a business. Business owners who still refuse to commit to digitalisation fear the fallout of their digital transformation efforts failing. What exactly are the negative effects they worry about?

• Wasted Investments: Depending on the scale of digitalisation efforts, digital transformation can be expensive. Changing an entire company’s technology by introducing new hardware and software can be a financial burden if the promised results fail to show.
• Worsened Organisation: If the existing organisational practices are already flawed, introducing a digital solution is not a magical cure. It works best when it optimises business practices that are already in place and then eliminates those who are superfluous to increase efficiency.
• Wrong Choices: Picking the right digital tool isn’t easy. Programmes that are handled as ‘best practices’ might not work in any specific business. The best solution is one that is chosen with the individual company in mind. Without the right insight, someone might invest in unnecessary or hindering software.
• Reduced Workplace Harmony: Introducing new software and technology is always a disruption of the workplace. Employees might be reluctant to learn new things or fear being replaced by efficient new processes. Digital transformation tools are a failure if the staff rejects them.

Conclusion: Maximised Efficiency, Minimised Risks

Digital transformation is no longer an option but a necessity. Modern software and the accompanying technology are important for companies to remain competitive and gain attractiveness in the eyes of the next generation. When used correctly, digital assets optimise a businesses’ efficiency. Automated processes, intelligent software and connected workflows can minimise the time wasted on menial tasks. Happier employees, efficient planning and reduced mistakes maximise a company’s potential.

Potential risks can be avoided with a bit of careful consideration. An employee’s willingness to learn and use new tech can be increased. There needs to be enough time set aside for appropriate amounts of schooling. Additionally, the acceptance of the new tool will rise when it’s made clear how it can positively affect both the company and the employees themselves.

Expert advice and software reviews will help to find the right solution for the specific company. Most governments offer financial aid for small businesses' digitisation efforts. These are often combined with educational support. This kind of coaching can help to choose the right tech and implement it smoothly.

Some employees are now saying they want their bosses to embrace the metaverse to enable more effective hybrid working, a survey suggests. 

US technology company Owl Labs recently surveyed 2,000 people in the UK, finding that 52% of participants backed the call for more virtual technologies to be used to support hybrid working.  

Just over a third of participants said they believed an “office metaverse” would help reduce bias in favour of those who regularly attend the office. Meanwhile, almost two thirds (65%) of participants said they felt that an “office metaverse” would boost flexibility within their organisation. 

“With hybrid work firmly cemented in our work culture, the need for technology that makes the remote working environment more immersive has never been more important,” said Frank Weishaupt, CEO of Owl Labs.

“Through our own experience, we already know how innovative technology can create an environment where everyone feels like they’re in the same room regardless of location. As hybrid work can present potential challenges around presentism and a divide between the in person and remote workforce, immersive technology – like the Meeting Owl, AR and now the metaverse – can be effective tools to boost inclusion and create a more united workforce.”

The latest service sector survey by the Confederation of British Industry (CBI) shows that sentiment for business and professional, and consumer services companies improved in the quarter. Nonetheless, this increase was at a reduced pace than the three months before. 

In the three months to November, business volumes grew at a steady pace across the service sector, according to the CBI’s findings. However, there were some signs of slowing growth as companies expect volume growth to ease off in the next quarter. 

During the three months, cost pressures also increased. Both consumer services and business professional services saw costs rise at their quickest pace since the surveys began in 1998. 

Companies in each of the sectors now expect the pace to increase further still to 70% in the next quarter, marking the strongest expectations on record. 

Profitability saw the strongest growth since February 2018, despite rocketing costs. With these rocketing costs expected to continue into the next quarter, it is predicted in both consumer services and business and professional services that profits growth will stall in the three months to February. 

Or, to frame those figures another way, 1 in every 61 organisations suffer a cyberattack each week.

The kinds of organisations at risk from cybercrime vary greatly: the Microsoft Digital Defence Report 2021 identified a broad spread of entities at risk from ransomware, with an emphasis on consumer retails, financial services, manufacturing, government, and health care. Despite these risks, however, many businesses are incautious when it comes to cybersecurity. A study commissioned by the Department for Digital, Culture, Media, and Sport polled 956 businesses and found that as many as 50 per cent were not confident in carrying out even one in a series of basic cybersecurity tasks.

Clearly, businesses need a new set of incentives to boost their cybersecurity practices, while the clients and consumers whose data they hold need an extra layer of protection against any losses that might be incurred through cybercrime. By making Cyber Liability Insurance compulsory, both of these goals can be achieved in one simple gesture – and, given the stakes involved, this is an avenue well worth exploring.

It’s not just companies at risk when cybercriminals attack

What, then, do the stakes of cybercrime look like? The right kind of cyberattack can be devastating for businesses – and almost every business is vulnerable. After all, if a company practices anything as simple as email usage, they are open to cybercrime. In a practical sense, there are serious financial implications for businesses that suffer from this kind of attack. Cybercriminals are, for example, capable of stealing financial information, directly stealing money, or disrupting trading and business in ways that are financially detrimental.

The possible repercussions of cybercrime don’t end with the injured organisation itself, however. Businesses also house an extraordinary amount of data pertaining to their own customers or clients – including, potentially, their financial data. As McKinsey noted in a pre-pandemic report, “organisations have more data than ever at their disposal” – and this is, of course, a deliberate move, given the potentially valuable insights that such data can hold. At the same time, however, this new culture of data-hoarding comes with increased risk in the event of a cyberattack – just recently, for example, millions of clients of the computing company Acer have seen their data sold by hackers.

That, in a nutshell, is the problem with cyber laxity in today’s increasingly risk-laden climate. Cyberattacks on businesses start a ripple effect that expands outwards from the initial point of attack, disrupting the lives and finances of a huge array of subsidiary targets.

Fixing the problem with compulsory cyber liability

The answer to this problem is to significantly revamp insurance requirements by making cyber liability mandatory. At present, after all, business insurance requirements are extraordinarily minimal. According to the UK government, the only legally required policy is employers’ liability insurance (EL) which covers businesses in the event that a member of staff claims to suffer illness or injury due to their work. But, as we have seen, the absolute dominance of data and technology in almost every industry – what could be called the ubiquity of cyber vulnerability – means that we need to rethink our insurance priorities to reflect the risks involved in the world of today.

Cyber liability cover can, after all, mitigate not only for cyberattacks, but for data breaches and any damage that such breaches can inflict. The right cyber liability can cover legal claims and compensation costs, protecting those whose data is being held by the company.

While this kind of compensation is a great step, making cyber liability compulsory might bring about an even more powerful benefit in the form of more robust cybersecurity practices. After all, if cyber liability were mandatory, businesses would naturally want to reduce its cost. This would entail proving that they are at low risk of cyberattack – and the only way to reduce exposures would be, of course, to invest in stronger cybersecurity. As such, compulsory cyber liability could do much more than simply compensate for losses – it could spark a new wave of interest and investment in cyber security, lowering the rate of cyberattacks and keeping people, their data, and businesses themselves significantly more secure. 

About the author: Edward Halsey is the COO and co-founder of hubb.