Digital Transformation Starts with Small Changes

Change is a constant in business. Over the past decade alone, leaders have navigated Brexit, a global pandemic, supply chain disruption, and a shifting labour market. Through each challenge, businesses have adapted, learned, and moved forward.

The same is true for technology. Digital transformation is no longer an optional extra – it is an essential tool for improving productivity, remaining competitive, and delivering for customers. The question is not whether to adopt technology but how to do so in a way that works for your business.

The reality for many businesses, particularly SMEs, is that there are already too many competing priorities. Owners and managers wear multiple hats, focusing on operations, finance, recruitment, and customer service. Against that backdrop, it is easy to see why investing time and money into new technology can feel overwhelming. But the key to successful adoption is to take it step by step, focusing on the tangible benefits rather than the technology itself.

A common mistake is thinking of digital transformation as one big project. Instead, businesses should approach it in the same way they would any other operational decision – by identifying a clear business case. What problem needs solving? Is it about attracting new customers? Reducing inefficiencies? Improving staff retention? Once these priorities are clear, technology can be introduced in manageable steps, focusing on immediate value rather than large-scale overhauls.

Support is also available, and businesses should take advantage of it. Wales has a well-connected ecosystem, with organisations, networks, and expertise on hand to help guide decision-making. Many SMEs assume they have to handle technology adoption alone, but that is not the case. There are opportunities to access advice, funding, and even fractional CTOs who can provide specialist knowledge on an as-needed basis. Just as businesses use external accountants or HR advisors, they should see digital expertise as another important resource.

Technology adoption also depends on leadership. Business leaders must be clear about their objectives and communicate the purpose of any changes to their teams. This is particularly important in creating a culture of openness to innovation. Change can be unsettling, and employees may worry about the impact on their roles or day-to-day working practices. But bringing them into the process and demonstrating the benefits – whether that is reducing repetitive tasks, improving customer service, or making their jobs easier – ensures that transformation is a shared effort rather than something imposed from the top down.

Another key consideration is measurement. Businesses should not invest in technology for its own sake but should establish clear benchmarks for success. This could include customer satisfaction, increased efficiency, or sustainability targets such as reducing waste. Understanding where the business is now and where it wants to be allows leaders to track progress and make informed decisions about further investments.

The workforce of the future is also changing. Skills development is a growing challenge, particularly in Wales, where businesses need access to a diverse talent pipeline. Apprenticeships, short training programmes, and industry-led skills initiatives are helping to bridge the gap, but there is still work to be done. New talent routes, including alternative training and career transition schemes, are essential to building a workforce that is equipped for a digital economy.

Policymakers and industry must also work together to keep pace with change. Businesses often hear the question, “What skills do you need?” but in a fast-moving environment, the answer is not always clear. Traditional qualifications alone will not be enough – there needs to be a focus on flexibility, practical training, and lifelong learning.

The biggest challenge of all is inaction. Businesses that do not engage with digital transformation risk being left behind. The good news is that Welsh businesses have already proven their ability to adapt to change. Technology is just the next step in that journey. By taking a practical, staged approach, accessing support, and focusing on clear business outcomes, even the smallest of businesses can benefit from digital innovation. The future belongs to those who are ready to embrace it.