Are you embracing digital? Growth begins with mindset

Warwick Turnbull
March 25, 2025

At the tail end of last year, we published a blog about the current challenges Australian SMEs are facing. One of them was digitalisation.

Most of us know digital transformation is something we need to do if we want to grow and thrive. It can help us improve efficiencies, productivity, customer satisfaction and scalability.

But knowing isn’t the problem; it’s the doing that is.

Because of this, we thought it might be helpful to share our insights on how you can overcome the barriers and embrace transformation. But first, let’s look at some stats that show us the gains and competitive edge going digital can give you.

Digitalisation equals growth

According to a report from ThoughtLab, compared to other small and medium enterprises (SMEs), digital transformation leaders (those who actively drive the adoption of digital technology in a business) are:

3.4x more likely to experience improvements in customer acquisition
3.1x more likely to see improvements in profitability
3.0x more likely to see an increase in revenue
2.9x more likely to experience improvements in productivity
1.8x more likely to see improvements in market share

Similarly, research by Xero has shown that small businesses that quickly embrace new tech typically see a 120% increase in revenue and a 106% boost in productivity compared to those that don’t.

But, it also shows that nearly one in three small businesses in Australia continue to delay adopting new technology.

What’s stopping SME digitalisation?

According to the same Xero report, there are three common mindsets or reasons why small businesses aren’t investing in tech, along with the types of concerns that come with them:

‘It’s good enough the way it is’ – What if making changes disrupts current workflows or causes temporary setbacks? I’ve already invested a lot, so why spend more money? We’re already familiar with the existing process; why risk complicating things? What if the change doesn’t lead to significant improvement, and we end up wasting resources?
‘It’s too risky to take a chance’ – What if the investment doesn’t provide a return or value in the long run? How do I measure if the risk is worth it? What’s the worst-case scenario? I don’t have the bandwidth to handle something that requires a lot of management. What if it takes longer than expected to see results, and I can’t afford the delay? What about cyberattacks?
‘It’s hard to choose, I just don’t know’ – What if I make the wrong decision and we end up stuck with an inefficient solution? How do I even begin to compare all the options effectively? How do I know which one will be the most reliable for the long term? What if the option I choose doesn’t integrate well with what we already have?

Overcoming your mindset

Do any of these mindsets sound familiar? If you’re not embracing new tech, including artificial intelligence (AI), in your small business, what’s stopping you?

Overcoming the mindset barrier is the first step in digital transformation success. Here are some tips and actions to help you do that:

‘It’s good enough the way it is.’

Tip: Shift your focus from the present to the future. The status quo may be fine right now, but the business landscape is changing. Think about the long-term benefits, such as increased efficiency and streamlined ops.
Action: Pick one area of your business where tech can have the biggest impact, for example, your business processes, and implement a solution. Measure the results over time to see how much more efficient and cost-effective it becomes.

‘It’s too risky to take a chance.’

Tip: While change can seem risky, doing nothing could be even riskier in the long run. Xero has worksheets that can help you weigh up risk, including a Decision matrix, Pre-mortem and Cost-benefit analysis. Challenges like cost, cybersecurity and staff training are there, but they have solutions.
Action: Test before you buy. Many digital tools and software offer free trials or low-cost entry options. Take advantage of these to experiment and evaluate whether the tech delivers the expected ROI before committing fully. Also, look at what grants and funding are available to support your SME digital journey.

‘It’s hard to choose, I just don’t know.’

Tip: Try not to feel overwhelmed by the vast number of tech options out there. Start by identifying your most pressing needs and look for solutions that address those challenges.
Action: Seek expert advice from tech consultants or do research to understand which tools best align with your business goals. Many tools offer resources and demos online. Still unsure? Get recommendations from other business owners or your trusted network.

Digital tools to consider

You likely already use some digital tools, from accounting software like Xero to basic collaboration and project management platforms such as Zoom and Trello.

However, to be a digital leader and see growth, your business needs to invest in your digital transformation efforts beyond the basics. Here are some of the types of digital and AI tools you might want to look into, depending on your industry:

Professional services (Lawyers, consultants, HR)

Cloud-based project management and CRM – Organise client interactions, proposals, workflows and marketing campaigns
AI-powered data analytics and forecasting – Identify trends for better decision-making
Paperless office solutions – Transition from paper-based processes to fully digital workflows
AI-driven contract review and compliance tools – Speed up legal document analysis

Hospitality (Restaurants, pubs, hotels, events)

AI-powered inventory management – Predict stock needs and reduce food waste
POS and online ordering systems – Streamline orders and integrate payments
AI chatbots for reservations and customer queries – Automate bookings and FAQs
AI-based customer insights – Personalise promotions based on dining habits

Trades and construction (Builders, electricians, suppliers)

Job scheduling and field service management – Automate appointments and dispatching
AI-powered quotes and cost estimation – Create accurate job pricing instantly
AI safety monitoring tools – Detect risks on worksites using smart sensors
Digital invoicing and payment solutions – Speed up billing and cashflow management

Health and wellness (Gyms, wellness studios, medical centres)

AI-powered appointment scheduling and reminders – Reduce no-shows and streamline bookings
Practice and client management software – Handle patient records, payments and compliance
AI-generated personalised health plans – Customise fitness or nutrition programs
AI chatbots for FAQs and customer support – Provide instant responses to client enquiries

Manufacture and wholesale (SMEs, distributors, warehouses)

AI-driven quality control – Use computer vision to detect product defects
Inventory and supply chain management – Track stock levels and streamline logistics
AI process optimisation – Reduce waste and improve production efficiency
Automated order processing and fulfilment – Increase speed and accuracy in deliveries

Retail (Stores, e-commerce)

E-commerce and payment platforms – Enable seamless online shopping and transactions
AI-driven product recommendations – Boost sales by suggesting relevant products
AI demand forecasting – Prevent over/understocking with smarter inventory planning
Chatbots and AI virtual shopping assistants – Enhance customer service 24/7

Shift that mindset and take action

Embracing digital may seem challenging or a non-priority for you right now.

However, showing business innovation by adopting these new technologies to streamline your businesses and customer relationships will help you remain competitive and achieve success and growth over time.

It’s time to shift that mindset and take proactive action!

Contact your Maxim advisor or reach out to our team today to explore strategies you can take to grow your business. We can also put you in touch with local tech specialists who can help you build a digital transformation strategy.