Digital Transformation Fatigue Impeding Small Business Growth
Roughly 70 percent of digital transformation initiatives fail, but savvy businesses can see returns by addressing common barriers.
HOUSTON, September 13, 2022 (Newswire.com) - Leading invoice funding company Charter Capital says digital transformation initiatives across small and midsize businesses are stalling out as a new epidemic of sorts takes hold. Known as "digital transformation fatigue," and now impacting 43 percent of all businesses according to Avanade research, the term references the burnout felt by teams constantly under pressure to produce bottom-line results as they adopt newer digital technologies. Around 70 percent of initiatives today fail per McKinsey, taking with them the hope of increased profitability. Full coverage of the topic can be found in "Digital Transformation: Pros and Cons for Small Businesses," which is now live on charcap.com.
As digital transformation reaches a high level of maturity, companies see a 43 percent gain in net profit margins over their peers per Deloitte. These gains are the columniation of company-wide improvements. Stronger team collaboration, improved customer experiences, removal of data silos, and greater efficiency are major contributors.
"Businesses are often excited by the stats and invest in modernization," explains Joel Rosenthal, Co-founder and Executive Manager at Charter Capital. "However, they hit unexpected barriers during implementation."
He draws on Avanade's research which shows that 46 percent of initiatives are impacted by hiring issues. Modernizing legacy systems and failure to integrate new technology with existing systems impact 35 and 40 percent of initiatives, respectively.
"They have an idea of where they want to go and make that initial investment," Rosenthal continues, "but initiatives stall when talent and integrations fall through. Because of these hurdles, they put off finalizing the initiative and ultimately don't get the return they're counting on."
Rosenthal says it often comes down to cash. After the initial outlay, businesses are unprepared for the additional expenses to finalize their transformative project. Many are now turning to invoice factoring to move the needle. By unlocking cash trapped in unpaid B2B invoices, factoring helps businesses clear the last hurdles and start seeing the returns they hoped for.
Those interested in learning more about factoring are encouraged to request a complimentary quote by calling 1-877-960-1818 or visiting charcap.com.
About Charter Capital
Headquartered in Houston, Texas, Charter Capital has been a leading provider of flexible funding solutions for the B2B sector for more than 20 years. Competitive rates, a fast approval process, and same-day funding help businesses across various industries secure the working capital necessary to manage daily needs and grow. To learn more, visit charcap.com or call 1-877-960-1818.
Source: Charter Capital Holdings LP
