In the Middle East, digital transformation and technology adoption among small and medium-sized practices (SMPs) is viewed with ‘a mix of excitement and apprehension’, says Faraz Hassan, regional marketing manager at accountancy firm athGadlang.
This ‘excitement’ can lead firms to simply ‘run behind the bus’ in an attempt to keep up with what others are doing, says Fahad Riaz FCCA, a member of the International Ethics Standards Board for Accountants (IESBA) Technology Experts Group and a former digital transformation consultant.
‘You need to discuss with different stakeholders the problems you’d like to solve’
The feeling of apprehension will be all too familiar to SMP owners contemplating going digital. Aside from the inevitable disruption, there are other issues that can impact a small business, from cost of implementation, data security and the effect on client experience to staff training, talent shortages and usability.
Why digitalise?
A major obstacle can be leaders’ reluctance to change, says Riaz. ‘Digital transformation can be slow and expensive, and they struggle to understand where the return on their investment will come from,’ he says.
It’s therefore essential to have a clear understanding of why you want to introduce digitalisation. ‘There has to be a reason, whether it’s efficiency or obtaining specific data,’ says Nasheeda CC FCCA, who founded all-female firm Nishe Consulting in Dubai in 2016.
Focus first on the business problem, says Riaz. ‘You need to discuss with different stakeholders the specific problems you’d like to solve with a digital solution. I’ve seen businesses get really tangled up with fancy technology.’
In building his practice digitally from the ground up, Kunal Uttamchandani ACCA, of Dubai accountancy and financial services firm Ontask, leans on the six pillars of digital transformation: experiences, people, change, innovation, leadership and culture. ‘We made sure we were on track from the very first day by sticking to the basics, which has given us a strong foundation,’ he says.
‘Cost is a concern, but the long-term benefits are greater’
Solid strategy
If you’re going to do it, do it well, Nasheeda advises – because if you don’t, you’ll end up back in Excel. ‘Ensure your chosen solutions are implemented end-to-end, so that they’re truly beneficial, otherwise you waste time and money,’ she says.
Start your digitalisation journey with a comprehensive strategy, says Hassan. ‘We conducted a cost-benefit analysis to determine which tools and technologies would be the right fit for our business,’ he says. ‘We pinpointed specific areas where digital solutions would have the most impact, including client interface, engagement and service delivery. We also invested in staff training and client education to ensure a smooth transition. We sought advice leveraging our professional network and attended relevant events and seminars to stay informed about best practices.’
Hassan admits that setting clearer benchmarks at the outset would have been useful. ‘Having more detailed key performance indicators in place would have helped us track our progress more effectively,’ he says, adding that they underestimated the time and effort required for staff training.
While digitalisation costs are, of course, a concern for SMPs, this can get in the way of progress. ‘Sometimes you have to take risks; you have to invest money and then wait, but you will see results,’ says Muhammad Kalim FCCA, managing partner at Bader Saleh Auditing of Accounts in Dubai. ‘Cost is a concern, but the long-term benefits are greater.’
Follow the leader
When it comes to choosing the right tools, consider appointing a lead for your digital journey, whether by hiring a dedicated digital transformation officer or giving project ownership to an employee. You could even engage a consultant, says Riaz: ‘This doesn’t have to be someone full time; it just needs to be a holding hand, somebody to keep you in the right lane.’
‘You need an expert who knows the platforms, who knows what would suit your firm’
Kalim agrees: ‘You need an expert who knows the various platforms, who knows exactly what would suit your firm, and which tools will grow the business,’ he says, adding that there is no one-size-fits-all solution.
Reassure clients
Gaining buy-in from clients is also crucial. To this end, Uttamchandani has devised a handy acronym to guide them through the process: WAACT (willingness to share, adoption of change, awareness, confidence and trust.) This has enabled him to demystify new digital processes, show their benefits, instilling confidence around security and maintaining trust.
Cybersecurity will, of course, be a key client concern and you will potentially have to convince them of the safety of cloud-based options over traditional servers. Kalim reassures clients that cloud-based systems are compliant with international rules and regulations, secure, energy efficient and free up office space. Nasheeda, meanwhile takes a hybrid approach, combining cloud accounting with an office server, which she uses to back up all client documents. It gives peace of mind and an added layer of protection, she says. ‘If something goes wrong, there’s reputation and client service risk to consider, as well as the extra work to resolve it,’ she adds.
Nasheeda, Uttamchandani and Kalim have all helped clients implement enterprise resource planning solutions, which then allow for better integration with their customer relationship management, bookkeeping, reporting and auditing systems, and providing more opportunity to add value to their clients.
In Nasheeda’s case, she acts as a bridge between IT and the business. ‘We understand the business, we understand accounting and reporting, and we understand what the clients want from the system,’ she says. ‘Sometimes IT and the business struggle to understand each other, so we translate, we sit in between them and make sure we actually get a workable system.’
Looking ahead, Kalim expects AI to be the next big thing. ‘You don’t want to be left behind,’ he says. ‘We expect AI to impact the kinds of reports we create and even to generate analysis, for example behavioural analysis, so clients can better understand their customers and adjust strategies accordingly. We’ll help them grow their businesses and perform better.’
