Digital competencies in the board or help from specialists can ensure that you digitize in the right areas and with the best solutions, says the IT consultancy C2IT Digital and Kenni Sejling Christensen from EY.

Denmark is one of the most digital countries in the world, and small and medium-sized Danish enterprises (SMEs) have joined the digitization wave very well. But, according to leading advisors in digitalization, everyday operations and busy times can be a barrier to success with digitization projects.

"There is a huge motivation for digitizing in Danish SMEs," says Kenni Sejling Christensen.

He is a Senior Manager in the global auditing and consulting company EY (formerly Ernst & Young), focusing on digital transformation and automation of processes in Danish SMEs.

"We experience that Danish SMEs are very aware of how digitalization can help them move forward. Sometimes they need a bit of support to set the direction, the pace, and the right level, and in some cases, it may be relevant to invest in the right competencies from outside," says Kenni Sejling Christensen.

Johannes Tange Jørgensen from the Danish IT consultancy C2IT Digital, which specializes in advising and delivering digital solutions to Danish companies, thinks the same. He also points out that one of the challenges, especially for SMEs, is understanding where and how digitalization projects can create value for them.

"Many managers in SMEs know that they have to digitize and feel that they are well underway. They may read about large companies' digital journey in Børsen but find it difficult to imagine it in practice in their own company. Our task is to get the technical aspects down to a down-to-earth level, and the SMEs must also acknowledge that they do not necessarily have the digital competencies themselves - which is quite real," says Johannes Tange Jørgensen, CEO of C2IT Digital.

Systems, processes and people must work together

Kenni Sejling Christensen from EY sees time as the most significant barrier to efficient and value-creating digitalization in SMEs. According to Kenni Sejling Christensen, it is crucial to remember what he calls the trinity between systems, people, and processes. If one of them lags, an otherwise good digital project can fail at worst.

"The easy thing is to buy a system. But if you do not have the resources to run the project or do not adapt the work processes to the new system, then the risk is that the habit will win, and the employees will find their way back to the old ways of doing things. Sometimes, companies also want to digitize everything once they start the journey. Here, it is important that the various initiatives and investments are prioritized so that the low-hanging fruits are achieved quickly," says Kenni Sejling Christensen from EY.

Digitize when you're busy

Digitizing workflows and processes is not a cost-saving exercise that makes employees redundant but a matter of streamlining and freeing up resources to develop the business and support one's growth ambitions. It is advantageous to digitize when a company grows, especially when hard times hit, says C2IT Digital.

"When everything is going well, you are often so busy with operations that you do not have time to think about efficiency gains. But when times turn, and it gets tighter, you need the machine to run as efficiently as possible," says Johannes Tange Jørgensen from C2IT Digital.

Digitization in the boardroom

There is plenty of help to get from external IT advisors, business houses, government pools such as SMV:Digital, and from a digital marketplace such as kompasbank navigator, which provides access to a wide range of specialized digital partners in everything from administration, reporting and law to sales and marketing.

Recently, there has also been increasing attention to the fact that you should have one or more people with a digital mindset on the company's board, so digitization is also considered when drawing the big, strategic lines.

"Digitalisation must be firmly on the agenda of top management in SMEs. It is not good to have only lawyers and accountants on the board. It would help if you also had business people with a digital mindset who can see everything from the outside, perhaps have a strong digital network and the skills to look holistically at the digital journey," says Johannes Tange Jørgensen from C2IT Digital.

Kenni Sejling Christensen from EY agrees with this.

"The lack of time in everyday life means that you risk buying a service or a system that does not quite fit because you have not done the preparatory work. Here, digital competencies on the board can be extremely important as they have an overview, know the market and ensure that you digitize the right place and choose the right solution," says Senior Manager in EY, Kenni Sejling Christensen.

Advice from Kenni Sejling Christensen, Senior Manager at EY (left in the picture):

  • Map your actual digitization needs - get help from outside.

  • Divide the digitization into chunks so that you continuously experience success.

  • Only some things should be digitized. Do some thinking and prioritizing how the gains are achieved.

  • Be sure to share responsibility.

  • Remember the trinity between systems, people, and processes.

  • Digital competencies on the board can provide the helicopter perspective.

  • Remember that there will always be challenges when digitizing.

Advice from Johannes Tange Jørgensen, CEO of C2IT Digital (right in the picture):

  • There is huge potential for digitalisation in most SMEs.

  • Do not fear that digitization steals your jobs - it frees up resources.

  • Recognize that you may need help from outside and within the board.

  • Digitize now, as there will be a big focus on optimizing and reducing costs in the coming time.

  • Young employees do not want to work in a place where boring typing could be made smarter digitally.

C2IT Digital

C2IT Digital are specialists in advising on digitalization and in translating modern technologies into digital solutions. C2IT Group is approx. 100 employees spread over offices in Kolding, Aarhus, Ballerup, Herning and Copenhagen. A number of them are, as part of C2IT Digital, dedicated to providing unbiased advice to small and medium-sized enterprises on digitalization.

EY

EY (Ernst & Young) is among the world's largest auditing and consulting companies. EY offers a wide range of services and has a strong focus on advisory assistance within IT and transformation. In recent years, Kenni Sejling Christensen has assisted more than 100 companies with impartial advice on the digitalization journey.

For further information, please contact

Kasper Kankelborg

Head of Communication & Marketing

kasper@kompasbank.dk

+45 26 13 57 71

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