These insights have been revealed in new SME research released today, which explores the impact of the Great Resignation on New Zealand’s SMEs. The study, Transformational Talent: The impact of the Great Resignation on in APJ’s SMEs commissioned Dynata to survey 1,363 small and medium business owners and decision-makers across eight countries in the region, including 101 in New Zealand.��

The impact of the Great Resignation on SME digital transformation in New Zealand��

As the world economy recovers from the pandemic, businesses now face another challenge – the ‘Great Resignation’. Coined in 2021, the phrase refers to a worldwide trend of millions of employees across the world leaving their jobs.��

�鶹ԭ��’s research found the Great Resignation is real and impacting SMEs in New Zealand today. Three quarters (79%) of respondents agreed that more employees are resigning now compared to just 12 months ago, easily the highest in Asia Pacific and Japan. 36 percent of SMEs said they are not finding it easy to cope with the impact of the Great Resignation. ��

The talent crunch is impacting organisation’s ability to digitally transform their businesses. In fact, lack of skilled talent ranks alongside difficulty balancing priorities as the top challenges to achieving successful transformation for New Zealand SMEs, ahead of traditional obstacles like cyber security or lack of budgets.��

“This study reveals how the Great Resignation can be seen as an existential threat to many organisations,” said Adrian Griffin, Managing Director �鶹ԭ�� New Zealand. “Digital transformation is a fundamental way SMEs not only build resilience, but how they create agile, innovative paths to growth. But without the right people, any transformation will struggle. In order to survive and thrive, New Zealand businesses have to invest in people, invest in culture and invest in innovation.”��

Investing in talent and training to mitigate the Great Resignation��

SMEs in New Zealand are investing in their workforce to mitigate the effects of the Great Resignation and to bolster their organisations’ ability to deliver digital transformation.����

Survey respondents said they were focusing on introducing flexible working arrangements (33%) to boost talent retention over the next 12 months. Yet, beyond that focus, SMEs are also focusing on training. Almost a third (29%) of SMEs said they would provide upskilling opportunities to retain key talent in the next 12 months.��

The focus on training can’t come too soon. Over eight in ten (81%) SMEs say upskilling to support digital transformation is urgent, leading to 88 percent of New Zealand SMEs who say they will focus on digital training throughout this year.����

“The Great Resignation has often been misconstrued as employees leaving to pursue their purpose. That’s not the whole story,” said Griffin. “Employers need to look at the wider workplace. People want to work at organisations with a diverse and inclusive culture, a welcoming and flexible workplace, and a clearly communicated progression journey. Prioritising upskilling and career progression and supporting it with access to the right technology and partners is proven to be a win-win for employees and for SMEs here in New Zealand.”��

Optimism abounds as SMEs move from resilience to focus on growth��

Having managed significant challenges over the past two years, SMEs in New Zealand are looking beyond a focus on resilience.����

Two-thirds (69%) of New Zealand SMEs say their organisation is highly or fully resilient in weathering the pandemic’s impact. Just three percent of respondents said they are not resilient at all.����

That confidence in their ability has resulted in a feeling of optimism about their growth prospects. 91 percent of SMEs in New Zealand said they are moderately, very, or extremely confident in their growth over the next 12 months.����

That mindset can only be a positive thing for the region, according to Griffin.��

“Our small and medium sized businesses are a bellwether for the wider economy. I firmly believe that when SMEs thrive, economies grow, and New Zealand prospers”, said Griffin. “By harnessing this optimism and putting it together with great innovation, a commitment to talent, and a strong partner ecosystem we can chart a course to the next decade of SME success in New Zealand.”����

The full report of Transformational Talent study is available for download upon request.��

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Small and medium businesses (SMBs) have a few factors in common with the big players, but the most crucial commonality is cash flow. Plain and simple, it’s the heartbeat of any business, irrespective of size. Even a one-person business such as an individual tradesman can have the expertise, the customer base and great references – but if invoicing is slow, then cash flow suffers considerably.

I recently experienced this firsthand. We had to call out a plumber to fix a couple of leaks and he came out quickly and did a fantastic job. But I had a long and unforeseen wait for his invoice because he was so busy looking after his customers that invoicing had taken a back seat. I texted him and called him on multiple occasions because obviously I wanted to pay him, but I had to wait six months for the invoice to arrive. This might be a simple example, but it just shows the importance of getting the paperwork to a customer so that the payment can arrive in a timely manner.

The advent of mandated will be a game changer in many ways. Two years ago, the Australian Government announced that Commonwealth Government agencies would be required to process all invoices electronically by July 1st, 2022. While there is no mandate for SMBs to adopt e-invoicing as of today, if they provide services to government, they will need to be e-invoice-ready. Earmarked as an important component of SMB digitalisation, this is a core focus of Australia’s Digital Economy Strategy1, designed to help secure the country’s economic future.

Equal access to technology
The pandemic has prioritised the need for more effective business processes, accelerating digitalisation and technology adoption across both the public and private sectors. In this context, e-invoices will be the way for companies of any size to communicate, providing a faster and more secure method of processing, sending and paying invoices. In short, this is truly a democratisation of financial processes, where everyone has access to the same technology, thereby removing many of the common bottlenecks involved in receiving payment.

Irrespective of size or turnover, companies will have the ability to directly exchange digital invoice information with another company’s software, even if they are using a different system, network, or portal. By minimising error rates associated with manually processing paper, PDF and email invoices, e-Invoices also save time and help to reduce processing costs. Currently, it is independently estimated that each paper invoice costs around $30 to process, and each PDF invoice around $27. In comparison, e-Invoices cost less than $10 to process, so in theory both the sender and receiver can share up to $20 in cost savings.

The Australian Government has adopted a standardised invoicing format for e-Invoices called PEPPOL. Used for more than a decade in at least 38 countries as an international standard, PEPPOL provides a more secure channel for invoices than email, transmitting e-Invoices between the senders’ and receivers’ systems via access points.

As the legislated Australian PEPPOL Authority, the Australian Taxation Office (ATO) has been appointed to facilitate the adoption of e-Invoicing, including the accreditation of trusted service providers as access points for the PEPPOL e-Invoicing network. �鶹ԭ�� is one of the few service providers accredited by the ATO to complement PEPPOL as an end-to-end ERP provider.

This means that invoices can be sent, received, corrected and monitored using one centralised solution: �鶹ԭ�� Document Compliance. Enabled by �鶹ԭ��, e-Invoicing provides an efficient, cost-effective, and reliable way for companies to connect in a rapidly changing world.

Three key decisions
For our purposes, a small business is one that has between 1-19 employees, whereas a medium business is one that has between 20-100 employees. They have three essential decisions to make: the time and cost involved in adopting e-invoicing; understanding what software to use before integrating the process; and getting the right advisors while planning how to manage the change.

Broadly speaking, the switch to digitalisation has six steps:

Do your research: Take the time to map out all areas of your business where there is the potential to implement digital processes, identifying priorities and what will have the biggest short-term or long- term impact.

Different perspectives: Tap into external inspiration and learn from others to uncover new ways of achieving your goals.

Involve employees and suppliers: Change in the workforce can cause resistance, especially if it means new ways of working, so get employees involved in the decision-making process.

Find the right partner: Choose a technology partner that fully understands your business and your goals to ensure a smooth transition.

Total connectivity: Generate real-time understanding of your business and valuable market insights by connecting internal solutions and external networks.

Prioritise the change: Digitalisation requires commitment to the process, so start small but think big, learn along the way and keep moving.

While that might sound challenging, 88% of SMBs say that making the switch was easy. �鶹ԭ�� has tried to highlight the benefits of e-invoicing to SMBs by examining the issue from their point of view, to understand their barriers to adoption. We recognize the fact that a lot of small businesses, especially the mum-and-dad businesses, don’t use �鶹ԭ��, but they will interact with or have relationships with bigger businesses or they may be selling things to large organisations.

Taking the next step
This is not just about selling software, per se. We want to be able to take a reasonably pragmatic approach to why we’re doing this, and what benefits we can provide to SMBs. We’re helping them take an outside-in approach so that they can see the upside of how their businesses will prosper. In a sense, we’re targeting this at install base or at net new. We have many lines of business, but the ones that I’m focusing on here are for those customers that already have �鶹ԭ�� installed or are about to instal �鶹ԭ�� as their digital core. What we recommend to them would depend on their profile, whether it’s Ariba or Concur, or what is the best recommendation if they’ve really got no underlying ERP or if they need our compliance and reporting solution.

It’s important to clarify that a mum-and-dad SMB currently using MYOB or XERO would continue to do so. Larger businesses would be the main users of �鶹ԭ��, but if they happen to buy from a mum-and-dad business, the latter in turn would need to be e-invoice compliant in order to get paid quicker.

�鶹ԭ�� is committed to helping SMBs keep pace, drive change and move forward in the face of shifting customer expectations, disrupted supply chains, and ongoing market uncertainty. It’s interesting to note that 80 per cent of our customers are small and medium-sized companies, so no matter how many employees a company has, we have solutions designed and priced for all.

We connect finance, operations, HR and sales to create exceptional employee and customer experiences. Proven procurement, inventory, and industry specific processes will help you move faster, adapt quickly, and face any competitor. Our local partners will get you up and running in a matter of weeks, so you can keep business moving forward today and be confident �鶹ԭ�� will be with you wherever you go next.

Click to find out how �鶹ԭ�� can help you with eInvoicing

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The research found Australian SMBs process an average of 168 invoices each month. With a Deloitte study estimating that e-invoicing could deliver savings of up to $20 per invoice*, Australia’s SMBs could save up to $40,320**��a��year.��

The��benefits��are��clear, with��75��per cent��of��those��who��have transitioned��saying��the biggest impact has been time and money saved.��More than half said it improved the��accuracy of��recordkeeping��(56��per cent)��and��was more��secure��(53��per cent).��

“Running an SMB comes with its challenges but switching to digital processes has been key to the survival of many businesses during the pandemic. It frees up time and money to focus on other priorities like developing new products and finding new customers,” said Sofiane Ainine, SMB Segment Lead, �鶹ԭ�� Australia and New Zealand. “Now is the time for SMBs to review their adoption of technology. This will help them through the current crisis and set them up for future growth.”��

“The pandemic has highlighted the importance of technology adoption in helping small businesses innovate – increasing efficiency and productivity, attracting new customers in different markets, improving customer and employee experiences. This helps them create more jobs,” Australian Small Business and Family Enterprise Ombudsman, Bruce Billson, said.����

“It’s encouraging that the research in this �鶹ԭ�� report shows SMBs accelerating digital technology adoption. Technologies like e-invoicing improve process efficiency and, importantly, will see small businesses paid more quickly for the products and services they provide.”��

Switching��is easier than many SMBs think����

The��research suggests��that��the fear of switching to e-invoicing is bigger than the challenge of implementing it, with 88 per cent of SMBs that had made the jump saying it was easy, and almost one in five (18 per cent)��making the transition without external support.��

Some��will still��need help to get there, with integrating the process into computer systems��(36 per cent) and understanding what software to use (31 per cent)��perceived as the biggest challenges.��

Nearly half (46 per cent)��of SMBs��are mostly digital in their invoicing and recordkeeping.��Of��this group, 26��per cent��sought advice from their internal IT department, followed by an��external IT company (24 per cent), their accountant (26 per cent), a consultant (22 per cent)��or��The��Government (18 per cent).��

“SMB owners shouldn’t feel like they are alone on this journey. There are many sources of support ready to help them overcome hurdles and make the most of opportunities by sharing experiences and advising on the best approaches for their business,”��Ainine��said. “It’s about taking it one step at a time, learning what works and implementing digital initiatives that align to their goals.”��

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The outlook: A digital future��

The past 18 months has fast-tracked the transition to digital processes for many SMBs and increased their appetite for transformation. The research found most SMBs who use e-invoicing��(75 per cent)��are looking to digitise other business processes. Payroll is the top focus (72��per cent), followed by forecasting (42��per cent), debt collection (38��per cent), customer experience (33��per cent), and talent management (28��per cent).����

Over half (54 per cent) of SMBs say they will have digitised all account and account management processes within the next two years, with 44 per cent planning to do so within the next 12��months.����

To help them get there, more than half (57 per cent) of business owners/managers agree that increased government support in the form of information, services, subsidies and grants would help their business continue to drive forward digital initiatives and change.��

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Innovation in action������

Mining equipment manufacturer��Geographe��needed to update its business technology in support of its strategic vision to expand into new markets and refine its product sets around continued innovation.��

Implementing an intelligent ERP system built on �鶹ԭ�� S/4HANA Cloud® has helped the business reduce lead times by as much as 50 per cent. Automated core processes and greater operational efficiencies have reduced some workloads by more than 15 per cent.��

Geographe��CEO, Sam��Hyder, said: “Due to COVID-19, we have moved to hybrid working. Having a scalable IT landscape with greater transparency and real-time data helped us become more responsive to customer needs. We can now confidently predict customer demand and optimise production, inventory, and our supply chain accordingly.”��

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The full��report��and��key tips on how to transform your business, please visit:������

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Note to editors:��

About��the���鶹ԭ����report:��The connected SMB: Embracing digital strategies to fuel growth��

The research was commissioned by �鶹ԭ�� Australia and undertaken by YouGov to��understand where Australian SMBs stand with their current e-invoicing and broader digitisation efforts.��The sample comprised of 802 Australian business owners/managers with less than 200 employees:��

• 1-19 employees n= 252����

• 20-99 employees n= 518����
• 100-199 employees n= 32��

Fieldwork took place between 29 June��and 13��September 2021.��

*��2021��

**��168 invoices per month x 12 months x $20 saving per invoice = $40,320 per year��

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These enterprise customers are adopters of that are enablers for new ways to manage spend and drive cost reductions. For the mid-market organisation, this transformation has been not been as consistent.

For many , the procurement function tends to be a lot less strategic and we often see organisations who are running processes that have had very little change in over a decade or more.

This stagnation comes at a cost through reduced margins, higher inefficiencies, and potentially excessive administrative overhead.

This decade we are also seeing increasing regulatory oversight on areas such as modern slavery, supplier payment times and health and safety – in some regions even exposing management to prison sentences for non-compliance. Couple all this with an increase in challenging trading conditions – the path to improvement is becoming more urgent.

With 2021 firmly underway the aim of this article is to provide a simple measuring stick for mid-market organisations to determine their relative procurement maturity in a number of selected areas. Whilst procurement has different aspects across different industries, many of the themes discussed below are cross-industry and apply in some way to most types of organisations. Forward looking mid-market organisations would be encouraged to assess some of these criteria against their current priorities for 2021 and beyond.

A key theme will be the across core processes which is an enabler to best in class outcomes.

How do your casual users buy?

Casual users are the staff in your organisation that need to buy “stuff” but are not part of a purchasing or supply chain team. Examples of this can be Marketing, Legal, HR, Facilities, IT and other similar areas. Each of these buyers need to procure goods and services for their area of operation in an easy way.

Most organisations will have some element of purchase initiation from staff that are not directly in procurement. The differences between approaches can be stark.

In the above scenario the path from laggard to best in class is underpinned by technology as the key enabler.

What is your catalogue strategy like?

Most of us use popular online web stores at home where there are vast catalogues of items to select from, but for a lot of mid-market organisations when you buy at work, it can still look like the 90s.

Catalogues provide the key connection for contracted items from suppliers with your buyers.

How does your organisation transact with suppliers?

Digital collaboration has been around for over a decade but in the mid-market the process can still be very email driven. If you are sending a Purchase order manually or even just as an attachment or inline text in an email and then receiving a paper or PDF invoice at the end – then the process is not digital. Digital is about engaging the supplier to directly provide transaction data in areas such as confirmations, shipment notices, returns, credits and invoices. All without data entry by your staff.

The path to digital delivers reductions in FTE overhead with better visibility on orders, faster invoicing turnaround and better compliance from suppliers to your purchase orders and contracts.

Government is also coming on board with many jurisdictions looking to encourage digital collaboration in the marketplace.

The way you transact with suppliers will have a direct impact on Accounts Payable efficiency discussed next.

How efficient is your Accounts Payable team?

Poor purchasing practices often place a bigger burden on Accounts Payable teams to wade through non-compliant, incomplete and missing information in the quest to process invoices and approve them for payment. Phones and emails can be bombarded with queries around late payment that follows.

We also seeing more governments introducing tougher rules around paying smaller suppliers which requires Accounts Payable teams to be able to get through invoicing efficiently.

The above scenarios are just some examples of the challenges we see at mid-market organisations.

There are opportunities for hard savings and benefits to those organisations that move towards best in class and it can often be done in a cost-effective way. For many mid-market organisations there is still a large administrative overhead that is behind the efficiency of bigger organisations who achieve more with less.

Interested in learning more? At �鶹ԭ�� we work with many and can provide advice and guidance around your digital procurement strategy for 2021 and beyond.

This article originally published on .

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