Entrepreneurs and small business owners often prioritize their primary roles over staying relevant with technological advancements. However, the role of technology in driving the expansion and operational efficiency of your business remains crucial. The significant changes observed in the past year highlight the increasing significance of technology trends specifically designed for small businesses in the entire year of 2023.
Some technological developments, including the broad use of 5G cellular networks and the incorporation of artificial intelligence or machine learning, are steadily gaining ground. At the same time, there are emerging technological changes that have the potential to significantly disrupt the market, even though they have not done so fully yet. Nonetheless, their importance cannot be underestimated. The COVID-19 pandemic has had a lasting impact on how and where people work, leading to significant changes in traditional work paradigms. Technology plays a crucial role in strengthening the infrastructure for flexible and hybrid work models during this transformation.
Here are five top tech trends that you will witness in the future:
The Significance of Big Data Will Grow
A Leaders in the corporate world are willing to keep investing in technologies that have already shown a positive return on investment amid concerns about an impending economic downturn. Based on a recent study that involved a survey of more than 1,800 digital leaders, it was revealed that approximately two-thirds of the respondents are of the opinion that big data and analytics will provide them with an advantage over their competitors in the coming years.
An impressive 64% of the respondents surveyed indicated that the utilization of big data provided their respective firms with a significant competitive advantage within the industry. Approximately 25% of the participants also indicated that they generated income from their data analysis endeavours. Small businesses can potentially gain advantages from the continuous improvement of best practices and expertise in the realm of big data analytics.
Truth be told, it is estimated that by 2025, the daily data creation from people and businesses will have increased to 463 exabytes. Sending an email, downloading an invoice, looking for nearby vendors, updating a social media profile, and even turning on a connected automobile all generate data. The significant volume of data presents various possibilities, such as gaining profound insights that can enhance product development. However, it also entails certain obligations concerning the handling of data sharing, collection, protection, and privacy.
The Next Wave of Corporate Software Will be Superapps
Gartner recently predicted that the utility of ‘Superapps’ in conducting and running business operations will become a new norm. These applications allow for the consolidation of previously separate app services into one cohesive and efficient user experience. If implemented by a small business, such initiatives can help expedite business operations or processes and make them more efficient.
In fact, if you analyze closely, there is a growing trend of incorporating third-party software integration. These days, many businesses employ software like Microsoft Outlook for sharing important documents, Microsoft Teams to facilitate better communication within the team, Google Drive for storing sensitive information, Zoho CRM for efficient customer management and Monday.com aids in project planning. Unification is an effective strategy for mitigating and minimizing the significant threat posed by data silos.
The New Age Metaverse and Its Applications
The concept of the metaverse has been a subject of ongoing debate for several years. Despite the increasing interest in this topic, there remains a continued dispute regarding the precise definition of the metaverse and its operational mechanisms. Metaverse incorporates both virtual and augmented reality technologies (also referred to as “extended reality” or “XR”) to provide a seamless experience that bridges the gap between the digital and physical worlds.
Similar to cloud computing and e-commerce, the metaverse possesses the capability to revolutionize the way small businesses establish connections and engage with their customers. This transformative potential extends to various aspects, including the provision of entirely digital art and services, as well as the creation of digital representations for physical products.
Plus, the development of standardized approaches to the metaverse is expected to take several years. However, in the meantime, we can anticipate the emergence of more features that enable the metaverse in existing products and services. Exploring the potential of current hybrid and media experiences that utilize this technology is a promising avenue for businesses to consider. From an advisor’s perspective, it is important to gain a comprehensive understanding of this technology. This will enable you to effectively guide clients who are seeking to stay ahead of the curve.
The Utility of Blockchain for Businesses
Another big technological trend that’s looming right across the horizon of our future is Blockchains. This technology, also known as distributed ledgers, is a constantly evolving technology that will undergo more modifications as more organizations and governments examine the potential benefits of decentralization in everyday life.
This technology uses smart contracts, and their contractual provisions used in automated payments are basically lines of code entered into a blockchain that are executed automatically when specific criteria are satisfied. When the terms of a contract are completed, payment is automatically triggered, potentially cutting down on the time it takes to process payments for delivered supplies and lowering the risk of non-payment.
The Utility of Embedded Finance
Perhaps the most influential and impactful technology, amid all the novel technological trends and the most in-demand currently, is the ability to be able to pay anywhere and everywhere. This is only possible through embedded finance. Over the last decade, the financial services industry has seen a dramatic shift in response to consumer demand for easy, instantaneous access to financial goods inside the platforms and tools you currently use.
The integration of financial solutions into regular procedures makes life simpler without requiring you to change your current routine. Opportunities for startups will continue to improve as technologies like embedded finance and open banking, which are at varying levels of development throughout the globe, gain traction.
The incorporation of financial services into non-financial business infrastructures is experiencing significant growth. In a similar vein, the implementation of open banking standards, embedded finance, and open APIs on small business platforms enables the collection of comprehensive and trustworthy data regarding a business’s financial well-being and liquidity. This development effectively eliminates certain longstanding obstacles that have traditionally hindered small businesses from accessing willing lenders. This integration of financial data allows lenders to have real-time visibility into company performance and management, thereby increasing their confidence and speed with which they can assess risk and creditworthiness and provide credit to the most deserving enterprises.
It is undoubtedly challenging to distinguish between hype and reality when dealing with new technology. In order to fully leverage the transformative potential of these technology trends, it is crucial to increase awareness and provide educational resources for small businesses and their advisors. This will enable them to gain a better understanding of the current capabilities and how these technologies can be applied to their industry in the near future. What these technologies imply now and how they could affect small businesses in the future is something that both owners and consultants need to give some thought to. When it comes to advisors, the main focus should be on effectively guiding clients through their journey, ensuring they have a clear understanding of both the potential risks and rewards involved.
CanadianSME, a magazine catering to small and medium-sized businesses, is an excellent resource for companies that value innovation. By subscribing to our magazine, readers can gain access to an array of information and remain apprised of market trends. Stay connected with the CanadianSME community, which values business and entrepreneurship, by following @Canadian_sme on Twitter. For real-time news on business trends, subscribe to CanadianSME’s magazine by visiting their website at https://bit.ly/3QslxlH.
