4. Staying Ahead
Digital Transformation for Real-World Businesses
Shifting Ground series
This article is part of our Shifting Ground series, where we’re sharing what we’re seeing and hearing from SME owners across Aotearoa in 2025. The landscape is changing fast, and through this series, we’re exploring the key issues and opportunities shaping New Zealand’s small business community right now.
Talk to almost any SME owner in New Zealand today and it won’t take long for technology to come up. At RegenerationHQ, in our work with SMEs around the country, we’re hearing the same mix of energy and unease. Owners know that digital capability is no longer a “nice to have”, it’s critical for staying competitive, managing costs and keeping customers engaged. But knowing that and making it happen are two very different things.
For many small businesses, digital transformation can feel like a moving target, too many options, too little time, not enough budget. And for owners who didn’t grow up in the digital world, there’s often a personal confidence gap to overcome too.
In this fourth article in our Shifting Ground series, we’re taking a closer look at how SMEs are navigating digital change, what’s driving it, where the challenges lie and what we’re seeing work well in real-world businesses.
Why the Push?
There are a few key reasons why digital capability has shot up the SME priority list over the past 12–18 months -
Customer expectations People expect to be able to find, engage with and buy from businesses online, easily. That applies whether you’re a retailer, a service provider, or a B2B supplier.
Efficiency pressures With rising costs and tight margins, businesses are looking for ways to streamline processes, automate repetitive tasks and free up time.
Resilience Recent disruptions, from COVID to climate events, have shown how valuable digital tools can be in keeping businesses running through uncertainty.
Compliance More and more government processes and reporting are moving online. Paper-based systems are becoming a liability.
As one owner put it to us recently “We’re not trying to be a tech company. But if we don’t get smarter digitally, we’ll fall behind.”
Where SMEs Are Struggling
While the case for going digital is clear, the path isn’t always easy, especially for smaller operators. Here are some of the common barriers we hear about in our work -
Time Day-to-day demands leave little room for researching tools or planning a digital roadmap.
Cost Some digital solutions come with upfront investment that’s hard to justify when cash is tight.
Overwhelm The sheer number of tools and platforms can be paralysing, it’s hard to know where to start.
Confidence For owners who aren’t “digital natives,” the language and process of going digital can feel intimidating.
Training Even when tools are in place, staff often need support to use them well, and owners need time to lead this change.
What’s Working on the Ground
The good news is that many SMEs are making steady progress and they’re doing it by focusing on small, practical steps, not grand transformations.
Here are some of the approaches we’re seeing work well -
Start with one or two key areas Businesses that succeed tend to pick a couple of focus areas, like online invoicing, inventory management, or digital marketing, and do them well first.
Lean on peer learning Owners are learning a lot from each other, what tools work, what to avoid, where to get help.
Use free or low-cost resources Programmes like Digital Boost offer great support for businesses just starting out.
Bring staff along The most successful digital transitions happen when owners involve their teams early, helping everyone see the value and get comfortable with new tools.
Don’t chase perfection “Good enough to start” beats waiting for the perfect solution. Many businesses improve as they go.
The Human Side of Digital Change
One thing we emphasise often with owners is that digital transformation isn’t just about technology, it’s about people and culture. Change fatigue is real. If your team is already stretched, introducing new tools can add stress unless it’s done thoughtfully.
That means -
Communicating clearly about why changes are happening
Giving people time to learn and adapt
Listening to feedback and being flexible
Celebrating small wins along the way
And for owners themselves, it often means recognising that you don’t have to know it all. Surround yourself with people who can help and focus on leading with curiosity and openness.
Where to Next?
In our view, the next wave of digital focus for SMEs will centre around a few key themes
Customer experience Personalisation, ease of access and consistency across channels.
Operational efficiency Smarter systems for managing stock, finances and workflow.
Data-driven decision making Even small businesses can now access insights to guide better decisions.
Cybersecurity With more activity online, protecting customer and business data is becoming critical.
Sustainability Digital tools can help measure and manage environmental impact more effectively.
What We’re Learning
Here are a few lessons we’re taking away from the digital journeys we’re seeing across the SME sector -
Progress beats perfection. Don’t wait to have it all figured out, small wins build momentum.
Mindset matters. Owners who approach digital change with curiosity and openness tend to navigate it best.
Peer learning is gold. Some of the best advice we’ve seen comes from other SME owners, not tech consultants.
Human connection still counts. Digital tools should support, not replace, the relationships that make small businesses special.
A Closing Word
Digital transformation can feel daunting, especially when you’re also juggling financial pressures and people challenges. But the businesses that are leaning into it thoughtfully are seeing real benefits.
The key is to stay grounded start small, build confidence and keep your people at the centre of the process. As one owner told us recently “We’re not trying to be a digital business. We’re trying to be a better business, and digital tools are helping us do that.”
That’s a good place to start.
Stay Connected
If you’d like to follow this series and be part of the conversation about building a better SME support system for Aotearoa, or you’d like a quiet conversation about how to impact your business results now, here’s how to get hold of us –
📞 Phone +64 275 665 682
✉️ Email john.luxton@regenerationhq.co.nz
🌐 Contact Form www.regenerationhq.co.nz/contact
If you’d like to read more RegenerationHQ thinking on SME business and other things, go here – www.regenerationhq.co.nz/articlesoverview
🔹 RegenerationHQ Ltd - Business Problems Solved Sensibly.
Supporting NZ SME Owners to Exit Well, Lead Better and Build Business Value.