As part of the first edition of the Sage Download, the newsletter that covers all you need to know about how technology and innovation is driving business growth, we’ve spoken to leading advisers and tech experts to get their tips for how business leaders can integrate high-quality technology planning into their strategic thinking.
By David Prosser
In 2025, businesses that commit to digital transformation and innovation can look forward to increased efficiency, greater effectiveness and new business value. But what does that look like in practice for small and mid-sized businesses? And with so much hype around new technology, how do SMBs identify the investments and initiatives that will really deliver for them?
To answer those questions, we asked business leaders and opinion formers from across Europe for their advice on how to prioritise technology and transformation investment as part of a strategic growth plan for the year ahead. Here’s what they told us.
Emma Jones CBE, founder, Enterprise Nation
“Embracing change and adopting a future-ready mindset is vital. Digitalisation is going to define how well businesses can continue to trade and remain competitive through rapidly changing conditions. We think there are five key steps to digital transformation:
Tina McKenzie, policy and advocacy chair, Federation of Small Businesses
“Too often, the word innovation is used in a vague way or it means different things to different people. We define innovation as the development and use of new ideas and technologies to turn around the five-year period of lost economic growth that we are currently experiencing.
“Crucially, this does not necessarily have to take place in a lab – local high streets drive changes in how to run their businesses, too. For example, the local hair salon increases customer engagement by providing virtual hair and beauty consultations; the small manufacturer that can now bottle more drinks than ever before thanks to its automatic bottling machine; or the small firm that applies AI to adopts new marketing materials, customer emails or how it chases up late invoices.”
Tomoko Yokoi, researcher and advisor, IMD Business School
“SMBs could focus on two areas: value-driven technology integration and leadership’s ongoing digital literacy. Rather than chasing every new and flashy technology, SMBs should carefully evaluate where emerging tools, such as generative AI, can provide the most value. This involves assessing current processes to identify inefficiencies, pinpointing specific challenges that technology can address, and exploring how technology can enhance customer experiences, streamline operations or accelerate product development.
“Leadership plays a pivotal role in driving this transformation. Business leaders should see themselves as both advocates and stewards of technological integration. As advocates, they champion digital literacy at all levels of the organisation, starting with senior executives, to foster a culture of innovation and collaboration.”
Paula Whitehouse, director of the Aston Centre for Growth, Aston University
“Digitisation and digitalisation are key drivers of efficiency and productivity that will enable a business to sustain its competitive advantage. At the most fundamental, finding digital solutions to solve customer problems can lead to the launch of new digital products and services. A business model can be transformed through digital solutions to routes to market, such as social media, and customer relationships, such as chatbots. Looking at the business functions, productivity tools are key for many, and we are seeing generative AI being widely adopted within marketing and back-office environments.”
Pierluigi Rippa, director, European Council for Small Business and Entrepreneurship
“Digital technologies are reshaping the business landscape, introducing increasingly complex dynamics driven by the vast amount of data that needs to be processed. When leveraged effectively, this data can become a crucial asset in supporting strategic decision-making. For SMBs, digital adoption represents an unprecedented opportunity to enhance competitiveness and drive innovation. Start with a thorough assessment of the existing skill set, evaluating both its quantity and quality. In this evolving scenario, STEM skills will play an increasingly critical role, becoming a key differentiator for SMBs aiming to stay competitive in the long run.”
Mia Haffety, policy manager for the digital economy, techUK
“Our Small Enterprises, Big Impact report highlights the immense growth and productivity potential through better small business digital adoption, support and investment. For instance, currently over a quarter of UK SMBs still do not use basic digital tools. This is even though tools such as customer relationship management, digital accounting and e-commerce software have been found to boost sales.
“From our polling, AI is seen as a game changer. When asked which emerging technology held the greatest promise for their business, AI was top. However, general AI tools rather than generative AI technologies were seen as the bigger opportunity: 38% of respondents chose AI excluding generative AI as most likely to provide the greatest opportunity versus 15% who selected GenAI.”
Bruce Davis, chair & director, UK Crowdfunding Association
“Very few firms have the capacity to look beyond the demands of business as usual, and raising capital for innovation – particularly if it increases the risks of the business in the short term – can feel a stretch too far. However, the UK has one of the most mature and developed markets for small business finance in the world, with more than 60 regulated crowdfunding platforms offering alternative ways to finance growth and innovation. This opens up new ways for businesses to think about the way that they finance innovation and investment in technology to drive both growth and productivity.”
Shevaun Haviland, director general, British Chambers of Commerce
“AI has the potential to significantly benefit many industries but our research suggests there is still a nervousness about its applications. One of the areas it can help is addressing skills shortages. Our research shows that many businesses do not feel there are measures in place to address the current shortages and ensure they have a talent pipeline for the future. Only by working together, collaborating across all sectors and disciplines and embracing new technology can we tackle this.”
