A Quarter Of Atlantic Canadian Businesses Fear They Don’t Have The Technology To Adapt
MONCTON— Three out of four businesses in Atlantic Canada were unprepared to re-open because they don’t know where to start, and one in four say they’re not able to adapt in today’s environment because they don’t have the right technology in place, a survey conducted by Salesforce in mid-June found.
This is compared to 24 percent of businesses Canada-wide that feel unprepared to re-open because they don’t know where to start, and 20 percent of businesses in the country who can’t adapt due to a lack of technology. Some 44 percent don’t feel ready to reopen because they didn’t have a health and safety plan in place. That figure increased to 50 percent in Atlantic Canada.
“For the most part, the survey showed that business leaders in Canada felt sort of unprepared in terms of reopening,” said Vala Afshar, Salesforce’s Boston-based chief digital evangelist.
He says by now, many businesses have passed the stabilization stage of operations and are moving on to the re-opening phase. Through it all, technology is “necessary to safely reopen,” he said.
It’s in the reopening stage of the business that he says operators can “accelerate digital transformation and ultimately emerge from the crisis more resilient and relevant than before the Covid-19 pandemic.”
“Perhaps the biggest lesson in 2020, in my opinion, is that every business needs to be a digital business whether you’re a small business or you’re a large enterprise,” Afshar said.
Afshar says before the pandemic, customers’ spent their discretionary income based on whether a product or business is relevant and/or essential to their lifestyle. But these days, they also think of safety and accessibility. For small local businesses, adding things like contactless payment options, e-commerce capabilities, home deliveries and other such offerings could make it easier for customers to choose them.
“So if you’re a business and you don’t have e-commerce, you’re in trouble. Because e-commerce enables you to meet [that safety and accessibility criteria],” says Afshar.
The data is based on 1,500 respondents, with around 400 business leaders and owners, and 102 respondents in Atlantic Canada. The data shows that 73 percent Atlantic Canadian respondents cited technology as something that allowed their business to quickly pivot and adapt in today’s environment, while half say they were prepared to reopen because of technology.
At the same time, more Atlantic Canadians now appreciate a seamless online shopping experience (44 percent say it’s most important now, compared to 31 percent pre-pandemic) and brand loyalty has become less important (28 percent brand loyalty is most important now, compared to 37 percent before Covid-19).
But although Afshar believes that over five years’ worth of digital and cultural transformation has happened in just the last five months, and 10-years worth of acceleration in e-commerce adoption over the past year, some businesses still lack an understanding of how technology can help them.
In Atlantic Canada, about a third of businesses say they don’t understand how technology will help their business remain competitive, and 50 percent say they know they need technology to stay competitive and relevant, but don’t know where to start.
Afshar says the biggest barrier to a successful digital transformation is usually a company’s culture. In addition, there’s often a misconception that new technology would take months to implement when some solutions take a much shorter time.
The survey shows businesses see technology helping them in two key areas: personalized customer experience, including service, marketing and engagement, and workplace preparedness.
When it comes to the workplace, 65 percent of respondents in the Atlantic region said they expect their employers to support those who want to work remotely, 41 percent expect a clear plan for future crises, 32 percent expect a clear plan for face-to-face interactions, and 30 percent expect to have modern technology in place for a better work experience.
“Culture, talent, lean processes and technology. Think about those four success factors to better position your business to combat the effects of the pandemic,” Afshar said.
Government Support Needed
Luc Erjavec, Restaurants’ Canada’s VP for the Atlantic region, says the restaurant industry between April and June reflected the survey’s results, when there were concerns about the reopening costs and ability.
“Now, those that were going to reopen have pretty much reopened. The question is, will they remain viable? Can they see through to the other side?” he said, noting that restaurants are running at a lower capacity but with additional costs to comply with safety rules.
“We estimate that for a typical 100 seat restaurant, it costs somewhere between $30,000 and $40,000 to reopen. That’s everything from buying food products, buying [personal protective equipment], retraining staff – the full gamut,” he said.
Erjavec said the costs of PPE alone is substantial, so in New Brunswick, he says he’d like to see the province pass PPE funding from the federal government down to businesses.
He also said the provincial government should step up and help businesses reopen, innovate, and change to adapt to today’s environment. He says in New Brunswick, unlike its neighbouring provinces, there have not been grants targeted for those purposes. So, even if restaurants and other small businesses have re-opened and are trying to implement new technology, the cost could be a barrier.
“Just because we’re open, doesn’t mean we’re back to normal. It’s a long road for us to get through this,” he added.
“We estimated somewhere around 11 months before we’re back to positive cash flow because of accumulated debts and low volume, but we’re going to need some help and I think the government of New Brunswick should step up to the plate.”