Small and medium sized businesses in Aotearoa are potentially wasting hundreds of millions of dollars each year on technology that's not up to scratch, according to a new survey.
Business management platform MYOB's survey of more than 500 businesses suggests companies are spending half a billion dollars annually to improve their operations, but 50 percent are finding some of the tools actually hinder instead of help.
Half of those surveyed are suffering from 'bad digitisation', according to MYOB. That's where some business management software apps and tools have to run in silos, rather than seamlessly integrating with each other.
The research also unveils that this disconnection of systems is costing businesses time, money and resources, as well as posing a strategic risk.
Daniel West, chief sales and support officer at MYOB, said there's been a significant effort by small-to-medium enterprises (SMEs) to digitise, with half estimated to conduct the majority of their business using digital tools.
"Now, what we're seeing is that in comparison to the digital subscription or streaming services we as consumers use and enjoy every day, businesses aren't getting the same integration and connectivity between the digital applications they're investing in – and as a result, it's costing them dearly."
Half of those polled said they'd given up on digital solutions due to inefficiencies, but were still paying for them.
When asked why they're still paying for them, the top reasons included that it was too much hassle to change, and because there is a lack of better alternatives to switch to, MYOB said.
"It's subscription overload for businesses," West said.
"Many consumers are cancelling subscriptions amidst rising cost of living pressures, and it's an optimum time for businesses to also assess their subscription overheads, especially if some are sitting there unused."
As well as subscriptions not providing value, a third of those surveyed also said they'd experience costs blowing out due to poor business tools, which would equate to around $334m being wasted on digital tools across Aotearoa.
It's also costing valuable time, with the research suggesting SMEs were wasting the equivalent of one working day each week carrying out tasks caused by a lack of digital integration.