How to conduct a SWOT analysis of your firm and maximise your digital transformation

It’s no secret that technology is a cornerstone of how firms will make the most of 2024.

Roughly 86% of companies in the professional services sector say they plan to adopt new technologies by 2027. In a sector that is historically characterised by legacy technology and outdated software, this is key.

As Pwc noted, the Channel Islands, in particular, suffer from lagging tech infrastructure and slow adoption rates. Despite this, a successful digital transformation can be hugely beneficial, such as reducing IT costs by 36%.

Knowing where to start is difficult, so the SWOT technique is useful.

SWOT 

SWOT is a tool that organisations use to understand their strengths, weaknesses, opportunities, and threats.

A SWOT analysis will identify gaps, problems, and quick wins before undergoing a digital transformation.

By doing so, those in management positions, like the CEO, FD and COO, can make empowered decisions for the firm’s digital future.

Each point of the SWOT system serves a crucial role.

Strengths

What is your firm already doing well compared to other organisations in your industry?

• Are you using Microsoft 365?
• Are your employees well-trained and able to use new technologies properly?
• Do you already have a cloud solution in place?
• Do you have workflows in place to streamline manual tasks?

Identifying your strengths means highlighting what gives you an advantage over your competitors and allows you to build on these.

Weaknesses

It’s also crucial to look at your internal processes to highlight weaknesses.

• When was the last time you audited your cyber security?
• Is your board missing a designated CTO responsible for technology affairs, and who can be held accountable?
• Do your line of business applications need a refresh or overhaul?
• Are you hampered by legacy infrastructure or restricted by on-premises servers?

Highlighting these shortfalls gives you an excellent foundation to set your digital transformation goals.

Opportunities

Now you can consider the opportunities available to you.

• For example, could you save time by implementing applications tailored to your firm’s needs?
• Are you using generative AI tools like Microsoft’s Copilot to boost productivity?
• Is there space for a co-managed IT solution to save money and time on training and recruiting?
• Are your team trained to utilise the technology at their fingertips?

Discussing opportunities helps you create a road map detailing where your digital transformation should lead you.

Threats

Given that 70% of digital transformations fail, it’s vital to do your diligence on any threats to success.

• Is your in-house IT team large enough to complete the transformation on time, or do you need to outsource certain functions?
• Do you have leadership, such as a CTO, who can report feedback to a board and be held accountable for shortfalls?
• As processes become increasingly digital, is your team aware of cyber risks that may disrupt your business?

Identifying problems in advance puts your firm in a better position to deal with them swiftly and proactively.

Making the right decision

Once a SWOT analysis is completed, it’s time for action.

However, implementing your changes can be incredibly challenging when your in-house IT department is busy keeping your firm running.

It can be beneficial to work with an IT partner to make the most of your transformation. The right expertise at the right time can make or break its success.

If you would like to learn about digital transformations for your business, please take a look at our website or book a free consultation here.