For this 105-year-old family-run business, a focus on tech led to $2 million in revenue in two years

If you picture a business at the forefront of tech adoption and digital transformation, a more than 100-year-old, family-run tools manufacturer may not spring immediately to mind.

But for Sutton Tools, adopting a digital-first approach has helped drive $2 million in sales over the past two years.

Beyond that, implementing change in the right way has led to improved staff engagement, and cultural improvements across the business.

Founded by William Henry Sutton back in 1917, Sutton Tools is now headed up by commercial director Robert Sutton — William’s great grandson.

Today, the fourth-generation family business employs more than 400 people, with its Aussie- and NZ-manufactured products selling around the world through both B2B and B2C channels.

In many ways, it’s a truly ‘traditional’ enterprise. In others, it’s pioneering, innovative, and is taking risks in tech — risks that are paying off.

If his great grandfather could see the way the business is being run now, Robert Sutton is “certain” he would be proud — if a little baffled.

“I think he would be a little bit horrified at some of the products we make, because it’s a long way from where he was,” he tells SmartCompany Plus with a laugh.

“But I think he would be very satisfied to see where it is now.”

Tech that changes with the times

Technology may have looked a little different in 1917, but Sutton says tech adoption is “part of our DNA”.

Historically, that was in manufacturing, which is still a focus today, he explains. But the business has always been progressive in implementing software systems, too.

Even in the ’70s, more than 50% of client orders came through electronically, “which for a private family-run business was unusual”.

More recently, the business became one of the first customers of Salesforce in Australia.

“We’ve aggressively invested and developed to meet the current need of customers, which is incessant.”

This focus has given Sutton Tools an edge over the years, the chief executive says.

“Australia is a difficult country to manufacture in — it’s a small market with high cost structures and less than ideal demographics,” he explains.

“In order to survive, we’ve had to be more efficient.”

That efficiency relates to production techniques and volumes, sure. But it’s also about communicating value to all kinds of customers, and offering as much value as possible.

“These days, it’s not just about machines,” Sutton says.

“It’s also about the technology around the customer and that experience.”

Where and when to invest in tech?

With all of that said, tech investment doesn’t often come cheap. When choosing when and where to invest, there is always a ‘tipping point’ of risk vs reward.

In some cases, Sutton explains, change is forced — often by the competition. More preferably, sometimes it’s Sutton Tools that takes the first leap.

Sutton says that what’s important is to have the right infrastructure in place in the first place, allowing for flexibility and quick changes. That makes it easier to react quickly without massive outlays, and to test and pivot.

Where Sutton Tools once had manual, spreadsheet-based systems, it now has a CRM that centralises various team activities on one system.

When new customer demands arise, those teams can implement changes quickly, Sutton explains.

“The key is flexibility,” he says.

“We can react very quickly to their demands.”

Bringing staff on the journey

Change, and especially technological change, can often come with instability.

For businesses — particularly in very ‘traditional’ fields — it can be a challenge to keep staff on board for the journey, ensuring things run as smoothly and efficiently as possible.

But it is possible to make quick pivots without blindsiding your team.

Sutton takes the approach of communicating all plans well in advance, he says.

If there is new tech to be deployed, the team will spend time in a pilot mode, helping develop the use case that is just right, before launching.

Keeping the staff informed not only reduces the risk of a tech culture shock, it also empowers people to see what they can do with their new tools — to identify where they can add more value, and to suggest changes.

Generally, the team implements the “simplest most basic solutions” to begin with, Sutton says.

“Inevitably it’s the staff that drive the change from that point forward,” he adds.

“They are constantly requesting enhancements to the technology that they’re using … they throw the challenge back to us.”

Creating a culture of change

Accordingly, the benefits of new tech go beyond efficiency and revenue gains. They can shape the very culture of a business.

An appetite for tech adoption creates a “self-evolving environment” for staff and customers alike, Sutton says.

“The culture of the business has really moved away from a ‘gut-feel’ approach to a more data-driven approach,” he explains.

Introducing customer portals has allowed customers to access a more ‘self-service’ model, meaning they don’t necessarily have to call the customer service team for inventory or back-order information.

It’s this kind of thing that helps Sutton Tools to stand out from its competitors, Sutton says. It has also led to a 25% drop in the number of calls coming into the call centres.

“It frees up a lot of time for our call centers to move from being reactive — waiting for the phone to ring — to being outbound orientated and supporting sales and marketing,” he explains.

Information is also shared more easily across the business. People in the customer service department, for example, can easily identify the salesperson on an account and the customer’s history, giving them a better idea of the business’ relationship with that customer.

That improves the experience both for customers and employees.

“When you implement systems onto a tech platform, it can force you to reconsider the way you do things,” Sutton explains.

“It can become clear that the way you’ve always done things wasn’t necessarily the most sensible way … there are a lot of benefits from just examining the way you operate.”