A new study conducted by IDC shows that small and midsize enterprises (SMEs) that have embraced digital technology show faster growth than companies that have not.
IDC analysed data from 3210 respondents in 11 countries, working at a company with between 10 and 999 employees.
SMEs that grew revenue 10 per cent or more in the last year said they were “well under way in applying technology to connect people devices and businesses” – representing more than one-third of all SMEs – and more than 39 per cent of SMEs in all regions agreed that “active participation in the digital economy will be essential to our company’s survival in the next three to five years”.
Perhaps surprisingly, the most used technology was collaborative software, with at least 50.6 per cent of SMEs across all regions adopting this. Next most used were CRM and business analytics software, used by 38 per cent and 37 per cent respectively.
Many had also seen positive results from these investments, with between 52.5 and 60.2 per cent of SMEs surveyed saying that “new technology solutions have allowed us to begin or continue revising our workflow and processes to streamline operations and improve productivity”.
Digital transformation is not without its challenges however, with one third of SMEs saying that “personal relationships among company employees have not been strengthened by our adoption of technology”, and between 35 and 45 per cent of SMEs “concerned that we will rely too much on data to make effective business decisions”. Both concerns were more prevalent among larger SMEs.
“The overwhelming message from this report is that digital transformation has a big impact on small businesses around the world,” said Rodolpho Cardenuto, president, global channels and general business, SAP. “It is also clear that personal connections and business instincts continue to play an important role in making the right decision. SMEs should think about navigating a digital transformation journey that lets them combine the best of both worlds.”
