Business Support for Small & Medium size Companies

 

SME's & Technology

According to The Federation of Small Businesses (FSB), there are 4.3 million small businesses in the UK who employ more than 12 million people or around 58% of the private sector workforce.

A recent survey by BT Business pointed out that 93% of the SMEs studied were not investing enough in technology and that around half failed to carry out technology related reviews that could significantly reduce costs and inefficiencies.

Brunel University conducted research on how long it took staff to conduct various business tasks. The conclusion to their investigation finds there was little evidence that broadband was revolutionising SMEs. The researchers highlighted the case of a rural marketing company where getting broadband actually made staff less productive - while staff had begun to send information electronically to customers they were also still sending a hard copy in the post.

From Delphi's own studies we have found that when questioned, SME's would like to investigate the possibilities that IT could play but the main barriers are:

  • Lack of resources to obtain information and explore the opportunities of technology
  • Unawareness of the strategic and business benefits that technology can provide
  • Management structures are generally built around work related issues and not around activities that can support the work. For example, lack of a suitably trained IT person who can assist in providing technology based solutions and then implement and maintain them. This is not a criticism of the SME but rather the conundrum that many face at a particular stage of their growth.
  • Cost VS benefit - SMEs are generally quite sceptical of the benefits of technology when a cost is associated with it - take the cost away and the reverse is true!

Very few SMEs doubt that technology is an enabler and it is interesting to note that the question of cost is often the first question that is asked as opposed to say, pay back period or efficiency gain.

Quite often, once a small low cost technology solution is introduced and the benefit is appreciated then the resistance level is reduced and indeed the business owner is all too ready for more.

Competitiveness can also become an issue in a world where business related costs generally rise, e.g. labour, taxation, fuel. Failure to introduce and keep abreast of new technologies can leave many SMEs working in the dark ages when compared to others in the same sector.

This is particularly apparent to us for those involved in the construction and allied trades. Newer, younger entrants are all too willing to embrace and seek out technology that can assist them whilst older, more established SMEs are still questioning the usefulness and cost. It is perhaps due to a different generation but consider that this is not a generation gap in its traditional sense but one that spans approximately 10-15 years.

By enabling the UK's SMEs to take full advantage of new technologies, not only do we improve their competitiveness, but we also improve the competitiveness of the UK economy as a whole.

If your would like to discuss your needs or would like a technology review to be carried out then please email us or call 0208 440 1669 for further information.

 

Further Reading:

Emerald Full Text Article - Organisational factors affecting internet technology adoption

SME's under invest in technology - Business High Street

 

 

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