The shift from physical to digital services has become even more fundamental to the performance of SMEs during the past 18 months. From digital communications to social media, mobile to online video, small firms are devising more ways to promote themselves.
Meanwhile, their competitors are struggling to keep up, unable to keep up with the speed at which they must now respond.
The challenge for SMEs is to find a way to position themselves as the experts in their domain. We found that many SMEs have formalized their relationship with customers by embedding customer service representatives within their business and sometimes even serving as the point of contact with customers and vendors, this creates a strong relationship, a symbiotic relationship that creates a market for the entrepreneur.
The entrepreneur becomes a specialist.
Some SMEs are trying to position themselves as specialist providers of business process outsourcing or software development or systems integration or IT support or digital content management etc.
Most SMEs now believe they can differentiate themselves from their competitors.
For the last 10 years business technology consultants have been pushing their clients to adopt advanced technologies, small businesses haven't realized the full potential of adopting cutting-edge innovation.
The impact of technology, business models, and growth strategies in the SME sector has been largely ignored by business advisors.
But during the past ten months, due to the Corona pandemic, the technological and digital transformation of small and medium-sized companies has occurred to a degree that exceeds all expectations
The technology and innovation surge has driven revenue growth for SMEs, created new markets, delivered improved employee productivity, enabled collaboration, and boosted innovation. The impact of technology in the SME sector has been more than financial.
Increasingly, SMEs have turned to technology for a number of reasons.
Productivity improvements: With more intelligent software applications, increased use of cloud-based software, and online applications, employees have become more productive. More productivity from employees and a more flexible workforce means they can work more efficiently. Cost savings: The use of technology to automate processes has helped SMEs reduce costs. In many cases, business technology advisors have encouraged small businesses to adopt automation tools, but the impact has been greater with digital tools. The digital era has ushered in a new era of automation.
Reduced operating costs: In the era of internet search, businesses can use technology to search through documents, emails, and other information, and quickly find what they need. SMEs will save time and money and cut through the noise of government bureaucracy. SMEs have been making use of technology to cut costs, but their use of technology has increased.
More flexible: SMEs have turned to technology to offer more "carve-outs" for themselves. In the past, a business' only choice of working hours was from 9 to 5. But during the pandemic this change dramatically from 100% working from home to two days per week to minimize the work time - technology has increased opportunities for working flexibly. Today, SMEs have more time to market, collaborate with partners and suppliers, and improve processes, all while staying safe from wild market fluctuations.
