Today’s business arena presents challenges that our predecessors didn’t face – steadily-increasing global competition, volatile economies, more savvy customers, and constantly-changing technologies. You might think that this environment is best suited for large, multi-national enterprises with deep pockets…but you’d be wrong. According to a new report by Oxford Economics many small business owners are challenging conventional wisdom by using their advantages (yes, there’s an upside to being a small business) to go head-on against larger firms – and win!
The rabbit vs. the elephant
There’s no doubt that agility is the key to success in today’s ever-evolving business environment. Whether it’s entering new markets, adding products, evolving your business model, or significantly upgrading your operations, statistics say that you’re likely either planning a transformation, currently undergoing one, or have recently completed a transformation initiative. Managing a change of this magnitude can be challenging for small and midsize companies. For large-scale enterprises, however, it can be a colossal undertaking.
A report by Oxford Economics, called How Successful SMEs Are Reinventing Global Business, shows that most business owners at smaller-scale companies see transformation as a strategic necessity, and perhaps as a key to survival. A clear sign of transformation’s importance is that the person with primary responsibility for driving it is most often the CEO/owner (41%), indicating that this is an enterprise-level concern.
The survey revealed that transformation priorities include capitalizing on growth opportunities in expanding markets (41%) and entering new geographic markets (36%), followed by creating a culture of innovation (34%), and investing in new technologies (26%). The emphasis on geography extends across virtually all industries, regions, and company sizes. Focus on technology correlates with a better bottom line, with the most profitable firms more likely to see technology transformation as a strategic priority in business transformation, and placing a higher priority (26%) on acquiring digital skills than less profitable small and midsize companies (17%).
“Business-enabling technology is becoming more accessible and affordable. In effect, it’s leveling the playing field - maybe even tipping it in favour of smaller companies that can quickly hit the ground running with new processes or systems,” says Ron Mondor, President, Zantek Information Technology.
Technology as a catalyst for change
Apparently, small and midsize enterprises (SMEs) are confident they can go head-to-head with bigger companies on the technology front. In Oxford Economics’ report, less than one-third say their firm lacks the technology capabilities of larger competitors, and barely one-quarter say they struggle to understand how technology can create measurable benefits for their firm. Even the smallest companies are confident they can handle technology and understand its relevance—just 32% say they struggle to understand how technology can create measurable benefits. The top three technology priorities over the next three years are business management software, business analytics, and mobile computing.
Takeaway – level the playing field
SMEs are using their size and agility as a competitive advantage. Even companies that aren’t expanding to new markets must content with increased competition at home from global competitors. Savvy business owners are embracing change and investing in technology to drive growth and profitability.
Whether your business growth is driven by new products, market expansion, or evolving your business model, it ultimately means more data, calculations, and transactions. Get the information you need to proactively plan upgrades and, perhaps most importantly, capitalize on technology solutions that will accelerate your business strategy.
Relevant links:
> Whitepaper: How Successful SMEs are Reinventing Global Business (Oxford Economics)
> Newspaper article: Is Your Company Nimble Enough to Survive? (Globe & Mail)
> How-to article: Learn the Mistakes that Growing Companies Make – and how to Avoid Them (Zantek IT)
*Images sourced from Oxford Economics report: How Successful SMEs are Reinventing Global Business