Despite recovering well from the financial crisis, SMEs are still facing challenges they need to overcome in order not only to grow, but thrive. Here, we’ve listed 3 key challenges of SMEs in the context of digital transformation.
1. Slow to adopt digital technology
Often, business owners are concerned with costs and they want to see short-term revenue. This type of shortsightedness is not sustainable. While decision-makers are concerned with the cost of implementing changes, they need to look at the cost and the risk of the status quo. By maintaining status quo, SMEs could end up paying the ultimate price—going out of business.
2. Lack of innovation
Businesses need to innovate in order to survive, but staying at the edge of the market is not an easy task. SMEs face a wide range of barriers when it comes to innovation. In order for innovation to happen, a lot of elements need to come together beyond just financial means. You need the right skills, the right tools and access to the right data. In an increasingly connected world, innovation comes from collaboration. SMEs have to adopt a more holistic approach to data management and a data-driven strategy to drive innovation and competitive differentiation.
3. Low data literacy
There’s a lot of talk about data these days. But while it’s a hot topic, the majority of us have very little knowledge of how to actually find insight in it. The use of data at scale is a new concept to most. Often, only a handful of people have access to company data, let alone know how to make sense of it. As a result, SMEs deal with inefficient processes and lack of innovation. Luckily there’s an easy solution to the problem. Today we have access to technologies and tools that can simplify the vast complexities of data and make it easy to understand for anyone.
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