SMEs are the engine of the economy of many countries. In Mexico alone, there are around 4.2 million Small and Medium Enterprises, which contribute to more than half of the Gross Domestic Product (GDP). Its importance is such that 70% of formal employment is generated in our country through SMEs (see more data on SMEs in Mexico in the Inegi).
Due to their nature and structure, SMEs have historically been one of the sectors with the greatest resistance to digital transformation. Whether because of their origin -they usually start as family businesses- or their operating capacity -they usually have a range of local operations-, these types of companies maintain processes that have been doing the same way for many decades.
However, one of the positive aspects of the health crisis that occurred last year was that it forced many of these SMEs to rethink the way in which they structured their operations and activities to focus on the digital world.
The fear of SMEs of this change is often justified, however, today more than ever, the transition to modernity is easier and more affordable. Here are the reasons why companies in this sector are still resisting digital transformation.
1.- Low flexibility
Many SMEs are not flexible in their operations: they use the same methods of delivering products or services, they do so at the same time as they have always done so, and they do not have new customer service channels, which could be the gateway to higher revenues. Through technology, these barriers could be broken and the business model they have been doing for several years can be renewed.
2.- Questions about implementation times
The evolution and adoption of digital tools represents a structural change in SMEs, which brings with it new challenges, a change in culture, business strategy and the way in which they operate. This often generates a perception that they will also have to invest time and effort and that this would not be affordable, which in almost all cases is wrong. The benefits of technological change are greater in the short, medium and long term.
3.- Lack of knowledge of their needs
Sometimes SMEs do not fully differentiate what their structural needs are from those that are urgent. This is because the daily dynamics of this type of company prioritize the immediate results. Therefore, by not being in contact with structural needs, change is resisted.
As the technological resources available are increasing, companies must prioritize those that best help to meet their defined objectives and to meet the needs of their daily lives.
4.- Technology is expensive
This is one of the most common fears that companies have to venture into digital transformation. “It's expensive”, “we can't afford it”, “when will we recover the investment?” While technology requires investment, it is no longer as big as it used to be. Thanks to Big Data, Machine Learning and Artificial Intelligence, among other tools, it is much more affordable to implement the technology needed to transform our operations.
5.- Distrust of technology advisors
There is often the idea that a consultant is expensive and only wants to take advantage of companies, however, technology advisors who accompany companies during the transformation process are the surest way to achieve success.
If an SME wants to transform its company, it is essential to choose a partner capable of explaining the various processes and implementing them in a pedagogical and proactive way. Connecting company data, obtaining a complete view of the business, increasing productivity and improving results is the first step in starting a process that overcomes the obstacles and fears that have so far limited the growth of SMEs.
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