Adoption of Technology: A Challenge for SMEs

The success of any business in today’s competitive world is majorly facilitated by how they are coping with the latest trends in technology. However, investing in expensive technologies to yield better output is always a challenge for small and medium businesses. Statistics show that over 90% of SMEs across the globe face many challenges while adopting technology in their working process.

SMEs are still not able to think beyond traditional business practices and adopt complex technology for better efficiency. It could make things difficult for them due to the high amount of capital that is required to purchase high-tech equipment, machinery and software. SMEs are yet to discover how the adoption of technology can open up new horizons for a business. Here’s a breakdown of three such challenges that SMEs face while adopting technology in their business.

1. Technological resources are the major component of any business, and hence a business needs to have a digitally managed ecommerce SAAS platform or other ERP software. One of the most prominent challenges faced by SMEs is to use a SAAS platform that can optimise production management, procurement and billing functions perfectly for SMEs. Small businesses are generally powered by skilled labourers who find it hard to get along using advanced technical tools for better efficiency.
While bigger companies have the option to provide training to their employees, SMEs generally do not possess this luxury. The small or medium business workers have to familiarise themselves with the working of the latest technology all by themselves. With innovation and new technology dropping in the market frequently, the need to make people aware of their use remains a tough job. ERP platforms can increase the speed of transactions and improve stock inventory management.  SMEs should focus more on adopting e-transactions technology and modern business transaction management software.

2. The second biggest challenge for a manufacturing business is its compatibility with advanced techniques of the manufacturing process. While big manufacturing companies might have the liberty to customize their software and adopt advanced techniques based on the type of industry they are into, it is not the same case with SMEs.
Some prominent manufacturing processes are additive manufacturing, advanced materials procurement, composites, and alloys, robotics and automation, welding and machining with lasers and finally nanotechnology. For example, a small company that needs such advanced technology to streamline its working process can’t procure it due to the unavailability of capital and adequate training.
There are cases where SMEs try to take the short path by adopting traditional ways of manufacturing. However, such impulsive decisions made without logic only cost them more fortune. The right thing to do is to analyse the effect of modern technology on their manufacturing business and the ROI it can offer.

3. Digital technology is a significant stream for a business to establish its brand. Customers get attracted to a company’s work, brand, use of advanced technology and thus are more likely to buy the products and services they offer. The best way to keep their business is to adopt the latest digital technology and keep manufacturers, aggregators, contractors and suppliers engaged by offering them an excellent buying experience with great service. 

The best way that every SME should adopt while implementing powerful digital and analytical tools is always to make the buying experience their number one priority. Everything else will follow. While doing so, a sme must also be aware of current changes in society, which need better usability and a customer-friendly ERP software, ecommerce portals with easy-to-use interface, which renders tech easier for them on a general basis.

Conclusion

While smaller and medium enterprises adopt new technologies to generate revenue for their business, most fail to realize the true potential these can provide. The biggest reason behind this failure is the lack of capital, training, proper preparation and infrastructure that big companies have in place. OfBusiness provides tech-enabled platforms for SMEs to make their operations more efficient and hassle-free.