magazine
38
The top
priorities for
investment
in technology
amongst
SMEs include
company
websites
and 4G data
and cloud
services...
Technology
Investing
in the
future
The global economy is starting to
show signs of recovery and, in the UK
in particular, SMEs and start-ups are
at the heart of this growth. In March
this year, 2.26 million businesses were
VAT registered in the UK compared
to 2.17 million in 2013 – a rise of
approximately 96,000 (4.4%). Since
then, the UK has made major strides
to be ranked as the fourth most
entrepreneurial economy in the world.
A recent Vodafone survey of 1,700
small and medium-sized enterprises
(SMEs) across Europe reveals that 80%
are confident about continued business
growth in the coming years, with 50%
already performing better than they were
in 2011.With SMEs in the UK performing
better than those in most other European
countries over the last two years,
confidence is understandably higher here
than on the continent.
As green shoots emerge and
economies begin to recover, SMEs are
looking to make smart investments to
maintain growth. Our survey shows
that, in addition to boosting spending
on staff, marketing and premises, SMEs
are prioritising investment in technology
as a way to help to drive sales and
revenue. The top priorities for investment
in technology amongst SMEs include
company websites (17%) and 4G data
and cloud services (equal second with
12% each). Smartphones and tablets are
not far behind, with 10% of SMEs making
devices an investment priority.
Leveraging technology to enable
business success
From cloud services to mobile and
tablets, technology is increasingly
critical to business operations and is fast
becoming the backbone of any successful
business, regardless of its size.
Today, customers expect a positive
experience and immediate response
if something isn’t right. If a customer
is unable to get hold of someone to
remedy a situation, they will simply
look for another option. SMEs realise
that in order to maintain a competitive
edge, as well as keep up with larger
enterprises, they need to invest in the
right technology that will enable them to
provide the 24-7 service their customers
expect. Four out of five (82%) SMEs that
have already invested in technology to
help them become mobile and work
more flexibly say they have seen direct
business benefits as a result.
Take Diamond Logistics, for example.
As one of the country’s fastest growing
logistics providers, its success depends on
its ability to respond quickly to customer
requests.With business growing at a
rapid rate, the company needed to invest
in a communications infrastructure
that would allow calls to be answered
anytime, anywhere. By linking its landline
to mobile, Diamond Logistics has been
able to increase its level of customer
service and satisfaction, which has led
to the opening of 14 new locations and
plans to open a further 25 in 2015.
Many other SMEs recognise that as
they grow they will need to ensure they
are supported by the right technology.
A majority of SMEs in Vodafone’s study
Jonathan Kini, Head of Small & SME
Business at Vodafone UK, explains how
technology is enabling UK businesses to
work more flexibly
say communications technologies are
fundamental and will help transform their
business, particularly mobile solutions
and smart devices. In fact, two thirds
(68%) say the cost of not having mobile
solutions is greater than the cost of
having them, a clear example of where
the benefits of technology outweigh
its costs. In the UK, 57% of SMEs have
adopted tablets and 45% have adopted
cloud services, a number that’s likely to
grow as the need to access information
anytime, anywhere grows.
Most SMEs reported customer service
as the main benefit of mobile services,
ahead of internal efficiencies. This
highlights the importance of providing
SMEs with cost-effective mobile solutions
that enable them to compete against
larger organisations and deliver a more
responsive customer service.
The study reveals that tablets, cloud
services and unified communications are
the emerging technologies that SMEs
are most likely to adopt over the next
1-2 years. In light of the recent flexible
working legislation, these technologies
will be key in enabling employees to work
remotely and increase productivity no
matter where they are located, whilst also
providing OPEX savings.
Low adoption levels of unified
communications and managed devices
to date, with less than a quarter of UK
SMEs already using them, highlights an
opportunity for growth as workforces
become more mobile and the
proliferation of devices increases.
Barriers to adoption
Despite the clear benefits of emerging
technologies, about 40% of SMEs
perceive cost as a prohibitive barrier to
their adoption. However, that doesn’t
have to be the case, as cloud-based
infrastructures allow SMEs to deploy
innovative technologies without heavy
CAPEX investment in hardware.
As SMEs get ready for tomorrow’s new
opportunities, they recognise the value of
leveraging emerging technologies. Doing
so, not only gives businesses the flexibility
to operate from anywhere, it also aids
customer service, workforce productivity
and operational agility. No wonder most
SMEs see technology as fundamental to
their future success and are willing to
make the necessary investments.
