Digital Transformation: The Difficulties of Medium-Sized Enterprises

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The European SMEs point decisively to digital transformation and are willing to invest in this area up to 20% of the IT budget. Despite what they feel hampered by external factors and encounter more difficulties than large companies and small ones.

New research commissioned by Ricoh Censuswide highlighted that 95% of European SMEs expect that digitization brings significant benefits. In addition, half of the sample said that the digital transformation is essential to overcome some barriers to growth.

63% of respondents mentions these regulatory complexity barriers and the costs of their implementation as one of the main issues that could be resolved thanks to the switch from paper to digital.

Almost 91% of medium-sized companies say that this transformation is harder for them than it is for large companies and small ones.

It is because the big companies have the economic resources to introduce specific skills, while small ones have less difficulty because they are more agile, more technology and more inclined to understand the benefits of digitization.

Nevertheless, the medium-sized companies have already begun the journey into the digital world by developing projects to transform business processes, with 94% of them that have already implemented specific technologies for digital transformation.

Medium-sized businesses are finally aware of the value of digitization, and 66% of the sample agrees that it would allow obtaining the competitive advantage. The improvement of business processes is cited as the most demonstrable advantage (indicated by 80% of the sample), while the financial department is considered the primary beneficiary of these technologies, followed by sales and customer service.

Medium-sized companies aiming firmly to digitization, but are held back by some factors that do not depend on them. European governments should understand the importance of providing appropriate support this market segment.

This means considering the medium-sized enterprises in their specificity and eliminating bureaucratic barriers that slow down the run toward digitization.

By |2017-03-09T17:32:34+00:00March 9th, 2017|Digital Empowerment, Digital India|1 Comment

One Comment

  1. Ogeto Omwancha October 12, 2017 at 2:49 pm - Reply

    Very insightful article. Today all companies are required to establish an online presence. This has become even more important after the extreme growth of social media networks, which is where we spend most time when we are online. Almost every small and mid-size business has adopted some form of digital technology. Social collaboration, mobile apps, communication resources, and cloud computing – these are just a few of the many options available. But when considering investing in such innovations, small and mid-size businesses have specific criteria: The technology must transform market risk into opportunity and cost into revenue immediately, without disruption, and with little to no impact on cash flow. Declining cost of technology, making digital technology accessible to large organizations as well as small and medium enterprises, combined with the increase in terms of capabilities and ease of use of digital technologies constitute an equalizing force in the marketplace, revealing great opportunities for small and medium sized businesses. Coupled with the many emerging Innovative Startups, this creates an acceleration effect of technological progress. Digital transformation is impacting businesses of all sizes, industries, and regions – but size may be an indicator of how successful they will be. The essence of being a small or mid-size business can lead to a digital transformation that can help you out-compete larger, more established rivals. You just have to be willing to reevaluate what your business’ size offers, recognizing the potential value ahead and getting the right solutions and support to fully realize that value.

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