How does digital transformation influence SMEs?
It is fundamental. A sufficient degree of digital intensity means that organisations are stronger, more agile and have more capabilities, for example, to:
- Be more resilient to potential setbacks, as we have already seen during the pandemic.
- Gain new options for accessing new markets.
- Adopt new, more efficient and collaborative ways of working.
- Have sufficient data to manage and focus more on the business.
- Establish new customer relationships.
- Design more sustainable processes supported by digitalisation.
- 85% of SMEs say their productivity has increased thanks to the flexibility of the cloud.
What are the differences compared to large companies?
In the UK, only 74% of SMEs have a basic level of digital intensity (they use between 4 and 6 of the 12 technologies considered by the EU to be necessary for their digitalisation and which large companies have been incorporating for years). This is still far from the 90% target set for 2030.
Another difference with large companies is that only 30% of SMEs have dedicated staff and specialists in technical matters. They also suffer 70% of cyberattacks.
Small and medium-sized enterprises generally require services administered and managed by third parties, and often resort to contracting flexible tools and packages tailored to their needs.
Telefónica offers specific services and digital solutions for SMEs that can be combined with a flexible and personalised Fusion Digital offer, which combines the best connectivity, cloud-based switchboard and fixed and mobile telephony with integrated security. These types of offers provide customers with experts who manage their services for them so that they are always available, as well as self-management tools to carry out the most common operations in a simple and user-friendly way.
Are there any particular issues that affect small or medium-sized enterprises?
When considering the digital transformation of small or medium-sized enterprises, it is important to bear in mind that their size and resources determine how digital solutions are implemented.
SMEs tend to view the implementation of digital solutions more as an expense than as an investment. This perception changes if they see short-term results.
They do not usually have an ICT manager and therefore lack a clear digital strategy, which means that they sometimes act impulsively according to their needs.
What strategies should SMEs implement for digital transformation?
Given that SMEs do not usually have an ICT manager, the implementation of digital solutions is not usually based on technological strategies, but rather on covering use cases with a particular tool. This may not be the best approach, as it is often done without considering integration, scalability, maintenance, security or technological evolution.
It is essential that they rely on official digitisation strategies, such as the digital KIT, but also that they rely on manufacturers, integrators and technology companies to advise them so that they can have an ICT strategy that covers all the use cases it offers.
Are there differences between sectors?
Yes. In addition to the lack of resources, barriers to training and resistance to change are key factors. That is why the companies most sensitive to digital transformation are those engaged in ICT and scientific and technical professional activities.
What are the new technologies that can most influence the digital transformation of SMEs?
There are great opportunities to take advantage of technological advances.
Artificial Intelligence is a reality, which is gradually being implemented to automate and robotise processes. It is a great operational and support tool when used well.
Data processing and analysis tools are becoming increasingly accessible and powerful. They are an essential part of a company that wants to focus on its business.
Cloud services are advancing to offer great advantages to SMEs so that they do not have to rely on technical staff to manage infrastructure at their facilities. New trends in edge computing or simplified cloud computing with low-code or no-code tools for companies that have technical staff.
New 5G, Wi-Fi 7 and IoT communication networks are offering solutions for farmers and livestock breeders, managing fleets in real time and improving mobility, enhancing the use of security and alarms, and being part of Industry 4.0 to modernise and provide remote access to factories.
