Two-thirds of SMEs are using technology to grow their business

UK SMEs are actively investing in digital technologies to increase their revenues and gain new customers, a study has revealed.

The research, conducted by SAP Software Solutions, found that two-thirds of SMEs are using technology to improve their business.

Its study looked at the technological trends of UK businesses to find out what companies are doing, and what they can do to exploit digital technologies to take advantage of the digital transformation.

Using the responses from more than 300 UK business leaders, SAP found that the main reasons for investing in technology innovation were revenue growth, customer acquisition and driving operational efficiencies.

It further revealed that cloud adoption and digital transformation by SMEs is on the up, with more than half (56 per cent) of UK businesses now using some form of cloud-based service.

And just more than a fifth (21 per cent) of SMEs said they are looking to improve mobile worker enablement through technology investment.

Meanwhile, some SMEs voiced an air of caution on the uptake of new technologies, with 44 per cent citing security issues and 28 per cent saying that the added costs were a problem for their business.

Furthermore, the agility and flexibility benefits of digital innovation ranked low as a priority for SMEs, with just 12 per cent of business leaders giving this as a reason to why they would invest in technology.

Cathy Daum, Senior Vice President at SAP, says the study illustrates that technology is a huge driver in setting SMEs apart.

“The research reveals that they’re looking for new ways to fully benefit from other areas of digital innovation. This includes strengthening business networks, improving mobile worker enablement and helping become a more agile organisation by investing in areas such as cloud-based services,” she said.

“SMEs who want to maintain a competitive advantage need to build these innovations into their existing technology infrastructure to take full advantage of the digital economy and compete with larger businesses.”