New research by Cisco has revealed that despite SMBs understanding the benefits and need for digitisation in their business, the cost of implementing the technology is still proving to be too much of a barrier for many – leaving them leaving them out in cold and at a major disadvantage when taking on larger competitors.
The study, conducted on over 500 SMB owners and managers in Australia, found that almost three quarters (72%) believe their business would benefit from increasing the use of technology to support digitisation.
However, despite this, 69% still feel that is too expensive for them to regularly use IT support to harness digitisation at the same level as larger enterprises, while half (52%) feel limited by their businesses’ lack of technology expertise, research or knowledge.
Similarly, SMB owners and operators also identified a lack of IT resource and gaps in expertise within their business as another barrier to digitisation. 7 in 10 (70%) owners and managers would like more IT expertise brought to their business, with nearly a third (31%) of SMB owners and managers operating their business without any IT resource. Half (51%) rely on an internal IT resource, of which 82% is an untrained staff member who is good at technology rather than seeking professional support and advice.
Surprisingly, despite the on the go nature of many SMBs and a focus on productivity, many small and medium businesses are also falling behind in the mobility race. Nine in ten (91%) SMB owners and managers are not harnessing true telecommuting technology, and just 2 in 5 (38%) have the technology to allow employees to work remotely – something that has been proven to boost productivity within businesses.
What do these findings mean?
Speaking about the research, Tiffany Wright, Director of Commercial Sales at Cisco ANZ, said the findings identified key pain points for SMB owners that need to be addressed by IT and technology providers.
“Embracing the challenges and dealing with the disruption of digitisation requires SMBs to adopt technology that drives growth through competitive advantages such as agility or greater productivity. This is crucial when fighting for business against incumbent enterprises or protecting business from new market entrants. To help, Cisco is now offering a range of tools that enable SMBs to better their technology portfolio.
“The research identifies cost as the number one barrier in making this transition, and lack of resource and expertise are also major pain points for SMBs. With this in mind, we’ve created CiscoST>RT – simple, secure and smart IT solutions designed to help SMBs to kick start their digitisation journey.”
What else did this Cisco research find out?
SMB owners think positive with embracing technology, with three quarters believe it would benefit their business. Three quarters (72%) of SMB owners would believe their business would benefit from increasing use of technology
The cost of IT support is the #1 barrier for SMB owners in harnessing digitization – despite understanding the benefits. 7 in 10 SMB owners would use utilise IT support if it were not so expensive (69%)
SMB owners identify a need for additional IT Resources, with 7 in 10 wanting more expertis. 7 in 10 SMB owners would like more IT expertise brought to their business (70%). Nearly a third (31%) of SMB owners do not have any of the identified IT resources in their business. Over half of SMB owners rely on an internal IT resource, whether that be a staff member who is good at technology (42%) or a professional IT staff member (27%)
IT intricacies prove difficult for small business management, with three quarters of owners having at least one frustration. Three quarters (73%) of SMB owners have at least one frustration when it come to IT. Constant upgrades are the biggest frustration for business owners and manager (36%) followed by related expenses such as internet bills and subscriptions to software (32%) and having too much software (28%)
SMB Owners are limiting mobility and collaboration when managing their business. 3 in 5 (62%) unable to access data without VPN. 77% don’t use any collaboration tools that allow employees to work on documents simultaneously.
SMB owners are also falling behind in the mobility race, with 9 in 10 not harnessing telecommuting to allow employees to work remotely. SMB owners do not have true telecommuting (91%)
IT intricacies prove difficult for small business management, with three quarters of owners having at least one frustration. Three quarters (73%) of SMB owners and managers have at least one frustration when it come to IT. Constant upgrades are the biggest frustration for business owners and manager (36%) followed by related expenses such as internet bills and subscriptions to software (32%) and having too much software (28%)
Cisco conducted the research to support the launch of the new initiative, Cisco Start designed specifically for the Midmarket and Small and Medium Sized businesses by providing enterprise-class technology at affordable price.
