New Study: Small and Medium Companies Who Start Simple Grow Faster

New research  reveals the importance for small and midsize enterprises (SMEs) to design their businesses to run simple from the beginning.

The announcement was made at the SAP SME Summit being held in New York City on Nov. 10, 2015.

Businesses add new software and processes as they grow in size. This introduces complexities into their business, that can create a series of dis-jointed solutions that can stiffle efficiency and growth. According to a survey conducted  of SMEs conducted by  Knowledge@Wharton and SAP, 72 percent of business leaders and team members say business complexity has effected efforts to meet their  goals. Over 30 percent said it “strongly inhibited” that ability, and 58 percent pointed directly to technology complexity as the culprit.

While  companies see the need to leverage technology in the near future, only about half (49 percent) of senior leaders believe business simplification is of significant strategic importance today. That number jumps to 65 percent when asked if they believe it will be of significant strategic importance within the next three years. Looking ahead, 47 percent of respondents believe they will be using self-service tools when they are making decisions within the next three years, yet only 19 percent are currently using this kind of support.

“Business simplification is much more important to small and medium business than ever before,” said Rodolpho Cardenuto, president, Global Partner Operations, SAP. “The interconnected global economy has opened opportunities to small businesses that never existed before, but they come with new challenges as well. If these businesses think and plan from the beginning on how to run simple in the long run, they will grow faster and perform better.”

Small and midsize businesses need secure solutions that help them to start simple and stay simple with minimal risk or disruption to services. The path towards simplification requires a strategic plan that will get them to being digital, connected and able to grow their business. Running simple in the digital economy was identified as being more important the larger a business becomes. The earlier small and midsize businesses can design systems to help them stay simple, the faster they will grow.

To find out how Signum can help your business call 01244 676 900, or fill in the form below.

“My Business Is Small – So Why Worry About Running Simple?”

“My business is small – so why should I worry about simplifying my business?””

At Signum we hear this a lot from executives at small and even midsize companies. Most are focused on growth, growth, growth – as they should be, especially as competition intensifies.

But many growing businesses eventually hit a wall of operational constraints that limit their ability to deliver goods and services, or branch out into new markets. They simply can’t grow anymore because their business is running on a patchwork of cobbled-together processes, organisational structures, and IT systems that can’t scale and adapt.

Sound familiar?

It’s easy to think that business simplification is something you worry about after your business gets big enough to be complicated. Big companies are notoriously bogged down with overly cumbersome processes and locked into fragmented legacy systems and inflexible network architectures.

But there’s never been a better time for leaders of SMEs to think about business simplification. Run simple, and you can avoid this costly, frustrating scenario entirely – and keep the doors of innovation and growth open now and in the future.

Chart a Better Path to Sustainable Growth by Running Simple

From an IT perspective, this means saying goodbye to deploying stand-alone apps and patching your infrastructure here and there to meet immediate needs. Because over time, it will become overly complex, rigid, and less effective. And it means building a flexible, scalable operational platform that can deliver on your corporate growth strategy.

With the right platform, you can pursue growth while remaining resilient, adapting to market changes swiftly. So as your business grows – and you need to outsource non-core operations, support new business models, sell across multiple channels, and go global (with all of the regulatory, linguistic, currency and other complications that brings) – you can do so with ease.

That’s the power of running simple.

Benefits of business simplification are huge: better customer experiences and retention, higher profits, lower costs, greater employee engagement and retention, increased operational efficiency…the list goes on. They can also react faster to market changes and customer needs, lighten employee workloads, and accelerate time-to-innovation and time-to-market.

SAP solutions for SMEs make it easy for you to run simple. Easy to install and use, they are tailored to your specific business needs so they’ll work for you now – and as you grow.

 

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