Small and medium-sized businesses are embracing digital transformation, according to CompTIA.
The Business Relevance of IT in the SMB Market, which surveyed 600 U.S. SMBs during August 2016, found that cybersecurity, data utilization and the modernization of legacy infrastructure and applications as key areas for improvement, which opens up opportunities for channel partners with the right mix of technology, business and sector-specific expertise to play a role in guiding purchasing decisions by recommending appropriate solutions for their SMB customers.
The role of managed services also continues to be important, with 40 percent of SMBs reporting using managed services in some capacity, and another 38 percent indicating they have considered managed services.
Other key findings of note include the fact that two-thirds of SMBs indicated technology is a primary factor in pursuing business objectives; 31 percent rate it as a secondary factor. And as to what those objectives are, customer retention tops the list (50 percent), followed by expansion into new markets (48 percent), business process improvement (46 percent), innovation (42 percent) and workforce development (34 percent).
One in three SMBs report spending more than $100,000 annually on technology, with the remainder spending less; and 43 percent of SMBs say investment level is lower than it should be.
“This highlights a key challenge: balancing the desire to embrace innovation with the realities of running the business,” said Tim Herbert, senior vice president, research and market intelligence, CompTIA. While 60 percent of SMBs believe their return on investment in technology has been excellent or good, 40 percent categorize it as “just okay” or disappointing. Among the reasons:
- Ongoing maintenance costs and fees
- Required upgrades and built-in obsolescence
- Staff time needed to operate and maintain
- Upfront costs
- Complexity
The sentiment on ROI is accompanied by a caveat. Only one in five SMBs report using dedicated ROI calculators to evaluate the impact of their technology spend. Others rely on more general or informal tools, or on “ballpark” estimates. Still, it signals the need for technology providers to fine tune their ROI discussions with customers.
“Because technology is often positioned as being capable of delivering on the seemingly impossible, expectations can be detached from reality,” Herbert said. “This can be especially problematic for small businesses that may not have a clear vision and strategy for how various components or technology come together to form a solution or solve a business problem.”
One such example is cybersecurity, where the benefits come in prevention.
“Some firms are ill-equipped to assess the true value of risk mitigation versus cybersecurity spending,” Herbert said. “Technology solution providers can play a bigger role in the ROI discussion with customers by setting realistic expectations, identifying indirect benefits of technology spending and providing big-picture strategic guidance and focused, tactical expertise,” he added.
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