With rising competition from new digital players, investing in new technology has never been more vital for keeping up with industry trends and retaining market share. But do IT companies suffer from the old cobblers shoes adage in this respect?
A recent survey commissioned by Exact revealed that 38% of the UK’s small to medium sized enterprises (SMEs) are concerned that if they don’t adapt their business models for our increasingly digital world, they could go out of business within the next five years. Despite these growing concerns, only 6% of these businesses are doing something about it and investing in new technology, and worryingly IT companies are equally bad.
All organisations, but especially IT businesses, must adapt to thrive or face struggling to survive.
How can IT SMEs rise to the challenge?
- Invest in cloud technology
Whilst you are busily moving your customers to a cloud model, how much of the software you use to drive your business is delivered in the same way? Digitalisation of a company can require vast amounts of investment of both money and time; however, this has proven worthwhile. In the past year 58% of businesses have moved to a cloud computing model, which is an increase of 11% from the previous year. Investing in the setup of a cloud model and cloud tools for your business will bring a number of benefits, including improved efficiency, increased collaboration and up-to-date software plus it frees up capital expenditure.
- Instil a culture that nurtures a tech-savvy workforce
One of the best ways to continue growing as a business and remaining adaptable to change is by bringing in new thinking. Building a positive, modern tech-forward working environment begins at the recruitment stage. By attracting new forward-thinking employees from a variety of backgrounds and skill sets and cultivating a collaborative work ethic, your business can ensure it continues to move in the right direction. Make sure these people are equally applied to solving internal business problems as well as customer issues.
- Form strategic technology partnerships
In a Vodafone poll technology providers were thought to be great third-party partners. By partnering with other companies, you can leapfrog the competition in developing new or complimentary solutions for your product portfolio. 69% of the businesses polled believed the benefits of having a third-party tech partner enabled them to compete within the larger market and strengthened the company’s capabilities. These partners can also support scalable growth and help you adapt to new tech trends, ease transitions and assist with training without overshadowing your overall business aims and plans. In this new world, your old competitors are now your new friends.
- Utilise alternative finance options
As with technology partners, finance partners can be equally valuable. When traditional funding sources are unable to meet funding needs, IT SMEs can now look to a growing alternative finance market to assist their growth and transition. A new generation of IT-specific finance companies can provide much more bespoke, relevant services that are best suited to an IT company’s needs and help them stay in control of their finances.
As a specialist provider of IT finance, we can create tailored solutions, giving you rapid access to funding through a simple and quick process. For or to join the simply contact us and we’ll be glad to set up a demo or answer any questions.