How SMEs leverage technology must become a key boardroom topic

2014 is the year for "transformation" to be more than just a buzzword, but an actionable tactic that leverages technology. Worldwide, SMEs are facing more and more pressure to transform their businesses. The reasons are, among others, a need to grow, become more competitive, adjust or change the way they do business, or to better manage their supply chains. In addition, globalisation is a very real source of competition for SMEs, resulting in many seeking sources of revenue beyond their home country's borders.

In a survey conducted by Oxford Economics in 2013 of SMEs across the globe, more than half (59%) of respondents see technology as a key differentiator for their firms, and as much as 57% cite technology as core to their business transformation efforts, says Chris Welham, director at Space Age Technologies.

But who should drive this change? Nearly two-thirds (63%) of respondents say their CEOs view technology as critical to future success. However, when one looks at the results by region, CEOs of EMEA (Europe, Middle East and Africa) companies are far less likely to drive these changes than CEOs of North American companies (34% vs 52%). On top of this, nearly half (47%) admit they struggle to determine the best transformation strategy.

Technology has become more than just an essential tool to do business. It has become integral to virtually anything we do. For example, the correct use of technology in customer service can be the difference between being able to consistently delight one's customer or not. For many businesses, all business transactions are in the digital world - consider e-commerce, software-managed supply chains, ERP, electronic invoices and statements. South Africa's very own SARS is a very good example of how technology can significantly improve a business.

People have adopted technology into their lives even more than in business. This will only accelerate, with some of the big ticket items at the recent Consumer Electronics Show (CES 2014) in Las Vegas being wearable technology (eg, Google Glass and smart watches), the integration of smartphones into cars, and how the "Internet of Things" is fast changing into the "Internet of Everything", as more and more of what we use are digitally enabled and available to monitor, measure and even control via the Internet.

While some people bemoan the rapid rate of change and others argue that most technological innovations make our lives better, there can be little doubt that to survive in business, how IT and - in the broader sense - technology, is leveraged will, in most cases, set apart the companies that grow from those that shrink.

In many companies, IT is a significant expense item that is constantly being targeted. To survive the challenges of today's business world, SMEs absolutely must bridge the gap between business and IT and work together to discover how technology can be leveraged to further business objectives and goals. This will only be possible, though, if understood and led by the senior business leaders, including the CEO.