SMEs are basically Small and Medium Size Enterprises. These ones are determined by the number of the staff and either turnover or balance sheet total of the company. According to the EU, Medium size companies are those that have up to 250 employees. On the other hand, small and micro companies have up to 50 and 10 employees respectively.
In these tough economic times, organizations are looking for effective methods to improve the efficiency and profitability of their business.
One way to improve their business efficiency is by implementing new digital technologies and systems in order to facilitate many processes within the organisation and also to gain competitive advantage.
The adoption of technological systems may be divided in three stages which are initiation, adoption, and implementation. The initiation is concerned with gathering and evaluating information about the technological innovation. The adoption is when a decision is made about adopting the technological innovation. When the decision is to go ahead with adoption, the implementation involves implementing the technological innovation in the business.
But why implementing systems in small businesses?
Systems reduce risk, improves profitability, help organizations to grow, improve the way to manage and control information and knowledge. Systems play a key role in providing information for decision making within the organization. That is why they have changed the nature of business significantly.
The areas that small companies should definitely systemize are: Accounting systems, tracking systems, customer service systems, sales marketing systems, inventory systems, general business systems, among others.
The implementation of the system could be on site, cloud or hybrid.
Cloud is an innovative solution for small business because it can help them to save costs. The information will be stored in the servers and provided on line as a service to the company in a pay as you need manner. However, it has some risks too. Like the risks of safety in the confidentiality areas and the dependency on internet to run the system and get information.