The value of being an early adopter – Latin American News Center

Written by: Heather Gordon, Head of Global Small and Medium Business at Microsoft.

There are about 400 million small and medium-sized enterprises (SMEs) around the world, representing 65% of global employment and up to 70% of GDP. Almost every business today is undergoing a digital transformation at its own unique pace. While the COVID-19 pandemic has accelerated the rate of technology adoption for many, only 17% of companies can be considered “early adopters.” These companies define themselves as those that “always adopt the latest new technologies” and have achieved tremendous results by always being first in line and fastest in adopting new digital solutions. Early adopters are 100% more likely to see revenue growth, and four times more likely to be positive about expectations than those who are slower to adopt new technologies.

When we look at the data for small and medium-sized businesses, we find that most of them fall into the category of what we call “technology followers,” who apply new technologies only when there is a competitive advantage or when the new technology can offer a benefit. Commercial benefits tested and verified. Microsoft partners can help small and medium business customers understand the connection between technology and their business goals, and adopt solutions for greater and faster growth. In today’s blog, we’ll delve into the value to SMB customers as they become early adopters.

A note on terminology: Throughout this blog, I will be comparing the stats and attributes of “early adopters” to a group we call “tech backwards.” The latter is a term that includes both cautious adopters, who only adopt commonly used technologies with proven benefits, and slow adopters who are not interested in new technologies until necessary. ‘Tech-lagging’ account for 37% of SMEs.

Early adoption value

Looking at the numbers, early adoption makes an attractive proposition for small and medium business customers. As mentioned earlier, our study found that companies with an early adopter mindset are twice as likely to report high revenue growth. They are more likely to be led by CEOs who are confident in their role and optimistic about change, and these companies are also four times more likely to be positive about their business prospects. They consistently report higher metrics on key business goals such as brand awareness and employee satisfaction. Our opportunity is to help clients position themselves to achieve these results for themselves.

How to spot an early adopter

There are certain company traits and leadership positions that are evident in leading organizations. They recognize the connection between technology and their business; In a departure from the prevailing attitudes of SMEs, they see technology as essential (in fact, they are five times more likely to actually use cloud technologies). They are also more likely to look beyond the obvious applications of technology and believe that it can play a role in solving core business problems.

We find that these attitudes tend to come from top to bottom. Leaders who quickly adopt new technologies in their personal lives are nine times more likely to lead early adopters than CEOs who are indifferent to these trends. We see this often among CEOs Millennium29% of them self-identified as “technophiles,” compared to 20% among the older cohorts.

Another frequent characteristic of early adopters is the size of their investment in technology. Early adopters have the largest technology budgets as a percentage of revenue and are likely to spend more than 10% of their revenue on technology. However, this is not always a definitive indicator, as SMEs in some countries (notably the US and India) already spend heavily on technology as a standard, so the difference between early adopters and late adopters in these countries is less significant. However, early adopters are constantly focused on the future and will likely have plans to increase their revenue spending by more than 10% in the next year.

Technology adoption and CSR/ESG goals

Almost all SMEs now set CSR/ERG goals for their business, and tech SMEs stand out more from their peers by clearly defining and measuring these goals. 82% of early adopters use certain CSR/ESG assessments to report on these goals on an annual basis, making them three times more likely to do so than tech laggards.

Adapt your approach

Early adopters are particularly ambitious about their cloud deployments: 42% describe their tech deployments today as all or mostly cloud, compared to just 8% of tech fallbacks. As leaders increasingly prioritize sustainability goals, partners can help them adopt an approach that has demonstrable sustainability benefits. Leaders in all sectors plan to expand cloud deployments in the future. As customers seek partners to help them through their growth journey, this is where they can develop a shared understanding of cloud technology as a differentiating factor to reach SMBs with specialized tools and knowledge.

according to Mason analysis, Technology spending for small and medium-sized businesses will rise by 2023 to $1.2 trillion, with early adopters of technology more willing, bigger budgets, and more willing to work with partners. This presents a dual opportunity for partners: reaching existing high-tech SMEs with customized solutions, helping new customers adopt this mindset and boosting their growth. To effectively align your practice with SME situations, I encourage you to explore full study And keep an eye out for future blog posts on this topic.

Tags: Small and medium-sized companies