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Research Shows Correlation Between Digital Transformation and Faster Growth Among Small and Midsize Enterprises

February 16, 2016 by SAP News 62

WALLDORF — Small and midsize enterprises (SMEs) that have embraced digital technology show faster growth than companies that have not. The findings come from a new study* released today by SAP SE (NYSE: SAP) that analyzed data from 3,210 respondents in 11 countries who work at a company with between 10 and 999 employees.

The study, conducted by IT research firm IDC, indicates strongly that SMEs around the world understand and benefit from the value of analytics, collaborative and customer relationship management (CRM) software to help them run simple and compete with larger enterprises.

The study’s most significant findings about the adoption rate and benefits SMEs are experiencing from digital technologies include:

  • More than 39 percent of SMEs in all regions agree that “active participation in the digital economy will be essential to our company’s survival in the next three to five years.”
  • SMEs that grew revenue 10 percent or more in the last year say they are “well under way in applying technology to connect people, devices and businesses.” This represents more than one third of all SMEs, and more than 45 percent of SMEs with between 500 and 999 employees in the survey.
  • At least 50.6 percent of SMEs across all regions surveyed use collaborative software as a result of their digital transformation, making the technology the most used by SMEs. CRM and business analytics software were the next most used by SMEs, with at least 38 percent and 37 percent of SMEs in every region using the respective technologies.

Between 52.5 percent and 60.2 percent of SMEs surveyed said that “new technology solutions have allowed us to begin or continue revising our workflow and processes to streamline operations and improve productivity.”

The study also revealed that SMEs are conscious of certain risks and challenges associated with digital transformation. Many of these concerns were most prevalent among SMEs in North America, Asia Pacific and EMEA. Nearly one quarter (24.7 percent) of SMEs in North America, for example, say they have “done little to no work” regarding their digital transformation. Other notable findings from the report about digital transformation risks and challenges include:

  • About one third (between 30.4 percent and 36.6 percent) of SMEs surveyed agreed that “personal relationships among company employees have not been strengthened by our adoption of technology,” with larger SMEs agreeing more.
  • Between 35 percent and 45 percent of SMEs surveyed are “concerned that we will rely too much on data to make effective business decisions.” This concern was more prevalent among larger SMEs.

“The overwhelming message from this report is that digital transformation has a big impact on small businesses around the world,” said Rodolpho Cardenuto, president, Global Channels & General Business, SAP. “Our portfolio – the SAP Business One application, the SAP Business ByDesign solution, the SAP Anywhere solution, and the SAP S/4 HANA suite, edition for SAP Business All-in-One solutions – is the digital foundation for SMEs to thrive in today’s new digital transformation. It is proven that companies using these technologies run simpler and grow faster. It is also clear that personal connections and business instincts continue to play an important role in making the right decision. SMEs should think about navigating a digital transformation journey that lets them combine the best of both worlds.”

For more information, visit the SAP News Center. Follow SAP on Twitter at @sapnews, @sapmidsize and @sapsmallbiz.

Media Contacts:

Angelika Merz, +41 (58) 871-7216, angelika.merz@sap.com, CET
Nate Hubbell, FleishmanHillard, +1 (617) 692-0531, nate.hubbell@fleishman.com, ET

*IDC InfoBrief, sponsored by SAP, “Thriving in the Digital Economy,” February 16, 2016.
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP’s future financial results are discussed more fully in SAP’s filings with the U.S. Securities and Exchange Commission (“SEC”), including SAP’s most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates
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