SMEs Can Now Take on the Goliaths and Win
In the past, small and medium enterprises (SMEs) were at a severe disadvantage compared to large companies. They didn’t have the resources and economies of scale to bid for and win big contracts. Recent advances in cloud-based platforms, artificial intelligence, big data processing and other technologies are changing the playing field. Today it’s possible for an SME to scale its operation to take on more ambitious projects cost-effectively. It’s changing the way SMEs are approaching competitive bidding for contracts.
SMEs are Better at Technology Adoption
Small and medium enterprises are unable to match the financial prowess of larger organisations, but they have a few qualities that give them competitive advantages over large enterprises. Here are a few:
- Faster Adoption Rate: SMEs don’t have to get slowed down by complex bureaucracy and policies. They can make instant decisions. If a new technology can provide a solution to a problem, it’s easier for an SME to change course and incorporate that technology into the production line.
- Cost-Effective Operation: Low-cost technology solutions can help SMEs optimise their operations better than their larger counterparts. A large enterprise has to make sure there is more redundancy so it’s harder to create streamlined solutions. The results are wasted resources and higher costs of operation.
- Better Team Cooperation and Coordination: Fewer employees mean that SMEs have easier time coordinating efforts across the organisation. It also means that teams are more ready to adopt time-saving technologies. Generally, large organisations try to throw bodies at problems which isn’t an effective approach.
- Motivations for Higher Quality: Small and medium enterprises can use smart and low-cost technologies to provide high-quality work even if they have less experience. Previously, SMEs had to gain years of experience before they could market themselves as experts. Low-cost smart technologies allow SMEs to produce competitive work without spending years learning a trade from scratch. It provides additional motivation for SMEs to adopt new technologies.
Leveraging the Power of Low-Cost Technology
Businesses were hesitant to hire SMEs for large contracts because most SMEs lacked the resources to complete these projects. Only multinational enterprises were able to afford the latest technology to optimize their production pipelines and meet the demands of complex projects. However, the rise of low-cost technology solutions is changing the dynamics. Today’s cloud-based applications are affordable for all business sizes. SMEs can enjoy the economies of scale from applications that use Amazon, Google, and Microsoft cloud solutions.
An excellent illustration of the benefits of low-cost technology can be observed in the rise of building information modeling (BIM) applications in the construction industry. BIM software helps construction companies manage information across the life-cycle of the project. In the past, only large corporations could afford the price of BIM solutions. Today, cloud-based processing is making BIM affordable for SMEs. Small companies can use BIM solutions to manage their large projects. During a bid for a contract, they can showcase their visual representation of building plans with the same level of professionalism as a multinational corporation. It’s a game changer for small and medium enterprises who are in the construction industry.
Technology Has Levelled the Playing Field for SMEs
Massive multinational institutions can’t stomp out small competitors easily anymore. SMEs are taking advantage of low-cost technology solutions to bid more aggressively for contracts and stay competitive. For SMEs, the use of smart and inexpensive technology is the key to success in the world of large projects and large competitors.