It is no secret that countries across the Middle East are working hard to diversify their economies. This has clearly been more successful in some countries than in others, but despite these successes, a large portion of the Middle East’s private sector remains heavily reliant on the oil and gas industry, and — by extension — the government sector.
The relatively low oil prices that have characterised the last few years have ratcheted up the pressure on private sector firms, forcing many of them to review their investment priorities. And nowhere has this pressure been more keenly felt than among the legions of small and medium-sized enterprises (SMEs) that account for such a significant portion of the region’s business landscape.
Indeed, many smaller businesses are being hindered by cash-flow difficulties, a situation that is only being compounded by the relatively limited financing options that exist for SMEs in the region. Such challenges are inevitably leading to project delays and even cancellations.
In a bid to ease this pressure, firms of all sizes — but particularly SMEs — are extending their technology refresh cycles as they opt to run with their existing hardware rather than invest in renewals. This is especially noticeable in the SME segment because hardware has long been the major technology focus for businesses of this size.
But while hardware will undoubtedly continue to account for the majority of technology investment in the SME segment, there has been a notable change in attitude recently as a growing number of SMEs have shifted their attention to the operational benefits that software and services can provide.
The almost-universal shift to third platform technologies by businesses of all shapes and sizes lies at the heart of this change, as SMEs have seen what mobility, cloud, big data analytics, and social have done for their larger counterparts and now want the same benefits for themselves.
As such, mobility is becoming a strategic priority for SMEs as it has proven to introduce considerable improvements in operational agility. The focus currently is on mobilising employee-facing applications in a bid to improve the productivity of what is increasingly becoming a mobile workforce.
The move towards cloud is another major trend shaping investment by the region’s SMEs as they go in search of lower upfront costs, greater access to more advanced solutions, and easier upgrades when the next wave of improvements arrives.
Security consistently ranks in the top three most critical challenges that all businesses — small and large alike — face in today’s digital era, and many SMEs are also embracing cloud as a way of ensuring the kind of secure IT infrastructure they could simply not afford via traditional means.
Much has been written about the huge value of information in the digital age, with “data is the new oil” becoming the new cliché of our times. Successfully harnessing the power of big data analytics is increasingly being viewed by market leaders as the ultimate differentiator for an ultra-competitive business landscape.
It should therefore come as little surprise to learn that this is becoming another key area of focus for the region’s SMEs as they look to improve their decision-making capabilities by embracing business intelligence and predictive analytics solutions.
At a time when SMEs are being forced to do more with less, investment in automation and the 3rd Platform technologies outlined above hold the key to success. Through the use of technology, businesses can streamline their workflows, increase their productivity, lower their costs, improve their customer experience, and enhance their overall business performance.
These are the kind of benefits that all businesses crave, regardless of their size or industry. And the means required to achieve these benefits are increasingly being made available to SMEs. The lack of dedicated solutions specifically targeting SMEs has traditionally been a barrier to technology adoption within this segment, particularly here in the Middle East. But all that is set to change.
Indeed, while providers in the Middle East have lagged behind the world’s more mature markets when it comes to offering IT solutions that cater to the unique demands of the SME segment, this practice is rapidly gaining momentum. And with this momentum comes great opportunity.
Around the world, emerging technologies have enabled SMEs to compete with larger firms more effectively, enter new markets more easily, and develop new products more quickly. All of which should be music to the ears of SMEs across the Middle East as they go in search of inspiration.
