Business as usual? How SMEs are using digital services to ... › ...2 3 HOW SMES ARE USING DIGITAL SERVICES TO COMPETE Micro, small and medium-sized enterprises (SMEs) are a vital

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HOW SMES ARE USING DIGITAL SERVICES TO COMPETE

Business as usual? How SMEs are using digital services to compete

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Micro, small and medium-sized enterprises (SMEs) are a vital part of the global economy. By number, they dominate the world business stage. Estimates suggest that more than 95% of enterprises across the world are SMEs, accounting for approximately 60% of private sector employment.

At Telefónica, we have always seen SMEs as partners as well as customers and recognise that they are one of society’s best drivers of innovation.

Innovation depends on our ability to grasp the opportunities available to us. With big data or artificial intelligence fast becoming a reality, we are passionate about helping SMEs to embrace the new and emerging digital services that will help to power it. By understanding what technology makes it possible today, we can push the boundaries of what it will achieve tomorrow.

Telefónica was one of the first telcos undertaking the process of its own digital transformation a few years ago and we know the opportunities better than most. We want to take everything we have learned over the past five years and put that in the hands of SMEs, so they too can transform their businesses, their industries and society at large.

To do that we must first understand what is holding them back. This report shines a light on their world to understand their attitudes and how they can overcome the obstacles they face.

Iván López Lucas

B2B Business Acceleration Director

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Introduction

In most countries, a successful SME sector is instrumental in building and sustaining growth for long-term prosperity. When growth becomes stronger, SMEs play a major role in driving industrial development and meeting demand for services.

The global environment for smaller businesses is rapidly changing. Technology has increased competition, allowing innovative ideas to develop into market-disrupting businesses. The potential for new technology to level the playing field is allowing smaller businesses and startups to challenge and disrupt industry incumbents and discover new markets is immense.

Telefónica wanted to see if SMEs truly understand this, and whether they are acting on it. The purpose of this report is to see if

Once one digital enabler is implemented, others follow. The cloud, and associated analytical platforms, can be a step towards other technologies, such as native applications, wearable technology or vehicle technology. Then there is the opportunity to create a complex and ever-expanding network of devices, each gathering invaluable data about their users, their users’ environment, or their users’ experience.

This data gives SMEs the ability to measure and analyse from multiple sources, giving them access to unrivalled insights about their businesses and the forces that affect it. It also provides them with the tools to make savings in resources, time and operational costs, while driving sales by enabling more effective interaction with their customers.

For that reason, creating a sustainable, reliable telecoms infrastructure and offering world class business services are critical if the sector’s entrepreneurial potential – particularly for emerging economies – is to be fully realised.

EMBRACING CHANGE

LEVELLING THE PLAYING FIELD

THE DOMINO EFFECT

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1 Gartner 2016 CIO Agenda 2 IDC, The Next Steps in Digital Transformation

While the opportunity to transform is clear, we wanted to find out the extent to which small businesses are using digital services to change how they operate, their importance to future growth, and plans for implementation.

By understanding how businesses are using digital services today, we can begin to understand how well they are positioned for bigger technological shifts in the near future.

businesses in a selected number of countries in Europe and Latin America where Telefónica operates are embracing which digital enablers, what is taking priority and what is planned over the next three years.

By 2020 it has been predicted that 41% of enterprise revenue will come from digital business.(1)

However, as enterprises around the world undergo a digital transformation, less than half of the world’s small and medium businesses say they are actively engaged with digital transformation.(2)

As new digital services increasingly become a reality for SMEs and start to shape how we do business, those companies that understand how to knit together digital services will be best placed to capitalise.

In this report we’ll look at SME attitudes to the key elements of digital transformation, to see how SMEs are poised to embrace these new services. We have used a number of methods, including surveys, focus groups and interviews, to hear from businesses in Argentina, Brazil, Chile, Germany, Spain and the UK and find out how they approach:

Cloud Computing

Artificial Intelligence

Big Data

Security

Mobile Solutions

IoT


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Exploding digital services mythsOver the last two years, Telefónica hosted over 100 focus groups with 700 SMEs customers in Europe and Latin America to discover how they were adopting digital services.

During these focus groups it became clear that there were a series of misconceptions among SMEs that stop them from embracing certain digital services. Far from being unique to particular countries or geographies, the data from our focus groups shows that businesses in Europe and Latin America identified similar hurdles that make them reluctant to wholeheartedly embrace digital services. These include:

SMEs operate in an environment that intensely focuses on the present, trying to manage cash flow and minimise risks, and will therefore often put off decisions on digital investment. The belief that the spend will create a cost centre for the business overlooks the benefits that robust digital services can have to boost business growth and deliver substantial return on investment. Productivity and cloud-based solutions are continually becoming less

Equally, SMEs will often deflect digital services investment on the basis of their ‘readiness’ for a technology upgrade. This rationale can put businesses in a position where failure to create a supporting environment can restrict growth potential and lead to greater costs in ‘playing catch up’ later in the process. Having the right tools on hand can improve productivity and give smaller businesses leverage against industry competitors.

The fourth misconception is that security isn’t a priority. Yet more and more SMEs are seeing the realities of securing their networks and devices. Fuelled by high-profile security breaches and cases of data theft, businesses are realising that there’s no such thing as ‘too small’ to be taking proactive measures

A third inhibitor to digital services adoption comes from a fear of lacking, or otherwise having to invest heavily in, internal expertise to manage and maintain the technology environment.

DIGITAL SERVICES ARE EXPENSIVE

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DIGITAL SERVICES ARE FOR MEDIUM- TO LARGE-SIZED BUSINESSES

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TO EMBRACE DIGITISATION, SMES MUST EMPLOY IT EXPERTS

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expensive – and very often free – provided there is the supporting environment to allow for the data demands of such services. These services are widely valued by SMEs that are able to incorporate them into their processes in an efficient and secure manner.

to ensure the integrity of its network and data. Indeed, forward-thinking businesses are finding that security – across cyber security, IoT and the cloud – is key to sustaining competitiveness in the global environment.

The common tactics of cyber criminals, such as phishing, malware, Denial of Service attacks and fraud can prove costly to emerging businesses. This extends far beyond simply the immediate costs of addressing a security breach, to the severe – if not fatal – damage such an incident can cause to the business in terms of trust among its customers and its credibility in the market.

SMEs can protect themselves from such threats through adoption of services such as antivirus, electronic security, and network security. These can range from software that detects nascent cyber threats, through to online live streaming of CCTV systems to protect physical assets.

Ensuring the security of networks and devices will pay incalculable returns on an SME’s investment, preventing debilitating business disruption and providing a sense of confidence in how it manages its operations and customer data.


This fear is also largely unfounded. A major part of service provision is the supply of knowledge and assistance to ensure the system runs optimally, and that any issues are identified and addressed at the first possible opportunity. It would seem that SMEs are looking for more than just a technology or service provider. They want a partner that can help them to use digital services in the right way to help them transform how they operate and explore new business opportunities.

SECURITY IS NOT THAT CRITICAL

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Digital transformation and the democratisation of business

Transformation requires businesses to take a holistic view of change across the enterprise. For many firms, transformation is essential not just to growth but to survival. It’s something that Telefónica is familiar with. Over the last five years we have transformed our business to become a truly digital organisation. Taking

everything we’ve learned from that process, we want to help SMEs with their own journeys and give them the chance to realise the opportunity inherent in digital transformation.

SMEs clearly recognise the important role technology

plays in their success on the global stage.

The need for small and medium size enterprises to prepare for global competition has encouraged SMEs to focus their investment on a strong technological foundation to sustain global growth. The democratisation of technologies such as

business management software, big data analytics and mobile, which were previously too expensive and complex for many SMEs, provides the capabilities needed for growth and competitiveness.

Across the SME landscape, there are apparent commonalities in the digital needs within markets. Demands for quality high-speed service and technical support are consistently being voiced by SMEs seeking to embrace digital services to compete more effectively in

the market. A connected SME ecosystem opens a world of business opportunities domestically, regionally, and internationally.

With high-speed connectivity and improved digital service quality, SMEs can realise the potential of sophisticated services such as cloud, Big Data and AI, and seek to differentiate themselves in the market through automation, personalisation and cost.

Slow adoption of the opportunities that exist and are increasingly available to businesses mean that the majority of SMEs risk operating below their potential. Operationally, SMEs must be prepared for a future for a future where these advanced services are truly attainable and practicable for their business.

clearly recognise the important role

SMEs

technology plays in their success

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Connecting businesses to opportunity

As technology continues to develop at pace, the opportunities for SMEs are endless. Technology can fuel growth in a way never experienced by any previous generation of businesses.

Our research has found that SMEs are well aware of this, and over the next three years plan to embrace digital services to help them to grow.

And it’s just the beginning. As more and more customers become connected, and their needs become more specialised, the opportunities for fleet-footed businesses will only grow. Technology will evolve to meet these new requirements, and businesses need the infrastructure now to stay a step ahead of their customers.

Once the foundations of growth are set, ambitious SMEs can dare to dream of the possibilities that the next generation of technologies can bring to their businesses.

While there are clear differences in attitudes between Latin America and Europe there is a common understanding of the importance of digital services to growing businesses. It is the emerging economy of Latin America that is more alert to the opportunities of digital transformation, while Germany, the UK and Spain perhaps suffer from complacency or digital fatigue.

For the globalised economy to work, businesses need to aim to evolve at pace. Europe must realise

that, as strong as its economy might be, resting on laurels will only result in one thing: long-term slowdown.

There is no inevitability about failure in business, yet the margins between success and insolvency can be painfully thin. The intent to revolutionise through technology is there, from SMEs the world over. It is SMEs that are agile enough to find niches the large corporations do not cover; it is SMEs that have the freedom to innovate and challenge the status quo.

While there are clear differences in attitudes between

there is a common understanding of the importance of digital services to

growing businesses

EuropeandLatin America

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The global picture

To compete in the new environment of greater connectivity, emerging markets, and fast-changing technologies, SMEs are transforming themselves in fundamental ways.

Across industries and verticals, they are making major changes to their business models, products, and go-to-market strategies, and using technology – where that is viable – to compete shoulder to shoulder with bigger companies.

As part of our research into SMEs, we first wanted to gauge to what extent they acknowledge the benefits of going digital. The result is that beyond The result is that beyond any doubt 95% of SMEs in the six markets surveyed agree that technology and connected services will help with the future growth and prosperity of their business.

Furthermore, there is agreement that there is not one key to unlocking digital transformation. Each country we surveyed saw similar value in new digital services.

And you’d be forgiven for thinking that it’s more established markets that are the most willing to adopt these enablers. Increasingly, businesses in emerging markets place more emphasis on the role of technology in helping them to compete and grow. 79% of businesses in Latin America say technology

is very important to their business’s growth, compared with just 55% in Europe. This could be attributed to digital fatigue within Western Europe, where businesses are beginning a second or even third wave of technological change. Many businesses in Western Europe face the significant challenge of moving and updating existing systems, whereas in emerging markets, businesses tend to focus more on the positive – seeing technology as a facilitator of opportunity rather than disruption.

Our results also show that there is a genuine intention to better deploy technology in the short term to meet business goals. For example, 81% of businesses say they plan to use more cloud services within the next three years, while 84% predict they will use data analytics to help them make smarter business decisions over the same period.

When it comes to retaining a somewhat level playing field for SMEs against larger companies through digital, the results are promising. Small and medium businesses know they need to evolve to keep up, and with digital enablers more accessible than ever, they are starting to act now.

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The cloud can significantly reduce the total cost of ownership of IT for SMEs as they no longer have to create and maintain the inherent IT infrastructure for internal service delivery. They can also gain immediate competitive edge through instant scalability, at key periods without additional expenditure. For others, it might simply allow them to experiment without fear of the investment it might otherwise require.

Artificial intelligence (AI) is already making waves across industries. We are starting to see some companies deploying AI to automate and manage time-consuming tasks, and answer simple customer queries through AI-powered chatbots. But there is still some way to go before adoption is widespread among small and medium businesses. The intent is there – 72% believe that AI that can be used to complete simple tasks and improve the way that they run their businesses. The percentage is higher in Latin American countries, 84%, than in European, 61%, and the appetite is highest in Brazil, 89%, and lowest in the UK, 53%. It is Spain that brings the Europe average up, 79%.

This suggests that in emerging economies AI and process automation is seen by small

MOVING TO THE CLOUD

1ARTIFICIAL INTELLIGENCE IS NOW A REALITY

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The appeal of the cloud is perhaps in its ease of access, with 86% of businesses agreeing it will make it easier to access and manage data relating to their business. This accessibility has more importance to businesses in Latin

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businesses as an opportunity to increase productivity and help smaller businesses catch up with larger, more advanced competitors. In Western Europe, there has been debate around whether AI will negatively impact job creation.

While a quarter, 25% say they would use AI to automate repetitive and time-consuming tasks, it’s perceived by businesses to be able to provide much more; overall, almost a third of businesses, 31%, say that they would be most likely to use AI to help them manage customer interaction by processing simple customer queries.

The vast majority of businesses, 83%, would be willing to invest in technology that automated repetitive tasks that are currently managed manually. Latin American countries lead the way when it comes to willingness to automate manual tasks, 90%, with European countries behind, 77%. Argentina has an incredibly high willingness to invest in AI, 92%, while the lowest is in the UK and Germany, 72%.

This translates into a plan of action, with 74% of businesses saying that they will invest in AI to help them run their business within the next three years. This was considerably higher in Latin America, 84%, than in Europe, 65%. The highest was Chile, 87%, while the lowest was Germany, 54%.

America, with the percentage higher, 93%, than in Europe, 81%. Brazil places huge priority in this perceived ease of access, 96%, while the lowest is in Germany, 73%.

For businesses in emerging economies, the cloud represents an opportunity to easily access cutting-edge technology, without having to invest heavily in infrastructure to support it. However, in Western Europe, the opportunity presented by cloud is tinged by the need to change existing behaviours learnt in the previous waves of technology adoption.

Businesses are ready and willing to invest; 81% of businesses say that they will use more cloud services within the next three years. This was higher in Latin American countries, 87%, than in Europe, 75%, where many businesses see opportunity and disruption in equal measure when it comes to moving existing services to the cloud.

Perhaps due to the cloud’s flexibility and ubiquity, overall, there is a mix of use-cases. The majority of businesses, 57%, would be most likely to use cloud services for communication software such as email, instant messaging and video-conferencing. Over a third of businesses, 39%, plan to use cloud services to help them manage their finances, while a similar proportion, 34%, will rely on the cloud to help them manage customer relationships.

75%

87%

Use of cloud services within the next 3 year

LATAM

Europe


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Across the countries surveyed, businesses are already using data in some capacity to support business operations, with 83% of businesses regularly processing and analysing data to help them make smarter choices. This suggests that businesses are already well prepared to make use of big data. This was higher in Latin America, 90%, than in Europe, 72%. In emerging economies where there is less government support for small businesses, the smart use of data can determine whether a business survives in the short term or not.

Despite well circulated stories of company data breaches, 79% of businesses are confident that the information they store is secure. This is higher in Latin America, 83%, than in Europe, 75%, with Argentina the most confident, 86%, and Germany the least, with just two thirds, 66%, of businesses confident they have their data under lock and key.

However, it seems that businesses see technology as a burden when it comes to security, rather than the solution. Over half, 57%, believe that technological change has made it more difficult to keep business information secure. This sentiment is higher in Europe, 60%, than in Latin America, 57%, with Germany, 68%, finding it most difficult, and Chile, 51%, the least.

BIG DATA, BIG OPPORTUNITY

3SECURITY IS MORE CRUCIAL THAN EVER

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Meanwhile, 82% of businesses plan to increase the amount of data they use to run their business within the next three years. This was higher in Latin America, 95%, than in Europe, 77%. It was highest in Brazil, 91%, and lowest in Germany, 66%.

This filters down to a number of uses, with 57% of businesses already processing and analysing customer and prospective customer data. However, just over half, 51%, look into operational data, while only 39% look at financial or transactional data. Just 29% analyse web and ecommerce data.

There is clearly agreement among businesses that they can, and must, better use their data to help them grow, 88%. Once more, it is in Latin America where this belief is more pervasive, 95%, while in Europe over three quarters, 81% agree it is a priority.

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57%

51%

39%29%

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These concerns are not likely to disappear anytime soon. As technology continues to evolve and create more connections, 52% of businesses around the world predict that it will become harder to keep data secure within the next three years. This feeling was similar across Europe, 51%, and Latin America, 52%.

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Business never sleeps, and we need to be able to work on the go. That is according to 78% of businesses, which say that to manage their business effectively, they need to be able to work from multiple locations and on the move. This sentiment is higher in Latin American countries, 83%, than in Europe, 72%, with Brazil and Chile, 84%, leading the way while German businesses are less likely to work on the move, 62%.

For many business leaders in emerging economies, their smartphone represents their primary device for accessing digital services, whereas in Western Europe it is secondary to the laptop. For business leaders in Latin America, it has become impossible to operate day-to-day without a smart mobile device.

Overall, 82% of businesses use a smartphone to help them to run their business, while exactly half, 50%, use a tablet. Just 17% are using wearable devices such as smartwatches in the running of their businesses.

Unsurprisingly, a massive 86% of businesses said that they rely on mobile technology to run their business and use it regularly. This was higher in Latin America, 91%, than in Europe, 78%.

MOBILE KEEPS BUSINESS MOVING IN THE RIGHT DIRECTION

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82% of businesses use smartphones

to help them to run their business

As remote working becomes more popular, this will only continue to rise. 82% of businesses said that they plan to invest in mobile technology in the next three years to help make them and their workforce more productive. This was higher in Latin America, 88%, than in Europe, 73%, with Brazil taking the reins, 90%, and Germany at the back, 69%.

For country-by-country breakdowns of this data, go to page 24.

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THE INTERNET OF THINGS IS MORE THAN A BUZZWORD

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OVERCOMING THE OBSTACLES

CLOSING THE ECONOMIC GAP

Q: How can SMEs address concerns around risk, complexity and cost?

To overcome these concerns, small businesses need to look to partners who can help them

Q: How do you think IoT will affect the wider economic landscape?

One of the most profound effects we foresee the IoT having is closing the economic gap between emerging and more established economies. According to research by IDC,

For us “carrier grade” means four nines availability and unbreakable security.“ ”

SMEs in Latin America are expected to see the fastest growth of all regions in IoT spending at a rate of 21.7% compound annual growth rate through 2021.

There are multiple ways in which IoT wil l fundamentally change the world at an economic level. IoT solutions, for example, are helping to overcome deficits in infrastructure. At Telefónica we are working with a global shipping company to implement an IoT solution that wil l help to improve the eff iciency of critical supply chains for vaccine or food provision. In areas vulnerable to natural disasters, we are also creating networks of sensors that help predict major events to mitigate their impact on communities and improve the availabil ity of emergency services.

Vicente Muñoz

Chief IoT Officer at Telefónica

From 2018 onwards, the use of IoT within small businesses is expected to rise due to falling prices for devices, such as software platforms and sensors.

We spoke to Vicente Muñoz, Chief IoT Officer at Telefónica, about how SMEs can overcome IoT obstacles, help close the economic gap between emerging and established economies, and the part IoT will play in powering business.

to quickly realise the economic benefits of IoT, without a large upfront investment. They also need reassurance that partners will take data security as seriously as they do.

In Telefonica we apply the highest security standards to IoT. For us “carrier grade” means four nines availability and unbreakable security. We apply it to all our services and capabilities, from design to the deployment and operation.

We industrialize what we design and learn working with large enterprise customers and apply it in a way that’s affordable for SMEs.

I believe that small businesses need someone who can paint a picture of the possibilities in an IoT-powered world, and show them their their place on it.

IoT is also helping to improve productivity in places where a lack of resources would usually hold the economy back. In the agricultural industry, solutions l ike Smart Agro, a Telefónica IoT and analytical solution, is helping farmers to make more eff icient use of water. Using artif icial intell igence algorithms created and tested by our research and development teams in Chile, it helps farmers to control and manage water consumption and has reduced the amount being used for irrigation by between 20-40%. It’s being used in El Salvador, Guatemala, Colombia, Peru and Chile.

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POWERING SMES

IOT CAN HELP SMES IN LOTS OF WAYS:

Q: What are the main challenges that you think IoT will help SMEs address?

IoT is a key enabler for the digitalization and transformation of business of all sizes, in every industry.

In the case of SMEs the impact is even greater, since they need to be more efficient and competitive than larger corporates.

Operational efficiency

With solutions like energy efficiency and asset tracking, SMEs can monitor their use of energy or track their products or materials.

Increase of productivity

With solutions such as fleet management or work force management, they can optimize the use of corporate vehicles, fuel expenditure and delivery quality.

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Flexibility and agility

With solutions that eliminate wires in manufacturing environments by connecting robots and other machines.

Better product development

By connecting their products, SMEs can learn how these products are used, fix bugs remotely and design better products.

Global reach

Our global IoT SIM operates in almost all countries thanks to our local networks and agreements with other telcos. A SME creating a connected product in Peru can sell it in UK knowing it will work exactly the same.

IoT is not about technology for technology’s sake. It’s about understanding the challenges of individual businesses and imagining entirely new ways of solving those challenges. As a first step, you must listen to customers to understand their individual needs before helping them to transform, co-create, grow and expand their businesses.

CREATING THE IOT OF THE FUTURE

Q: What are the challenges and opportunities of the IoT future?

IoT cannot be stopped, but it needs to be done in the right way. As with any new technological revolution, one of the initial challenges our customers face is the fear to change. Many companies understand the benefits but are concerned about stepping out of their comfort zone. At Telefonica we try to foster this transformation working side by side with our customers.

Beyond working with businesses to help them realise the benefits of IoT, we are creating new standards of connectivity through 5G, NB (Narrow Band) -IoT, LTE-M and CAT1. These technologies are helping to enhance adoption of IoT by lowering battery consumption, reinforcing indoor coverage and supporting a higher density of connected objects.

It is also worth mentioning the availability of devices. From an industry perspective IoT faces the challenge of gaining scale and volume. This is necessary to create a relevant ecosystem of devices at affordable costs.

Finally, security is key. Since so many companies are connecting things, this create a greater cyber attack surface area. At Telefonica we are secure by design and factor

IoT cannot be stopped, but it needs to be done in the right way.

“”

in security at all phases of our technology development and servicing. From the design of the networks, chipsets, devices and services, to the correct deployment and operation.

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Country breakdowns

99% of Argentinian businesses agree that cloud services will help them to securely store and access information, helping them improve the way they run the business.

This is just above the average in the South American market, 93%, and much higher than businesses in Europe, 81%.

92% of businesses in Argentina agree the cloud makes it easier to access and manage data relating to their business, with almost half, 48%, of those seeing it as very important. This high importance is a big jump from the likes of the UK, 36%, andGermany, 31%.

The intent is there. 85% of Argentinian businesses say that they will use more cloud services within the next three years, which is slightly lower than the South America average, 87%, which is increased by Brazil, 93%. For context, only 65% of German businesses have the same intention.

Of all the countries surveyed, Argentinian businesses came top, 47%, by far out of those looking to employ the cloud for social media and monitoring. The next highest was Spain,

30%, showing a big gap in priorities. Argentina also came top for communication software, 63%, but bottom for project management and collaboration software, 13%.

CLOUD SERVICES

Argentina

81% of Argentinian businesses believe AI that can complete simple tasks can improve the way that they run their businesses, with 34% of that believing it to be of high importance. The percentage is slightly lower than the Latin America average, 84%, where the appetite is highest in Brazil, 89%.

While 24% say they would use AI to automate repetitive and time-consuming tasks, only 11% of Argentinian businesses say identifying opportunities in the marketplace is the most useful way to use AI. Use of AI aligns across all the surveyed countries.

ARTIFICIAL INTELLIGENCE

A huge 81% of businesses in Argentina say that they will invest in AI to help them run their business within the next three years. Only 5% don’t plan on it. This differs wildly to some European countries, with 59% of UK businesses and 54% of German businesses planning on it, seemingly prioritising other things in the next three years.


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88% of Argentinian businesses say that they regularly process and analyse data in some capacity to help them make smarter choices.

For context across continents, this is about the Latin America average, 90%, while higher than in Europe, 72%.

BIG DATA

86% of Argentinian businesses are confident that the information they store is secure, which is higher than the 78% average.

This is higher than both the Latin American average, 83%, and European average, 75%.

When it comes to whether technological change is making it more difficult to keep things secure, opinion in Argentina is somewhat divided. While over half, 54%, believe technology is the challenge, 33% disagree.

Furthermore, 49% of Argentinian businesses predict that it will become more difficult to keep business secure within the next three years, compared to 34% that disagree. 17% neither agree nor disagree, perhaps waiting to see what happens.

According to 82% of businesses in Argentina, to manage their business effectively, they need to be able to work from multiple locations and on the move.

Overall, 84% of Argentinian businesses use a smartphone to help them to run their business, while over half, 52%, use a tablet. Interestingly, 34% use GPS, which is the highest of all countries we asked.

A huge 92% of them said that they rely on mobile technology to run their business and use it regularly. This was slightly higher than the South American average, 91%, and much higher than the European average, 78%.

SECURITY MOBILE

Argentina was highest across all countries when it came to using data to make better decisions about customers and web and ecommerce. 95% of Argentinian businesses acknowledge that better use of data would help them grow their business. Indeed, 87% plan on increasing the amount of data used over the next three years.

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94% of Brazilian businesses we asked agree that cloud services will help them to securely store and access information, helping them improve the way they run the business.

96% of businesses in Brazil agree the cloud makes it easier to access and manage data relating to their business, with over half, 56%, of those seeing it as very important. This high importance is a big jump from the likes of the UK, 36%, and Germany, 31%.

A mammoth 93% of Brazilian businesses say that they will use more cloud services within the next three years, the highest of all countries surveyed.

CLOUD SERVICES

Brazil

40%of

for customer interaction

Brazilianbusinesses say they would use AI

89% of Brazilian businesses believe that AI that can complete simple tasks, such as chatbots, can improve the way that they run their businesses, with 42% of that believing it to be of high importance. This was the highest percentage in Latin America.

While 40% say they would use AI for customer interaction, only 14% of Brazilian businesses say employee interaction is the most useful way to use AI – the lowest of all countries surveyed

A huge 86% of businesses in Brazil say that they will invest in AI to help them run their business within the next three years. Only 3% don’t plan on it.


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82% of Brazilian businesses are confident that the information they store is secure, which slightly below the Latin American average, 83%.

62% of Brazilian businesses believe changing technology is making it more difficult to keep information secure. However, a quarter of Brazilian businesses believe this not to be the case.

Furthermore, 60% of Brazilian businesses predict that it will become more difficult to keep business secure within the next three years. Only 27% disagree.

93% of Brazilian businesses say that they regularly process and analyse data in some capacity to help them make smarter choices.

For context across continents, this is higher than the Latin America average, 90%, and much higher than in Europe, 72%.

Brazilian business sees a variety of uses for data, with a relatively even spread of those using data to make better decisions about customers, operations and web and ecommerce. 95% of Brazilian businesses acknowledge that better use of data would help them grow their business. Indeed, a whopping 91% plan on increasing the amount of data used over the next three years.

SECURITY

BIG DATA

According to 84% of businesses in Brazil, to manage their business effectively, they need to be able to work from multiple locations and on the move.

Overall, 84% of Brazilian businesses use a smartphone to help them to run their business, while 44% use a tablet. Just 13% use wearable devices.

A huge 92% of them said that they rely on mobile technology to run their business and use it regularly. This was slightly higher than the Latin American average, 91%, and much higher than the European average, 78%.

MOBILE


92% of Chilean businesses we asked agree that cloud services will help them to securely store and access information, helping them improve the way they run the business.

This is just below the average in the South American market, 93%.

89% of businesses in Chile agree the cloud makes it easier to access and manage data relating to their business, with over half, 56%, of those seeing it as very important.

What’s more, 84% of Chilean businesses say that they will use more cloud services within the next three years.

80% of Chilean businesses believe that AI that can complete simple tasks, such as chatbots, can improve the way that they run their businesses, with 37% of that believing it to be of high importance.

While 41% say they would use AI for customer interaction (the highest of all countries asked), only 8% of Chilean businesses say identifying opportunities in the marketplace is the most useful way to use AI – the lowest of all countries surveyed.

An enormous 87% of businesses in Chile say that they will invest in AI to help them run their business within the next three years. Only 8% don’t plan on it.

90% of Chilean businesses say that they regularly process and analyse data in some capacity to help them make smarter choices which is the South America average, 90%.

96% of Chilean businesses acknowledge that better use of data would help them grow their business, with 89% planning on doing just that, by increasing the amount of data used over the next three years.

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Chile

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According to 84% of businesses in Chile, to manage their business effectively, they need to be able to work from multiple locations and on the move.

Overall, 73% of Chilean businesses use a smartphone to help them to run their business, the lowest of all countries asked; 44% use a tablet. A huge 31% of Chilean

82% of Chilean businesses are confident that the information they store is secure, which is slightly below the Latin American average, 83%.

Just over half, 51%, of Chilean businesses believe changing technology is making it more difficult to keep information secure. However, 36% believe this not to be the case.

Slightly under half, 47%, of Chilean businesses predict that it will become more difficult to keep business secure within the next three years.

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businesses use wearables in a business context, much higher than any other country (Argentina is the closest on 20%, while the UK is only 9%).

89% of those in Chile said that they rely on mobile technology to run their business and use it regularly.

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73% of German businesses we asked agree that cloud services will help them to securely store and access information, helping them improve the way they run the business.

This is below the average in the South American market, 93%, and below the European average of 78%.

73% of businesses in Germany agree the cloud makes it easier to access and manage data relating to their business, with nearly a third, 31%, of those seeing it as very important. However, when it came to specific uses for cloud, such as communication or financial accounting software, German businesses were least likely to use cloud services.

Over two-thirds, 65%, of German businesses say that they will use more cloud services within the next three years.

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Over half, 57%, of German businesses believe that AI that can complete simple tasks, such as chatbots, can improve the way that they run their businesses, with 21% of that believing it to be of high importance.

27% say they would use AI for automation of repetitive and time-consuming tasks;


only 15% of German businesses say identifying opportunities in the marketplace is the most useful way to use AI.

72% of businesses in Germany say that they will invest in AI to help them run their business within the next three years, with 16% not planning on it.

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One third (34%) of German businesses aren’t confident that the information they store is secure.

Furthermore, 68% of German businesses believe changing technology is making it more difficult to keep information secure. What’s more, 58% of German businesses predict that it will become more difficult to keep business secure within the next three years.

Perhaps surprisingly to some, just 63% of businesses in Germany say that to manage their business effectively, they need to be able to work from multiple locations and on the move.

However, 81% of German businesses use a smartphone to help them to run their business; 56% use a tablet – the joint-highest percentage of all countries asked, alongside Spain. Just 10% use wearables in a business context. 78% of those in Germany said that they rely on mobile technology to run their business and use it regularly.

69% of German businesses say that they regularly process and analyse data in some capacity to help them make smarter choices, which just lower than the Europe average, 72%, but far below the Latin America average, 90%.

German business sees a variety of uses for data, with a relatively even spread of those using data to make better decisions about customers, operations and web and

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ecommerce. 73% of German businesses acknowledge that better use of data would help them grow their business. Indeed, two-thirds, 66%, plan on increasing the amount of data used over the next three years.

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91% of Spanish SMEs agree that cloud services will help them to securely store and access information, helping them improve the way they run the business.

93% of businesses in Spain agree the cloud makes it easier to access and manage data relating to their business, with over half, 55%, of those seeing it as very important.

92% of Spanish small and medium businesses say that they will use more cloud services within the nextthree years.

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Spain

Over three-quarters, 79%, of Spanish businesses surveyed believe that AI that can complete simple tasks, such as chatbots, can improve the way that they run their businesses, with 33% of that believing it to be of high importance.

31% say they would use AI for automation of repetitive and time-consuming tasks; only 7% of Spanish businesses say monitoring business performance and suggesting where it might be improved is the most useful way to use AI.

87% of businesses in Spain say that they will invest in AI to help them run their business within the next three years, with 12% not planning on it.


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83% of Spanish businesses are confident that the information they store is secure.

55% of businesses in Spain believe changing technology is making it more difficult to keep information secure, while over half, 55%, predict that it will become more difficult to keep business secure within the next three years.

Over three quarters, 78%, of businesses in Spain say that to manage their business effectively they need to be able to work from multiple locations and on the move, with 85% using a smartphone to help them to run their business; over half, 56%, use a tablet, while 20% use a wearable in business context.

86% of those in Spain rely on mobile connectivity – eight points more than its European counterparts.

90% of Spanish businesses say that they regularly process and analyse data in some capacity to help them make smarter choices.

Spanish business sees a variety of uses for data, but it is both operational and customer data that is equally most processed and analysed, 59%. 91% of Spanish businesses acknowledge that better use of data would help them grow their business. Indeed, 86% plan on increasing the amount of data used over the next three years.

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82% of UK SMEs agree that cloud services will help them to securely store and access information, helping them improve the way they run the business.

This is below the average in the South American market, 93%, but above the European average of 78%.

83% of businesses in the UK agree the cloud makes it easier to access and manage data relating to their business, with over a third, 36%, of those seeing it as very important. Of all countries surveyed, UK businesses are most likely to use the cloud for project management and collaboration software.

77% of UK businesses say that they will use more cloud services within the next three years.

Over half, 53%, of UK businesses believe that AI that can complete simple tasks, such as chatbots, can improve the way that they run their businesses, with 19% of that believing it to be of high importance.

28% say they would use AI for automation of repetitive and time-consuming tasks;

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73% of UK businesses say that they regularly process and analyse data in some capacity to help them make smarter choices, which higher than the Europe average, 72%, and far below the Latin America average, 90%.

UK business sees a variety of uses for data, but it’s financial and transactional data that is most processed and analysed, 49%, – higher than their European counterparts in Germany, 31%. 80% of UK businesses acknowledge that better use of data would help them grow their business. Indeed, almost three-quarters, 73%, plan on increasing the amount of data used over the next three years.

Over three quarters, 76%, of UK businesses are confident that the information they store is secure, which is above the European average of 71%.

58% of UK businesses believe changing technology is making it more difficult to keep information secure, while 52% predict that it will become more difficult to keep business secure within the next three years.

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Over three quarters, 76%, of businesses in the UK say that to manage their business effectively, they need to be able to work from multiple locations and on the move, with 85% using a smartphone to help them to run their business; 49% use a tablet, while only 9% use a wearable in business context.

78% of those in the UK – the same percentage as Germany – said that they rely on mobile technology to run their business and use it regularly.

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only 14% of UK businesses say monitoring business performance and suggesting where it might be improved is the most useful way to use AI.

59% of businesses in the UK say that they will invest in AI to help them run their business within the next three years, with 16% not planning on it.

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To ensure a broad view of the attitudes of SME decision-makers, we surveyed over a thousand business leaders in Argentina, Brazil, Chile, Germany, Spain and the UK.

This provided an understanding of how SME leaders view digital transformation and their intentions to embrace new technology in the near future.

The interviews were conducted online by Viga using an email invitation and an online survey. Quotas were set to ensure reliable and accurate representation of the total populations aged 18 and older. Results of any sample are subject to sampling variation.

We combined this data with insights gathered over the course of hundreds of focus groups with small business across Europe and Latin America. During these focus groups, we quizzed business leaders on the key challenges they face, their attitudes to technology and their plans for the future.

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How SMEleaders

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Business as usual? How SMEs are using digital services to ... › ...2 3 HOW SMES ARE USING DIGITAL SERVICES TO COMPETE Micro, small and medium-sized enterprises (SMEs) are a vital