Manufacturing SMEs are in danger of marginalising IT just when efficiency, automation and services are key to surviving the recession.So says ERP and CRM consultancy Ardent Solutions, which says its research shows nearly a quarter (23%) of SMEs admitting that limitations on IT budgets run the risk of damaging competitiveness.
Nearly half (41%), it says, believe that deterioration in system reliability, leading to increased downtime, will cause serious problems. A quarter are concered about increased maintenance costs for legacy systems, 16% worry about increasing IT security problems, and 23% also say they are now running unsupported applications.
Ardent managing director Andrew Watkinson makes the point that although 69% agree that a substantial systems outage would have an extremely or very disruptive impact on the business, too many are failing to put in place the key building blocks required.
Indeed, he says, nearly a fifth (19%) of SMEs have made no substantial investment in IT for two to three years. What's more, only 65% of companies employing over 250 people, and 31% employing less than 250 people, have a full-time, in-house senior IT role – the rest rely on the part time attention from the MD, FD, operations director or similar – indicating a worrying lack of planning and IT commitment.
"The pace of technology change is escalating on an almost daily basis. In a business world that is, now more than ever, focussed on remaining competitive and sustainable, it is vital that SMEs embrace alternative methods of not only keeping up with the changing face of technology, but staying ahead of it," says Watkinson.
And he adds: "Making the move to SaaS [software as a service] is the logical next step. In addition to the cost arguments, this model provides organisations with guaranteed access to the latest technologies and up to date expertise."
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