Small and medium sized enterprises (SME) have always been about
innovation. A business convert a significantly improved idea,
good, service, process or practice into an income producing
opportunity. Some key challenges to achieve the goal of a
profitable enterprise includes:
- Market access
- Choice of and adoption of information technology
- Access to resources
- Competent management and leadership
- Competent employees
It is critically important that SMEs monitor the external and
internal environments to ascertain if there is a gap between where
the enterprise is now versus where it needs to be the achieve
important goals and objectives.
Some of the major changes in the external environment that SMEs are experiencing are:
- Competition against franchises
- Competition against internet based enterprises
- Sophisticated technology
- Complexity in the form of globalization
- Shifting government policies
Some of the major internal challenges SME’s are experiencing are:
- Retention of key employees
- Handling variations in supply and demand
- Disproportionate focus on tasking (vs. strategic and management)
- Discovering and developing profitable streams of income beyond the sale
transaction
Application of the iCapBiz Solution to the SME
The paradigm that a SME must invest more to increase profits needs to be
challenged. While physical assets are important the most important asset of a
SME is the intellectual capital of the organization (human capital, structural
capital, relationship capital and innovation capital). The PAth-lign Process
methodology dramatically impacts the following core competences of organizations:
- Dramatically Improves the critical thinking of the executive, middle
manager(s) and operational talent;
- Dramatically improves the productivity of the organization
through the development of a branded system that delivers value to the customer
and financial returns to the organization;
- Elevates the organizations ability to deliver innovative services
and products.
Applying these skills to the SMEs challenges:
Market Access – primarily follows from disciplined critical thinking.
Choice and adoption of Technology – allocating resources
(time and money) involves critical thinking, a well-designed system (e.g. coaching)
and customer driven innovation.
Funding Access – investors, be they banks or other sources, want to manage
and monitor risk when making decisions about financing. They want to see sound critical
decision making, a system that ensures execution (resulting in a sustainable revenue
stream that ensures a return) and innovation (the ability to compete and succeed over time).
Competent Management and Leadership – the difference between a successful
and a failed SME is less and less about the exploitation of existing physical assets and
more about utilization of non-physical assets. Translation of well-thought out sustainable
strategies involves designing aligned systems that focus on facilitation and coaching
rather than top-down control. The knowledge worker today needs support to make localized
critical sound decisions (including innovative modifications that ensure customer-centric
solutions).
Human Resources – finding talent to design a system is more difficult
than designing a system to attract talent. Bad systems can make talented people look
bad and vice versa. Talented people are innovative which in turn creates profitable
opportunities (a virtuous cycle rather than a vicious cycle).
I want to know more about how iCapBiz can apply to
my business!
