Tech-Based Empowerment: The Key to Success for Tomorrow's SMEs

Small and medium-sized enterprises (SMEs) are the backbone of the economy of many countries. They not only generate employment but are key to innovating and strengthening a constantly evolving market. However, in regions like Latin America, these companies must face an increasingly globalized and competitive world. This scenario forces SMEs to revolutionize their technological ecosystems in favor of their profitability and operations, providing an extra value to stand out in the business world. 

This reality is already illustrated in the investments by SMEs in Latin America, since 89% of them will invest in the areas of digital transformation in 2023, according to the Digital Adoption Survey, prepared by Movistar. But what do these technological changes refer to? Where is the innovation?

First of all, a good technology strategy will always seek to integrate the benefits of five of the major tech trends in the world, or superpowers as we know them at Intel: cloud to edge infrastructure, 5G pervasive connectivity, artificial intelligence (AI), compute, and sensing. These technological advantages strengthen the pace of innovation by creating value through the performance, efficiency, and security of your operations. 

Likewise, the adoption of these technologies brings a chain reaction called investment. Such is the case of Mexico, which according to data from the consulting firm Accenture, the cloud achieved growth of 31% in the enterprise segment throughout 2021. This resulted in greater investment in the country to develop and optimize regional cloud services through the financing of large data centers. This could position Mexico as the new data center hub in Latin America, and thus create the perfect environment for SMEs to strengthen their value and capabilities. 

In addition to the cloud, which is an essential component for building long-lasting success, another way for SMEs to strengthen their operations is the power of automation and artificial intelligence. The development of deep learning and machine learning can help them solve administrative issues, reduce human errors, increase the speed and efficiency of processes, and improve data accuracy.

In fact, according to the consulting firm IDC, in 2021, the adoption of AI by organizations in Latin America was 47% compared to 41% in 2020, suggesting exponential growth in the following years in the region. Also, global data from the International Institute for Analytics showed that when companies use data for decision-making, they obtain 15% higher revenues and 26% higher profitability. 

But there are also challenges for SMEs in their digital transformation journey, such as security. Every part of an operation, when carried out in computer systems, is exposed to cyberattacks that can be experienced in any company regardless of its size. Cyberattacks intensified in the wake of the pandemic and the shift to more digital work. In 2023, according to a study by Veeam, 76% of organizations in Latin America will experience at least one cyberattack. 

This is why, faced with the possibility of data breaches in SMEs, it is necessary to invest in deploying technology that integrates the most vital security aspects. Today, we must be aware that a cyberattack will eventually come and that is why we must be ready with updated infrastructure in all aspects. 

At Intel, we not only promote a Zero Trust Security strategy, but we also work on technologies that include several layers of security at a hardware level, such as data encryption, implementation of policy as code, and AI for service security, present in the Xeon processors family. Whether you’re with a growing small business or a large enterprise, Intel-based technology provides a strong, scalable foundation to help your employees keep your business safer, more secure, and running smoothly.

Technology is a powerful tool to optimize processes and increase productivity, which can be the key to the success of SMEs and the development of regions like Latin America. That is why we must promote actions focused on technological innovation to create a safe and competent business environment. Not only this, but also consider how our tools can permeate the work culture to streamline processes for the benefit of business, society and people.

Creating an integrated technology ecosystem is more than just implementing advanced technology. It should cover all aspects and requirements of a company, no matter its size or industry. This type of ecosystem can boost efficiency, improve customer experience and add value to the organization. 

Let's be clear that small and medium-sized companies need to bet on the implementation of innovative technological ecosystems to reaffirm their survival and profitability in a future that is already happening and developing today. Everything points to the fact that the most advanced technologies will be the seeds that harvest the success of any company of tomorrow. Let's continue to do wonderful things through the power of innovation, creativity and human ingenuity behind every process.