Right-size technology could make all the difference Not a recipe for agility and rapid growth. Vendors and systems integrators can customize these systems for you, but this typically takes 18 months and leaves you dependent on their services if you want to change anything in future. Traditional ERP systems were originally designed for manufacturing industry, so if you happen to be in a service or technology sector, their default design and configuration probably won't suit your operation. These systems are usually installed on premise rather than in the cloud, so they're not easy to access from home and they don't work well on mobile devices. The implementation process can cost nearly four times as much. If you choose to invest in a traditional ERP system you could easily end up spending five figures for a single license. Software selection specialist, SelectHub, advises that traditional enterprise software is expensive to buy, slow to install and complex to use: They're either making do with basic tools they've outgrown, or they're being persuaded by vendors to use systems designed for much larger enterprises. Many mid-size firms are not using the kind of business technology that would help them grow quickly. In most cases, the answer is unfortunately, no. So, have our mid-size saviors got access to the growth-enabling technologies they need? Wrong-size technology is holding them back The European Union's SME Strategy, for example, helps medium-sized companies address things like sustainability, digitalization and improved access to finance.īut, as McKinsey has noted, what mid-size enterprises really need to fulfil their growth potential and power our economic recovery is "the ability to access foreign markets, increase operational efficiency and adopt growth-enabling technologies". According to the World Trade Organization, small and medium-sized enterprises (SMEs) make up the bulk of the economy, representing over 90% of the business population, 60-70% of employment and 55% of GDP in developed economies.įor a start, there's plenty of help around for mid-size enterprises in the form of government incentives, tax breaks, loans, business advice and coaching schemes. GDP is a broad economic measure of the value of all services and finished goods produced in a country and is a direct indicator of the health of an economy.COVID-19 has hit all sectors of the economy, but there's good reason to think that mid-size enterprises will be the key to recovery. Steady gross domestic product (GDP) or economic growth: This is the most cited indicator of the Goldilocks economy.Inflation describes the purchasing power of a nation's money. Low inflation as measured by the quantitative-based-based on a number- consumer price index (CPI) and the producer price index (PPI) also identifies this golden economic state.Market interest rates have a basis on the overnight rate set by the Fed, which dictates the rate banks charge to lend to one another. Low market interest rates: These rates are the percentage of a dollar amount that a lender will charge a borrower when they lend money.This increase is difficult to see when using broader measures that gauge real economic growth. Asset price inflation: An increase in the prices of stocks, derivatives, bonds, real estate, and other assets will earmark a Goldilocks economy.Federal Reserve (The Fed) estimates a normal rate to fall somewhere between 5% and 6.7%. Low unemployment: A low unemployment rate, most commonly known as the U3 rate, defines the number of people willing and able to work but unable to find gainful employment, and who have sought work in the past four weeks.
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