The Transformation of SMEs in Mexico: Challenges, Solutions, and the Role of Technology

Everyone wants to talk about SMEs in Mexico because it is undeniable that, due to the volume of capital flow they generate and the influence they have on macroeconomic indicators, they occupy the national interest. In Mexico, according to the National Institute of Statistics, Geography and Informatics (INEGI), there are more than four million small and medium-sized enterprises (SMEs), and they are the ones that generate more than 70% of jobs and around 42% of the country’s gross domestic product, concentrating mainly on the industry, trade and service sectors.

Derived from the great challenge they represent, it is necessary to recognize that small and medium-sized companies demand new and reliable solutions that allow them to compete, grow and maintain themselves, taking advantage of each of the resources they have.

Although they are the most numerous type of companies that drive the country’s economy, most of them operate with disorganized investments and lack the resources and strategies to grow and endure. For this reason, it is extremely important that there are mechanisms capable of supporting these companies in their growth and transformation.

The transformation of SMEs, in most cases, requires the use of technology as an enabler in the most critical business processes, maximizing their growth, promoting their competitiveness and enabling new and better services for their markets. In the age of technology, businesses large and small must transform and adapt to the changes brought about by an always-on society.

Multiple concepts and technological solutions today support more and more business verticals and more industries, regardless of their size, demanding a synergy between the world of technology and business. Said synergy requires, in 100% of cases, a solid strategy that thinks about tomorrow, but is flexible enough to adapt to sudden changes in the business.

SMEs, by their nature, usually lack strategies that produce synergy between what they know how to do very well and the technological world that surrounds them and also challenges them. This strategy, by concept, is the cornerstone and starting point of its expected transformation. An effective strategy does not necessarily require the most expensive technology or a complex structure; on the contrary, it must be adaptable, scalable, cost effective and even sustainable, where alignment with the business and optimization of its operation are the main requirements to be met.

To generate such a strategy, SMEs need the support and accompaniment of a strategic and experienced partner capable of advising on key aspects of a technological nature (in an innovative, holistic and agnostic manner) through a strategy in favor of their business, market and industry.

SMEs are and will continue to be a sector of great interest for technology companies operating in the country, due not only to their growth potential, but also because of their importance in the economic development of Mexico. How many of the obstacles in your business have been the product of the lack of a technological strategy? No matter how big your business is, it surely has the potential to grow even bigger with technology and innovation.

Editor’s Note: This column was edited for editorial style.

About the author: Miguel Ángel Ruiz is the leader of the Consulting and Digital Transformation area at Kyndryl México. Professional with more than 15 years of experience in the ICT industry, he is involved in various business and strategic areas, such as: Technical Business Development, Technical Marketing, Consulting and Systems Integration, with a strategic and goal-oriented approach. . He has extensive knowledge related to ICT business for different industries and in different technical domains such as hyperautomation, data governance / BizOps, hyperconnectivity and NFV / NFC / SDN / MANO.