“If you think back to the beginning of cellphones, laptops or really any new technology, it’s always expensive.”
– Elon Mask, Founder of Paypal.
Traditionally, technology was a high degree of complexity collection of technique, skills, methods and knowledge. It was a very specialized and custom sector and thus demanded a high price. Adoption, therefore, was only for the A-list. Smaller firms had to wait until technologies are diversified before it becomes affordable to them. This put them at a structural disadvantage.
Nowadays, things have revolutionized. Today, even the newest released technologies bypass organizations and goes directly to the mass market consumers. A classic example would be our smartphone, backed by the cloud. And this new cloud system has been helping smaller firms pack the punch, a phenomenon we call, consumerization.
Consumerization, as its name suggest, puts the end users as its focus. Before, technology were organization-oriented, designed solely for business-to-business sales. Technology has now been reorientated, where product and service designs caters the end user as an individual consumer. Having end users as its focus basically means the product development initiatives are driven by customer adoption. With more information on how customers experience a product, better designs could formed.
This, is great news for SME. Smaller organizations no longer have to settle for opportunity cost waiting for technology to come down the cost curve. They now have almost immediate and equal access to the latest and the very best technologies for adoption. This greatly improves their competitive advantage and further leveling the playing field. Cloud technology also enables SMEs to establish extensive footprint more than what their size would traditionally be able to manage. Today, it is possible for a small business to sell and service globally, something that was very difficult—if not impossible—to do just 10 years ago.
All these attributes to cloud-based technologies which helps SMEs pack a punch.