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Failure to innovate threatens to put a third of European SMBs out of business by 2020

  • Ricoh Europe research uncovers key focus areas for a thriving future - customers, culture and technology
  • 59% not ready for the digital disruption taking place in their sector

Ricoh Europe, London, 09 October 2018 – Europe’s small and medium sized businesses (SMBs) are in danger of falling victim to digital disruption, regulatory requirements and economic shifts that are fundamentally changing their markets. According to new research commissioned by Ricoh Europe, 34% of the 3,300 SMB leaders surveyed from across 23 countries say they will go out of business by 2020 if they fail to innovate in response to these changes. 

With 56% trying to increase profit and 54% grow their operations, SMBs must be ready to challenge traditional assumptions about growth. Although 92% recognise the impact of digital disruption in their sector, 59% are not yet in a position to take advantage of its benefits. Furthermore, in the next two years, a quarter predict they will be unable to react swiftly enough to changing government regulation and 20% to the growth of automation.

David Mills, CEO of Ricoh Europe, says: “While the research is something of a wake-up call, the good news is that SMB leaders are acutely aware of the change happening in their markets and of the need to innovate. Now is the time to take a proactive stance and face disruption head-on. Any business that misjudges how to adapt their processes and strategies risks leaving their future open to chance.”

The research uncovers three key areas where SMBs should be applying technology to help focus their attention:

  1. SMBs must build closer customer relationships by using technology to facilitate and inform product and service development - 54% recognise they need to develop ongoing relationships with their customers
  2. SMBs must use smarter workplace technology to reshape processes, improve agility and make efficiencies - 74% of leaders say technology helps their ability to innovate
  3. SMBs must foster the full potential of talented individuals by using technology to empower employees and develop creative thinking - 42% want to encourage safe spaces for experimentation to see if ideas are successful
Damià Belles, part of the IT team at fashion design company Happy Punt – a Ricoh customer with headquarters in Spain and Portugal – has seen the company’s approach to innovation evolve.

“Traditionally, our approach to innovation was making small modifications to improve our work”, says Belles. “But now we are looking at bigger and more meaningful ways to innovate. In order to gain crucial knowledge about new technologies in the industry, we are continually developing relationships with other companies and universities. This has led to one of the most exciting periods in our history – working with a company to use nanotechnology with our fabrics”.

Mills concludes: “We work with SMBs across Europe who are already realising the benefits of approaching innovation in a new light. Whether that is streamlining operations to introduce products to the market in half the time, using cloud services to speed-up processes or experimenting with new ways to engage with customers and employees, the more innovation-minded SMBs are levelling the playing field against their larger rivals.”

| About Ricoh |

Ricoh is empowering digital workplaces using innovative technologies and services that enable individuals to work smarter from anywhere.

With cultivated knowledge and organizational capabilities nurtured over its 85-year history, Ricoh is a leading provider of digital services, information management, and print and imaging solutions designed to support digital transformation and optimize business performance.

Headquartered in Tokyo, Ricoh Group has major operations throughout the world and its products and services now reach customers in approximately 200 countries and regions. In the financial year ended March 2022, Ricoh Group had worldwide sales of 1,758 billion yen (approx. 14.5 billion USD).

For further information, please visit www.ricoh-europe.com

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