Innovation – Key Driver in SMEs

Dec. 4, 2013
True innovation is not correlating with amount of available financials resources. SMEs do not usually have the financials means, as larger corporations, to drive innovation. Here lies an opportunity for SME owners to develop something unique and quickly.

True innovation is not correlating with amount of available financials resources. SMEs do not usually have the financials means, as larger corporations, to drive innovation. Here lies an opportunity for SME owners to develop something unique and quickly.

SME leaders could drive their company in a better competitive position by searching for answers for instance to following questions:

  • What is the customer experience in buying from my company?
  • What else can I do for my customer?
  • How critical is a short lead time in my business?
  • Can I or should I keep the same lead times as my competitors?
  • Should I improve the overall quality of my products?
  • What services could or should I add to the offering?
  • Is e -commerce the solution or do my customers like to have a different experience?
  • Does my process innovation give me the edge?
  • Packaging ? Same box but different color as competitors have?
    • For example the latest Nokia (Microsoft ) phone packaging does not convey a very innovative image, rather a “ me too” feeling
  • How can I be faster with time to market?
  • Is there a more innovative way to generate new customer leads?

No doubt, these are obvious questions.

My experience with SMEs as client is, that some of them have more enthusiastic employees than others.  No doubt a very important differentiator, however it isn’t enough.

Too often SMEs are mainly thinking about technological innovation. This is naturally a too narrow vision for the future.

SME leader must leverage on all potential advantages of a smaller company making them truly nimble and innovative.

It is not about money, it is about how you use all of your resources for driving innovation in your value chain.

About the Author

R. Paul Vuolle Blog | CEO

R. Paul Vuolle's blog "The SME's Guide to European Manufacturing," has moved. You'll find his latest ideas and commentary on SME European Manufacturing on IndustryWeek's IdeaXchange. 

You'll find more articles written by Paul at http://www.industryweek.com/blog/smes-guide-european-manufacturing.

R. Paul Vuolle, CEO of Bellevue SME Advisors GmbH in Switzerland and Germany, works actively with small and medium (SME) size manufacturing companies in Europe in SCM/Outsourcing, logistics, turnaround and restructuring, market expansion, as well as succession planning and financing. He also frequently supports technology start- ups in building up their business. 

Paul has over 20 years operational industry experience in engineering, electronics, industrial automation, building automation, investment goods like electrical drives, automatic test & measurement systems, HV Transformer production systems. During his career he has worked in manufacturing industries in supply chain management, outsourcing, logistics, production, R&D and successfully selling to international large key accounts. Paul has also run a sizeable amount of M&A transactions in numerous countries around the world.


He has built up his experience working in various leadership positions and functions in large corporations, such as ABB, and having executive positions in medium-size family companies and as a technology entrepreneur.

Paul is MSc. E.E. from Swiss Federal Institute of Technology in Zürich as well as BSc.E.E. from Helsinki Institute of Technology.

Paul is a long time member of IEEE and of its Industrial Applications Society.

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