Why do SMEs use standards?

Standards are hugely important to the business world. SMEs also use standards. But what are the main reasons why SMEs use standards?

Together with Sapience and ie-net, we researched this. We asked hundreds of engineers and SME employees what they think are the main benefits of standards. We would like to share the insight obtained with you.

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Improved quality of product/service

This is ranked 1 and 2, respectively, which is why we start with these. Standards ensure that products or services reach a certain level of quality, which helps SMEs deliver consistent results, thereby increasing customer satisfaction and trust.

The best example here is the ubiquitous ISO 9001 (quality management system). SMEs use it to standardize processes and ensure consistent product or service quality across all operations.

Arjan Zwanenburg of Sopra Steria has a similar observation: "For a particular project, we implemented ISO 27001 and obtained certification for it. To the customer, we thus proved very clearly that we have the security of their development environment well under control and that we deliver quality products."

Compliance with requirements (from customers or industry)

For many SMEs, the reason for using standards is simply because it is mandatory. Many industries are regulated by strict laws and regulations. Standards help ensure that companies comply with these local, national and international laws.

That is also the experience for Ann Verhue of Callens: "In our sector, standards are required by law. So they are essential to comply with legislation. We install steam installations, such as steam generators. The latter, as well as the associated safety devices, are subject to strict standards. For example, we must comply with PED legislation and all our installations must also be CE marked."

This also applies to Arjan, but rather because customers expect it. "We work for several government agencies and EU institutions that often require that you have implemented an information security management system (ISO 27001) or a quality management system (ISO 9001)."

Building trust and credibility

However, it does not stop there. Certification to recognized standards increases the credibility of a Organisation, as customers and partners perceive the SME as reliable and professional.

For example, an SME in the food industry can adopt ISO 22000 (Food Safety Management) to assure customers that their food products meet safety standards, building trust.

The fact that we have management systems in place is also a good selling point to other customers," Arjan believes.

Greater market access or easier exporting.

In this way, standards can give SMEs a competitive advantage and greater market reach. Indeed, SMEs can position themselves as more secure and reliable compared to competitors who do not have the same certification.

Arjan continues, "Implementing ISO 27001 has by all means ensured that we have won several projects within the same Organisation - an EU institution. So it definitely generates new orders.

Improved communication with suppliers and customers

Standards help SMEs align their processes with their suppliers and customers. This also enables clear communication and smooth transactions.

For example, Arjan explains that certification avoids "having to fill out long questionnaires from customers to prove that you are doing what you say you are doing. The certification proves it."

Internal competencies and increasing efficiency

The use of standards also has an impact within the SME. Some standards provide a standardized approach to processes and procedures. Laying these down creates more structure within the SME, leading to more efficient ways of working. This ensures that tasks are performed consistently and according to best practices which in turn allows for cost savings and improved internal performance. This is also the case at Sopra Steria. Arjan explains: "We work in a much more structured way. There is also more awareness of the need to work carefully to maintain certification every year. It has a positive effect on the way employees work."

Ann agrees: "Standards are an enormous source of knowledge. Without standards we would saddle ourselves with a lot of extra work. Because then we would have to demonstrate each time that our products are safe enough and do all the calculations ourselves. Now we have a calculation program based on our most commonly used standards."

Reducing risks

All this also reduces risk. It allows SMEs to operate compliant with peace of mind. This is also a clear advantage for Ann: "We use standards to stay compliant. That way we don't have to check all the risks ourselves or do the necessary calculations. All the safety factors are described in the standards. If you follow them, you can confidently put that CE mark on your installation or device.

Further

The study points out some other benefits, such as better tracking of the latest technical developments, or improved environmental performance or internal communication.

Ann fulfills the latter advantage in her own original way: "I work with standards all the time and know them by now. I am currently producing a manual called 'Standards for dummies' to familiarize colleagues with the standards. Of course, it is not a simple matter, which is why I also give internal training courses."

What about you?

Do you work in an SME and maintain standards? Do you recognize yourself in this article? Or do standards have other benefits for you? Feel free to let us know.

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