Our independent report, The State of IT for NZ’s SMEs, surveyed over 300 business leaders and found a clear and fascinating divide between small and medium-sized businesses when it comes to IT decision-making.
The Great Divide: The Operator vs. The Specialist
In small businesses (fewer than 20 employees), the IT decision-maker is almost always a non-technical leader. General Managers and founders take the lead, making technology choices based on immediate business needs.
In medium-sized businesses (20-250 employees), the picture flips. Here, technical roles dominate. IT Managers and CTOs are the ones making the calls, evaluating solutions based on technical requirements, security, and long-term strategy.
But here’s where it gets interesting. Our research showed that this difference has a direct impact on how innovative a company feels. Organisations with IT or other technical leaders making decisions were far more likely to consider themselves digitally innovative (up to 96%) than those where non-technical business leaders were in charge (as low as 40%).
As the report states, "the reality is this isn’t actually to do with the business size. It’s about having a strategy in place and drawing on the knowledge of technology professionals." When an expert is involved, technology isn't just a utility; it's a strategic asset.
The Danger of Decision Isolation
The challenge for many SMEs is that these crucial decisions are often made in a vacuum. Our report found that in 74.6% of SMEs, major IT decisions are made by just one person. For comparison, in large enterprises, that number averages 21 people.
When a time-poor General Manager or founder makes the call alone, they risk creating technology silos, security gaps, and a portfolio of tools that don’t work well together.
The lesson isn't that business owners should stop making decisions. It's that seeking expert advice is critical to success. As the report concludes, "Businesses that allow experts to advise on IT and digital strategy will see better returns on their investments... It will help avoid blind spots and get the best value."
To learn more about the roles, challenges, and successes of IT decision-makers in New Zealand, download the full, independently researched report: The State of IT: New Zealand’s Small and Medium-Sized Business Edition
