They are very unalike in style, but the idea is that Dyer can play winger, CM (albeit not brilliantly) and forward and Smith can play winger (though he doesn't do it often, he's done it well in the past), CM and forward. So in term of the positions they cover, it's a well thought-out move, and it's the kind of switch Allardyce does make on the market.
Allardyce could play him on the right of a 3 man attack, but with more emphasis on physicallity and working than Dyer, who goes for speed and technique. That, I think, is where Allardyce plans to play Smith, hence his comparison to Dyer. That he can play in other areas too is a huge squad bonus.
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