For a few years now, legacy corporations have been concerned about failing to transform quickly to compete with companies that are “born digital”. With the rising need to make up for business sustainability, large and small corporations are investing into their technology arsenal. However, only 20% of initiatives actually take-off.
Not all digital transformations are created equal. According to a report by Global Management Consultancy, Bain & Company, 75% of Small and Medium Enterprises (SMEs) see digital integration as an opportunity for growth however only 16% make use of digital tools to its full potential.
Here are three top roadblocks for ASEAN SMEs on their digital drive:
1. Less economic problem, more people problem
More than 50% of SMEs planned to invest in 2020 with their priority being, technology. The unprecedented COVID-19 pandemic fuelled the push for digital to secure a smooth working transition in 2020 and post-COVID-19 world. Companies are spending around US$15 billion extra a week, the biggest budget rise in under 3 month after global lockdowns were put in place.
However, despite these high spending, organisations are struggling to fill in the gap for global technology skills especially related to cyber security. This is the first time in over a decade that technology skill is in high demand, reveals the 2020 Harvey Nash/KPMG CIO Survey.
2. Digitisation vs Digitalisation
Plenty of executive leaders are making adjustments in the digital work. Unfortunately, often they think that digitalising their business operation equates to simply putting up a website.
While in real fact, it is envisioning how your business can get ahead on trends to deliver better value for customers in the future with a digital arm. Different perspectives on what “digital” means can deter leadership teams on misguided efforts and false starts on what businesses need to go.
80% of companies that focus on their digital culture deliver better results. Take for example, Singapore’s cashback rewards website, Shopback, tracks their marketing campaigns with data analytics for any new user sign-ups, cashback redeemed and discover growth trends in the market.
3. Cyberattacks costs SMEs more damages
All too common, cyberattacks are only recognised at top reputable institutions when almost 40% of untold damages are targeted at SMEs.
In a survey done by Insurance Specialist QBE, up to 90% of respondents are aware of the potential cyberattacks but still, one in four are unprepared with internal processes and policies. This is a worrying trend considering SMEs make up between 30-60% of the country’s GDP across five countries of ASEAN-9 countries, Indonesia, Malaysia, Philippines, Singapore and Thailand.
In a fight against the dry spell of a business, insurance coverage is seen as a complementary tool to soften the blow of sophisticated attacks. However, in a data comparison from Security Brief AU 2016, Singapore falls behind neighbouring country Australia in holding such tools and policies with <10% take-up rate. With this in mind, there is a definite advantage with relying on network solutions experts to front your cybersecurity efforts.
Under the COVID-19 pandemic, operations may slow down but it will not stop. It is clear during these times that SMEs need to realise their digital ambitions or fail to resume full operations in the post-COVID-19 world.
TUSi offers consultation to individuals and small and medium sized businesses in various means of digitilisation which includes but not limited to digital stock keeping, and task management. TUSi also provide outsourced development of native android application, debian and linux applications, web applications, and embedded systems.
Comments