9% of SMEs have adopted some degree of digitalisation for everyday communications and operations, based on a recent Bain and Co study. However, most are still in the early stages.
Digitalisation is an ongoing business transformation and it will continue to modify the way we organise and do work. With the right adoption and planning, it can create a butterfly effect of returns in innovation and services.
Here, we delve into four reasons to sharpen your digital edge:
1. Going digital solves productivity puzzle among employees
Productivity tops the priority list for SMEs in Singapore as they navigate through turbulent tides in 2020. According to the 2019 economic survey by the Ministry of Trade and Industry, Singaporean firms that have gone digital have improved their productivity by 16% on average.
Tech innovation is ever evolving and rapidly improving. However, these improvements may become obsolete without trained hires. Development teams need to be well-versed in tech tools to deliver new software and features to support day-to-day operations.
Well-trained teams were able to meet 90% of their businesses milestones when compared to 50% of average skill groups, said leading global market intelligence, IDC.
2. Digital revolution cuts costs
In the pre-COVID-19 times, companies depend heavily on manual processes and physical backups in different formats. By introducing advanced technology as cloud based and IoT systems, businesses can maximise their profit at the lowest cost possible.
Almost half of companies run public and private-cloud platforms. This number is projected to rise up to 75%, based on a research by global consultant, McKinsey & Company.
Once on-cloud, anyone internally can access information available in real time, saving up to half of paper costs itself. Although migration of workloads can be a challenge, organisations can reassess their infrastructure stack and test what works for their business model.
3. IT champions innovation
86% of digital performers report an increase in rapid innovation in their business line from digital initiatives. There is no true digital transformation without a culture of Innovation. Where there’s innovation, digital will follow suit.
There are three kinds of innovation in the new business world: product offerings, internal workflows and business models. Some companies embrace all three to adapt to the ever-changing market. With innovation at the centre of your processes, it will differentiate your business from other competitors. This is especially true for legacy organisations who are more resistant to change.
In the midst of pandemic, many businesses have reinvented the way they cater to new demands. For example, food and beverages (F&B) merchants are shifting from table-service to home delivery to bypass the spread of virus. Ride-hailing and delivery platform Grab recorded a total gross merchandise value (GMV) grew by 183% in Southeast Asian countries in 2020.
4. Future proof your business by digitalisation
On average, companies with digital transformation initiatives can expect a 17% return on investment, as reported by Avanade, digital and cloud services leader. While there is no guarantee that digital tools can help deliver overnight success, it can definitely set your business in motion.
Often, entrepreneurs are caught up devoting their assets on their prized products that they overlook risks of falling into old trends. This is where data analytics can help extract value from consumer data to predict new challenges and opportunities in the market. By 2021, 90% of new intelligent systems will have embedded decision architecture that will evaluate and influence business decisions.
The COVID-19 pandemic has made the need for a digital transformation imperative. Regardless of industry or sector, companies are creating a seamless digital experience or at least considering it. Success in this area during these challenging times can be a differentiator between leaders and laggards.
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.
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