Everyone is talking about digitalisation, but many small-and-medium enterprises (SMEs) are still struggling to figure out what it really means and how to succeed in today’s digital era through digitalisation.

A recent research1 found that while the adoption of digitalisation strategies was high amongst local SMEs at 83%, only two out of five SMEs were successful. Unsuccessful business leaders cited barriers such as the lack of digital skills and low awareness of the available digital transformation Governments initiatives, in addition to cost concerns.   

 

 

Getting the Facts Right 

Digitalisation is the use of digital technologies to disrupt traditional business models for new revenue and value propositions. Simply put, it is the process of moving to a digital business to improve performance, spur innovation, enhance productivity, and effectively compete with industry peers regardless of company size. By leveraging digital technologies, SMEs can level the playing field with larger firms to achieve economy of scale, lower operation costs, and enhance customer relations.

Digitalisation can build long-term competitive advantages for business success. Instead of generalising it as another IT upgrade project, business leaders should take charge and have a self-initiated digital agenda with clear business transformation goals. It certainly goes beyond ticking your digitalisation checklist.

Businesses must avoid typecasting digitalisation as just an IT agenda. Digitalisation generally starts with workflow automation or the adoption of technology, but it does not reset the basic rules of commerce which is about customers, value, and monetisation. Success, fundamentally, still revolves around value propositions business owners can offer their customers. However, only when customers value the products or services to a point where one can monetise them will businesses be considered successful in their digitalisation strategies. These relate to the commercial, strategic, and core functions of a business.

Digitalisation does not necessarily mean adopting the most cutting-edge technology. It typically encompasses the use of existing and mature technologies (such as smartphones, GPS data, and rating software) to drive operational efficiencies and business success. What is more important in ensuring digitalisation success is for businesses to consider the practical adoption of technologies and users’ familiarity with new technologies. This, however, does not mean that there is no need to invest in new, disruptive technologies, but rather implies that one should neither view technology alone as the secret for success nor use the lack of new technologies as an excuse not to venture into the digital world.

 

 

Customise Digitalisation for Success 

Throughout our years of consulting, we notice that only customised digitalisation projects are successful – may it be a company-wide transformation programme or just a modular digitalisation project. Every business is unique, so should the digitalisation approach. Every business has to decide where to start, what to prioritise, what to retain, and how fast to change. This should be the thought process when devising a customised digitalisation plan.

Lastly, it is important to note that digital transformation is not a “set it and forget it” effort, but a journey of reinvention and transformation that involves integrating the 3P’s - Technology Platforms, Processes, and People.

Source: 1 ASME-Microsoft study 2020

 

To find out more and how we can assist you in your digitalisation journey, please reach out to our specialists.

Eileen Tan 
Partner & Head, IT Services 
T +65 6594 7889 
[email protected]

Hoi Wai Khin 
Partner, Business Consulting (Digital Trust) 
T +65 6594 7880 
[email protected]