Each country has its own definition of what constitutes a small and medium-sized enterprise (SME), but they typically maintain revenue assets or a number of employees below a certain threshold.
Though small in size, SMEs generally outnumber large corporations vastly, and employ a large number of employees. For example, in Singapore, according to the Department of Statistics Singapore, the country’s SMEs account for around two-thirds of employment.
Although the Covid-19 pandemic has sped up digital transformation greatly, many firms in the SME category have yet to take the plunge. We live in a world that is extremely digital and hyper-connected, and digitising will help a business to reinvent itself and capture unique competitive advantages.
It is thus important for SMEs to break away from using manual systems and traditional processes. However, many are held back by various reasons, and might require a partner to help them with their digital transformation journey.
Pain Points SMEs Face That Slows Down The Digital Transformation Progress
Digital transformation can be expensive, and especially so for SMEs. This group of businesses often focus more on sales and sustainability, as they work with margin pressures and high costs.
Therefore, SMEs often do not have sufficient capital, and digital transformation and technology adoption are placed on the back burner. The costs of digital transformation can be high too, as it might include the purchasing of software, technological tools, as well as extra capital spent on training manpower.
Furthermore, even though digital transformation is an investment which might be acknowledged by SME owners themselves, access to financing might be a challenge.
Inability To See The Long-Term Benefits Of Digital Transformation
Even though it might seem like digital transformation is a surefire way to improve one’s business, SME owners might be unable to gauge the returns on investment of adopting new technologies.
This is mainly due to the fact that the impacts of digital transformation typically cannot be seen immediately. Furthermore, SME owners might tend to pin their focus on the high cost of digital transformation, and having to reskill their workforce.
Lack Of Suitable Manpower To Utilise Technology
While replacing manual systems and traditional processes can be easy, SMEs might lack the suitable manpower to operate these new technologies.
Hence, a major challenge that SMEs face in digital transformation is having to upskill or even source for new talent to meet the technical expertise required to adopt new technologies.
This leads to a gap between the pace of technology advancement and the expertise of current manpower, which creates an inefficient workforce. Due to this, SMEs might actually risk making an unfruitful investment when engaging in digital transformation.
How A Good Partner Can Help With Your Digital Transformation Journey
SMEs can partner with a whole host of different organisations out there to kickstart and sustain their digital transformation journey.
This is especially so for large corporations and technology providers that have implemented programmes to empower SMEs.
For example, many physical stores have engaged a partner to help develop a comprehensive e-commerce solution to help them to reach out to more customers, especially at the height of the pandemic.
Besides moving into e-commerce, partners might also help SMEs in reskilling their workforce, or curating better deals.
Here are some ways in which a good partner can help an SME with their digital transformation journey:
Provides Guidance To Kickstart Digital Transformation
SMEs typically lack an online presence and digital strategy, and the first step to starting the digital transformation journey is to have an action plan.
In today’s economic situation where there are cash constraints and investments are delayed, a partner can work with SMEs to create actionable steps. By developing a digital strategy with the help of a partner, SMEs can begin their digital transformation journey more efficiently, while also optimising costs.
Facilitates Employee Upskilling
The lack of suitable manpower to implement digital transformation is a key concern for many SMEs. A good partner can help to provide SMEs with the right tools, capabilities and resources to do this effectively.
Furthermore, there is no one-size fits-all solution, and a good partner will create a tailored workforce upskilling plan that caters to the organisation’s needs.
This will help to reduce operational costs, optimise processes, as well as ensure that SMEs’ returns on investments for digital transformation is significant.
Helps to Source for Digital Solutions at a Good Price
A good partner should have the technology and expertise to help SMEs that are not digitally savvy, as well as source for better deals for them.
Since the key concern when engaging in digital transformation is cost, a good partner will help SMEs to source for the right digital solutions for a good price, which will be vital in ensuring that SMEs are able to stay relevant and afloat during the pandemic, and beyond.
How Moovaz Can Help
Regardless of the sector you are in, it is important to quickly kickstart your digital transformation process, to ensure that your business will be able to remain sustainable and even thrive amidst the pandemic.
Here at Moovaz, with our proprietary technology, we strive to inspire freedom for our partners and clients. As a relocation platform, Moovaz is here to help you increase your business value, to help your business scale with ease!
To kickstart your company’s digitisation process, partner with Moovaz today!