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| Source: Cisco ebook. The Cisco APAC SMB Digital Maturity Index measures digital maturity along four dimensions. |
· SMBs in Singapore ranked No. 1 on Cisco APAC SMB Digital Maturity Index*
· Cybersecurity is the top technology that SMBs in Singapore are investing in, followed by cloud and analytics
· Lack of digital skills and talent within the organisation and lack of insight into operational and customer data listed as the top challenge by SMBs across the country
Small and medium-sized businesses (SMBs) in Singapore are the most digitally mature across the Asia Pacific region, according to the APAC SMB Digital Maturity Index released by Cisco in mid-April.
The index highlights that more than 60% of SMBs in Asia-Pacific have started to embrace digitalisation, driven by improved Internet access and growing smartphone ownership. These SMBs are redefining customer experience and expectations, disrupting sectors and in some cases creating entire new ones, while capturing investment and funding opportunities.
The index, developed by research firm IDC based on an independent survey of 1,340 respondents in 14 countries across the region, looked at digital maturity of SMBs across four business dimensions: technology adoption and application, digital transformation strategy and organisation, processes and governance, and the capability to source, manage and retain the right talent to enable their digital transformation.
SMBs in Singapore were classified into the Digital Observer stage of digital maturity, but are still some way from advanced maturity. There are four stages of maturity in total, with Digital Indifferent being the least mature, Digital Observer and then Digital Challenger moving up the scale of maturity, and Digital Native being the most mature. The Digital Observer stage is defined as being one where companies’ digital efforts are heavily focused on processes automation to achieve efficiencies.
The level of maturity of SMBs in Singapore is best exemplified by the technologies that they are prioritising with cybersecurity being the top technology they are investing in, according to 16.7% of respondents. This highlights that they are placing security front and centre of their digital transformation journey.
As SMBs in Singapore become more digital, it is not surprising that cloud is the top technology they are investing in, at 12.9% of respondents. This is in line with the trend of cloud adoption across the region as the technology allows SMBs to scale rapidly as and when required and without significant upfront capital investment in IT infrastructure.
SMBs in Singapore are also adopting analytics technologies, with 11.2% of respondents listing these as one of the top three technology types that they are investing in. This highlights that they have a proactive data driven approach in their go-to-market decision making. Singapore and China are the only countries in the Asia Pacific region where analytics solutions rank in the top three for technology investments.
“SMBs in Singapore are often the first to embed digital technologies into the business to amplify their size, presence and competitiveness in the market. As a result, they are the first to benefit from productivity improvements, efficiency gains and new revenue opportunities. To get ahead, SMBs need to be more savvy with government initiatives that have been set up to support them,” said Tay Bee Kheng, MD, Singapore, Cisco.
However, SMBs in Singapore are also facing hurdles to digital transformation. Respondents said they are being held back by the lack of digital skills and talent within their organisation (16.7%), lack of insight into operational and customer data (16.7%) and lack of perceived value for digital transformation in their industry (13.1%).
The survey also revealed that government initiatives have an impact on SMB digitalisation in Singapore. About 41.4% of respondents say they are aware of government initiatives that support SMBs and have already benefitted from them. Another 52.9% are aware but have not taken part in these programmes.
Bidhan Roy, Regional Director & GM, SMB Markets & Distribution, ASEAN, Cisco added, “SMBs in Singapore are aware of the importance of developing a digitally-enhanced business to compete and use technology to improve business decision making around customers’ needs across all industries. The exceptional enabling environment in Singapore for innovation and digital transformation, combined with modern, upgradeable infrastructure, means that SMBs can readily take advantage of new innovations as they become available. This continuous focus on innovation is key for SMBs to keep driving Singapore’s economic development.”
The index suggests the following recommendations that can accelerate the digital transformation journey of SMBs in Singapore:
Digital transformation is a journey
It is not a sprint but a marathon. SMBs should constantly access their maturity across the four dimensions and prioritise key initiatives to address gaps.
Invest strategically
SMBs need to have a well-defined digital transformation strategy and roadmap. They need to use this as a guide to make strategic technology investments, ones that help them address their key challenges and leverage specific growth opportunities.
Embark on process automation and digitalisation
SMBs should look to gain efficiencies through process automation by leveraging relevant technologies. They should establish policies to standardise processes. As the organisation matures in their digital transformation journey, they should leverage data and digital technologies to transform processes, increase innovation rates and gain agility.
Secure buy-in
Change can be difficult, so SMBs need to ensure buy-in from employees and senior management. They need to identify digital champions within the organisation and bring them in early to the process. They should leverage these champions to catalyse a culture of change by encouraging collaboration, sharing success stories, and taking calculated risks.
Find a trusted partner
Many SMBs find it difficult to execute on their digital transformation strategy. SMBs should look for an experienced technology partner that brings consultancy and project management services, on top of technology knowhow. When deciding, it is important to find partners with experience working with and within the SMB ecosystem.
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Download the ebook (PDF)
*Respondents were from Australia, mainland China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Thailand, Taiwan and Vietnam. The SMBs were from multiple industries, including financial services, manufacturing, construction and resources, public sector, services, infrastructure, retail and wholesale.
