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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.
Explore:
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.