WITH borders reopening and businesses in full swing, companies will be eager to recapture sales and market share.
But industry observers say SMEs must also continue on their digitalisation efforts to future-proof against any further disruption.
For sure, many small firms had done whatever was needed to ensure business continuity and survival during the pandemic. They adapted and adopted solutions that most had, perhaps, not considered previously as customers began to expect online presence and demanded improved experiences.
These solutions were applied anywhere within their operations, from finance to human resources and sales channels, transforming the way people work and enabling faster and better decision-making along the way to ensure that they could continue serving their customers.
With the shift in consumer behaviour and expectations likely to remain post-pandemic, businesses will have to continuously adapt to meet them.
Azlan Ahmad, head of startup and small business Asia at Access Group, notes that sustaining their transformation efforts will be key to business survival beyond the pandemic.
“Adopting a digital mindset goes beyond executing discrete projects within a specified timeframe. SMEs that successfully fuse digital into their DNA to deliver continuous innovation into everyday operations are those that are effectively redesigning themselves for the digital future,” he says. Understandably, challenges remain for SMEs when it comes to continued digitalisation. The most obvious factors are cost and the lack of manpower and resources.
SMEs are typically lean and have tight cash flows. Having endured repeated hits from lockdowns, putting aside funds to digitalise isn’t always first on their list.
Some SMEs also continue to use legacy systems that are not very efficient but are deeply embedded in the company’s structure and day-to-day business activities, making it difficult for many of them to switch to newer, more up-to-date systems. These companies, adds Azlan, are comfortable with what they know and often adopt minimal digitalisation.
“Many are so occupied with just surviving day to day that they do not have the capacity to look long term.
“It’s a chicken and egg situation, really. Many SMEs strive with what they have and make the best within their limitations. They cannot grow but they somehow pull through and remain in business. But we are here to show them how digitalisation can help deliver higher returns year after year.”
Access Group is a UK-based solutions provider which has expanded its footprint in Malaysia.
Its main products are business management software solutions which include cloud services, automation and analytics tools. It enables businesses through software such as Access EasyPay, which brings intuitive human resources management solutions to clients.
Azlan shares that having the right mindset remains a key factor in a company’s digital journey.
Notably, some are more adaptive, while others dislike changes. Their preferences affect management style, leadership direction and largely influences the way they do business.
“Despite the increasing rate of digitalisation, some leaders at all levels are inclined to maintain out-dated and manual approaches to working and collaboration. We seek to address many of these challenges with the launch of Access Workspace, which will support SMEs in creating a more connected and engaged organisation.”
Azlan also notes that the government has rolled out several initiatives to help small businesses accelerate their digital transformation including the RM40bil SemarakNiaga scheme, which gives SMEs and Micro SMEs priority through various financing programmes and allowing them to recover and generate revenue once more.
The Malaysia Digital Economy Corp is also incentivising local SMEs to automate and digitalise with the Smart Automation Grant. This enables businesses to take direct steps in acquiring and implementing digital solutions.
But Azlan stresses that SMEs do need assistance beyond financing. And this includes guidance and effective transfer of knowledge to ensure successful adoption.
Further education and awareness of the benefits of digitalisation and the consequences of not adapting is also important in keeping SMEs on the digitalisation path.
Azlan observes that among the main areas of digital changes carried out by small businesses over the past two years include in eCommerce, big data, supplier and customer management tools, human resources management, as well as collaborative tools to accommodate virtual work.
The adoption of cloud computing has also seen a real jump given the level of flexibility it offers businesses. This will have to continue for small businesses to have a competitive edge in a new digital landscape.
“The majority of SME owners I engage with believes the shifts they’ve made to their business operations over the past year will benefit them long-term. These entrepreneurs are focused to continue to grow with digitalisation, having seen obvious results.
“They understand that technology does not work like a wand that will magically solve all business issues at once.
“The Covid-19 pandemic has given companies an impetus and opportunity to embrace digitalisation. Governments are playing a pivotal role aimed at funding innovation and digitalisation among SMEs. Never before in history have we seen such support for digitalisation, empowering SMEs to seize growth opportunities in the overall economy.
“However, it is ultimately the responsibility of the software providers to provide compelling solutions catered to their respective markets. Here’s where we offer very personal services, hand holding our customers until they have arrived at the desired goal when adopting our solutions,” he says.