While Singapore boasts a highly digital landscape, many businesses, particularly SMEs, have yet to fully harness the advantages of artificial intelligence (AI). It may surprise some to learn that only about 4 per cent of Singapore’s SMEs currently leverage AI or machine learning in their business.
Recognising this untapped potential, the Singaporean government has allocated S$1 billion in the 2024 budget to support both talent development and SME adoption of AI over the next five years. This investment highlights the significant advantages AI offers SMEs, particularly in automating repetitive tasks and enhancing content generation.
However, even before reaching that stage, SMEs still face challenges in embracing technologies such as using collaborative tools or transitioning their operations to e-commerce platforms.
To accelerate their digitalisation journey, SMEs should look to the technology ecosystem to leverage better the solutions and expertise that are available to them.
The Value of Tech Partnerships
While keeping up with technological advancements is a top challenge for SMEs, with a quarter of them citing it as such, our survey found a positive outlook. More than four in five SMEs (84 percent) see value in leveraging the expertise and solutions provided by tech providers.
SMEs are expected to spend US$130 billion on building digital capabilities by 2026 to drive new business propositions, user experiences, and deliver enhanced offerings in an increasingly interconnected and digitalized world.
This trend is reflected in Singaporean SMEs with our study finding that 67 percent seek to digitalize operations such as sales and marketing and CRM. Tech providers that offer a consultative approach to identifying relevant AI integration points will be instrumental in helping SMEs achieve their goals.
The Challenge of Finding the Right Tech Partner
Despite the clear benefits, more than half (60 percent) of SMEs in our study still find it challenging to connect with the right solution providers. While SMEs in Singapore are ahead of their Southeast Asian counterparts in their digitalization journeys, one in two (53 percent) lack the technology advisory and consultation necessary for efficient tech adoption.
Identifying the right tech partner is therefore crucial. Given the role that technology providers play in helping SMEs to navigate the complexities of digital transformation, the choice of a partner is a strategic decision that can shape the trajectory of success.
Hence, SMEs must not only assess their potential partner based on technical capabilities but a harmonious alignment of values, visions, and a deep understanding of the SME’s unique needs.
The tech provider must also be willing to roll up their sleeves and jump in to resolve issues when they arise, essentially functioning as part of the SME’s team given the fact that companies of this scale are typically limited by the number of resources they have.
The Importance of Responsive Customer Care
When selecting a tech partner, SMEs prioritise advanced technology (71 percent), more responsive customer care (68 percent), and better pricing (45 percent).
Better customer support is a recurrent need among SMEs. Customer-experience related issues were the top two reasons behind their dissatisfaction with their existing solution provider. Specifically, these were the speed of responding to customers (75 percent) and the availability of human interaction as part of customer experience (64 percent).
One aspect that typically frustrates SMEs is slow response times. As a business, any issues faced would lead to downtime or revenue loss for the company, which could be why 84 percent would like to receive a response in real-time or within two hours if it is during working hours.
For SMEs, choosing the right technology provider is a strategic decision that can significantly influence their digital transformation journey. SMEs should focus on understanding their business needs, seeking scalable and flexible solutions, ensuring customisation capabilities, and demanding responsive customer care.
Tech providers that understand and address these priorities will not only build strong partnerships but also drive significant growth and innovation for SMEs in an increasingly digital world.
Source: https://sme.asia/smes-should-harness-the-power-of-tech-providers-for-growth-and-innovation/