Digitalisation has opened a big new world of business opportunities for SMEs, and investing in it is probably in your company’s best interest – and the most profitable decision you may make.

Small and Medium Enterprises (SMEs) have the most to gain from technology.

According to Chew Mok Lee (Assistant Chief Executive Officer, ICM and Digitalisation, Enterprise Services and New Industries of Enterprise Singapore) in an interview with The Business Times, “Digitalisation drives capability and growth, enabling SMEs to stay relevant and become more competitive. Going digital has two key benefits — it makes internal processes more efficient or productive, and companies can capture global opportunities through new channels.”

Over the past few years, Singapore citizens have preceded most companies in the move to digital. According to a 2017 study by Ernst and Young, a majority of Singaporean respondents use their devices almost to the point of total dependence. 78% check their devices upon waking up; 55% express a preference to shopping through online retailers; and – tellingly – 43% “judge a company by their online presence”.  It's clear customers and employees have embraced digitalisation in the lifestyles. To engage customers and their employees business must do the same.

But before SMEs jump into digitalisation, they must consider a few key areas before they can reap the fruits of their investment.

1. Identify your objective

You should have a clear vision of what your business wants to achieve before you embark on the digital path. For example:

• Is it to improve the efficiency of your operations? 
• Do you want to achieve a cost saving target? 
• Are you after the benefits of automation?

Digitalisation may take a little of your time and investment, but the benefits – such as sustainable growth and lower overhead costs – definitely outweigh the initial costs in the long run.

2. Pinpoint critical digitalisation areas

Small business owners often get overwhelmed by the endless (and sometimes confusing) options available to them. Bring your own device (BYOD)? Automation of manual tasks? The cloud?

Narrow your focus: identify areas where digitalisation can make a real difference. 

• Should you focus on reducing time-consuming manual tasks?
• Is there a faster, more efficient way of transacting with customers?
• Will it be cheaper in the long run to get rid of legacy systems in favor of online equivalents?

3. Prioritise the transformation

Decide what functions you should digitalise first. The primary things to consider would be your budget, of course, as the affordability constraint has remained a major obstacle for SMEs in fully adopting technology in their operations.

Consider the possible impact on your day-to-day business, and what digital change will make the biggest business impact for the relative cost.

4. Strategise your implementation

In finally adopting digitalisation, ask yourself how easy or difficult it is to implement the new function. What do you need to consider when it comes to staff training and technical implementation?

“Technology workers need to be continuously reskilled on the latest technologies and practices,” writes Sanjeev Vohra, Group Technology Offer for Accenture Technology. “At the same time, organisations often grapple with defining and introducing entirely new roles that never existed.”

5. Evaluate the long-term effects of digitalisation

Nobody knows what the future holds – particularly with technology evolving as fast as it does – but your digital future depends on an assessment of technology’s long-term impact on your company.

Assess your experience through the following questions:

• How will the new functions affect staff and customers?
• Have you put the right planning in place to ensure both parties can understand and operate the new functions?
• How do you ensure that the staff will increase their efficiency and, in effect, increase the satisfaction of customers?

Once you have your answers, you can refine your process, and continue monitoring the effects of digitalisation on your company.

Business Benefits-at-a-glance:

• Your business will enjoy the benefits of digitalisation if you have a clear vision of what you want to achieve in the process.
• You'll see clear efficiencies if you pinpoint areas in your business where technology can make a real difference.
• By prioritising which functions you should digitalise first you can reduce the impact on day-to-day business and manages costs.
• Strategising staff education and technical implementation will result in a smooth transition to the new process.
• Your business will be better prepared if you understand and assess the long term goals of digitalisation.

Learn more about how digitalising your business can help reduce your business costs.