Small Southeast Asian firms are looking more closely at disruptive offerings like robotics, artificial intelligence and 3D printing, a new study concludes.
Until now, small and medium-sized enterprises have been cautious in adopting emerging applications. But that is now changing, according to the «ASEAN SME Transformation Study» by United Overseas Bank, EY, and Dun & Bradstreet.
The study found that three in five SMEs – or 60 percent and 63 percent for ASEAN and Singapore respondents, respectively – would prioritize their technology investment. Specifically, more than three-quarters of respondents are eyeing software, with hardware and infrastructure finding favor with 65 percent and 57 percent of respondents from ASEAN and Singapore, respectively.
Productivity Gains
While they will continue to focus on business-as-usual tools such as customer relationship management, content and database management, they are also increasingly looking at digital technologies to improve productivity.
«There is significant opportunity for SMEs in the region to improve their digital agility. In time, we expect that SMEs will increasingly subscribe to web-hosted applications to free themselves from managing IT functions internally,» said Liew Nam Soon, managing partner of EY's ASEAN Markets.
More Cost-Effective
Despite the focus on technology, the study highlights that SMEs have yet to realize the potential that pay-per-use or SaaS (software as a service) can offer to address their banking needs. SaaS refers to web-based software that can be used to manage business processes, such as accounting, invoices and payroll.
Unlike traditional licensed software, SaaS is a more cost-effective option for small businesses. It provides users the flexibility to pay only for what they use and to scale the solution on the basis of their business’s needs. As small businesses expand, they can simply add on new functionalities or increase the number of users for their existing solution without the need for further significant investments.
Range of Solutions Expanded
«As small businesses explore technology solutions to enhance business operations, it is important for them to understand the various options available so as to use their limited resources effectively,» Lawrence Loh, Head of Group Business Banking, UOB, said. The bank has expanded the range of solutions available under UOB BizSmart through a tie-up with SAP to offer SAP Business One2 to its customers. This is the first time SAP Business One is being offered to small firms.
The study was conducted in late 2017 with 1,235 SMEs across the six largest ASEAN countries – Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam – to understand how the firms are positioning themselves to participate in the region’s growth and adapt to the changes ahead.
