According to the latest research by Cisco, SMEs rate support for remote working as a top tech strategy for growth in APAC.
New research by Cisco reveals that support for employees working remotely is the top technology strategy to accomplishing their operational and growth goals in 2021. According to the research, 41% of small and medium enterprises in APAC rated it as important as online sales platforms for success and growth.
The findings are based on a survey by Analysys Mason of senior business and IT leaders at 1,600 SMEs with 50 to 150 employees, based in eight markets across APAC, namely Australia, China, India, Indonesia, Japan, Singapore, South Korea, and Thailand.
With the shift to a hybrid work environment here to stay, SMEs in the region are expected to continue to invest in technology solutions that support this trend.
According to a separate forecast by Analysys Mason, the cumulative spend on information and communication technology by SMEs across APAC will exceed half a trillion dollars over five years from 2020 to 2024, with China, Japan and India accounting for three quarters.
Cisco Managing Director Head of Commercial & Small Business Bidhan Roy says in terms of industry verticals, manufacturing is expected to account for over half of the ICT spending across all private sector verticals in the region.
“Our study shows that SMEs across all countries, sizes and verticals are focused on remote work support, online platforms and upgrading their existing IT solutions in the year ahead. This accelerated digital adoption will drive recovery and potentially transform industries, including manufacturing and other traditionally capital intensive sectors, to a digital-first and cloud-first model. In the current climate, where online is a major consumption channel and dispersed workforces are the norm, our research also finds security and privacy among the chief considerations for SMEs when selecting technology solutions. It is crucial for SMEs, who may have limited resources, to work with technology partners that can help them identify secure, reliable and value-for-money technology solutions that best fit their needs, as well as provide ongoing, one-stop and customized support throughout the lifetime of the products and their digital transformation journey,” says Roy.
Seamless integration of online and offline experiences to drive customer engagement, excitement, and loyalty
With lockdowns and safety restrictions forcing physical retail outlets and offices to close, finding alternative channels to sell and deliver products is a challenge that half (50%) of SMEs in APAC are currently facing, followed by improving employee productivity (44%) and boosting revenue (40%).
This has transformed the digital touchpoints and overall customer experience throughout the entire customer journey. It has also prompted many SMEs to shift to online sales channels to keep their revenue streams going, with over three quarters seeing the development of an ecommerce platform as an important or very important component of their IT strategy in the year ahead.
The research further reveals that customer experience (59%) is the top priority for SMEs in APAC to digitalize. As more SMEs move towards a contactless customer experience from targeting to engaging and onboarding their customers, businesses need to rethink how the digital experience can complement and seamlessly integrate with physical interactions to stand out from the competition.
SMEs require high-capacity and secure cloud platforms to ensure a smooth online shopping experience that customers can trust. At the same time, they must have efficient systems in place to support the delivery of goods and aftersales services once the transactions have been made.
Leveraging technology including cloud solutions to reduce costs
As a result of the business disruptions caused by the pandemic in the past year, using technology to reduce cost is the top business goal for one in five (18%) SMEs across APAC in the next 12 months.
This is especially prevalent in mature APAC markets (Australia, Singapore, Japan and South Korea), where more than one-quarter (26%) of those surveyed selected it as their top goal compared to 17% in emerging markets (India, China, Indonesia and Thailand).
Enhancing efficiency through automation and hyper-automation is a way for SMEs to achieve this goal. With AI and similar emerging technologies becoming increasingly accessible and affordable for SMEs through solutions like cloud-delivered AI, there has been an uptick in automation over the course of 2020. The adoption of cloud-based platforms also offers the flexibility to upscale or downscale operations quickly according to business needs and helps enhance cost-effectiveness by minimizing fixed costs.
The evolving role of humans from utility to driving value
The shift to remote working in APAC has brought about new challenges and priorities for SMEs. Improving employee productivity (44%) is the second largest business challenge that SMEs in APAC are facing.
In mature APAC markets, employee engagement (42%) is the top priority for SME’s digitalization efforts. In order to stay relevant and resilient in the year ahead, we can expect SMEs to increase their technology investment to address these challenges and priorities by building capabilities equivalent to that of an enterprise in the home.
In addition, the rise of automation enables people to move away from repetitive, mundane tasks and focus efforts on higher value activities instead. This shifts the role of humans from that of utility to one of creating value, which will offer employees a greater sense of achievement and opportunities to upskill and reskill, thereby contributing to wider industry transformation.
(Ed. Featured image by Photographer Vanessa Garcia.)