Singapore SMEs face challenges in digital transformation

A recent survey by TDCX highlights the challenges faced by small and medium enterprises (SMEs) in Singapore regarding digital transformation, particularly in content creation and customer acquisition, and the lack of in-house digital marketing expertise.

Singapore has positioned itself as one of the most digitalised cities globally, ranking third in digital competitiveness. However, a significant portion of the business community still struggles to keep pace with the swift technological advancements and demands of the digital age. Despite government incentive schemes to drive technological adoption and workforce upskilling, SMEs in the region face substantial obstacles.

Nikita Wong, Head of Marketing Automation & CRM at OpenMinds Singapore, addresses these issues, noting the impact of the market's "red ocean" state, characterised by intense competition, as a factor compelling local SMEs to enhance their technological capabilities to stay afloat against better-funded competitors.

The TDCX survey indicates that a significant challenge for SMEs lies in bridging the digital skills gap. 60% of SMEs attribute their slow tech adoption to this deficiency. This gap highlights the disconnect between the desire to implement digital solutions and the capability to do so effectively.

Financial support in the form of grants and funding is available, but this addresses only part of the problem. OpenMinds Singapore, a company specialising in marketing technology, has identified that SMEs often lack the specialised guidance to select appropriate MarTech solutions and the expertise required to operationalise them effectively.

OpenMinds aims to assist these businesses in navigating MarTech complexities with tailored solutions based on a deeper understanding of each enterprise's unique digital challenges. Over the past 13 years, OpenMinds has collaborated with businesses across Singapore, Malaysia, and Hong Kong, offering comprehensive digital strategy and consultancy services.

Nikita Wong further emphasises the issues SMEs encounter with technology, noting, "SMEs often purchase enterprise-grade tools but lack the expertise to implement them effectively." She suggests that starting with lightweight automation can prevent SMEs from becoming overwhelmed by complex MarTech tools.

Wong emphasises the importance of proper implementation, asserting that "the implementation of digital tools matters more than the tool itself." She advocates for teams effectively adopting new technologies to ensure successful digital transformation.

To compete effectively in the saturated market landscape, Wong believes SMEs must leverage MarTech solutions to adopt new technologies and differentiate themselves significantly in the "red ocean" of competition.

Human capital is crucial in this transformation. Wong advises that SMEs evaluate whether to upskill existing employees or hire marketing specialists to meet the demands of digitalisation.

Wong advises that identifying "digital-ready" staff versus those who require more training is essential for a successful digital transition, underscoring the value of targeted human resource strategies in realising digital potential.

Through continued partnership and innovation, OpenMinds and industry stakeholders like Nikita Wong seek to help SMEs overcome these barriers, fostering a resilient, competitive digital ecosystem in Singapore.