In spite of government initiatives to encourage digitalization including funding support, about half of Singaporean SMEs have yet to respond positively to digitalization. And less than half of SMEs have actually started on the path to digitalization.
Let’s consider why digitalization is such an important activity that SMEs has got to be involved in. For if a business owner is concerned about increasing his revenue and doing his best to cope with getting enough employees because of the manpower crunch, then he has to be concerned about digitalization.
In view of the fact that a quarter of digitalization initiatives failed, you, the business owner, have to have an idea of what you are doing and how that will fit into your overall business strategy. On the other hand, if a business owner does it correctly, digitalization could well lead to possible expansion of your business since you will be acquiring capabilities in your businesses which you didn’t have before.
In short, digitalization opens up possibilities that you may not think of prior to this process and that is why doing things the old fashioned way would not have helped. But that is precisely what some businesses are doing, so it seems.