Malaysia’ SME is a small piece of the leading digital transformation as compare to their neighboring countries – https://www.digitalnewsasia.com/digital-economy/what-next-2017-smes-need-accelerate-development-increase-digital-adoption-malaysia
You may refer to the next article by Mdec on the progress and challenges face by SME on digital edge – https://www.internationalinvestor.com/2017/06/30/progress-and-challenges-for-malaysian-smes-in-the-digital-age/
Let me start on my own perspective regarding this topic:
Small medium enterprises in my country Malaysia are normally set up initially from family business. When the business started to grow and prosper, the company’s structure of the organisation becoming more complex. Families members from various background of education started to step in into the business they may not have any knowledge off. As such, it diluted the core culture and DNA of the company, making decision becoming harder, losing respect of the staffs & sometimes ‘forcing’ the next generation to take over without passing them the right tools and support needed to continue the business. Therefore, what is the next steps should they embrace to overcome all these predicament? One of the way is by adopting system!
Why adopting system (especially digital system) is important to the company long run survival?
1. It helps to recorded down all the processes and transaction.
2. It helps to make better decision based on past historical pattern.
3. It eliminate miscommunication and misconceptions amongst each other/department
4. It can be transferable easier.
5. It helps to open up the organisation to work better with 3rd party especially vendors and suppliers.
Real Example of SMEs aggressively embracing digital transformation:
I take an example of a client of ours-Gastom in Taiwan, they are one of the 4 biggest player in LPG distribution (estimated around 50,000 barrel per month).
In 2017, they digitalised their entire supply chain management of their Liquid Petroleum Gas (LPG) business- in short they created a LPG ordering platform for their clients and merchants, an UBER like services but for LPG ordering instead of transportation services. As a result, cost were cut by 30% and efficiency increase by double from B2B and B2C perspective. They understand that if they do not embrace the digital change,they will sooner lose out the entire business as the 2nd generation will not jump into this business.On top,by investing in technology to cut down all the unnecessary manual processes was inevitable.
In short, digital transformation is slowly replacing all the old way of running traditional business- greatest example will be the wave of e-wallet adoption in China ( WeChat & Alipay ).However, getting the right digital vendor and with industry domain is extremely rare.SME must be able to get ready to pay & embrace the change or they will be changed by the technology.