New research from Microsoft Singapore and the Association of Small & Medium Enterprises (ASME) has shown that the perceived success of digitalisation remains moderately low despite higher awareness and adoption among small and medium-sized enterprises (SMEs).
While 83% of small and medium enterprises (SMEs) in Singapore now have Digital Transformation strategies in place, more than half (54%) reported delays in their digitalisation plans due to COVID-19. Also, despite higher adoption of Digital Transformation, only two in five SMEs perceive their efforts to be successful.
The economic uncertainties brought about by the global pandemic have exacerbated some of the challenges that SMEs face when it comes to Digital Transformation. Cost remains a top barrier, with just over half (56%) of Singapore SMEs saying that they found it too expensive to digitalise due to high implementation costs – in addition to other factors such as a digital skills gap and low awareness of government initiatives to support firms in their digital transformation journeys.
These findings were revealed in the 2020 SME Digital Transformation Study produced jointly by Microsoft Singapore and the Association of Small & Medium Enterprises (ASME), which surveyed 400 business owners and key IT decision makers of Singapore SMEs from across 15 industries from March to June this year.
First launched in 2018, the study seeks to unveil the state of local SMEs’ Digital Transformation and shed light on some of the gaps towards digitalisation, against the backdrop of economic disruption and volatility caused by the global pandemic.
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