As Singapore navigates an increasingly interconnected global economy, the nation's competitiveness is closely tied to the transformation of its Small and Medium Enterprises (SMEs). During the National Day Rally, Prime Minister Lawrence Wong emphasized the importance of innovation and upskilling of the workforce for Singapore to thrive. By adopting the People-Process-Technology framework, SMEs can better position themselves to navigate business and technological challenges effectively.
People: Enhancing skills and capabilities
Having employees with the right experience and skills is pivotal to a company’s success. However, according to a survey by the Singapore Business Federation, 53% of SMEs indicated a lack of skilled talent as one of their biggest obstacles. In today’s rapidly evolving landscape, it is crucial for SMEs to not only attract the right talent but also invest in upskilling their existing employees, particularly in areas such as artificial intelligence (AI), automation, and other emerging technologies.
The responsibility is not solely on businesses. Employees must also take ownership of their professional development, ensuring they remain equipped with the latest skills necessary to navigate the digital economy. This mutual commitment between employers and employees to continuous learning fosters a digital culture that is critical for long-term success.
SMEs can cultivate a growth-oriented environment by prioritising employee development through customised upskilling programs tailored to both the company's and the employees' needs. A structured approach to learning can help organisations leverage the full potential of digitalisation, ensuring that employees are not only competent but also confident in using new technologies.
Collaboration with the government is also key. Initiatives like the SMEs Go Digital Programme offer invaluable resources that enable businesses to build robust digital capabilities. By leveraging such programmes, SMEs can better position themselves to stay competitive.
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Process: Streamlining and outsourcing operations to improve workflows
The second pillar of transformation focuses on the optimisation of business processes in daily operations. Many SMEs in Singapore continue to rely on manual processes and face challenges related to disjointed platforms and operations, which results in inefficiencies. Workers can spend up to 30% of their workday searching for information that are scattered across different systems, emails, folders, and physical documents – time that could be better spent on value-adding activities.
Business process management solutions help to overcome these inefficiencies by seamlessly integrating all stakeholders, systems and data to facilitate a better workflow. For instance, Intelligent Document Processing (IDP) uses AI and machine learning to read, interpret, and extract valuable information from documents, automating tasks that traditionally required manual intervention.
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To effectively do so, SMEs should conduct thorough reviews of existing processes to identify areas where digital solutions can deliver tangible benefits. New digital processes should not duplicate efforts but rather complement and enhance existing workflows. SMEs can start by mapping out current processes and identifying opportunities to introduce automated, AI-driven workflows that enhance efficiency and user experience.
Additionally, business process outsourcing such as IT services to a third-party provider can be a strategic move for SMEs. By employing the services of a dedicated team of IT experts, businesses can ensure their IT infrastructure is secured and constantly monitored and managed, allowing them to focus on their core products and marketing efforts. This approach not only minimises downtime but also optimises operating costs, freeing up resources for other critical business processes.
Technology: Adopting AI and automation
Recent surveys indicate that the adoption of AI-powered solutions among SMEs is on the rise, with 49% of companies expecting positive impacts on productivity in areas such as finance, accounting, and customer service. The potential for AI and automation to transform SMEs is immense — these technologies can optimise operations, reduce errors, increase productivity, and enable data-driven decision-making.
By integrating AI-driven technologies like robotic process automation (RPA) and machine learning, SMEs can improve their overall performance and scale their operations without a proportional increase in labour costs. This is particularly important in a resource-constrained environment where efficiency is key to survival and growth.
To remain competitive, SMEs must embrace digital transformation by investing in a skilled workforce (People), adopting clear and efficient workflow processes (Process), and integrating AI-driven technologies (Technology). These three pillars will empower SMEs to navigate the complex challenges of the global economy, seize new growth opportunities, and contribute to Singapore’s economic resilience and prosperity.
Koh Ching Hong is the chief executive officer of FUJIFILM Business Innovation Singapore
