A recent survey by the Singapore Business Federation (SBF) highlights the dual nature of digital transformation for companies in Singapore. While approximately 67% of the 529 firms surveyed reported that digitalisation has enhanced operational efficiency, a significant 73% identified high costs as the primary barrier to technology adoption.
The findings, part of the Smart-Enabled Businesses Edition of SBF’s National Business Survey 2024, reveal that 58% of respondents also acknowledged reductions in operational costs due to digitalisation. However, the increase in perceived barriers, from 64% to 73%, underscores the growing concern over financial obstacles.
In particular, 47% of businesses pointed to costly licensing fees for the commercial use of intellectual property as a significant challenge—up from 31% last year. Additionally, 47% noted difficulties in staff upskilling to adapt to new technologies, a rise from 29% in the previous survey.
Current digital transformation initiatives focus heavily on improving operational processes and IT systems, with product enhancement and customer experience receiving comparatively less attention. On average, firms allocate about 11% of their annual budget to digitalisation efforts.
The survey identified cloud computing, e-payments, and cybersecurity as the leading technologies being adopted by over 60% of respondents. Looking ahead, companies are particularly interested in integrating artificial intelligence, data analytics, and the Internet of Things over the next year. Conversely, more than two-thirds of firms indicated they either do not plan to adopt or intend to discontinue the use of immersive media and blockchain technologies, with 45% also expressing a lack of interest in e-commerce.
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