Strategies for Small and Medium Enterprises in Traditional Sectors to Go Digital

Small and medium enterprises (SMEs) in traditional sectors can successfully go digital by adopting a structured and customised digital transformation strategy that includes leveraging government support, upgrading workforce digital skills, and implementing appropriate technology solutions.

Key strategies include:

• Developing a customised digital transformation plan through structured training and consultation with digital solution providers and industry peers. This ensures the digital tools adopted align with specific business needs and capabilities.

• Utilising government initiatives and grants such as the Productivity Solutions Grant (PSG) and SMEs Go Digital programme, which provide financial support (up to 50% cost offset) and tailored advice to adopt pre-approved digital solutions like inventory management, e-commerce platforms, and cloud computing.

• Bridging the digital skills gap by identifying training needs and upskilling employees to ensure whole-company adoption of digital tools. This is critical as many SMEs face challenges in digital marketing, content creation, and operationalising new technologies due to lack of in-house expertise.

• Embracing cloud computing and data analytics to improve operational efficiency, enable flexible data management, and gain actionable insights for smarter decision-making.

• Accessing ecosystem support from technology associations and consultants who can provide mentorship, help select appropriate marketing technologies, and assist in implementation to overcome challenges related to competition and limited resources.

• Starting with basic digital solutions and progressively adopting more advanced technologies such as artificial intelligence and customer relationship management systems as digital maturity grows.

• Engaging in programmes like CTO-as-a-Service, which provide SMEs with access to Chief Technology Officer expertise on demand, helping them navigate digital transformation without the need for full-time technical leadership.

By combining these strategies, SMEs in traditional sectors can enhance competitiveness, streamline operations, and seize new growth opportunities in the digital economy.