Should You Digitise Your Core Business Or Build New Digital Ventures?

In today’s technological evolution, the question isn’t if businesses should digitalise but how. For many SMEs in Malaysia, the dilemma they face is whether to digitise their core business or to delve into new digital ventures. This means a significant majority of SMEs have yet to harness the full benefits of digitalisation, often stopping at having a basic online presence or a simple e-commerce website. This underutilisation raises concerns but also highlights vast untapped potential.

Factors to consider in the digitalisation decision

• Target market:

For brick-and-mortar businesses entrenched in the physical realm, like restaurants or retail outlets, the primary question remains - where does your audience reside? If your target demographic is increasingly going online, then so should you. By establishing an online presence, businesses not only connect with this vast audience but also offer convenience and a diverse range of services. For example, a retail store might offer online-only promo codes to incentivise first-time online purchases or roll out 1-day online flash sales to generate quick sales and clear old stock.

Platforms like EasyStore allow businesses to harness the digital sphere effectively. Beyond just an online store, it ensures omnichannel selling and integration with leading marketplaces such as Lazada and Shopee.

• Current capabilities:

Do you have the manpower and technical expertise to migrate and maintain a digital infrastructure? If not, consider solutions that reduce manual work and allow you to allocate resources effectively. Digital transformation can significantly alleviate administrative burdens, enhancing operational agility and ensuring competitiveness in today's fast-paced market environment. Imagine a system that automates attendance, seamlessly calculating overtime and reducing the manual workload for the HR department.

MyWave, for example, is a platform that goes beyond simple payroll processes. It offers features like leave management, claims processing, real-time data capture, other features like performance evaluation, and more, which can significantly reduce HR's administrative burdens.

• Operational costs:

Could digitalisation be the answer to minimising your operational expenses? Transitioning to digital operations can be the key to trimming operating costs. The digital realm offers tools with real-time insights, automation, and compliance mechanisms that improve financial precision and regulatory alignment. Envision a digital invoicing platform that auto-calculates GST and sends reminders for overdue payments and auto-updates currency rates for foreign transactions.

Consider software like QNE Accounting. It's not just any accounting tool; it's tailored to Malaysian business requirements. With features that are GST-compliant, include BIR forms, and offer multi-currency support, businesses can maintain financial accuracy while ensuring compliance with local regulations.

• Future vision:

Where do you envisage your business in the next 5 years? If you intend to diversify or expand your product range, could this new direction benefit from a digital approach? As brands envision diversification or expansion, the digital pathway presents integrative tools that merge the tactile and virtual worlds. A local bookstore, for instance, could use digital analytics to discern trending genres, craft a loyalty scheme offering discounts on bestsellers, and even initiate an online reservation system for in-store author signings.

For those valuing in-person experiences but wishing to enhance their in-store operations, Xilnex offers more than just a POS system. It integrates inventory management, CRM, and even loyalty program functionalities, providing a holistic solution to modern retail challenges.

UOB SmartBusiness: Your Ideal Digital Partner

The path to digitalisation is not a one-size-fits-all journey. Businesses should assess their individual needs, target audience, and long-term objectives. However, one thing remains clear – every business, regardless of its stage or size, can reap the benefits of digitalisation and foster innovation and business growth.

With UOB SmartBusiness, SMEs have a robust ally in their quest for digitalisation. Offering a suite tailored to unique business needs, it streamlines everything from HR and payroll to e-commerce. By automating manual processes, businesses can enjoy enhanced efficiency and savings. Coupled with trusted and accredited solutions, UOB SmartBusiness ensures that SMEs can confidently venture into the digital realm, harnessing innovation for continued growth.

Ready to embrace the digital age? Click here to explore the world of UOB SmartBusiness and how we can support your journey.