Global Connectivities – Growth Gateways for SMEs

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Narrowing the Digital Divide – Successful SMEs……. and Not So

• Tolystoy’s famous dictum applies to the SME world; especially in terms of digital connectivity.

• Global research suggests that SMEs with a decided digital edge (dde), would succeed in a sustained manner - i.e. ‘ddc’ will sort out the men from the (cows) boys!

• Most businesses since and even organizations are getting ‘commoditized’. In this context, SMEs that wish to graduate from micro to small, from small to mid-sized and from mid-sized to large global enterprises (‘the SME evolution phases’), must invest in technology and digital connectivity applications – not ‘one-off’ but on an ‘ongoing’ basis.

• Hence, Etisalat and CPI’s initiatives and invitation to ‘Get Connected’ is “timely; nay vitally imperative now for SMEs”.

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The Evolution and the Technology Edge

• The current digital era gives SMEs a ‘leg up’ over their previous generation – in terms of growth phases.

• In this new Millennium, global digital connectivities have brought the operating environment to finger-tips. Smarter SMEs envisage and implement a holistic technology support framework to drive home their advantages over competition.

• Gathering and updating of market, technical data and a whole raft of digital connectivities put the smarter SMEs at the cutting-edge of competitiveness and growth - globally.

• Indeed, empirical data indicate that a majority of small enterprises (family-owned) do not survive beyond the second generation - of original family entrepreneurs; especially those that did not adapt to retaining and sharpening their technology edge.

• The ‘so-called’ high costs is a red herring - an inhibiting factor - penny-wise and pound foolish. These are investments; not costs.

• Indeed, best practices and ‘technology catch-up’ are regarded as vital - capital adequacy, credit + quality control and risk management.

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Connectivity Synergies – Industry-Agnostic

• The convergence quotient, globally, in telecom, technology and other services have revolutionized the evolution of SMEs – crunched time & costs.

• Even smaller and nimbler enterprises now give a run to many MNCs and large corporations –both in mature and emerging markets.

• Bill Gates’s ‘dinosaurs’ are coming home to haunt him – even as the digitally-alive banks and financial institutions gallop ahead with high capex in IT.

• Interesting statistics in the Emirates, highlight that some realty companies have survived global financial crises and regional recession - by staying digitally lean and mean i.e. using their tech prowess to harness business. They do “Get Connected” to realities in the realty space!

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Spectrum of Connectivity Issues

• The early ‘techies’ in 1990s may have been enthused by the Y2K opportunity and gravitated towards ‘processing’ advantages etc. But in this Millennium ‘connectivity’ is the buzz word.

• Soon telecom and digital packages enticed market-savvy professionals to build sales by opting for the right telecom digital packages, channels and online technology

- motivated by the array of connectivity issues e.g. delivering, digitally, the right data (customer +inventory-related) etc. at the point of sale and

- providing the choice to work across multiple devices (via CRMs); targeting ‘up-sell’ prospects and beefing-up their knowledge to build international web-based campaigns.

• End Result : Objectives Accomplished i.e. the holistic enhancement of sales performance, customer service and successful segmentation strategies - ++P&L.

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Key Growth Constraints for SMEs

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Lack of Financial Ecosyste

m

Lack of professional

management

Access to new Technology

Poor Infrastructure

Inadequate Market

Linkages

“Control Syndrome”

Limited Investments

Inefficiencies Leading to Higher Costs

Poor Access to Wider Markets

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SMEs’ Access to Technology & Connectivity Packages

• Many SMEs perish by not opting for the state of the art technology applications. This is digital ‘Hara Kiri’.

• Especially, in the Emirates, where / when the telcos and the local governments are vying with each other to support SMEs and facilitate their investments in technology - with the right packages and partnership platforms.

• Even traditional industries such as automative, forging etc. flounder in the absence of advanced technologies; leading to low productivity and uncompetitive enterprises - on a ‘losing trend’.

• Crucially, for SME customers and borrowers, their banks and financial institutions now frown upon such technology deficiencies – when measured and monitored.

• They give low marks even to otherwise profitable enterprises, if they are found to be lagging behind digital best practices.

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How to Bridge the Gap

Technology

Infrastructure

Capital

Management

Challenges faced by SMEs

Market

Gaps in the SME Space

Advisory Services

Technology & other Support Services

Financial Infrastructure

• M&A• Investment Banking• Capital Markets• Strategic Advisory• Risk Advisory

• Rating Agencies• Asset Restructuring

Companies• Credit Guarantee Schemes

• Partnerships• Intellectual Property• CTO Services• Skill Development

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Get On …..”Get Connected”……Great Benefits for SMEs

• Entrepreneurs and SMEs in the UAE have an outstanding opportunity to ‘get even’ with technology. Many successful ones do ……..already.

• The Governments’ commitments and delivery in setting the pace and support are unique - unrivalled across the world.

• Being privy to the ‘Smart Governance’ initiatives, SMEs that wish to grow, can and should get on the bus of digital connectivity.

• Even the dreary world(s) of banking and financial services, compliance and accounting are now ‘on board’; in seizing the telco-offered digital packages.

• SME entrepreneurs would thus do well to focus on their core competencies; by making specialists, channel partners etc. accountable for this successful digital leap.

• That would be the beginning of a virtuous / virtual cycle! Maasalaam!

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