Both SMBs (small and medium businesses) and DNBs (digital native businesses) are going to adopt more of technologies for staying competitive globally
In a thorough report focussed on SMBs (small and medium businesses) and DNBs (digital native businesses), IDC, the world’s leading market research and technology consultancy firm, reiterates its point that technology is the key behind their sustenance and excellence in the globally connected world order. The report reflects the eagerness on the part of SMBs and DNBs, especially those in India, for adopting latest technologies for staying nimble, efficient, and globally competitive.
The findings titled, IDC FutureScape: Worldwide Small and Medium Sized Business and Digital Native Business 2023 Predictions — India implications, makes it amply clear that technology is the ultimate saviour that pulls them (SMBs & DNBs) through tougher times and enable them run their operations efficiently and profitably. The report predicts that by 2026, at least 20 percent of SMBs will introduce metrics to track and effectively measure business value from their core business activities, their ecosystems, and their impact on the environment.
It says that SMBs have survived pandemic shutdowns and supply chain disruptions by leveraging technology and providing their clients with online services through various digital channels. However, with the rising inflationary impact, customers have become more cost-centric, pressuring SMBs and making it more challenging to achieve business resiliency.
Earlier, IDC, in its ‘Worldwide Future SMB Survey 2022’, reports that over 46 percent of SMBs in APAC have significantly digitized their businesses by adopting eCommerce, digital payments, and automation technologies. Digitally matured SMBs across India are adopting technologies to future-proof their businesses against additional market disruptions.
On the other hand, DNBs have used their technological platforms for differentiating themselves while bringing relevance and value to customers particularly during the pandemic. They stepped in to fill the voids left by the pandemic lockdowns, which banned physical interactions. For example, telemedicine has flourished – enhancing and often substituting traditional healthcare. E-commerce also experienced a surge, benefitting the entire ecosystem, including its digitally enabled logistics partners. While, online payment acceptance accelerated due to its ability to offer contactless and fast payment services.
“The SMBs have been the backbone of the Indian economy, and are eager to adopt technology to achieve greater efficiency and flexibility. “They’re increasingly investing in technology solutions to become more cost-efficient, improve customer acquisition and retention, and balance growth with quality. By adopting a more digital way of doing business, SMBs in India have tremendous potential to expand, leading to an increase in their market share,” says Supriya Deka, Senior Market Analyst for Digital Small and Medium Businesses, IDC Asia-Pacific.
Sairam Balasubramani, Senior Market Analyst for Digital Native Business: Start-Ups & Scale-Ups Research, IDC Asia-Pacific, views, “The DNBs in certain verticals and industries were able to prosper in the pandemic by implementing new technologies and setting themselves apart. However, the boom DNBs experienced in prior years has begun to slacken from its peak as pandemic restrictions lifted. They must contend with challenges like access to funding and achieving sustainable expansion. Their efforts now focus on efficiency and utilizing its digital infrastructure to bring the company closer to profitability.”
Top 10 technology trends prevalent among SMBs & DNBs:
Tech Savvy SMBs Drive Economy: By 2027, total budgets dedicated to IT investments and connectivity services at Indian SMBs will increase by 20 percent as SMBs turn to technology to compete with larger businesses.
Redefining Business Value: By 2026, at least 20 percent of SMBs will introduce metrics to track and effectively measure business value from their core business activities, their ecosystems and their impact on the environment.
Cloud Driven Agility: By 2024, 35 percent of SMBs will shift one third of their core workloads to the cloud to drive business agility and future resilience.
Automation Amplified: By 2026, one third of SMBs will increase investments in automation and digital tools to make up for the shortage of workers, reduce manual processes and human error, and boost productivity.
Live Commerce Redefine Customer Experience: By 2023, 15 percent of SMBs will leverage live streaming technologies to launch new products and enhance the customer experience by facilitating easier product discovery and checkout.
In-House IT: Over half of medium sized businesses will hire key technology decision makers by 2026 as they continue to invest in digital transformation and seek to have IT thought leadership on staff.
The Intelligent SMB: By 2025, 30 percent of Indian SMBs will consider intelligence decision systems to promote R&D and supply chain management.
The Future Economy is DNB Based: By 2027, the number of digital-native businesses of the S&P BSE 500 will have doubled, leading to a digitally driven economy.
Value Trumps Speed: By 2025, 40 percent of Indian DNBs will shift focus from speed to market to demonstrable business outcomes to secure capital, boost differentiation, and achieve sustainable and resilient growth.
DNBs to Drive ESG Goals: By 2027, 35 percent of Indian venture funds will have implemented robust ESG criteria to qualify for investment.
Qaisar
