For SMEs, it's digital or die

Transform is an online platform for conversations about digital technology. It shows readers how tech is re-shaping the present, while giving them a glimpse of the future.

Transform’s latest edition is about the urgent need to digitalize small and mid-sized enterprises.

SMEs generate 70% of the tax base that provides government revenue, account for most technological innovation, and create nine out of every 10 jobs.

Even so, many countries don’t do much to support SMEs' digitalization.

As this edition highlights, the ongoing challenge for SMEs is to anticipate and embrace the innovations of the future.

You can check out the entire edition online

or Download Transform Issue 8 (PDF version).   

UNIDO deputy head says SMEs must embrace digital: “We can’t waste time”

While everyone knows digital technology makes companies more efficient and productive, some smaller companies are reluctant to adopt it. They need to serve customers, grow their market share, and keep the business going. They assume that digitalization can wait.

But Zou Ciyong, Deputy Director-General of the UN Industrial Development Organization (UNIDO), begs to differ.

“SMEs don’t understand the trends in digitalization, or the impact it will have on their business,” he says. “We need to strengthen SMEs as a group, then link them to technology providers that have developed solutions tailored to the needs of that group.”

You can watch the interview with Zou Ciyong or read the full text here.

“Digitalization is crucial for the survival of any business, big or small”

Renowned global economist Phoebe Koundouri says SMEs must digitalize for sustainability – both environmental and financial.

“You have to get all of the SMEs digitalized,” she says in a talk with Transform Editor-in-Chief Gavin Allen.

Implemented correctly, digital transformation will save companies money and help them expand market share.

It will also help them integrate environmental targets into their business models and reduce their carbon emissions across the value chain.

“You can use AI as well, and machine learning,” Professor Koundouri notes. “With the increasing use of sensors and satellites, we have a wealth of data that is valuable for SMEs – not just for reducing their environmental impact, but in terms of lowering costs and increasing profits.”

Read the full interview with Professor Koundouri.

How to find the magic in your data – without too much stress 

Sure, there’s an ocean of data out there – some of it quite useful. But with limited staff and budgets, how can small and mid-sized companies take advantage of it?

Fortunately, new types of AI-powered software are coming online. Low- or no-code software lets even small companies leverage the power of predictive analytics. That frees entrepreneurs and small businesses from having to crunch the numbers themselves – or hire expensive experts to do it.

“I generalized stuff so non-techies can take a shortcut,” says Hrvoje Smolic, CEO of Graphite Note. “They don't need to write a single line of code. They are just pressing a few buttons.”

Read more about how this works.

More thought leadership from Huawei Transform

There’s a lot more to Transform than what you see here.

From cyber security to intellectual property to women in leadership, we cover a host of topics relevant to business and technology. Click here to get access to our complete library.