Hafsah Hashim - Adoption of digital technologies for SMEs: React, Reflect and Connect!
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The document discusses the adoption of digital technologies among SMEs in Malaysia, highlighting the megatrends that require them to react, reflect, and connect with the digital ecosystem. Key strategies include leveraging e-commerce, improving business capabilities through technology, and facilitating global competitiveness via digital initiatives. It emphasizes the importance of strategic partnerships and policy support to enhance market access and drive innovation within the digital economy.
Hafsah Hashim - Adoption of digital technologies for SMEs: React, Reflect and Connect!
- 1. 1 Adoption of Digital Technologies for SMEs: React, Reflect And Connect! By Hafsah Hashim CEO, SME Corp Malaysia
- 2. E-Commerce Online Retail Business Big Data Analytics Internet of Things (IoT) Robotics 3D Printing Industry 4.0 The disruptive era of MEGAtrends : SMEs need to React, Reflect and Connect! 4
- 3. 4 Megatrends : Far-reaching impact on SMEs.. SNAP SHOT DIGITAL FUTURE & IR 4.0 M1 RISING OF ENTREPRENEURSHIP COMMUNITY LIVING GLOBALISATION High growth Inclusiveness 3 M2 M3 M4
- 4. DIGITAL FUTURE & IR4.0 : SMEs to seize the opportunities, gain significantly Digital transformation changing business & delivery models Increasing mobile device adoption, a “mobile first” world Cloud, mobile and social technologies • Big data • Cloud computing • Social media • Virtual stores • Subscription-based models • 3D printing • Robots • IoT • AI • On-line platforms • Digital village M1 4
- 5. Globalisation: Faster growth and favourable demographics in Asia & rapid-growth markets Trading between emerging markets increasing Global balance of power to BRIC & MINT nations • Asian middle class- significant spending power • “New knowledge world order” emerging, with Asia as a hub Increased workers mobility and technological advances ASEAN • Market size of 625 million people (60% - youth) • Internationalisation through regional cooperation 5 M2
- 6. Community living: Empower communities with the power of ICT and broadband enabling creation Globally there will be more devices connected to the internet than people (50 billion devices vs 7.5 billion people by 2020) More microenterprises in developing world (77% in Malaysia) Lack of automation More mobile phones; cheaper and more powerful each day. Low cost Easy access Peer pressure 1 CURRENT CHARACTERISTICS 2 3 PUSH FACTORS FOR ICT ADOPTION • build up business capabilities • connect with digital ecosystem partners • promote exports • to be globally competitive companies Go Global Malaysia #MYGoGlobal Going forward, microenterprises in rural area need to be part of digital economy 6 M3
- 7. Rising of Entrepreneurship: The drivers of entrepreneurial activity moving from necessity to opportunity Start-ups with innovative ideas, making a high-impact The face of entrepreneurship is increasingly young The face of entrepreneurship is increasingly female 7 M4
- 8. 8 How digital technologies support Business Linkages
- 9. Entrepreneurial Content • Financial Assistance (Business Accelerator Program) • Advisory and Coaching (SME Expert AP) Branding & Packaging E – Commerce / Market Intelligent / Analytics Certifications & Standard Business Services / e- Payment Financing / Working Capital Entrepreneurship & Higher Value Added Activities I - Farm Digital Platforms • Online Business Platform (eUsahawan) • Digital Training I4.0 Technologies • Data Analytics • Cloud Computing • Apps • Supply chain system Rural Economics Development Programmes • Rural Business Challenge • Sustainable Village (Desa Lestari) Infrastructure • Internet capabilities • Network Accessibility • Narrow Band IoT ‘SMART’ Farmers Smart Mushroom Farming I - Comm EXISTING INITIATIVES LINKAGE 1: FUTURE DIGITAL VILLAGE Connecting rural businesses through digitalisation 9
- 10. 10 • Seed, Transit, Harvesting Fertigation Systems • Wireless, Structure, Interface, Control Systems. Big Data • Seed, Transit, Harvesting HR Efficiency • Water, Soil, Fertilizer Sensor Technology • Capture, Data Converter, Process, Control Internet of Things (IoT) SMART FARMERS : Smart Precision FarmingBiz Model - Technology Convergence by IC Microsystems The business model can be expanded by creating more participants in this segment
- 11. SMART MUSHROOM: Precision Farming helps to increase productivity and revenue of SMEs Smart Mushroom Farming • Control panels • Temperature, CO2 & humidity monitoring sensors • Production data Internet Cloud • Stock monitoring • Quality monitoring • Product tracking • Order confirmations • Real time information E- Commerce / e-Payment • Online markets • Efficient transactions • Promote brands cross border Smart Control Panel Wired / wireless systems Remote monitoring Mobile Apps Seamless tracking and management Closing the gaps between customers and product 11
- 12. Enabling Policies Strategic partnership with global leaders: Investment o Warehouse o Logistics o Customs o Training o Regional HQ o FSI Services DFTZ E-Services Platform o E-Services platform o Interface with services from agencies & private sector Satellite ServicesE-fulfillment hub Physical Virtual KL Internet City LINKAGE 2: DIGITAL FREE TRADE ZONE Strengthening market access via E-Commerce To capitalize on the confluence & exponential growth of the Internet Economy & Cross Border eCommerce activities 1. Increase SME eCommerce exports 2. Make Malaysia a key sourcing & fulfillment hub for global marketplaces 3. Nurture an ecosystem to drive innovation in eCommerce and other Internet Economy-related innovations 4. Drive Investments into Malaysia Double the growth rate of Malaysian SMEs Increase overall goods export by US$25 billion Create 60,000 jobs Target of DFTZ by 2025 18 Expected OUTCOME:
- 13. Register User via eCommerce Portal Trained via eCommerce portal1 2 • eCommerce portal to guide SMEs in eCommerce adoption journey. • Develop and implement a common traditional eCommerce training programme. Partnership with the following partners: End-to-end approach for e-Commerce adoption among Malaysian SMEs.. eCommercePlus Strategic Approach – Collaboration with Agencies, eCommerce Players & Associations • SMEs trained via eCommerce Wizard & eLearning Module • Portal gamification to enable SMEs earn ‘graduation’ points to redeem partners’ offers (eg: Amazon Subscriptions, EasyParcel Credits) Trained via neutral training provider/ workshops3 16
- 14. 14 LINKAGE 3: CATALYST PROGRAMME Integration into targeted supply chain for High Growth SMEs LED/Solid State Lighting Phases of the Programme Aerospace Manufacturing Biotech Medical Devices
- 15. 15 LED-SSL companies shown significant growth in sales 0 65 80 110 115 65.6 70.1 88.1 116.9 125.2 0 20 40 60 80 100 120 140 2012 2013 2014 2015 2016 Millions(RM) Year Target Sales Actual Sales 32 % 27 % 7% 7 % Creation of Homegrown LED-SSL Champion
- 16. 16 BioNext companies shown steady growth into International Market Successfully listed products on Amazon.com. Successfully launched Antioxidant Skin Care, Astatude. Successfully penetrated China market. BioNext Initiative: Transforming high growth biotechnology companies into World Class Player – Linking them to Multinational players Furley Bioextract Sdn. Bhd. Fuciphagus Agritech Sdn. Bhd. Algaetech International Sdn. Bhd. Penetration into more than 20 new countries
- 17. 17 Malaysian Aerospace SMEs are now part of Global Supply Chain
- 18. LINKAGE 4: O2O Commerce Model On-line to Off-line presence of products & services Create awareness of products and services via online Entice customer to Visit a physical store to make purchase 2 Brendan Witcher, Principal analyst at Forrester “Many customers want to have experience that allows them to hold and touch, try on, the products. Walk into a store and walk out with merchandise”
- 19. 19 The world’s fastest growing companies are all O2O commerce layers …IT IS THE NEXT BIG THING!
- 20. 20 “We should no longer be talking about Digital Marketing, … but Marketing in a digital world”. Keith Weed Unilever 2015
- 21. SME Corp. Malaysia SME Corp. Malaysia www.smecorp.gov.my +6 03 27750600 info@smecorp.gov.my 21