Digitalisation of SMEs in Africa

February 27th, 2019 – There is a general consensus that Small to Medium-sized Enterprises (SMEs) are the key to the economic development of African countries.

It is also a well-known fact that the digitalisation wave is not ephemeral, but is only the beginning of a whole new era in general life and in business.

There is, therefore, a confluence of vision – SMEs should be adopting and applying digitalisation to their businesses. Like any other nascent phenomenon, there are both opportunities and threats of digitalisation that SMEs need to be aware of.

There are different types of SMEs, for example, traditional ones like the local neighbourhood grocers in South African townships, commonly termed “spaza” shops. Other traditional SME’s include restaurants, beauty salons, and professional services like plumbers, builders and electricians. There is a myriad of other types of SMEs, across different industries and sectors, including tech startups. The commonality amongst all of them is their size and scale, and ownership, as contrasted to large businesses that are either “listed” or have surpassed a certain threshold of revenue, which varies from country to country. Whatever form or shape they are, all SMEs need to understand digitalisation.

What is digitalisation and what does it mean to an SME?
Gartner, the global research and advisory firm, defines digitalisation as “the use of digital technologies to change a business model and provide new revenue and value-producing opportunities; the process of moving to a digital business”. Digital technologies include social technology platforms, Mobile, Cloud, Internet of Things, Artificial Intelligence, Analytics, Virtual Reality, and Blockchain, amongst others.

All these technologies can be harnessed to introduce new digital business models by changing and enabling better internal processes, customer experience and operating models. Digitalisation can be a source of unapparelled competitive advantage when adopted and applied correctly, and conversely, great handicap, for SMEs that fall behind the curve. Both academic research and anecdotal evidence point to digitalisation drastically reducing the cost of capitalising businesses – a continuous bane amongst SMEs.

More…https://www.itnewsafrica.com/2019/02/digitalisation-of-smes-in-africa/

Written by IT NEWS AFRICA

Photo: Joexpert.net