As increased digitisation provides opportunities for businesses to enter new markets and ventures, there is a strong correlation between business transformation and technology.
But what impact does technology have on small and medium enterprises (SMEs), and how can they best navigate this transition? That was the question facing a panel of eminent technologists, hosted by technology trends expert and Acumen writer Aki Anastasiou at the most recent iStore/GIBS SME forum.
Covid and accelerated change
“Before Covid, we took life for granted. Then overnight, everything went digital, from school to university to your Pilates classes. Your life was enabled in so many ways because your touchpoint to the outside world was through digital means,” Pragashani Reddy, the head of technology and digital enablement at Standard Bank CIB told the forum.
While the fourth industrial revolution was “meant to gently unravel, it suddenly happened,” she continued. “It had a jarring impact, but also made us look at technology in a completely different light, one that is going to shape the future.”
Exacerbating the digital divide
Nomonde White-Ndlovu, chief information officer for Bidvest Bank, said technology can act as both a disruptor and an enabler. However, the complexity of choices it presents creates vulnerabilities and expands the level of inequality that exists.
“Technology can also make the disparities that exist violently apparent to all of us, as we saw during Covid when many people were left out. Many small and medium businesses were not able to pivot to hybrid working, as it requires investment and money, whereas those of us who were in tier-one organisations and had access to capital were able to digitise and stay on track.”
“We should be making sure that access to technology is not restricted to only a few select people,” she added.
Entrepreneur and co-founder of Q-HOP Ajay Lalu said the way in which technology is implemented influences whether it is a disruptor or an enabler.
Whereas for big business, technology is an enabler and helps them to pursue productivity and efficiency gains, for small businesses, technology and online meetings have shrunk the world. “This has given us opportunities as the world becomes smaller and your market size becomes bigger. But you do need to balance that with more competition and your quality of delivery has to be there.
“As a small business, your ability to react quicker is your key differentiator,” Lalu said.
“It's your ability to capitalise on those advantages that makes you unique and different.”
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