2020 Asia Pacific SMB Digital Maturity
As countries in the region look to emerge from the pandemic and reopen their economies, the digitalization of SMBs could add between US$2.6 to 3.1 trillion to Asia Pacific’s GDP by 2024, contributing to economic recovery.
We explore Asia Pacific SMBs’ digital readiness and the challenges and opportunities SMBs face in this study.
US$2.6 to 3.1 Trillion
could be added to APAC’s GDP growth with more digitally mature SMBs
94% of SMBs
in Asia Pacific say they have become more reliant on technology to ensure business continuity during COVID-19
Lack of digital skills
and necessary technologies are the top two digitalization challenges for SMBs
Cloud solutions
and security are the two top technology investment priorities
Almost 70%
of SMBs are accelerating the digitalization of their businesses as a result of COVID-19
2x Benefits
Digitally mature SMBs enjoy double the benefits in revenues and productivity than those in the earliest stage
Digital maturity of Asia Pacific SMBs
31%
Digital Indifferents
Companies that are reactive to market changes and digital efforts do not exist
Stage 1
53%
Digital Observers
Companies whose digital efforts have started but remain tactile and in bite-sized initiatives
Stage 2
13%
Digital Challengers
Companies that have a strategy for the use of digital technologies and are more proactive in market responsiveness
Stage 3
3%
Digital Natives
Companies that have a strategy for the use of digital technologies and are more proactive in market responsiveness
Stage 4
2020 Asia Pacific SMB Digital Maturity
Australia
Digital Observer
4th
Asia Pacific SMB Digital Maturity Rank
China
Digital Observer
5th
Asia Pacific SMB Digital Maturity Rank
Hong Kong
Digital Observer
8th
Asia Pacific SMB Digital Maturity Rank
India
Digital Observer
9th
Asia Pacific SMB Digital Maturity Rank
Indonesia
Digital Indifferent
13th
Asia Pacific SMB Digital Maturity Rank
Japan
Digital Observer
2nd
Asia Pacific SMB Digital Maturity Rank
Korea
Digital Observer
6th
Asia Pacific SMB Digital Maturity Rank
Malaysia
Digital Observer
11th
Asia Pacific SMB Digital Maturity Rank
New Zealand
Digital Observer
3rd
Asia Pacific SMB Digital Maturity Rank
Philippines
Digital Indifferent
12th
Asia Pacific SMB Digital Maturity Rank
Singapore
Digital Observer
1st
Asia Pacific SMB Digital Maturity Rank
Taiwan
Digital Observer
7th
Asia Pacific SMB Digital Maturity Rank
Thailand
Digital Observer
10th
Asia Pacific SMB Digital Maturity Rank
Vietnam
Digital Indifferent
14th
Asia Pacific SMB Digital Maturity Rank
US$76 to 88 Billion
could be added to country's GDP by 2024 due to the digitalization of SMBs
Top Digitalization Priorities
19%
Deliver better or improved customer experiences
17%
Improve finance viability and predictability
Top Digital Transformation Challenges
16%
Shortage of digital skills and talent
14%
Lack of enabling technologies
Top Technology Investments
16%
Cloud
11%
Purchase/Upgrade IT hardware
Top Drivers of Digitalization
52%
Bring new products and services to the market
48%
Recognize competition is transforming and must keep pace
US$1.5 to 1.8 Trillion
could be added to country's GDP by 2024 due to the digitalization of SMBs
Top Digitalization Priorities
28%
Launch new products and services or improve existing ones
19%
Deliver better or improved customer experience
Top Digital Transformation Challenges
19%
Shortage of digital skills and talent
18%
Lack of enabling technologies
Top Technology Investments
15%
Cloud
12%
AI/Analytics
Top Drivers of Digitalization
66%
Recognize competition is transforming and must keep pace
55%
Bring new products and services to the market
US$24 to 25 Billion
could be added to country's GDP by 2024 due to the digitalization of SMBs
Top Digitalization Priorities
19%
Improve operations or service delivery
18%
Market growth and expansion
Top Digital Transformation Challenges
16%
"Digital transformation is too big, we don’t know where to start"
14%
"Too expensive/not worth it in my industry"
Top Technology Investments
21%
Security
10%
Cloud
Top Drivers of Digitalization
60%
Bring new products and services to the market
51%
Recognize competition is transforming and must keep pace
US$158 to 216 Billion
could be added to country's GDP by 2024 due to the digitalization of SMBs
Top Digitalization Priorities
19%
Deliver better or improved customer experiences
18%
Improve operations or service delivery
Top Digital Transformation Challenges
16%
Shortage of digital skills and talent
16%
Lack of enabling technologies
Top Technology Investments
16%
Cloud
13%
Security
Top Drivers of Digitalization
68%
Bring new products and services to the market
60%
Recognize competition is transforming and must keep pace
US$162 to 164 Billion
could be added to country's GDP by 2024 due to the digitalization of SMBs
Top Digitalization Priorities
23%
Improved sales or marketing
21%
Market growth and expansion
Top Digital Transformation Challenges
20%
Shortage of digital skills and talent
17%
Lack of insight into operational and customer data
Top Technology Investments
20%
Cloud
18%
Security
Top Drivers of Digitalization
82%
Bring new products and services to the market
59%
Recognize competition is transforming and must keep pace
US$421 to 493 Billion
could be added to country's GDP by 2024 due to the digitalization of SMBs
Top Digitalization Priorities
28%
Market growth and expansion
17%
Improve operations or service delivery
Top Digital Transformation Challenges
23%
Lack of commitment or budget from management
13%
Lack of enabling technologies
Top Technology Investments
17%
Purchase/Upgrade IT software
15%
Security
Top Drivers of Digitalization
37%
Bring new products and services to the market
50%
Recognize competition is transforming and must keep pace
US$89 to 95 Billion
could be added to country's GDP by 2024 due to the digitalization of SMBs
Top Digitalization Priorities
17%
Deliver better or improved customer experiences
17%
Launch new products and services or improve existing ones
Top Digital Transformation Challenges
18%
Shortage of digital skills and talent
18%
Cultural resistance to change
Top Technology Investments
16%
Cloud
12%
Purchase/Upgrade IT hardware
Top Drivers of Digitalization
53%
Recognize competition is transforming and must keep pace
44%
Bring new products and services to the market
US$19 to 24 Billion
could be added to country's GDP by 2024 due to the digitalization of SMBs
Top Digitalization Priorities
20%
Market growth and expansion
17%
Deliver better or improved customer experiences
Top Digital Transformation Challenges
21%
Shortage of digital skills and talent
16%
Lack of commitment or budget from management
Top Technology Investments
18%
Purchase/Upgrade IT hardware
14%
Purchase/Upgrade IT software
Top Drivers of Digitalization
64%
Bring new products and services to the market
59%
Recognize competition is transforming and must keep pace
US$10 to 13 Billion
could be added to country's GDP by 2024 due to the digitalization of SMBs
Top Digitalization Priorities
25%
Deliver better or improved customer experiences
18%
Improve finance viability and predictability
Top Digital Transformation Challenges
17%
Shortage of digital skills and talent
14%
Lack of commitment or budget from management
Top Technology Investments
18%
Cloud
13%
Purchase/Upgrade IT software
Top Drivers of Digitalization
68%
Bring new products and services to the market
48%
Recognize competition is transforming and must keep pace
US$26 to 28 Billion
could be added to country's GDP by 2024 due to the digitalization of SMBs
Top Digitalization Priorities
26%
Improved customer experience
22%
Improve operations or service delivery
Top Digital Transformation Challenges
19%
"Digital transformation is too big, we don’t know where to start"
15%
Lack of commitment or budget from management
Top Technology Investments
18%
AI/ Analytics
15%
Cloud
Top Drivers of Digitalization
66%
Bring new products and services to the market
41%
Recognize competition is transforming and must keep pace
US$23 to 24 Billion
could be added to country's GDP by 2024 due to the digitalization of SMBs
Top Digitalization Priorities
28%
Improve operations or service delivery
20%
Market growth and expansion
Top Digital Transformation Challenges
26%
Shortage of digital skills and talent
14%
Lack of enabling technologies
Top Technology Investments
25%
Cloud
18%
Purchase/Upgrade IT software
Top Drivers of Digitalization
51%
Bring new products and services to the market
62%
Recognize competition is transforming and must keep pace
US$23 to 27 Billion
could be added to country's GDP by 2024 due to the digitalization of SMBs
Top Digitalization Priorities
20%
Market growth and expansion
18%
Improve finance viability and predictability
Top Digital Transformation Challenges
28%
Shortage of digital skills and talent
14%
Lack of insight into operational and customer data
Top Technology Investments
14%
Purchase/Upgrade IT hardware
13%
Cloud
Top Drivers of Digitalization
74%
Recognize competition is transforming and must keep pace
51%
Recognize competition is transforming and must keep pace
US$35 to 41 Billion
could be added to country's GDP by 2024 due to the digitalization of SMBs
Top Digitalization Priorities
22%
Improve sales and marketing
18%
Market growth and expansion
Top Digital Transformation Challenges
20%
Shortage of digital skills and talent
18%
Lack of a proper digital transformation roadmap
Top Technology Investments
20%
Purchase/Upgrade IT software
15%
Purchase/Upgrade IT software
Top Drivers of Digitalization
73%
Bring new products and services to the market
50%
Recognize competition is transforming and must keep pace
US$24 to 30 Billion
could be added to country's GDP by 2024 due to the digitalization of SMBs
Top Digitalization Priorities
28%
Market growth and expansion
21%
Improve sales and marketing
Top Digital Transformation Challenges
16%
Lack of digital mindset / cultural challenges in the organization
14%
"Digital transformation is too big, we don’t know where to start"
Top Technology Investments
18%
Cloud
18%
Purchase/Upgrade IT hardware
Top Drivers of Digitalization
72%
Bring new products and services to the market
72%
Bring new products and services to the market