But 73% cite high cost as a barrier, making it the biggest perceived roadblock to technology adoption
SINGAPORE companies improved their business performance with digital transformation helping to optimise operations despite the “high cost” involved in technology adoption, a survey by the Singapore Business Federation (SBF) has found.
About two-thirds (67 per cent) of the 529 companies surveyed said digitalisation has helped to optimise operations, while 58 per cent said it has helped to reduce operation costs, indicated the Smart-Enabled Businesses Edition of SBF’s National Business Survey 2024.
At the same time, 73 per cent of businesses cited “high cost” as a barrier, making it the biggest perceived roadblock to technology adoption. This is an increase from 64 per cent in last year’s survey.
Expensive licensing payments for commercial use of intellectual property was also cited as a challenge for 47 per cent of respondents, up from 31 per cent previously.
Another difficulty lay in the upskilling of staff to keep up with new technologies, as highlighted by 47 per cent of businesses this year, compared with 29 per cent in the 2023 survey.
For now, businesses are prioritising their digital transformation efforts primarily on operational processes and their information technology systems. Products or services, as well as customer experience, trail behind slightly.
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On average, businesses said they devote about 11 per cent of their annual budget to digitalisation.
Cloud, e-payments and cybersecurity are the top three technologies of choice, with more than 60 per cent saying they have adopted and will continue to do so.
Over the next 12 months, companies are most keen on adopting artificial intelligence, data analytics and Internet of Things.
More than two-thirds named immersive media and blockchain as technologies they do not