UOB bank
Web-based applications help transform processes for efficiency and effectiveness
Thailand’s small- and medium-sized enterprises (SMEs) are the most active in Southeast Asia when it comes to investing in technology to drive business performance, according to the results of the ASEAN SME Transformation Study by United Overseas Bank (UOB), EY and Dun & Bradstreet.
The study found that 73 per cent of Thailand’s SMEs prioritised technology as their top investment over other investments such as factories and machinery. In ASEAN, they were the most positive about the importance of technology, followed by Malaysian SMEs (65 per cent) and Singaporean SMEs (63 per cent).
When choosing specific areas of technology investment, Thai SMEs’ top choice (82 per cent) was software and services such as mobile applications or digital marketing to increase customer loyalty and to meet customer needs better. Information and communication technologies (ICT) hardware and network investments ranked second at 66 per cent and structured ICT training programmes for employees ranked third at 53 per cent.
Mrs Sayumrat Maranate, Executive Director and Head of Business Banking, UOB (Thai), said “The study shows that Thai SMEs recognise the important role that technology plays in improving their competitiveness and building sustainable businesses. This finding reinforces the government’s plans to create a digital economy and an e-commerce hub within the next few years”.
“To do business more effectively, Thai SMEs need to adopt an innovative mindset and to embrace digital transformation. One way they can do so is to use enterprise technology solutions, which were available mainly to large corporates only but have now become widely available for SMEs in a cost-effective manner. Such solutions span areas from accounting and customer relationship management tools to data analytics and cyber security. With these solutions, SMEs can increase productivity, manage business costs, scale up operations and explore new revenue opportunities easily.”
More benefits to be reaped from SaaS
Despite the focus on technology, the study highlights that only a few Thai SMEs (47 per cent) are aware of how efficiently pay-per-use or Software-as-a-Service (SaaS) can address their business needs. SaaS refers to web-based software that can be used to manage business processes such as accounting, invoicing and payroll.
SaaS is a more cost-effective option for small businesses than traditional licensed software. It provides users with the flexibility to pay only for what they use and to scale the solution based on their business’ needs. As small businesses expand, they can add on new functionalities or increase the number of users for their existing solution without the need for further significant investments.
Mrs Sayumrat said that as small businesses explore technology solutions to enhance business operations, it is important that they consider the range of options to ensure they can use their resources more effectively.
“The findings of the study indicate that many small businesses may not be optimising their technology spend. Their preference for traditional licensed software could be due to their familiarity with these options over newer solutions such as SaaS. However, SaaS is often more cost-effective and enables the business to keep pace with advances in technology.
“At UOB (Thai), we help small businesses benefit from the use of SaaS. We launched UOB BizSmart, a suite of cloud-based business applications which provides small businesses with a simple and cost-effective way to manage processes such as payroll, invoicing and inventory management more efficiently,” Mrs Sayumrat said.
In April 2018, UOB (Thai) launched UOB BizSmart to offer SAP Business One to SME customers through a tie-up with SAP. This is the first time SAP Business One is being offered to Thailand’s small businesses through an Asian bank. Through the collaboration, small businesses can benefit from the use of an enterprise resource planning solution, typically used by larger companies, to automate and to manage their day-to-day administrative processes.
The ASEAN SME Transformation Study was conducted in late 2017 with 1,235 SMEs across the six largest ASEAN countries – Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam – to understand how ASEAN SMEs are positioning themselves to participate in the region’s growth and to adapt to the changes ahead.
To access the report, please visit https://www.uob.co.th/business/index.page.
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About United Overseas Bank (Thai)
United Overseas Bank (Thai) Public Company Limited (UOB (Thai)) is a fully-licensed commercial bank with its network of 154 branches, 363 ATMs nationwide (as of 31 December 2017). UOB (Thai) is 99.66 per cent owned by Singapore-based United Overseas Bank Limited (UOB), which has a global network of more than 500 offices in Asia Pacific, Europe, and North America. A regional bank rooted in Thailand, UOB (Thai) provides customers with financial expertise and connectivity across Asia. It offers innovative financial solution, quality products and excellent service through understanding and identifying the needs of its customers.
UOB (Thai) is rated among the top banks in Thailand: AAA by Fitch Ratings.
18 October 2018
For queries, please contact
Strategic Communications and Customer Advocacy
Yada Srisammasheep
Yada.sri@uob.co.th
Tel : +66(0)2343 4965