Global Connectivities – Growth Gateways for SMEs

1. Global Connectivities– Growth Gateways for SMEs Tricolour

2. Narrowing the Digital Divide – Successful SMEs……. and Not So • Tolystoy’s famous dictum applies to the SME world; especially in terms of digital connectivity. • Global research suggests that SMEs with a decided digital edge (dde), would succeed in a sustained manner - i.e. ‘ddc’ will sort out the men from the (cows) boys! • Most businesses since and even organizations are getting ‘commoditized’. In this context, SMEs that wish to graduate from micro to small, from small to mid-sized and from mid-sized to large global enterprises (‘the SME evolution phases’), must invest in technology and digital connectivity applications – not ‘one-off’ but on an ‘ongoing’ basis. • Hence, Etisalat and CPI’s initiatives and invitation to ‘Get Connected’ is “timely; nay vitally imperative now for SMEs”. Tricolour

3. The Evolution and the Technology Edge • The current digital era gives SMEs a ‘leg up’ over their previous generation – in terms of growth phases. • In this new Millennium, global digital connectivities have brought the operating environment to finger-tips. Smarter SMEs envisage and implement a holistic technology support framework to drive home their advantages over competition. • Gathering and updating of market, technical data and a whole raft of digital connectivities put the smarter SMEs at the cutting-edge of competitiveness and growth - globally. • Indeed, empirical data indicate that a majority of small enterprises (family-owned) do not survive beyond the second generation - of original family entrepreneurs; especially those that did not adapt to retaining and sharpening their technology edge. • The ‘so-called’ high costs is a red herring - an inhibiting factor - penny-wise and pound foolish. These are investments; not costs. • Indeed, best practices and ‘technology catch-up’ are regarded as vital - capital adequacy, credit + quality control and risk management. Tricolour

4. Connectivity Synergies – Industry-Agnostic • The convergence quotient, globally, in telecom, technology and other services have revolutionized the evolution of SMEs – crunched time & costs. • Even smaller and nimbler enterprises now give a run to many MNCs and large corporations –both in mature and emerging markets. • Bill Gates’s ‘dinosaurs’ are coming home to haunt him – even as the digitally-alive banks and financial institutions gallop ahead with high capex in IT. • Interesting statistics in the Emirates, highlight that some realty companies have survived global financial crises and regional recession - by staying digitally lean and mean i.e. using their tech prowess to harness business. They do “Get Connected” to realities in the realty space! Tricolour

5. Spectrum of Connectivity Issues • The early ‘techies’ in 1990s may have been enthused by the Y2K opportunity and gravitated towards ‘processing’ advantages etc. But in this Millennium ‘connectivity’ is the buzz word. • Soon telecom and digital packages enticed market-savvy professionals to build sales by opting for the right telecom digital packages, channels and online technology - motivated by the array of connectivity issues e.g. delivering, digitally, the right data (customer +inventory-related) etc. at the point of sale and - providing the choice to work across multiple devices (via CRMs); targeting ‘up-sell’ prospects and beefing-up their knowledge to build international web-based campaigns. • End Result : Objectives Accomplished i.e. the holistic enhancement of sales performance, customer service and successful segmentation strategies - ++P&L. Tricolour

6. Key Growth Constraints for SMEs Lack of Financial Ecosystem ? Lack of professional management ? “Control Syndrome” ? Access to new Technology Limited Investments ? Inefficiencies Leading to Higher Costs Poor Infrastructure ? Inadequate Market Linkages Poor Access to Wider Markets Tricolour

7. SMEs’ Access to Technology & Connectivity Packages • Many SMEs perish by not opting for the state of the art technology applications. This is digital ‘Hara Kiri’. • Especially, in the Emirates, where / when the telcos and the local governments are vying with each other to support SMEs and facilitate their investments in technology - with the right packages and partnership platforms. • Even traditional industries such as automative, forging etc. flounder in the absence of advanced technologies; leading to low productivity and uncompetitive enterprises - on a ‘losing trend’. • Crucially, for SME customers and borrowers, their banks and financial institutions now frown upon such technology deficiencies – when measured and monitored. • They give low marks even to otherwise profitable enterprises, if they are found to be lagging behind digital best practices. Tricolour

8. How to Bridge the Gap Technology Advisory Services Infrastructure Capital Management Technology & other Support Services Financial Infrastructure Market Challenges faced by SMEs Gaps in the SME Space Tricolour

9. Get On …..”Get Connected”……Great Benefits for SMEs • Entrepreneurs and SMEs in the UAE have an outstanding opportunity to ‘get even’ with technology. Many successful ones do ……..already. • The Governments’ commitments and delivery in setting the pace and support are unique - unrivalled across the world. • Being privy to the ‘Smart Governance’ initiatives, SMEs that wish to grow, can and should get on the bus of digital connectivity. • Even the dreary world(s) of banking and financial services, compliance and accounting are now ‘on board’; in seizing the telco-offered digital packages. • SME entrepreneurs would thus do well to focus on their core competencies; by making specialists, channel partners etc. accountable for this successful digital leap. • That would be the beginning of a virtuous / virtual cycle! Maasalaam! Tricolour