It’s no secret that technology has the potential to transform the way we live, work and connect with one another.
In fact, with the rapid onset of innovations like generative artificial intelligence (AI), in the form of tools like ChatGPT, the world is undergoing a seismic digital evolution. South Africa is no different.
The pressure is on small and medium-sized enterprises (SMEs) to do more with less.
Finding the right tech solutions is no longer a luxury; it’s a lifeline. But with countless options flooding the market, where should you begin?
Today’s SMEs should focus on finding tech solutions that make running their business easier, allow them to tap into new revenue opportunities, and partner with like-minded businesses.
To help guide this process, here are five trends every SME should pay attention to this year.
- Solid AI strategies are a must
Since the widespread adoption of Gen AI tools, there has been time for governments and business leaders to consider the pros and cons of its utilisation.
Thus, it’s likely that more and more companies will create AI policies, frameworks, guidelines, and governance to guide how and when AI is used in their operations.
For SMEs, laying the groundwork for this now will pay off later. Set well-considered AI adoption and risk parameters to align business-wide policy and strategy.
- Sustainable operations will be front and centre
The market for climate-tech solutions is expected to become more competitive – as consumers look to buy from businesses that prioritise more sustainable practices, like reducing their carbon emissions.
Both entrepreneurs working on climate-tech solutions and SMEs aiming to adopt sustainable tech to run their business more responsibly will be an important area of focus and opportunity.
One way to achieve this is by partnering with businesses that prioritise sustainability in their operations. For instance, at FedEx, we are on a journey to deliver a more sustainable future and more efficient network.
Our customers can see the impact their shipping activities have on the environment with theFedEx Sustainability Insights tool. This can allow SMEs to better track and understand their historical emissions footprint through access to customised emissions reports.
- Customer experiences need to level up
Tech-assisted customer service is growing quickly, raising consumer expectations. In 2024, we expect to see organisations investing heavily in their customer experience, from AI chatbots to advanced data analytics.
To stay competitive and win consumer loyalty, SMEs should prioritise customer experience by investing in customer-service tech. If they don't scale up, they may lose out.
At FedEx, our Intelligent Virtual Assistant customer-service tool helps transform the way we serve customers.
We also use AI to predict demand, improve capacity planning, and for delivery tracking purposes, provide greater accuracy of estimated delivery times and updates for early or delayed shipments.
- A greater need for ‘digitally minded’ people
Organisations require more sophisticated tech strategies than ever before. This year, IT will matter even more for keeping up with tech changes, promoting cyber security, enabling hybrid working, and choosing software that affects business income.
But SMEs don’t always have a dedicated IT department – usually that role is outsourced, or it falls on the owner. Moving forward, SMEs should consider hiring digitally minded people who can advise on business-enhancing initiatives.
- Real-time data will continue to prove its worth
At FedEx, we’ve been advocates for the value of owning and leveraging real-time data for decades. It allows businesses to assess delivery patterns and consumer trends, tracking crucial and time-sensitive goods, and planning for adverse weather.
With the adoption of GenAI, the power of real-time data is becoming more widely known. For SMEs, it can improve business solution speed, accuracy, and cost-effectiveness, by offering crucial customer insights while improving customer experience.
Tech changes swiftly. Crucially, SMEs need to move away from a one-size-fits-all approach. No business is the same, and strategies need to be individual and tailored. Thus, when it comes to technology, it’s good to prioritise these three major areas:
Find the right tech to adopt – with so much out there, pinpointing the solutions that can deliver the most value is key.
Reduce the risk of being left behind by digital advancements –this can seriously impact growth and business longevity.
Invest in the right business infrastructure – by creating a solid foundation for long-term tech integration, including IT support, software, and skilled employees.
SMEs may need to update their software or tactics to succeed and scale in 2024. If your SME's tech and digitalisation have advanced, don't make hasty decisions or throw out working tech stacks.
Consider modest tweaks or adding one new tool that adds the most value. Every solid business strategy moving forward will include technology, whether you're a tech leader or beginning from scratch.