sungkyu chang : what are the benefits of e commerce to smes and what are its barriers to entry?
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What are the benefits of e-commerce to SMEs and what are its barriers to entry?
Sungkyu Chang
Partner, Advisory, ASEAN, EY
While overall market remains attractive, the balance has been disrupted by fundamental shifts
Growth is
challengingConsumers are
changing
Costs
are harder
to control
Driven by digital, business is shifting to C2B significantly
Consumer imperatives
PersonalisationProducts and services tailored to individual needs and preferences
Information on corporate profile, products and access to consumer reviews.
High quality products at reasonable prices
Freedom of choice in products, delivery and payment options
Engaging shopping experiences –Informative, interactive and convenient
Empowered consumer
Experience
Price / Quality
Convenience
IntelligenceAnything,Anytime,Anywhere!
SME characteristics have motivators and inhibitors for e-commerce participation
Typical SME characteristics
Fewer
stakeholders
Closed
ecosystem
Simple
structure
Limited
resources
e-commerce
High commitment
Short reaction time
Niche strategies
Long-term thinking Limited experience
Few options to implement
Smaller scale
Difficulties to adapt to changes
e-commerce would provide opportunities for SMEs in different ways
Remove
physical
limitation
Save
transaction
cost Differentiated
marketing
avenues
Minimizing
transport
obstacles
Direct
communication
and insights
But there are barriers to overcome in e-commerce adoption
Organisational
Financial
Technical
Political
Social
Regulatory
Successfuladoption
Internal External
Rules
Moving forward, SMEs need to focus on capabilities required to outperform the market
e-commerce
PaymentProcurement
Logistics
Infra
-structure
Customer
service
Marketing
Product
and service
Data
security
Questions and comments?
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