3 technological advancements SMEs need to leverage

Some of the key innovations that are scaling business capabilities include 5G network expansion, blockchain-based fintech, and AI. Faiez Hartley, head of IT at Business Partners Limited, says a trip to the South African Revenue Service (SARS) – in-person or online – will quickly reveal how keeping up with technology enhances business including for the government. “The experience of outdated systems, legacy processes, and lack of innovation which is generally behind the long queues, poor service delivery and frustrated consumers in some public institutions is not experienced at SARS. That is the value of harnessing technology.”

The continued rollout of 5G networks is a game-changer in this regard, improving internet speeds and reducing latency across the country. Businesses can now implement data-intensive applications such as AI and cloud computing in real-time, which improves remote collaboration and helps SMEs implement digital tools more efficiently.

In a competitive mobile-first market, consumers have their pick of global service providers at their fingertips. To stay in the game, SMEs need to keep up with their customers’ evolving needs – security and ease of use are at the top of the list. Hartley lists three technological advancements that SMEs can leverage to enhance efficiency and meet these demands: 

1. Scale with cloud computing

Cloud computing is no longer a luxury, but a necessity for SMEs as it offers access to high-performance infrastructure and services without the overheads of physical hardware. “Cloud computing allows businesses to scale as needed,” says Hartley, who adds that the ability to only pay for what you use means SMEs can grow at their own pace.

Cloud computing in South Africa grew by 38% in 2022 and is projected to reach a value of R79.7bn by 2027. Business owners who use platforms like Amazon Web Services (AWS) and Microsoft Azure enjoy benefits like cost reduction and improved collaboration. 

2. Automate and engage with AI

Generative AI has been or is scheduled to be introduced by 90% of large enterprises with the most common applications for the technology being product research, market analysis and content creation. AI-powered tools are becoming more accessible to South African businesses, enabling the automation of repetitive tasks, personalised customer service (via chatbots), and advanced data analytics. AI is also increasingly used in marketing, supply chain optimisation, and predictive analytics.

“AI is transforming how we do business. From automating routine tasks to AI-powered chatbots making 24/7 customer service possible, the possibilities to streamline operations are endless. AI-driven solutions can also help optimise supply chains and predict consumer behaviour with advanced data analysis tools,” says Hartley. 

In marketing, businesses can use tools like ChatGPT and Salesforce Einstein to help personalise their customer interactions and make more targeted, data-driven decisions. Improvements in natural language processing (NLP) make it easier for businesses to provide better customer service, automate responses, and enhance engagement.

3. Grow with e-commerce and digital payments

E-commerce and digital payments are essential to modern-day business success. "Secure digital payment options not only build trust but also simplify the purchasing process for busy customers. The rise of mobile wallets and contactless payments is empowering SMEs to process transactions swiftly and securely, ensuring they remain competitive in a digital-first world,” says Hartley.

New digital payment options, including mobile wallets and blockchain-based fintech solutions, are helping SMEs increase security and transparency. “Blockchain is particularly promising for cross-border trade, as it ensures transaction integrity and reduces the need for intermediaries," says Hartley, who adds that as blockchain adoption grows, it offers exciting opportunities for SMEs looking to expand globally.

Social commerce – purchasing directly through platforms like Instagram and WhatsApp – has also gained significant traction in South Africa. "Social media is where customers spend much of their time, and integrating e-commerce directly into these platforms allows businesses to reach them effortlessly," Hartley concludes. By adopting these tools, SMEs can meet their customers where they are, streamlining the path to purchase.