Survey: ‘Fragmented tools’ drag SMEs down

KUCHING (Jan 4): A recent survey has uncovered that many small-and-medium enterprises (SMEs) in Malaysia are still relying on outdated, fragmented tools like basic spreadsheets, multiple software platforms and online chat groups for core operations, creating inefficiencies and data silos that hinder productivity and security.

The data, gathered by Kintone, comprises input from 252 Malaysian SME business professionals on their day-to-day operational practices.

“These (fragmented tools) are often the ‘hidden’ barriers to digital transformation that are slowing down Malaysian SMEs, even amidst the national digital initiatives,” said Kintone Southeast Asia managing director Tsubasa Nakazawa.

“Such fragmentation prevents businesses from fully embracing advanced technologies like Generative AI (Gen AI), which could streamline processes and drive growth,” he told thesundaypost in an interview.

In the survey, it is indicated that one-third of Malaysian SMEs are heavily-dependent on fragmented tools for core operations.

Breaking it down, spreadsheet dependence accounts for 34.5 per cent, software overload at 34.9 per cent, and informal communication at 30.5 per cent.

“Many respondents are still using Excel to manage core business operations; utilising more than three different software tools daily, causing integration headaches; and have more than five WhatsApp groups for work, scattering critical data and conversations,” said Tsubasa.

He acknowledged that such tools were ‘familiar and easily accessible’, but he also said the situation would often create silos within organisations.

“Data becomes scattered across different platforms, making it difficult for employees to locate the latest information, or ensure consistency across teams.

“This fragmentation leads to confusion, inefficiency, and a higher risk of errors, as staff may duplicate work or overlook critical details that affect business decisions.

“For example, financial figures or customers’ data may not align across systems, resulting in mistakes that could affect everything from budgeting to customer satisfaction,” he added.

Tsubasa also said apart from productivity issues, these fragmented systems could pose serious issues around data management and governance.

“When sensitive data is spread across unintegrated tools like Excel files and WhatsApp groups, it becomes nearly impossible to maintain oversight or enforce consistent data management policies.

“Businesses lose visibility into where their data resides, who has access to it, and how it is being used.

“This lack of governance increases the risk of non-compliance with data protection regulations, and makes it difficult to ensure data accuracy, privacy, and accountability.

“Ultimately, without centralised control, SMEs may struggle to protect their information assets, undermining both operational effectiveness and stakeholder trust.”

Asked about ways to address this situation, Tsubasa pointed out technologies like no-code/low-code platforms and Gen AI as ‘helping to level the playing field for the SMEs’.

“With Malaysia’s AI adoption having surged by 35 per cent, reaching 2.4 million businesses, no-code/low-code platforms offer a practical solution by allowing businesses to manage without the need for extensive coding knowledge.

“This is particularly valuable for SMEs that may not have large IT teams or budgets for complex software development.

“These tools enable businesses to quickly implement solutions that streamline operations, enhance productivity, and drive growth.”

Tsubasa also regarded Gen AI as ‘adding another layer of opportunity by optimising repetitive tasks, assisting with content creation, and even helping analyse large amounts of data quickly’.

“For example, businesses can use AI to handle customer queries, generate marketing content, or personalise communications with the clients, or tasks that would traditionally take much longer.

“By integrating these technologies, SMEs can boost efficiency, free up valuable resources, and focus on scaling their business without needing large teams or complex infrastructure.

“These technologies are important for bridging the digital divide and ensuring that even smaller businesses can remain competitive and resilient in an increasingly digital world,” he elaborated.

Adding on, Tsubasa said adopting cloud-based tools for project management, communications and data-sharing could help businesses centralise their operations and enhance team collaboration.

“With a centralised platform, SMEs can ensure that all team members have access to the same, up-to-date information, improving decision-making and reducing the risk of errors.

“Ultimately, the solution for SMEs lies in integrating and optimising processes to eliminate fragmentation.

“By embracing modern technologies, businesses can boost efficiency, reduce manual workloads, and drive growth, all while ensuring that their data is secure and easily accessible,” he said.

Developed by Japan’s leading groupware provider Cybozu, Kintone is a customisable digital workplace platform designed to meet the needs of organisations of all sizes.

With links to over 41,000 companies globally and powering up more than three million applications, the company allows users to easily build, deploy and update their custom applications, all without requiring prior coding experience.