Caribbean businesses have been warned to keep up with technological changes or face extinction, but they cannot do so alone. Here we highlight the role of banks and Government in a business’s success.
At the Digicel Business Solution Summit 2016 held last week in Barbados, CISCO’s Systems Engineer, Shassim Mohammed, encouraged event attendees to keep up with technology in order for their businesses to not only thrive, but to survive:
If you don’t transition to what is happening with information technology and the relevance of the information and customers’ reaction, you are going to be left behind.
Based on [global] market statistics we have seen that 40 per cent of the existing enterprises, if they don’t digitize soon, within the next five years they are going to become irrelevant
Source: Barbados Today)
The views expressed by Mr Mohammed are not new. In order for businesses to remain competitive, become more efficient, and adapt to the continuous changing environment, they have had to adopt new technologies – be it electricity in the late 1800s, to data analytics and Infrastructure as a Service (for example), today.
Within the Caribbean, the majority of businesses have been slow to evolve. Sometimes, it is a function of the cost of change – relative to their size and earnings. For others, it is inertia, and being reluctant to improve might be working to yield even better results. Further, the Caribbean region is not as cutthroat as other markets globally. Hence, if a business is able to subsist, it is possible for it to linger almost indefinitely and not shut down.
Having said this, although businesses should self-directed, and set clear goals and targets about what they want to achieve, it is emphasised that the local environment also influences how businesses see themselves and what they believe is possible. For example, two important actors in the life of a business is Government and banks, which based on their policies and procedures can affect how a business operates and the decision it makes.
Too often, and with respect to Caribbean Governments, in order to access their services or to pay a bill, individuals have to go to an office in person, and be in a position to allocate at least an hour or two to get a matter addressed. For a small or micro business, which is estimated to be well over 80% of businesses in most Caribbean countries, they do not have the manpower, such as an Office Attendant or Driver, who can attend to such matters. For the small team, or even the individual owner, these types of activities – while necessary – are a distraction from the core business that should be their focus. Cumulatively, Government-related tasks that cannot be completed online, can eat away a few days every month, depending on how many agencies must be visited and how long is spent away from the office on those matters.
For Caribbean banks, similar arguments can be made. Some basic transactions still require people to physically go to one of the bank’s branches, which tends to mean a long wait in a queue in order to be served. Additionally, and especially relevant to micro and small businesses that wish to permit online payments for their services, the process to secure an online merchant account can be arduous and expensive, and consequently, a deterrent. However, being able to facilitate electronic (e-) commerce could broaden the business’ customer base and open up new revenue streams, which is not possible if the business cannot secure the platform needed in the first place.
In summary, although businesses must be self-directed and be prepared to adopt and integrate new technologies into their operations to ensure their long-term survival, there can only do so if their environment nurtures such a posture. This is still a challenge in the Caribbean, as key players in the life of a business, specifically Government and local financial institutions, themselves, have not adopted or integrated new technologies into their own operations. Hence, until those institutions are prepared to implement new technologies and improve their own processes and practices, they will hinder Caribbean businesses in thriving as they should.
Source: Pixabay
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Great points.
I think in the end, the ball is in Government’s court. The wheels could only start turning with Govt intervention/initiatives through various means: regulation, prioritisation, active participation etc.
Thank you for a interesting article, the points raised are very valid, however it is more about access, access to the information, access to the funds to upgrade and access to the customer that is consumed by either a cruise ship or all inclusive hotel.
I am not aware of any local business that wishes to or wants to compete with their larger foreign business owners, actually in almost all cases they cant, however their survival is woven around the very same clients that are staying at the all inclusive’s or arriving by a cruise liner.
As long as the visitors are here but their F&B is already paid for along with in house everything from shops to planers to activities, the local business owner will always be on one side of the glass “just looking”.
In conclusion, as much as we would want the latest technology, what good is it to us if we are stuck behind the glass wall.