ROUNDTABLE PANELLISTS:
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Koren Wines, managing director, Xero Asia
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Paul Gardner, chief executive officer, Fresh Accounting
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Beatrice Liu, co-founder and CEO, Oriental Remedies Group
Moderator: Renald Yeo, journalist, The Business Times
What does “resilience” mean in today’s business environment, and how do business owners translate that into measurable, objective goals?
Koren Wines: Given the volatility of today’s global economy, resilience is no longer just about reacting and recovering – it requires proactively building agility into an organisation and anticipating, so you’re ready to weather any storm that might come your way.
With lean teams and limited resources operating on narrow margins, small businesses often feel the impact of economic pressures much more acutely than larger organisations.
In order to thrive amidst external headwinds like rising costs, inflation, fierce competition and talent crunches, they need to be able to quickly adapt and innovate, and technology is a critical enabler for that agility.
For instance, the automation of routine tasks and streamlined workflows save time and improve productivity, while cloud-based solutions lower operational expenses and enable you to work from anywhere.
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Digital tools also improve customer experience through features like online booking, chat support, and personalized communication, leading to higher customer satisfaction – and retention – while real-time analytics support faster, data-driven decision-making, and e-commerce or digital marketing tools expand reach and revenue potential.
Paul Gardner: Resilience was once a buzzword reserved for motivational posters. Today, it is a brutal, non-negotiable imperative.
Resilience enables businesses to sense change, seize opportunities and reconfigure their resources faster than the environment destabilises them. Companies need to evolve under duress. But evolution demands measurability.
Resilience needs to be operationalised through hard performance metrics and indicators, including cash flow durability, customer retention, people readiness and rate of innovation under constraint.
Setting clear, quantifiable targets in strategic areas of the business can equip organisations to better navigate uncertainties and sustain growth.
One of these areas includes strengthening their financial reserves and managing liquidity. For example, maintaining at least three to six months of operating expenses in liquid reserves by setting aside a fixed percentage of profits each month.
Beatrice Liu: Resilience means a willingness and ability to adapt in line with new information and situations that present themselves. In today’s volatile world, expecting the business environment to follow historical trends or models would not be prudent.
The most resilient organisations demonstrate three capabilities: quick adaptation to market shifts, continuity during disruptions, and the ability to seize emerging opportunities.
Business leaders should also adapt and show resilience in the short term while keeping sight of the organisation’s long-term mission and vision.
I am a strong believer that leaders must first build their own holistic resilience before they can lead organisations by example. Without personal resilience, we cannot guide our teams through uncertainty.
In a climate of rising costs and labour constraints, why should digitalisation remain a priority for businesses?
Gardner: While it seems counterintuitive to invest resources into digitalisation, the far greater risk lies in hesitation. Businesses tend to default to protecting their existing models, cutting “non-essential” investments like digitalisation, but that’s a dangerous route to take.
That is because digitalisation can help address the very pain points that inflation and labour shortages exacerbate, and investing in the right technology stack can be an immediate force multiplier.
Beyond improving operational processes, digital tools can also improve the bottom line, often yielding data-driven insights that can contribute to more informed decision-making, improve customer experiences, and open new revenue streams.
However, it is important to avoid an overreliance on digital solutions. Businesses must balance technology with a strong understanding of their customers and core operations.
Liu: Digitalisation is a no-brainer for most business owners, paving the way for higher productivity and reducing reliance on human labour. This is beneficial not just from a cost standpoint, but also due to Singapore’s tight labour market, which can make hiring the right talent challenging – not to mention costly.
The businesses that thrive during challenging times are those that view digitalisation as an investment rather than an expense.
Each digital initiative should be evaluated based on its potential return – whether through efficiency gains, customer experience improvements, or new revenue streams.
Digitalisation also creates the agility needed to pivot when market conditions shift. For instance, automation and data-driven decision-making allow businesses to do more with less, creating operational resilience against both expected and unexpected disruptions.
In uncertain times, the ability to rapidly adjust operations and offerings becomes a significant competitive advantage – one that traditional, manual processes simply cannot match.
Wines: In climates like this, digitalisation is no longer a nice-to-have – it is table stakes.
Digital tools help businesses do more with less by automating manual processes, reducing human error, and improving efficiency, freeing up valuable time for employees to focus on higher-value and revenue-generating activities that set businesses up for success.
This is especially critical when resources are stretched and every dollar counts.
At Xero, we see businesses who embrace digitalisation gain better visibility over their cash flow, make faster, data-driven decisions, and stay agile in uncertain conditions.
It also helps them attract and retain talent by reducing administrative burden and enabling more flexible ways of working.
More importantly, digitalisation opens doors to new revenue opportunities, whether that’s through online sales, improved customer engagement, or streamlined service delivery.
What advantages can business owners expect from using digital accounting tools – whether in cost control, forecasting, or strategic decision-making?
Liu: Digital accounting tools provide both tactical awareness and strategic foresight, allowing businesses to anticipate market moves and position our resources for maximum advantage.
In today’s volatile markets, these tools provide real-time visibility into cash flow patterns and cost fluctuations that might otherwise remain hidden until they are too late to address.
This immediacy allows business owners to implement corrective measures before minor issues become major crises.
Furthermore, the artificial intelligence (AI)-powered forecasting capabilities now embedded in modern accounting platforms represent a quantum leap beyond traditional projections.
These systems can analyse historical data alongside current market conditions to generate forecasts for multiple scenarios, enabling businesses to simulate likely outcomes that can greatly aid decision-making when it comes to resource planning.
For growing businesses, this predictive capability is invaluable when determining optimal expansion timing and resource allocation.
Wines: Historically, business owners have had to wait weeks or even months for their accountants to provide financial reports, which hampered their ability to make quick and informed decisions.
With real-time visibility into their finances, businesses can adapt quickly to disruption, or swiftly capitalise on growth opportunities whenever possibilities arise.
Digital accounting tools, particularly cloud-based accounting, is a game-changer when operating in a dynamic environment. By adopting these tools, businesses can have real time, immediate access to cash flow and operational data, at their fingertips, giving owners a clear and accurate view of their company’s finances, on demand.
With Xero’s dashboard, for example, users can track how their business is doing at any moment. At a glance, they can see performance, key expenses, overdue payments, missed targets, or potential cash flow red flags.
This helps them act quickly and avoid bigger issues down the track. They can also look more closely at trends to see what’s working and what’s not.
Gardner: One key benefit business owners stand to gain is cost control. Digital accounting tools can automate time and data-intensive tasks such as billing and expense management, reducing manual errors and administrative work.
For example, digital solutions like a generative AI tool can help a consulting firm quickly generate accurate invoices and track billable hours, yielding insights that can help leaders manage operating costs and improve cash flow.
Forecasting is another competitive advantage for adopters. Digital accounting tools allow financial data to be viewed in real-time, supporting more accurate cash flow predictions.
A law firm, for instance, can analyse historical billing cycles and project its incoming revenue for the year, allowing business leaders to better plan ahead for growth investments.
Use of digital tools for detailed reports can also sharpen strategic decision-making, supporting more effective growth strategies.
To illustrate how this might look: a marketing agency can generate customised reports with data that examines the profitability of different clients or campaigns in real-time, guiding resource allocation and strategic focus.
How can government grants or public-private partnerships support businesses in their digitalisation efforts?
Wines: Grants like Singapore’s Productivity Solutions Grant offer subsidies for pre-approved digital solutions, making it more feasible for small businesses to get started with tools that can improve efficiency, productivity and help them compete in a ferocious environment.
These initiatives lower the cost barrier, making it easier for businesses to invest in digital tools and training. And support doesn’t stop at funding – it extends to education, implementation and training, too.
These partnerships help build digital confidence, which is just as important as the tools themselves.
Meanwhile, programmes like SkillsFuture address this with training that is easily accessible and affordable. This helps businesses close the digital skills gap and nurture a future-ready workforce.
A collaborative ecosystem also ensures that local businesses have access to resources, expertise, and a supportive environment to adopt technologies safely and ethically.
Public-private collaboration, like the AI Verify Foundation, is key and demonstrates how the Singapore government works closely with industry partners to co-develop standards and safeguards for AI use, mitigating potential risks as adoption grows.
To complement the efforts of regulators, private sector initiatives such as Xero’s Beautiful Business Fund can provide additional funding and support to help alleviate some of the costs associated with digitalisation.
Gardner: With the majority of local small and medium-sized enterprises (SMEs) struggling with high costs, digitalisation may be viewed as a prohibitive expense, especially amid ongoing economic uncertainties.
Government grants provide much-needed financial support that offsets the costs of adopting new technology or upgrading software, making digital tools more accessible.
Beyond lowering barriers to adoption for individual businesses, government grants have also contributed to enhanced digital infrastructure.
Notable examples include the Infocomm Media Development Authority’s 10 gigabits per second Nationwide Broadband Network grant, which offered companies financial relief for their support in enhancing the country’s connectivity infrastructure.
However, businesses should not rely solely on government support or grants, which may limit the scope or urgency of digital transformation; it is essential for businesses to view digitalisation as a core part of their growth plan, independent of external funding.
Liu: Government grants strategically reduce the financial barriers to digital adoption, enabling businesses to access technologies that would otherwise remain out of reach.
However, the real value extends beyond monetary support. Government organisations like Enterprise Singapore (EnterpriseSG) offer invaluable resources beyond just funding, extending to structured frameworks, vetted vendor lists, and industry benchmarks that can prevent costly missteps.
This can address the knowledge gaps that frequently derail digitalisation initiatives, especially with many SMEs lacking the deep technical knowledge and expertise to optimise technological outcomes.
For businesses struggling with digitalisation, this can also provide a structured transformation journey with defined milestones and expert guidance, turning an overwhelming process into a manageable path forward.
EnterpriseSG’s consultants are likely to have guided numerous businesses through similar transitions and can help business leaders to anticipate challenges specific to their sectors.
Personally, Oriental Remedies Group is constantly drawing inspiration from government hospitals, where we monitor for any technologies that we might be able to scale down for adoption across our clinics rather than building solutions from scratch.
For businesses just starting their digital journey, what’s the best way to take that first step? What common pitfalls should they avoid?
Gardner: The best first step is to clearly define one’s business goals. For example, improving efficiency, enhancing customer experience, or better data management.
Evaluate and select solutions that align with those objectives. Start small with manageable projects, such as upgrading your accounting system or implementing cloud storage, to gain quick wins and confidence.
Some common pitfalls to avoid include rushing into technology without a clear strategy and choosing the latest technology instead of understanding their business needs first.
You cannot just choose the “latest and greatest” technology. Rather, businesses should think about potential solutions that relate back to their business impact and strategic alignment.
Business owners may also underestimate the importance of investing in employee training. Not only does this boost productivity and foster innovation, but it also adds to their employees’ overall competitiveness.
After all, digital tools are only as effective as the worker who is using them, and upskilling will enable employees to be more adaptable to new challenges, technologies and processes.
Liu: The most successful digital transformations begin not with technology selection but with problem identification.
Before engaging with solutions providers, businesses need to clearly articulate which challenges they are trying to solve and what outcomes would represent success. This clarity will help businesses to avoid the common pitfall of implementing technology for technology’s sake.
Start small with clearly defined pilot projects that deliver quick wins. This approach builds organisational confidence, develops internal capabilities, and generates momentum for broader initiatives.
Businesses should also speak to government bodies like EnterpriseSG that can share technical know-how and best practices to kickstart their journey.
Alternatively, businesses can also network with other business owners, both within and outside their industry, who could share valuable insights from their own digitalisation experiences.
Business owner networks are likely to provide honest feedback about implementation realities that vendors might not share, including hidden costs and integration challenges.
Wines: The first step is to identify pain points and areas where digital tools can offer the most immediate value and return on investment.
Start small and focus on what will have the biggest impact. Look at your day-to-day operations – things like invoicing, payroll, or inventory, and identify areas where manual processes are slowing you down, or there’s lots of opportunity for human error.
Choosing user-friendly, cloud-based solutions that can scale with your business is a good place to begin.
One common pitfall to avoid is trying to digitise everything at once, which can be overwhelming and lead to poor adoption. It is also important to involve your team early and ensure they are trained and comfortable with the tools.
Lastly, do not just focus on technology – think about your processes too.
Digital tools work best when they support clear, streamlined ways of working. Remember to provide your team with the right tools, skills and even thinking, to ensure they are willing and able to embrace new ways of working.
This is fundamental to making sure that you and your team get the most out of any investment or change you make along your digital transformation journey.
