NAIROBI, Kenya Nov 24 – A survey conducted by global software provider SYSPRO Africa among manufacturing and distribution financial leaders has revealed that 41 percent of Kenya’s businesses are yet to record returns on their digital investments whose necessity in business operations was underscored during the COVID-19 pandemic
The survey, which was conducted between September and November 2021 revealed that 31 percent of leaders were yet to measure and investigate their business returns while 7 percent were not sure if any returns were received.
Additionally, the report revealed that 51 percent of businesses considered management of cash flow to be the biggest priority in order to expand their revenue model while 40 percent felt that investment in research and development (R&D) was the top priority.
Thirty eight percent of businesses however believe that improving visibility into performance and operations was key to calculate expenditure returns while thirty seven percent believed more priority should be placed on managing governance and risk.
Speaking during the launch of the survey findings, Doug Hunter, Head of Customer and Ecosystem Enablement at SYSPRO Africa noted that the return on digital investments came down to how companies deploy the technologies they acquire.
“It is not how much you spend that matters; it is how you spend it. User experiences can also influence how technology is used and eventually affect the return on investment,” Hunter said.
He further noted that due to the devastating impact the pandemic had on the economic sector, businesses were forced to upscale their digital technology with 30 percent reporting increased return of investment (ROI) compared to 28 percent who reported no ROI.
Also speaking during the launch event, the Chief Executive Officer of the Institute of Certified Public Accountants of Kenya (ICPAK) , Edwin Makori said that the pandemic necessitated the need for businesses to diversify their business, largely in favor of uptake of enterprise technology.
“Kenya’s unique position as a primary goods manufacturer means it was hit harder by the pandemic and innovation was seen as a likely solution to these hurdles but the survey shows 60 percent of Kenyan businesses are aiming to support new initiatives through direct purchase, dwarfing other means such as 3rd party financiers (38percent) and pay for user subscriptions (20percent),” he said.