The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

More than half the Bahamian businesses surveyed by the Chamber of Commerce and Employers Confederation (BCCEC) have yet to launch an e-commerce platform, it was revealed yesterday.

The research, conducted by the Chamber’s digital transformation committee in July 21, also found that over 40 percent of respondents listed cyber security concerns as the primary reason for not making their goods and services available online.

Although the sample size was relatively small at just 42 businesses, the results indicate that a sizeable percentage of the Bahamian private sector has yet to make the transition from ‘bricks and mortar’ to the e-commerce world at a time when the COVID-19 pandemic’s fall-out has accelerated the digitisation process.

“While there was an increase in the number of companies that have integrated components of digital transformation into their business model, more than half of those surveyed did not launch an e-commerce platform,” the Chamber said in a statement of the findings.

“More than 40 percent of the respondents listed cyber security concerns as the reason for not making e-commerce platforms available to their customers. However, the research showed an increase in the awareness of the importance of e-commerce for sustainable business operations.”

Analysing the findings further, the Chamber added: “Several respondents indicated an interest in integrating a digital payment platform in the next six to 12 months. Respondents indicated a need for more general information about the Sand Dollar and how it will work in their business as the digital currency was not currently in use.

“They were equally divided between the decision to integrate or not to integrate the Sand Dollar as a payment option in the next six to 12 months.... There appeared to be interest because of the convenience for the customer. However, the main reasons for hesitancy in the uptake within the respondent group were not having enough information about the digital currency and lack of demand from customers.

“Related to digital payments, some respondents felt that their customers were not sufficiently tech-savvy to use digital payments or that implementing the infrastructure to enable these types of transactions would be onerous,” the analysis continued

“The top challenge to businesses implementing digital transformation initiatives was a lack of internal understanding of digital strategies. Companies indicated a willingness to invest in digital strategies, expecting the primary outcomes to be increased operational efficiency and improved customer experience.”

Still, the Chamber said 64 percent of companies surveyed have a technology-based business continuity plan (BCP) that would allow their business to operate digitally.

Some two-thirds of respondents also served clients outside The Bahamas, with a similar proportion stating that online was part of their general business strategy. “Respondents felt that their organisations were innovative, and that innovation was considered an essential part of their success,” the Chamber said.

“Respondents indicated strong agreement with the importance of digitisation and digital transformation within their organisations. Moreover, they also strongly agreed that their organisations support a culture of collaboration, knowledge sharing and constant innovation.

“They were most likely to use social media (82.14 percent), cloud computing (71.43 percent) and mobile apps (67.86 percent), and web content management (67.86 percent) as part of the digital strategy. Social media was the primary means of collecting customer data and feedback used to improve operations.”

Despite the strong interest in cloud computing, and numerous respondents saying it us part of their operations, the Chamber added: “While there is strong interest in cloud computing for business continuity, most respondents replied that the main method of communicating with - and connecting to - customers was via social media.

“Most did not have e-commerce capabilities available to their customers. The belief in innovation and the overall lack of implementation of innovative initiatives may result from a lack of clarity about digital as a business strategy.

“In addition to perceived cyber security issues related to e-commerce, the lack of e- commerce capabilities may also point to a lack of awareness about the existence and purpose of the e-Commerce Advisory Board and/or the e-commerce legislation passed over the past 12 months.”