The Philippine MSMEs in 2030: A Vision

RATIONALE
While the micro, small, and medium enterprises (MSMEs) are still trying to figure out how the
artificial intelligence (AI) technology can help them with their business, large-scale
enterprises are already enjoying the benefits of these new technologies. Advancements in AI
are “assisting the entire business pipeline in discovery, conversations, transactions, and
fulfillment for smart decision making and these are progressively becoming available even
for small businesses.”1

AI gives MSMEs competitive benefit to businesses as it enhances the performance of an

enterprise in areas of operations, marketing, human resource, and customer relations. The
core aim of “AI service remains straightforward – provide more flexible, adaptive, and
interactive solutions as per customers’ interests and requirements. AI can benefit the
organization in various extends of daily performance and enhance their competitive
advantages. ”2

Aside from the critical role in operations, marketing, human resource, and customer
relations, AI can also help in task like

MSMES IN 2030
One of the most powerful issues of the 20 th Century is the idea of creating an artificial brain
during the 40’s and 50’s. It has become a game-changer in science and other science-
related fields. It has drawn more attention in the following century and has been carried out
as backbone of many future scientific researches. The then “potential of creating an artificial
brain” has been developed into a wider and much ethically acceptable “artificial intelligence”
that contributed to the massive improvement in technology.

MSMEs, being a sector of relevance, requires the capacity to adopt with changes to survive.
The statistics have shown that majority of the established businesses of today were able to
capture the demands. Today, artificial intelligence is becoming more significant and relevant
to MSMEs and in years to come it is foreseen to play vital roles in business processes.

THE BUSINESS TRENDS IN 2030

Following the active influence and fast-paced evolution of technology and artificial
intelligence, in 2030 MSMEs are predicted to experience rapid demands for digitalization to
be globally competitive. This is a transitionary period that will prepare MSMEs to be fully
equipped with the future demands of the market and of the society.

For Operations – MSMEs will be more engaged in the automation of their operations. For
manufacturers, different types of “smart machines” that is powered by series of unique
codes and algorithms will fill the production area. These “smart machines” are capable of
multiplying the production capacity of any manufacturing enterprise.

1
https://inc42.com/resources/10-ways-artificial-intelligence-will-benefit-the-indian-msme-sector-in-2021/

2
https://www.clariontech.com/platform-blog/7-practical-benefits-of-ai-for-smes-you-need-to-know
Aside from the “smart machines,” the “auto order program” that is capable of analyzing the
data for order collection and consolidation will perfectly work “smart machines.” These “auto
order programs” are capable of processing data, rejecting double entries, setting machine
requirements, lining of orders, and sending of feedbacks to encoders.

In addition, a “mac supervisor” will help MSMEs in its sustainability efforts. “Mac
Supervisor” is an interface where it has a direct control on operations and equipment to
ensure efficient management of resources. The “mac supervisor” can help MSMEs improve
the supply chain and logistics, shipping, inventory, and delivery.

For businesses in the retail and service sector, a contactless system “touch and click
screens” that is program to accept and organize orders and compute and collect payment
will replace the traditional counters and reception area. These “touch and click screens” are
capable of processing data from the receipt up to the delivery of orders.

For businesses in the transport and logistic sector, a more convenient transportation system
“scheduled ride apps” that allows commuters book their ride – plane, boat, ferry, train,
bus, cab, jeepney, and motorcycles ahead of time. This is a more inclusive and advanced
version of Grab, Uber, Angkas, and Joyride. These “scheduled ride apps” are capable of
predicting traffic, estimating bulk of commuters in different areas, and linking commuters to
their ride.

For Marketing – MSMEs will be more engaged in online and in electronic platforms.
Numerous marketing “e-platforms” for MSMEs will be developed by the government.
These “e-platforms” are capable of assessing legitimate sellers and buyers, forecasting the
demand in days to come, establishing sustainable market for MSMEs lodged, creating
network and connection in the global market, and linking buyers and sellers with suggestions
based on preferences. These “e-platforms” are elevated version of Lazada, Shopee,
Alibaba, Ebay, and the likes.

The “e-payment” and other e-payment facilities is the most useful and most convenient
method of receiving and sending of payment. All of the establishments and 100% of MSMEs
are now accepting cashless payment and online payment. Aside from the traditional money,
“e-money” like the Krypto currency is another option for payment.

Most of the devices are equipped with AI. One of the biggest advantage of this development
is a smarter marketing. Through “e-platforms” and “e-payment” it can generate data to
predict customers’ behavior and to forecast sales. With these data, MSMEs can increase
their bottom lines with upselling or cross-selling.

With the advancement of technology, the AI can help improve customer relationship and
strengthen cybersecurity.

For Human Resource –Employees equipped with knowledge on computers, software design,
and programming will be given more opportunities. Skills related to science, and information
and technology will be required in every small to large scale enterprises while at least basic
technical skills for micro enterprises.

“AI Assistant” will help improve the productivity of the employees in the workplace. To
date, services like Alexa, Google Home, and Apple HomePod are useful in day-to-day home
activities. These services, and many more like-programs will be expanded to assist MSMEs.

Aside from the “AI Assistant,” applications and programs, “AI Partners” that require
collaboration between AI and human intelligence will become part of the day-to-day activities
of an MSME. “AI Partners” support the creativity of the employees and help generate new
ideas for the business.

THE BUSINESS CHALLENGES IN 2030

CONCLUSION