Many SME owners view digitalization as vital for business success, understanding its ability to drive improvement by internalizing technological skills and benefits. However, SMEs often lack awareness, strategies, resources, and technical abilities, hindering their ability to undertake significant digital upgrades and adapt to environmental changes. To help APO member economies enhance the digital capabilities of their workforce, the National Productivity Organization (NPO), Pakistan in collaboration with the APO Secretariat organized an online workshop on Technological Capacity Enhancement of Businesses, 29–31 January.

The workshop provided references for digital transformation strategies to strengthen technological capacity and productivity in businesses. It was attended by 36 participants from 12 APO member economies, comprising SME executives, industrial association representatives, consultants, productivity practitioners, government officials, and policy researchers involved in SME and manufacturing strategy development. Facilitated by five experts, two from Pakistan and three from Singapore, trends influencing businesses, essential elements and technologies for digital upgrading, and core competencies in the era of AI were examined. Participants’ discussions on the implications of digital transformation emphasized the necessity of human-centric strategies.

This online workshop offered a comprehensive overview of competencies required for digital transformation, outlined strategies and steps for digital upgrading, and highlighted the utilization of data and AI in business operations. It also provided insights into connectivity, the IoT, and the imperative for digital upgrading and capability development to foster innovation and seize new opportunities. Given the significance of the SME sector and workforce contributions to the economic growth and stability of APO members, identifying practical strategies to support these groups is crucial for long-term productivity increases and equitable distribution of gains. By offering references for human-centric, productivity-focused assistance, this workshop equipped participants with useful information to upgrade the workforce and SME sector.