Visit the crayon.com enterprise site
Crayon Channel APAC

Search

Become a Partner Partner Login
Crayon Channel APAC

Search

The SMB landscape for Business Applications in Asia Pacific is standing at a pivotal crossroads leading into 2027, and it’s clear that the road ahead is shaped by a shift in mindset.

No longer just seen as necessary tools to keep operations running, business applications have evolved into strategic assets that fuel innovation, enhance customer experiences, and drive topline growth.

Within the next few years, this transformation will completely redefine the way SMBs in the region operate.

For Crayon’s partners, it heralds a sure and steady wave of change, as SMB customers evolve toward data-driven solutions and services that underpin innovation and competitive advantage.

In the eighth release in our Future of Operations Insight series, we look at why SMBs in our region are ramping up adoption of cloud business applications to execute on their strategic objectives, and how this will influence the capabilities they’ll seek from their trusted IT service partners.

Balancing bottom line and topline objectives

Balancing bottom line and topline objectives

To understand where the market is heading, let’s review where it’s been.

Across 2019 and 2020 Ricoh Australia commissioned two independent studies exploring where business leaders sought to generate value from innovation within their operations.

At the time, the key innovation investments cited by enterprise business leaders centered heavily on back-office operations and cost reduction.

For example, in 2020, “improving operational effectiveness” topped the list of innovation spending priorities, followed closely by “reducing costs/operational expenditure.”

This was in line with the later years of the Cloud/SaaS wave, when businesses were predominantly concerned with modernising back-end processes for efficiency and cost containment. Business applications like accounting software or enterprise resource planning (ERP) were viewed as functional but not transformational in pursuing these goals.

Fast forward to today, and not only has SMB adoption of cloud-based business applications accelerated, but there is also a growing appetite for AI-enhanced applications.

The siloed, operationally focused approach of the past is pivoting as SMBs adopt solutions that serve their goals for internal optimisation, innovation and greater market competitiveness.

Investment into 2027 will focus on solutions that enhance customer journeys, enable new modes of market engagement and support topline growth objectives.

Business Objectives driving demand

Business Objectives driving demand

What’s driving the investment focus into 2027?

The study data provides insight into the critical objectives of SMBs across the region.

77% of those surveyed are in pursuit of revenue growth, and an improved ability to respond to change in the market, and in their businesses.

 

 

 

Underpinning these objectives are related priorities including:

  • 73% improving employee skillsets
  • 72% improving ability to innovate
  • 70% unlocking data value

These priorities don’t exist in a vacuum. SMBs are not just adopting software—they’re aligning their technology roadmaps with these business goals.

 

Key investment trends

Key investment trends

Let’s consider where SMBs are placing their bets on digital tools today.

The data from the Future of Operations study paints a clear picture of steady market maturation amongst SMB technology buyers:

  • 50% of SMBs have already adopted finance and operations software.
  • 52% are integrating HR management tools
  • 45% are already using data connectors
  • 44% have deployed process automation
  • 42% have taken the leap into CRM systems

The market penetration for these solution categories tracks with the SMB adoption intent in the 2023 edition of the study.

When we look at what’s underway or in plan for 2025-2027, the backend to market facing shift becomes very apparent.

Solution adoption intent includes:

  • 48% AI-driven reporting and data management
  • 45% Cloud ERP and Process Mining
  • 43% Customer journey analytics and Business Analytics PaaS
  • 42% Field Service Applications and Low Code platforms

Data and AI are being embedded into core operations for SMBs, and this trend will continue to accelerate.

SMBs are on the hunt for solutions and services that create business value.

It’s the kind of evolution that creates exciting and sustained opportunity for partners.

AI gains momentum.

AI gains momentum.

Remember when AI used to be the realm of big tech companies and deep-pocketed enterprises? Well, not anymore.

SMBs are embracing AI as an enabler of their critical business objectives.

For partners, this opens up a new field of need to be filled for customers.

User training, readiness assessments, solution validation are all areas where SMBs are scouting for external expertise.

The appetite for AI-enhanced applications and the services that are needed to ensure success shows how SMBs are maturing in the use of advanced technologies.

Before the pandemic, it was about keeping up.  Now, it’s about outpacing the competition.

 

A pie chart showing demand levels of AI focused services in the Business Applications domain
SMB Motivations

SMB Motivations

Let’s consider the factors that are motivating the increased pace of adoption:

Increased Competition and Customer Expectations.

Customers have higher expectations for service, responsiveness, and relevant, personalised engagement.

Integration of service, sales, field and marketing data is becoming essential for smaller businesses to compete and win in the digital economy.

AI – when integrated well – offers SMBs ways to widen the number of ways data can be harnessed by more of their employees.

Operational Agility and Workforce Productivity.

To operate at the speed of change, SMBs need tools that let them adapt quickly.

Microsoft Power Platform, with its AI-driven Copilot features, is empowering employees to rapidly innovate, stay productive, and drive new solutions to market.

Strategic Data Utilisation.

With data emerging as a powerful competitive weapon, SMBs are harnessing data to gain actionable insights and drive smarter decisions.

Integrating tools like Microsoft Dynamics Business Central with Microsoft Fabric gives them real-time operational insights that were previously impossible for smaller operations.

 

Service Demand.

Service Demand.

SMBs are seeking support beyond just implementation. Their attention is now turning to how these business applications are operated, secured, and optimised at scale.

This shift can be seen in the graph below. It shows where SMBs are scouting for external service support, specifically within the Business Applications domain.

These are not isolated asks—they represent the operational scaffolding SMBs know they need to ensure their business applications remain responsive, secure, and cost-effective over time.

Let’s consider what’s driving the appetite for some of the most in-demand services.

Managed Cloud Operations Services.

Once applications are deployed, SMBs want partners who will stay on the field with them. This includes ongoing optimisation, governance, and management—particularly as business applications like Dynamics 365 or Business Central are extended with Power Platform or integrated into broader data ecosystems.

In this context, cloud cost optimisation—ranked separately at 43%—can be considered a critical dimension of managed ops. SMBs are becoming more vigilant about right-sizing their environments, controlling over-licensing, and leveraging automation to align usage with budget.

Implication: Partners with the ability to implement proactive monitoring, lifecycle policy enforcement, and usage optimisation services will be in high demand.

 

Cloud Strategy Development.

For SMBs, strategy is execution. Business applications sit at the core of digital transformation—but so too does clarity on how these applications will connect across business units, integrate into data platforms, and evolve as AI becomes more central to day-to-day operations. SMBs need partners who can architect a long-term vision and then step in to help realise it. This requires deep understanding the unique business model of the SMB, alignment of cloud investments to measurable outcomes, and supporting customer to adapt their roadmaps needs evolve.

Implication: Cloud strategy development from 2025 through to 2027 must be deeply linked to business outcomes, not just technical readiness.

Cybersecurity Assessments.

Security is no longer a bolt-on to infrastructure or a compliance checkbox. As SMBs deploy interconnected CRM, ERP, and automation systems, the exposure surface expands.

The strong demand for cybersecurity assessments within the Business Applications domain reflects SMBs’ growing awareness that protecting sensitive business application data—from financial records to customer PII—is mission-critical.

Partners that can embed cybersecurity into the business applications value chain—from secure design and zero-trust access policies to data governance, auditing, and regulatory compliance—will differentiate themselves.

Implication: Offering continuous security assessments as part of a managed services bundle will add defensibility and trust to partner value propositions.

A bar chart showing demand for cloud related services in the Business Applications domain
From Solution Delivery to Value Realisation

From Solution Delivery to Value Realisation

Together, these demand areas suggest that SMBs are moving from a mindset of digital adoption to one of digital operationalisation. They are looking for partners who not only help deploy solutions but ensure these solutions will realise increased value within their operations and enable achievement of their critical business objectives.

This demand-driven evolution mirrors Microsoft’s push for its partner ecosystem to elevate from transactional service delivery to lifecycle value creation. 

Adapting to the speed to change within the SMB customer segment may require some rethinking of go-to-market positioning.

Strategies to consider include:

Specialised AI & Analytics Capabilities: Offer tailored AI readiness assessments and user training to help SMBs maximise the potential of AI.

Strategic Advisory Services: Align technology roadmaps directly with SMB business goals and what is needed to enable outcomes for key objectives like improving customer experience or use of business data.

Integrated Solutions: Bundle ERP, CRM, AI, and analytics solutions into comprehensive packages that simplify the decision-making process for SMBs and maximise their value.

The Journey to Value has started

The Journey to Value has started

As we approach 2027, SMBs in APAC are redefining the value they expect from technology investments.

 

Partners that can align their strategies with SMBs’ growing demands for AI-driven innovation, data utilisation, and end-to-end digital solutions, have enormous potential to harness the increased demand for cloud-based business applications.

If you’re new to the Business Applications domain and have an appetite to grow into the space, Crayon can help.

Ask your Crayon representative to introduce you into our Partner Connections program for Dynamics 365 or ask us about our through-partner ERP Implementation services for Business Central.

Recommended Next Read:

Recommended Next Read:

Delivering Data-Driven Value with Power BI

Read Now

Related