The large, Small and Medium industrial sector is increasing so fast in India. According to the annual report dated 20-21 of the Ministry of Finance, MSMEs account for nearly 30% of GDP and create jobs for more than 110 million people all over the country. As a vital part of the economy, it is imperative that the area stay updated and transformative simultaneously as the times changes by leveraging digital sectors to increase efficiency.
Since the launch of the Digital Mission in 2015, digitalization in India has steadily increased and become more significance in the wake of the Covid-19 outbreak. According to research, there will be a 40% rise in internet users between 2019 and 2023, totaling 750–800 million users and over 700 million smartphone users (McKinsey Report, 2019). By 2030, India's consumer digital economy is expected to grow by 10 times, reaching $800 billion, with Tier 2 and Tier 3 cities serving as major growth hubs. Digital technology will be the key distinction for a successful firm and may substantially empower India's MSME segment.
Considerations For Digital Business Growth
MSMEs require assistance to make the changeover to digital, even while doing so brings advantages including cost optimisation, streamlined operations, greater productivity, increased business agility, better customer experiences, and improved data security, among others. Small businesses face a variety of difficulties in this dynamic industry, including a lack of funding, a lack of understanding, a talent pool of untrained workers, and little to no assistance. Here are some things to keep in mind when turning digital in order to navigate this uncertain environment and embrace digital innovation.
Make a digital business strategy
To optimise cost-effective results, first describe your business priorities and the operations that can be digitalized. Making a digital company blueprint for the next three years, which includes your digital business vision, model, and strategy, is extremely useful for this.
Create a successful tech adoption strategy
Making the transition from manual to digital is challenging for the majority of MSMEs. Digitalization need not include a costly redesign of current services, nevertheless. So that the appropriate solutions are applied progressively, phase by phase, key areas of influence should be identified. The best way to evaluate the effects of the change is to do a bi-annual check-in to measure outcomes and compute effectiveness.
Create a digital business career by choosing the right tools
Improving day-to-day operations such as document management, internal communication channels, and collaboration across teams will help streamline business processes. Since the pandemic, tools like Zoom, Teams, Google Meetings, etc. increase cooperation. Many SaaS tools with flexible subscription models can support project and content management to improve productivity and reduce costs.
Make digital an integral part of your business model
Adopt cloud-based ERP software that are mobile, social, and analytics-based over time to boost productivity and revenues. To do this, it is necessary to choose the best cloud ERP software that is economical and readily connected with the current tools/software with a strategic goal.
It will also be crucial to embrace social commerce if it aligns with one's requirements and objectives as a firm. According to a recent poll, 66% of MSMEs presently use social media as a route for online sales, and 49% of them said that they were interested in growing or establishing their own website or app (Paypal India poll, 2021).
Focus on Product/Service Innovation And Customer Relationship Management
A reliable payments platform and CRM solution will allow you to improve customer experience by speeding up response times, boosting customer care efforts, and strengthening client connections through contextual interactions.
It's also critical to continue innovating if you want to remain relevant and competitive in the industry. A company differentiates itself through innovation. Reengineering employing digital technology and data-backed research will aid in redesigning goods and services to offer customers a high value-add. To define new consumer services, channels, and product innovations, cloud, edge computing, mobile, AR/VR/MR, AI/ML, IoT, analytics, might be a useful combination of technologies.
MSMEs must embrace digital transformation if they want to thrive in a world that prioritises digital technology. Leveraging digital technologies will enable businesses to develop strategies to deliver the finest service levels at the lowest cost, assuring maximum business growth. It will also help them be quick, efficient, and adaptable.