Technology for MSMEs: Even as know-how has develop into crucial for micro, small and medium enterprises (MSMEs) and there was a gradual uptake as nicely within the adoption of digital options notably after the pandemic, a big chunk of small companies are nonetheless not sure of leveraging know-how. During a panel dialogue on ‘Easing the Adoption of Digital Solutions for MSMEs’ on the FE MSME Business Conclave organised final week, consultants famous that MSMEs have been reluctant to undertake related know-how instruments.
“MSMEs reluctant to technology adoption will not be able to scale up,” stated Logesh Velumsay, CEO of software program cloud-based administration software program supplier Effitrac.
Lack of consciousness has been one other problem, in keeping with consultants. Not many small companies are conscious of the proper know-how options required of their operations to scale up manufacturing and income. In reality, know-how is essentially seen as a price to the enterprise.
“Lack of awareness has made MSMEs view technology as a cost and not as a return on investment,” stated Bhushan Parekh, Director – SME, CRISIL.
Cost continues to be a pressure in adopting digital options as many MSMEs are normally not capable of outline their enterprise targets clearly or establish the proper digital companion for cost-effective development.
“You cannot be successful if you cannot reach your customers in a cost-effective way. Hence a cost-benefit analysis at every step of digitization is a must as each enterprise has different needs and a one-size-fits-all approach for digital solutions doesn’t work,” stated Subhash Goyal, Founder Chairman, STIC Travel & Air Charter Group.
Velusamy additionally echoed {that a} cookie-cutter strategy to digital options isn’t doable as “SMEs cannot predict their future problems. Hence, they need technology that adapts to their problems.”
Moreover, in distinction to having in-house groups that may add to the fee for small companies, Low-Code No-Code (LCNC) options can be utilized that enable people, with none coding expertise, to construct and take a look at (enterprise) purposes, stated Velusamy.
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Nonetheless, these prepared to undertake know-how have been capable of leverage reasonably priced options with a decline in the price of adoption. “The advancement of technology over the last two years has caused a ‘tectonic shift’ in the reduction of cost of adoption of digital solutions. Due to this, the percentage of MSMEs adopting digital solutions has increased from 10 per cent before Covid to 50 per cent in 2020,” Parekh added.
For occasion, buyer relationship administration (CRM) software program to take care of buyer base, accounting and assortment software program to test the circulate of cash, operations administration instruments to handle backends of software program techniques or manufacturing meeting traces, integration instruments to attach with B2B enterprises akin to cost gateways, and collaboration instruments akin to Zoom to attach with groups are among the crucial know-how options witnessing adoption, he added.
On the opposite hand, small companies should additionally undertake due diligence earlier than digitising sections of the enterprise. “Businesses should not digitise for the sake of it, especially in service-based industries where technologies like artificial intelligence cannot solve customer queries. Ultimately human interface is important and face-to-face interactions with customers generate most business,” added Goyal.
According to a latest survey of round 540 micro and small enterprises by Crisil, over 65 per cent respondents stated they’d adopted or upgraded their use of digital channels together with on-line aggregators, social media platforms, and firm web sites for development amid pandemic-led disruption final 12 months.
“The growing demand for digitalization in operation was visible across segments. The highest transformation was recorded on financial transactions with around 68 per cent extensively adopting payment wallets and net banking, while a mere around 4 per cent were focused on procurement or inventory management,” Parekh had stated.
Source: www.financialexpress.com”