Automation for MSMEs of India has immense potential to transform the way enterprises operate. The adoption of automotive technologies came in the form of driverless automobiles, robot helpers, delivery drones, and many more for businesses. The Dubai Metro, for example, has been completely automated making UAE a leader in the field. The Dubai Autonomous Transportation Strategy is expected to make 25% of all trips automation based by the year 2030. Automation advances lower the cost of sensors and artificial intelligence, rendering automation more workable. Thus, it is important to understand the crucial role automation for Indian MSMEs as they could benefit a lot in operations and profit domains.
How Can Automation Benefit MSMEs in India?
Automation in India MSMEs can improve the sourcing of raw materials, manufacturing sector, services provision, and operations. According to a consulting firm, TechSci Research, the GCC (Gulf Cooperation Council) market for industrial and building automation is set to reach $10.3 billion in the next year. This means a whopping increase of around 10.7% compound annual growth rate (CAGR), up from $5.6 billion in 2017. Automation is getting imperative particularly as manufacturers seek to boost efficiency and safety, while consumers expect better quality and value for money. For the manufacturing sector, raw material sourcing using automation can greatly simplify and fasten the supply chains.
What is SME automation?
Small and medium-sized businesses deal with a variety of entities, including contractors, distributors, customers, and financial institutions. Managing complicated day-to-day activities can be difficult for SMEs. To make the most of limited resources, Indian MSMEs need to focus on technology adaptation by adding automation technologies to increase their efficiency. New-age digital channels, the scientific community, and startup clusters can facilitate a smooth integration of Indian MSMEs with automotive technologies.
How automation can help in better sourcing of raw materials for MSMEs of India?
AI and ML-enabled technologies can change how MSME workers communicate and work together. They can make communication and collaboration easier and more efficient. It is capable of optimising inventory control and vendor management. Integrating automation in MSMEs and real-time visibility of capacity enabled by the Internet of Things will aid in sourcing raw materials using the JIT (in Time) technique, hence increasing the bottom line.
For manufacturing sectors, sourcing raw materials have always been a huge issue. Automation can help in finding alternatives, better prices, quantity and lead time. Dozens of MSMEs in India have begun their journey of technology adaptation including automotive operations. It will become normal for people to use technology in this way over time. This technology will get better and better, to help people instead of replacing them.
It’s important to turn small businesses into “smart manufacturing” units because connected devices and sensors give businesses more detailed information that helps them make better decisions. Industry 4.0 is predicted to be fueled by new-age digital channels that can turn India’s dream of Aatmanirbhar Bharat into reality. These channels make use of real-time data powered by AI and machine learning and fed into the enabled automated processes of MSMEs. Not only does it enhance the manufacturing efficiency of MSMEs considerably but also reduces the time to market and improves customer service.
What are the areas for implementation of automation in MSMEs of India?
As a disruptive technology, automation takes inputs, run them through several prepared commands and gives the output. Repeated inputs and outputs make the automated process highly scalable and efficient. MSMEs integrated with automation will ensure that the business’s time and resources are used for networking, relationship building, and new ideas. The following are some areas where automation can have a direct impact on MSMEs:
1. Finance automation in MSMEs
Small businesses and enterprises can use cloud-based solutions to send invoices, manage staff, and make online purchases. Manual processing does not require people’s assistance, which makes the procedure easier and improves financial management.
2. Human resources automation in MSMEs
Employee commitment and performance are crucial in SMEs because they are responsible for developing and delivering the service or product. In addition, SMEs are characterized by a small number of employees (250 or less). As a result, SMEs must hire the right set of employees and monitor their performance.
3. Marketing automation in MSMEs
Relevant advertising and email marketing, as well as SEO and customer relationship management, are all made possible by the software. It ensures that the data is relevant and that the emails are better targeted. It also keeps track of contacts, ensuring that communication is clear and timely.
What are the barriers to automation in SMEs?
- Implementation Partners – For small firms looking to automate, finding the right automation system and partner can be difficult. They could be unsure of where to begin or how to get started. At the moment, technology and service providers are mostly focused on huge enterprises, with SMEs receiving little attention. Most small-business solutions are scaled-down versions of larger-business solutions, which may not be sufficient for small-business needs.
- Finance and Investment – Any amount of automation, whether hardware or software, necessitates a large initial investment. Small firms find it difficult to progress toward automation due to a high level of competition and low pricing that erode profit margins. It takes a long time and costs money to get money from a financial institution, so be patient.
- Infrastructure – Automation can only be productive and lucrative if the infrastructure is reliable. Automation necessitates a strong foundation, which includes dependable electricity, skilled labour, and prompt maintenance suppliers. Let’s say we automate the entire process, but we don’t have enough electricity to run the machines or enough competent employees to maintain and operate them. In India, the surprisingly large infrastructure gaps will make automation challenging for small enterprises.
Achieving MSMEs Integration With Automotive Technologies
MSMEs must automate in order to reduce waste and enhance productivity in India’s massive SME industry. It’s time for business owners to embrace technology as a blessing in disguise, allowing them to focus on clients, sales, and expansion rather than operating the company.
And to do so, MSMEs need systems that are quick, easy, and understand their business. The business and enterprise owners should look for solutions that are both well-known and have a long history of being trusted by a lot of people in the business world. As part of the Aatmanirbhar Bharat Abhiyan (ABA), the Central Government provides economic packages to make changes in a wide range of areas. This includes small businesses and industries as well as workers and the middle class. The MSME sector can make effective use of this fund if a certain level of automation in MSME is achieved which will optimise the output.
Read more: https://smeventure.com/automation-road-to-damascus-for-smes/
Written by,
Prasad P. Patkar