Key factors that bring in profitability, improve scalability in MSME operations by embracing Digital transformation & CRM tools
In India the MSME sector contributes majorly to the country’s GDP and accounts for 33% of contribution and is predicted to contribute worth US$ 1 trillion to India’s total exports by 2028 which is a phenomenal growth rate if we consider the MSME ways of doing business and challenge’s the sector often encounters. The medium and small scale industries ’s employs around 80 million and operates on 36 million units approx.
India started its digital transformation journey, both govt. and private sector mainly from 2011 that took full pace by 2015, when companies started adopting digital technologies and opted digital ways of conducting their operation for scalability and increase profit sharing with digital technological infusion.
Digitally empowering the MSME via UDYAM
Digital transformation benefits are immense and the small and medium scale enterprise must reap benefits and become digitally efficient. The govt. of India has initiated digital oriented schemes to motivate MSME’s and empower them digitally.
Through the Udyam portal MSME business can register and adapt ICT tools. The main aim of UDYAM portal is assisting the MSME’s with an understanding how standardization of business processes through digital technology can improve production, reduce inventory cost and deliver on time. In the long run customer satisfaction is foremost and that comes as delivery and aftersales service is efficient and quality check on products sold to as per industry standards is adhered to.
The scheme aims at providing digital identity to the MSME, software interventions, capacity building and making them e-market compatible.
In present day way of doing business it becomes all the more important for MSME’s achieve their goals, measure efficiency of units, empower productivity and save time thus helping in securing major with financial assistance in form of loans for expansion in future, from major financial organization.
Further improving competitiveness in global markets and growing exports, imports in the MSME sector forms a major part in the functioning of the MSME’s and also a goal for the government in whose hands lies the keys of the growing SME and MSME business.
Key Initiative MSME’s can take to grow business digitally
Markets are changing every day and so are the ways of doing business, understanding the growing complexities of the small and medium scale business and enterprises often encountered. This can range from labor issues to cost optimizations and streaming core functionalities and often MSME’s lack in such areas. Business often requires agility to operate better and this can come by adopting digital tools that can empower their productivity.
A Successful Digital Strategy in place
The MSME enterprises require to prepare charts for the process they are going to go digital on and priorities them. Having a blueprint on which process in the business model will be digitized with tools to get better outcomes ,mapping becomes crucial as investment is also required for that and any less prepared strategy will account for loss and MSME enterprises won’t be able to afford that. The blueprint that will be created for a five years’ time period and having a digital business strategy in place will boost morale and help the enterprise work in that direction continuously.
Preparing a Digital First plan through Tech adoption
Small and medium scale enterprise and business models find a challenge in adopting the latest technology. This happens sometimes due to a mind-set that is not ready to shift from manual ways of working to digital ways. Also this includes quite a good investment, but if MSME’s can drive an exercise and find which area they need to shift first towards being digitally enabled it will be easier in technology adoption.
To have right kind of solutions in place and services, require a shift from traditional ways of operating to digital and that can happen with proper cost breakup and how it is viable for the future of a business. Gradually moving that identified area to be digitally enabled will take place and become ideal to assess the impact of the digital shift. Later many processes can follow and the enterprise may become fully digital.
Selecting the right Digital tools for MSME enterprises
MSME’ s don’t have the luxury to select many digital enable tools mostly due to financial crunch, but having said that it becomes important to understand that MSME businesses select the right kind of tools to improve their daily task and that which is easy to implement without hassle. This can be content tools, to introduce Block chains that allow real time merchant tracking and bring in transparency in accounts. Being a digital based database, Block chain can track assets and record transactions helping owners in MSME and SME to have records digitally protected.
Increase Scalability
Many MSME’s and SME businesses have social media presence and they often advertise through social media. Other than having presence in mobile apps which is a trend to scale up business, having an ERP system that is analytics based will enhance MSME operations to scale up and bring in operational excellence. ERP (Enterprise resource planning) based software is a modular software system that is scalable and flexible for enterprises who get access to highly integrated applications. MSME businesses focus on what is essential to their success and digitally based technology slowly will form the core business model.
Medium and small business if implements ERP systems, will have a direct impact on cost savings and operational improvements, securing the business from uncertain and difficult economic, environmental situations.
Focus on Enhancing customer relationships
For MSME and SME business it is important to form a credible customer relationship through interactions and give every effort to boost the customer service area that forms core to MSME operations and also credibility.
A proper CRM tool and Payment platform will enable MSME’S to survive the challenge’s of time and remain relevant. Payment platform will effectively reduce response time in customer interactions and improve experience of customers and stakeholders.
MSME’s can choose better and cost effective CRM tools by doing R&D and that suits best in terms of business and cost. The focus should be on finding a simplified platform and no unnecessary features that can increase cost and increase the scale.
Innovation to stay Relevant
To stay relevant and competitive in the market, it is also important to keep innovating that will set a business in being more effective. Data enabled research will help innovating with help of digital technologies. Digital transformation with the help of artificial intelligence (AI),ML, IoT and analytics and cloud computing will define new customer services and product innovations at lesser cost.