The Small & Medium Enterprises (SME) sector of India is the prime driver of the country’s economy – employing around 40% of India’s total workforce and producing 45% of the total output. Though this sector influences the country’s GDP to a great extent, it proves to be a little slow in adopting technology to take the business forward. There can be several reasons behind this:
- Lack of knowledge about the benefits that technology can deliver to business
- Insufficient understanding of the internet and how the same can be integrated into business
- Hesitation about investing in the latest technology
- Absence of skilled workforce to manage technological setups
All over the world these days, people have been talking about the increasing popularity of Social, Mobile, Analytics & Cloud (SMAC). In India too, this seems to be the perfect time to introduce the concept of SMAC to SMEs.
Understanding SMAC
SMAC is the integration of technologies like social, mobile, analytics and cloud into new and established businesses to sell products and services to the customers in an engaging, personalized and comprehensive manner within an effective cost structure. Every technology in SMAC is different from the other, has its own functionality, yet complements the other to render profiting outputs.
The main factors behind the development of SMAC have been:
- The rapid growth in the purchase of smart devices to use 3G and 4G mobile networks
- The ever-growing acceptance of social media
- Lead generation and data capturing by businesses about their customers
- Increasing advancement in analytic technology and tools
- Enabling businesses with Cloud to make them efficient and cost-effective
Let us now understand what each SMAC technology offers.
Social
This technology includes social media like Facebook, Twitter, Instagram, YouTube, WhatsApp, and many more that have eliminated all the barriers and boundaries hindering communication. Social technology is rapidly growing among the masses making it easier for them to express their views about a product or service. On the other hand, it is also beneficial for businesses across the country as they are able to connect with their customers, exchange views and gain feedbacks. Through social media, businesses get an insight of what the customers are demanding, and in turn, can manufacture products according to their likes and dislikes.
Mobile
The mobile technology is one of the most convenient advancements that has happened to human beings. Smartphones these days make everything just a tap/touch away. People can have access to the happenings of the world from anywhere they wish to be. Similarly, even business owners can manage their businesses easily, even when they are vacationing with their family and friends. Other than this, there are numerous apps that can work as easy and effective tools for managing finances, accounts, payments and much more.
Analytics
Businesses nowadays are increasingly focusing on the technology of analytics. This is mainly because there has been a great rise in data collection and lead generation, and a number of techniques and tools are available to make analytics an easy process. Another important factor is that more and more people are becoming aware about the power of analytics and appreciating the numerous ways it increases efficiency and optimizes businesses. Analytics also helps business owners to understand the likes and dislikes of their customers, and thus helps them in formulating customer-centric products and services. This challenges them to constantly keep experimenting and creating something out-of-the-box for their customers. The market competition is also taken to a whole new level.
With the advent of cloud technologies, businesses now have a safer and cost-effective way of managing their daily operations. Now, business owners do not have to employ extra time and money for the storage and purchasing of software & hardware services. Earlier, companies had to regularly keep themselves updated with the latest developments, which required a constant cost-incursion on technology. But now, with cloud technologies coming up, they no longer have to bother about any updates. This is because cloud offers complete data security and data management, making it easier for companies to recover information easily in the event of a calamity.
It’s now time for Digital Transformation!
SMEs should leverage themselves with SMAC technologies and come up together to avail all the significant business benefits. The foundational block of this digital transformation would constitute of the following four pillars.
- A Digital Business Structure
New business models will be created based on the uses and benefits of digital technologies, and existing businesses will also be optimized accordingly.
- A Digital Experience for Customers
The marketing, sales and services of the businesses will all be digitalized, making it easier to learn customer behaviours, attract and engage with them on a personal level, and enhance the shared relationship.
- Digitally-enabled Operations
All the operation performed in businesses would be highly digitized. From planning to execution to evaluating the end result, every process within organisations will be digital in nature. This would ensure greater transparency among the management and the workforce too.
- A Digitized Workforce
Technologically advanced workforce will be able to perform their daily tasks with greater efficiency and effectiveness. Management and recruitment of employees would also be simplified to a great extent. This would therefore ensure high performance and productivity.
If SMEs around the country leverage themselves with this growing SMAC technology, their businesses will be empowered with a number of benefits. These include
- Approach to Comprehensive Knowledge
Businesses will be able to readily equip themselves with knowledge about all the latest developments and advancements related to operation in their specific industries. They will be able to acquire professional opinions and employ best practices to keep ahead with the growing competition.
- Becoming Financially Independent
SMAC technology would enable businesses with a transparent platform to share their work ideas and raise funding. With easy available options, SMEs will be able to manage daily buying and selling of services, as well as keep a check on the transactions.
- Achieving Targeted Sales & Marketing
SMAC would offer them cost-effective ways to promote and advertise their products and services and hence reach a wider set of audience. It would provide them with a new and engaging platform to communicate with their buyers, suppliers and business partners. They would also be able to gain experiences and feedback from their target audiences.
- Excellence in Operation
Technology advancement helps business owners in managing their operations across different platforms and employee groups. This way they will also save additional cost by eliminating middlemen. Technology makes identification and recruitment of resources much simpler and accessible.
- Providing Efficient Services
With the help of SMAC, business owners can provide quick and responsive services to the queries put up by their stakeholders. They can identify the right business partners and the benefits of collaborating with them. Also, services will now become available to people and partners without any physical presence.
- Ability to Make Right Decisions
By employing the right technology for their businesses, owners will now be able to get a better view of their financial and operational conditions. They would become well-equipped to recognize new trends and patterns evolving in the industry and understand their impact on their businesses. In this manner, they will be able to analyse their work situations better and take right decisions at the right time.
We must understand one thing thoroughly that the SME sector in India comprises of varied sizes and types of organisations, businesses or firms. Every industry plays a unique and significant role in the development of the country, but not all of them understand completely the power of SMAC technologies and how their business can gain their benefits. It is therefore important for certain specific industries to collaborate with government bodies to make the most of SMAC technologies for their businesses. They need to follow a comprehensive approach to leverage the full potential of the latest upcoming technologies to build a better organisational structure and ensure stronger relationships with their partners and customers.
SMAC technologies are highly affordable, and with little amount of guidance, they will also become accessible to all forms of businesses. This is a great opportunity for small entrepreneurs to take part in the league and compete with big market players. What’s required is for SMEs to come forward and adopt SMAC as an essential part and parcel of their growing businesses.