Spelling out the benefits of a ‘technological turnaround’ for MSMEs
Statistically speaking, MSME stands for the Micro, Small and Medium enterprises, but the significance of these organizations is anything but ‘small.’ While they hold a strong position in the global economy, for long, MSMEs have stood as bystanders watching established counterparts leverage technology. And now that we stand at the cusp of Industry 4.0, it’s time for such businesses to amp up their technological integration as well.
Effective use of technology will simplify processes, eliminate roadblocks, and level the playing field between MSMEs and market titans.
Digitization of Processes
For ages MSMEs have hung onto the traditional and manual way of doing things; passing off as a mere bystander as larger enterprises quickly adapted to technology. Little did they know, the solution to most of their concerns lies in this adaptation. From supply chain management and logistics to procurement and manufacturing, tech-enabled solutions not only streamline processes but also add value to each step. For instance, Artificial Intelligence (AI) can transform all data collected from supply chain into actionable insights.
The fruits of optimizing processes with technology don’t end there! Companies can create software tailored to meet their concerns. For instance, software for customer relationship management (CRM) unlocks a consolidated digital record of customer data. Similarly, the whole process of human resource management, including recruitment, compensation, appraisal, and retention strategies can be digitized to drive the utmost efficiency.
Data Mobility & Flexibility
Cloud solutions are just the pocket-friendly alternative that MSMEs have been seeking. Replacing the hassle and cost of traditional IT infrastructure, cloud services eliminate the need for steep capital investment and recurring maintenance. Additionally, this cost-effective solution promises better flexibility with ease of upgradation, ensuring data-backup and continuity.
Accurate Market Analysis
2020 has proved that future-readiness is no longer a task for the future. In the face of the pandemic, companies with digitized processes were much quicker to bounce back than the ones without.
Predictive analytics is just one of the many underrated benefits of AI. By turning data into insights, AI integration unravels an accurate forecast of market trends and behavioural data to inspire the company’s expertise. AI-powered competitor analytics also helps businesses stay ahead of the curve while maintaining a competitive edge in the market.
Frauds in businesses are rampant across industries and scales, however, the impact of a loss greatly depends on the company’s ability to withstand it. Technologies like blockchain and pattern recognition act as a digital armour, eliminating obstacles and allowing brands to fully explore their capabilities.
AI broadens a company’s access to data and knowledge; using the right software, businesses can leverage customer segmentation to reach out to the right person at the right time. With access to predictive analysis, MSMEs can map out their digital campaigns as per behavioural insights to achieve optimum leads and the coveted return on investment.
Digitization opens a host of opportunities for MSMEs to explore, including the global landscape. Optimizing business process with tech-enabled solutions gives an instant stimulus to this sector with infrastructure development, actionable knowledge, and skill set development.
To sum up, we’ve just scratched the tip of the iceberg in this article. MSMEs have rightly been termed the ‘growth accelerators’ on many occasions and the government is committed to providing an impetus for its progress. In such a conducive environment, technological integration further propels aspects for MSMEs, especially now that customers present a growing appetite for digital.