EIn this rapidly digitising world, micro, small, and medium enterprises (MSMEs) can benefit greatly from automation and digital technologies. If MSMEs digitalize, they will catch up to large corporations and remain relevant in global supply chains.
As a result of this technology adoption, they will reach a wider range of customers, allowing them to catch up with larger companies and remain relevant in global supply chains.
By 2024, the digitisation of micro, small, and medium enterprises (MSMEs) could boost India’s GDP by approx $216 billion.
During crises, such as the one currently being experienced, Digital tools & techniques can help MSMEs avoid total business disruption. Many small firms survived, while others were unable to because they exhibited their willingness and capacity to transform their businesses.
Going digital has proven beneficial in cost reduction, standardisation and automation of business processes, reducing reliance on the workforce, and enhancing competitiveness by gaining insight into consumer behaviour and experiences, among many other benefits, regardless of the size or industry of the MSME.
On the other hand, MSMEs in India are unaware of all the new digital technologies available today. Although India is estimated to have more than 70 million SMEs/MSMEs, the country’s digital penetration is disappointing.
While more than half of Indian SMEs claim benefits from using digital tools in a variety of areas, a majority of them cites a lack of knowledge and guidance in using such tools. The cost of investing in these technologies, and a shortage of skilled talent to manage them are major barriers to the adoption of sophisticated technology.
Technology adoption by businesses, including MSMEs, must be integrated into all companies for digital transformation to be effective and successful.
Many MSMEs still use traditional marketing and sales. They are being excluded from the digital world due to a lack of information.
What does digital transformation mean for small businesses?
Digitalisation and digital tools have aided MSMEs in increasing their value and production before the COVID-19 epidemic. Its significance has only increased after covid.
Of course, digital tools differ from one industry to the next and from one region to another. While certain digital tools are universally applicable to all businesses and many are tailored to the industry and individual companies.
SMEs must invest in skills, market development, technology, and change management to stay afloat and succeed in the new world. Surprisingly, it does not necessitate a significant financial investment in technology, as most of the digital tools required are either free or quite inexpensive compared to the benefits they give.
The way you operate and give value to your consumers will alter as a result of digital transformation. It is not simply a matter of digitalising existing inefficient procedures; it is a cultural shift that necessitates the involvement of organisations.
Presently, there is a large selection of digital solutions available to assist and expedite the continuity and scale-up of MSMEs.
Let’s discuss one such tool that can help MSME.
SMBs can benefit from an integrated ERP and CRM system.
ERP stands for enterprise resource planning, and it includes functions such as human resources, accounting, inventories, and purchasing. On the other hand, CRM controls the sales pipeline, maintains customer information, and manages client interactions to ensure customer retention.
SMBs can improve important components like supply chain, finance, project management, and human resource management by combining two big systems.
Refrain from duplicating data.
When ERP and CRM are linked, data is pulled from a single database. Even though the data source and data used are the same in both systems, they serve different purposes. Contact information is largely utilised for billing and shipping in ERP, whereas it is mostly used for prospecting and sales/support in CRM.
Changes and additions to the database only need to be made once using integration, and both systems may then use it. As a result, it prevents data overlap and duplicates data production.
The same thing happens when custom fields are added or removed. In addition to maintaining a cleaner database, it saves many person-hours lost in multiple data entries.
Boost the productivity of your workforce.
Employees get real-time access to crucial information circulating throughout the firm thanks to fully linked ERP and CRM platforms.
Employees do not waste time inquiring about product status or any other related question. They may get inventory levels, shipment status, customer financials, order history, items return, payment, and price with a single click.
Costs of IT support and training are reduced.
Integration of ERP and CRM systems allows these systems to work as a single entity. As a result, no additional interfaces or integration is necessary. The requirement for specialised IT personnel for both procedures person-hours is reduced. One IT worker, rather than many, will be able to manage the integrated system and complete the task.
Similarly, the administrative cost of HR training personnel decreases. A well-integrated system necessitates less training and assistance. Staff does not need to be taught on two systems separately. Training upgrades and courses are also inexpensive.
Customer’s perspective from all angles
CRM allows you to gain a deeper understanding of your customers. However, with ERP and CRM connectivity, you may go a step forward by getting a greater understanding of your consumers.
You get total visibility into your customers’ needs, buying habits, order history, and preferences, from sales to support to finance and accounting.
Accessible via a mobile app
As an application, integrated ERP and CRM solutions are offered. Field personnel, such as marketing and sales, can use their mobile devices to access the app and stay updated. They get real-time access to data through the app, which helps them during customer interactions.
More than 6.5 million SMEs in India will need to embrace digitalisation if the country is to become a trillion-dollar digital economy. Assisting small businesses in adopting new technologies by providing them with new skills and suitable digital tools is the best method to help them manage complex and ever-changing business problems.
So, are you ready to Transform Your Business Digitally?