Introduction.
The MSME sector in India accounts for 36.9% of the manufacturing products in the country. the MSMEs are known for their niche products and their immense contribution to keep the traditional art work and other culturally related products across the demographic alive and are keeping them in business. The contribution of a single MSME is comparatively less but the combined value both in terms of production and their contribution to the culture of the land is immensely huge and is one of the lifelines of the economy of the Republic of India. MSMEs account for 30% of the GDP and employ around 110 million employees (Ministry of MSME, Annual Report 20–21).
SMEs should focus on tech that can help them reinvent themselves, respond to changing customer behaviour, and upgrade their offerings,” says Jhumki Pandey - Sinha Roya, Director of Business Operations and Customer Success, The Global Associates.
The Indian MSME sector is unique in its long fat tail of relatively unproductive micro enterprises, which are unregistered or informal, new-to-formal-credit, and characterized by low growth and employment per unit. Most of the micro enterprises are sole proprietorships with less than five employees. Furthermore, informal micro enterprises are responsible for 80% of employment while contributing only 20% of output. This highlights the composition of India’s current business landscape of tiny self-employed informal enterprises with low quality human capital. The Indian MSME sector is unique in its long fat tail of relatively unproductive micro enterprises, which are unregistered or informal, new-to-formal-credit, and characterized by low growth and employment per unit. Most of the micro enterprises are sole proprietorships with less than five employees. Furthermore, informal micro enterprises are responsible for 80% of employment while contributing only 20% of output. This highlights the composition of India’s current business landscape of tiny self-employed informal enterprises with low quality human capital
Technology to Drive Digital Transformation:
Following are the ways and steps that can be taken by MSMEs to adapt digital transformation.
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Adaption of cloud-based accounting software:
Accounting is a fundamental as well as the core function of an organization. Small businesses simply cannot get their accounting wrong as it would turn out to be a very expensive mistake. Small businesses should integrate their books of accounts with the cloud. Ensuring that their books are synced with the cloud, they can ensure ease of access to the accounting data as well as preventing loss of data. Some of the best cloud-based accounting software available are:
1. Zoho Books
2. Reach – Accounting software
3. QuickBooks – Accounting online
This accounting software consists of payroll function too.
·
Cloud-based team and project management software
A single white board nor a single software alone can help a business organize and plan-out their team member’s responsibilities nor manage a project effectively.
There are a wide variety of cloud managing software available in the market. Cloud-based accounting software enable organizations to create, plan, manage and report on projects across distributed teams and locations.
Typical features of a cloud-based project management software are:
1. Collaboration
2. Task Management
3. Time Tracking
4. Scheduling
· Google workspace
Google workspace is a must have tool for small and medium sized organisations.
Following are the core reasons why Google workspace is an essential tool:
1. Access to admin console:
The Google Workspace Admin Console allows business owners to easily manage everything from one single place. Intuitive dashboards let you manage users and groups, manage devices, assign permissions and configure security settings. For example, you can block untrusted apps, set compliances, enforce security keys or require two-step verification. If they log into Google Workspace from a new device, Google sends a text message with a verification code they have to enter before they can access company data.
2. Google workspace shared mailbox:
A shared mailbox is an email inbox which multiple people can access to manage email. Typically, they're catch-all addresses such as hr@yourcompany.com or billing@yourcompany.com. To Get more context, Avoiding duplicate work, Gaining visibility or Working across different time zones - a shared Mailbox is the ultimate solution.
3. Customized Business Email:
Did you know that Gmail is one of the world's most popular emails? With Google Workspace, you get all the same experience of Gmail, but with your organization’s domain name. For example, it could be xyz@companyname.com. If you have a start-up or small business – this will highlight professionalism and increase brand awareness. And your team will be able to access their work emails, wherever they are! This is useful even if your team is working remotely.
4. Collaboration Is Made Easy:
Google Docs, Sheets, and Slides are easy-to-use apps that provide easy avenues for collaboration, needed to run a business. Better yet, they in fact, all the Google Workspace apps are designed to work as a team simpler. You can have multiple people working on a Google Doc simultaneously and see the comments or where everyone is in the document at the same time. You can receive an immediate notification when someone tags you (just like Facebook). Additionally, Google Meet and Hangout offer simple video conferencing and messaging - are just one click away.
5. Work Insights:
Every good business needs detailed reporting whether it is small or big, and Work Insights is one Workspace feature that can increase the levels of adoption, collaboration and productivity. Whether for a manager, IT admin or HR, Work Insights can be useful to provide oversight on how employees are performing and engaging with Workspace. For example, your work insight might highlight that while 98% of staff appear happy using Gmail, only 67% are regularly using Docs.
Computer servers:
Many small businesses can work efficiently if they adopt a computer server. Servers store, manage and deliver data to the workstations through a network. This servers are more powerful than an average workstation, providing enhanced security and easy integration with backup and recovery tools.
Following are five reasons why small businesses should consider investing on a server.
1. Defence against viruses and other threats
2. Protection against losing data during a disaster
3. Compliance with industry requirements such as PCI-DSS and HIPAA.
4. Key business software requires processing power and storage space.
5. Secure remote access is critical to continued growth
Small businesses should a lot funds to acquire the above mentioned software and technology in order to accomplish digital transformation as early as possible and utilize the available tech to drive higher profit margins. As the performance of the small businesses increase, it will directly impact the macro-economics of a nation, resulting in creation of a large pool of jobs, efficient manufacturing resulting in cost cutting and resource savings, and overall boost to the country’s GDP.
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