As the economy slows and trade slackens, MSMEs need to focus on restructuring strategies. To do this, they should embrace technology to foster with time. Developing this capability will help them deal with economic burdens, supply chain disruptions, and more. By taking advantage of technology, MSMEs can enhance their competitiveness and adapt quickly to new challenges. This article will highlight the various benefits of implementing technology to support their growth.
Here’s How Technology Can Help MSMEs Strive and Scale
Today’s consumer behavior is rapidly changing, and digital trends are accelerating the pace of these changes. The pandemic has affected consumption patterns in all categories, and businesses must learn how to engage customers in a new way. There are many ways to encourage and accelerate the adoption of digital technology for MSMEs.
Digital transformation involves more than adopting new technologies; it also requires creating environments that encourage and facilitate innovation. Digital transformation is vital for MSMEs, the backbone of the economy, and they need the proper information and support to maximize their potential. Thankfully, many digital platformers are in close contact with a range of MSMEs and are able to provide unbiased, up-to-date content for their subscribers.
In addition to the given benefits, the adoption of new technology also brings with it many advantages. Cloud computing, for example, enables MSMEs to tap into the global marketplace without incurring huge upfront costs. Moreover, e-commerce allows MSMEs to access a much broader consumer base, and digital infrastructure helps them collaborate and share data.
MSMEs Should Be Ready to Address the Recent Pandemic-Like Circumstances
In the context of a COVID-19-induced lockdown, MSMEs should explore how technology can help them adapt to and address this situation. MSMEs can use digital platforms to reach out to new customer segments, increase distribution, and leverage temporary workforces. In addition to adopting innovative technologies, MSMEs should adapt their business models to the current situation. The resulting changes will prepare them for future shocks. By focusing on their own capabilities and overcoming constraints, MSMEs can help boost economic growth in low-income countries.
MSMEs can leverage their employees’ ability to work remotely to scale their business. Cloud ecosystems have also made the use of digital tools easier for MSMEs. With cloud services and software, these tools can help MSMEs to improve their productivity and scale their operations. All of these advantages can help organizations to scale and stay competitive in today’s increasingly uncertain environment.
MSMEs Can Enable Constructive Collaboration Through the Right Tools
MSMEs should focus on improving communication and collaboration between team members. The use of collaboration tools also increases buy-in from team members and enables them to provide constructive criticism to each other. These productivity tools are also useful in reducing travel expenses for sales and marketing activities. With the help of online collaboration tools, employees can share ideas even if they aren’t in the same office. Using productivity tools can also reduce operational costs. Some of these tools are available as SaaS subscriptions. Cloud ecosystems for digital tools have made the use of these tools easier for MSMEs. The use of these tools will allow MSMEs to increase their visibility in global markets and improve their sales.
Now is the Right Time for MSMEs to Enter AI, ML & IoT Landscape
Already, the survivor MSMEs have adapted to new business models and developed new ways to provide useful services to their clients. Digitization has benefited many struggling MSMEs by lowering interest rates and delaying tax filing dates.
- Artificial Intelligence and Robotics
These technologies are helping MSMEs achieve a variety of operational competencies and competitive edge. With this growing use of AI, business owners can expect increased productivity, efficiency, and accuracy. AI, like any new technology, will require careful implementation and systemic data capture. MSMEs are the backbone of emerging economies. In India, the government is focusing on them with incentives and investment. Tax reliefs and government investment will encourage MSMEs to adopt AI.
AI solutions will provide visibility into manufacturing irregularities during the initial stages. These technologies will help identify defects early on, preventing value bleed and ensuring quality standards for global markets. AI will also help them improve their management of expenses. Traditional business models are difficult to quantify future operational costs. AI-aided working capital management will forecast overheads with high accuracy.
- ML and AI
Machine learning can be a major help for MSMEs. Large organizations have research departments that can spend weeks or even months investigating competitors and customers. ML, on the other hand, can give you insight in minutes. Its combined use with AI and other technologies can improve the customer experience, decrease costs, and increase quality.
Artificial intelligence and machine learning have improved loan decisions for MSME lending. For example, machine learning and AI combined can help lenders make better decisions without having to review business documentation. The advanced technology of ML and AI is able to combine a variety of demographic and social data sources to create accurate lending decisions for MSMEs. It can also help bring more businesses into the formal lending process. This technology is just the beginning of its potential for helping MSMEs.
AI is increasingly popular in customer service. In fact, it is predicted that AI chatbots will overtake 95 percent of online customer communication. The software is able to understand human emotions and conduct conversations, which makes it an effective tool for helping MSMEs overcome budget constraints. By using AI chatbots, MSME recruiters will be able to find the best candidates and improve retention rates. As AI is used for recruitment, MSMEs will be able to achieve greater customer engagement.
- Internet of Things (IoT)
IoT can help MSMEs by enabling smarter products and services. Currently, MSME owners manage the vast majority of the functions in their companies, including production, labor, and suppliers. The owner’s time and ability to deal with these operational issues can limit the MSME’s growth. With IoT, MSME owners can monitor and control shop floor processes from afar. In addition to enabling better productivity, IoT also makes it easier to manage costs, innovate, and create new business models.
The use of IoT technology can improve fleet maintenance and transportation while helping MSMEs better understand their target demographics. Additionally, IoT devices can be used to monitor the performance of existing products and to predict when they will need repair or replacement. Ultimately, this will make the world a better place to live and work.
Data Management and Analytics
Data-driven decisions are the key to a successful business, and the right information can be harnessed to improve operations. Data analytics is vital for MSMEs, especially those that are dealing with only one or two domains. One important factor to consider is understanding the demographics and sentiments of the target market. However, most businesses cannot find these demographics without the help of data analytics.
Data management and analytics can help MSMEs track which products are selling the best and when they are most popular. With the right data, MSMEs can find out when they should market their products. They can also dig up information on how to segment the market and what times are busiest. These insights are invaluable in the process of improving efficiency. If MSMEs use data management and analytics in their businesses, they can better target and develop the right strategies to expand their market.
With limited resources, MSMEs must innovate to stay competitive. As their market demands change, they must respond with new technology, services, and processes. Innovation is the key to MSME transformation and growth. It makes use of human, technological, and financial resources to meet the challenges of a constantly changing business environment. It is important for MSMEs to embrace new technologies and think strategically about how they will benefit their business. This transformation process involves changes in business practices and a culture of failure.