Digital Transformation Strategy is the most important need for a SME : Mr. Anand Iyer, Group CTO, ICRA Ltd.

By embracing technology, MSMEs can overcome traditional barriers to growth, enhance their competitiveness, and contribute significantly to the Indian economy. On the occasion of World MSME Day 2024, SMEcommunities.com met with Mr Anand Iyer, Group Chief Technology Officer, ICRA Ltd. for an insightful chat on how technology plays an important role in the day-to-day life of a MSME. Edited excerpts:

From a technology point of view, why is technology important for MSMEs? According to you, how does technology help to improve a MSME’s day-to-day operations?

Technology is crucial for the growth and success of Micro, Small, and Medium Enterprises (MSMEs) in India. Technology can help improve a MSME’s day-to-day operations in the following ways:

Improved Efficiency and Productivity: Adopting technology such as enterprise resource planning (ERP) systems, automation tools, and cloud computing can streamline business processes, reduce manual labor, and increase overall productivity. This allows MSMEs to achieve more with fewer resources.
Enhanced Customer Relationships: Technology enables MSMEs to better track customer interactions, preferences, and feedback through customer relationship management (CRM) systems. This helps them provide personalized experiences and improve customer satisfaction and retention.
Expanded Market Reach: E-commerce platforms and digital marketing tools allow MSMEs to reach a wider, even global, customer base, overcoming geographical limitations and expanding their revenue potential.
Cost Savings: Cloud-based solutions, virtualization, and automation can help MSMEs reduce infrastructure and operational costs, which can then be reinvested into business growth and innovation.
Data-Driven Decision Making: Management information systems (MIS) and data analytics empower MSMEs to collect, analyze, and leverage data to make informed, strategic decisions that drive their business forward.
Improved Cash Flow Management: Technology solutions like digital payment gateways and invoicing software can help MSMEs streamline their cash flow, reduce payment delays, and better manage their finances.

By embracing technology, MSMEs can overcome traditional barriers to growth, enhance their competitiveness, and contribute significantly to the Indian economy. The government’s initiatives like the ‘Champions’ portal also aim to facilitate technology adoption and support the MSME sector’s transformation.

What according to you is the most important technology needs of a MSME?

The most important technology need for MSME is Digital Transformation strategy. MSMEs need a clear digital strategy that aligns technology investments with their overall business objectives and priorities. A sound digital roadmap ensures that the MSME can get access to better data and analytics, take advantage of cloud-based infrastructure, and leverage on process automation to improve their operational efficiency, reach new markets, and enhance their competitiveness.

What types of technology are most suited to MSMEs?

Since MSMEs are small enterprises having limited manpower, MSMEs should go for technology with managed services. For e.g.: MSMEs should go for Cloud and SaaS based services so that they can get maximum out of technology.

What according to you are some of the challenges in introducing innovative technologies to MSMEs?

MSMEs have Limited awareness and understanding about the benefits of technology adoption and of how it can enhance their business operations. Additionally, they often struggle to find skilled workers who can operate and maintain new technology systems.

Disclaimer :

Views expressed in the article are the personal opinions of the executive and do not reflect the views of his organisation