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Digital Transformation: The Future of Small and Medium Enterprises (SMEs)

Lately, Digital transformation has forced the IT sector to think out of the box and get out of a fixed mindset

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Ishita Chakraborty
Ishita Chakraborty
Ishita Chakraborty is a computer engineer, a journalist in training, a social activist, a youth activist for PETA India, and a linguaphile. She covers social issues, UN initiatives, and diversity.

INDIA: To stay ahead in the digital era, digital transformation is an important aspect for every business. During the COVID-19 period, many companies have opted for digital transformation to remain competitive in the modern business scene. Organizations are now focused on engaging their clients and customers in delightful experiences across multiple mediums.

The small and medium-sized enterprises (SMEs) sector contributes to a large area of India’s GDP. But, factors including inefficient methods of the operating business and low rate of technology have restricted the companies to achieve their full potential.

Importance of Digital Transformation

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COVID-19 has forced many SMEs to accelerate their digital transformation journey. Digital transformation is implemented to improve productivity, deliver better customer experiences, manage business risk, and control costs.

Lately, Digital transformation has forced the IT sector to think out of the box and get out of a fixed mindset. It has enabled many companies to become strategic business leaders to facilitate change across organizations.

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With employee and customer experiences tightly intertwined, the IT and HR sectors now have a joint partnership in a company’s digital transformation journey.

Adapting digital transformation is no longer focused on providing the latest technology. It is about making sure that technology makes work more efficient and meaningful.

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In return, this will help a company to attract the correct audience, keep them engaged and improve business results. Additionally, there are many benefits of implementing digital transformation that includes increased mobility, enhanced user experience, data security, etc.

Challenges faced by small and medium enterprises

SMEs are the backbone of India’s economy. These enterprises are responsible for employing more than 60 million people and contribute to around 45% of industrial output. However, there are several challenges faced by SMEs that have hindered their progress.

Limited capital knowledge, non-availability of suitable technology, absence of adequate finance, and ineffective marketing strategies have slowed down their growth rate.

Empowering the SME sector has now become the need of the hour. The enterprises now need to utilize their limited human and economic resources in an optimum manner.

A good Digital transformation journey can help SMEs to elevate their business. They need to be educated about the latest developments taking place.

Along with this, SMEs need to acquire the necessary skills to keep pace with global developments. Now is the time for SMEs to take the lead and be a changemaker.

Also Read: Women in Tech Are an Integral Part of the Digital Evolution

Author

  • Ishita Chakraborty

    Ishita Chakraborty is a computer engineer, a journalist in training, a social activist, a youth activist for PETA India, and a linguaphile. She covers social issues, UN initiatives, and diversity.

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