Digitisation is among the foremost requirements in the present era for MSMEs to communicate with customers and vendors quickly and easily. It ensures high levels of productivity. Adoption of digital tools also increases cost efficiency and eases customer management.
Using social platforms such as Instagram and WhatsApp for customer inquiries has become commonplace today for interactions with end users, say industry stakeholders.
Pratik Vaidya, Managing Director, Karma Global, says it has made interactions with customers convenient. Enterprises across various industries — from furniture manufacturers to hospitality establishments like hotels and restaurants — actively use social media platforms to engage directly with their clientele. “For MSMEs, digitalisation proves crucial not only for thriving in local markets but also for competing globally. Many routine tasks within these enterprises are repetitive and manual, consuming valuable time. By automating these processes, digitalisation frees up time for employees to tackle more challenging tasks with greater determination and responsibility,” adds Vaidya.
Digitisation has helped small businesses reduce costs and improve business operations, says Yashraj Vakhil, CEO, CaptainBiz. The government is also pushing businesses to embrace digital tools more than ever. “For small businesses, digitisation is no longer just an option, it’s essential for thriving in today’s fast-paced business ecosystem. Take cloud-based digital billing software, for example. It’s a cost-effective way for MSMEs to digitise their financial operations. With these tools, small businesses can streamline financial reporting, track expenses, manage cash flow and generate reports. This eliminates the need for micro and small businesses to invest in a full-time accounting team to stay GST-compliant,” says Vakhil.Tools such as digital inventory management help track stock levels, optimise control and prevent overstocking or stockouts, which improves cash flow management. CRM systems make it easier to handle customer interactions, track leads and personalise marketing efforts, enhancing the overall customer experience and potentially boosting sales, adds Vakhil.
The launch of the Government eMarketplace (GeM) portal further empowers MSMEs by providing them a platform to showcase and sell their products and services to various government departments, say industry observers.
Aspects MSMEs can consider to digitise
Vakhil says that digital billing is the easiest way to kickstart the process of digitising financial operations.
“Digital tools like billing software can assist businesses in automating financial reporting, expenditure monitoring and invoicing, while saving time and reducing manual errors. Furthermore, it aids in ensuring GST compliance, thereby reducing penalties. MSMEs can also access real-time financial data to make informed and timely decisions. Lastly, digitising and structuring financial reporting makes credit much more accessible for small businesses, which in turn, helps them to invest in growth opportunities,” adds Vakhil.
For Vaidya, project management stands out as a critical aspect for MSMEs to streamline operations and enhance productivity.
“With readily available project management software, businesses can ensure organised workflows and faster, more accurate results, leading to efficiency gains of up to 25-30%,” Vaidya says.
In short, digitising various aspects of MSME operations, including project management, marketing and customer engagement, is essential for driving growth, enhancing efficiency and staying competitive in today’s global marketplace.
