Before Covid-19, the importance of digitisation of business was a second option for small and medium businesses. But after the outbreak of the pandemic things has changed substantially, especially the way of doing business has transformed. The Covid-19 pandemic forced companies to re-evaluate their business models and practices. It has suddenly given businesses a daunting challenge to minimise the risk while ensuring business continuity with healthy cash flow.
As a result, companies have started realising that there is an urgent need to go digital for both inward and outward processes. Inward digitisation helps them ensure efficient management of their business processes and operations by opting for a robust business accounting software or an ERP. Besides, the outward digitization helps them make contactless transactions with superior service.
Considering the time, situation, and available opportunities in the market, small and medium businesses have always adopted the latest technologies to deliver faster, and superior services to their targeted consumers. There are several technological developments such as artificial intelligence, Internet of Things, Machine learning, cloud computing, digital accounting, etc. that have played a significant role in transforming businesses over time.
Digital Transformation Is The Need Of An Hour
Digitisation has already proven to be a boon for MSMEs. Recently, in one of the reports by KPMG stated that 80% of the revenue shall be generated online by 2022 and shown how digital transformation is needed now more than ever before. It can help MSMEs to uplift their businesses and avoid a complete economic halt during the Covid-19 lockdown. No matter what the differences are in terms of size, industry and level of experience, going digital will be a key advantage for all MSMEs.
Moreover, it can help MSMEs to reduce their costs, standardize the current work structure and automate business processes as well as reduce the dependency on manpower. Not only this, digitization will also enhance MSMEs competitiveness and understand consumer behaviours.
Why The Adoption Of Digital Tools Is Important For MSMEs?
In an era, where consumers want everything fast and secure, going digital can truly catalyze the growth for MSMEs who are truly the backbone of India’s economy. Some of the major reasons why going digital is crucial for MSMEs are:
Consumers Are Going Digital
The major reason behind the digital adoption is that customer today expects an easy to use, yet a powerful solution with high quality of digital accessibility, convenience, and personalisation in all their business dealings.
Digitisation Is Blurring The Borders
The digital world opens a huge avenue for the local businesses, so whether your customer is living next to your door or half-way around the world, your digital presence can connect you with them at no additional cost.
It is necessary to be in the race of fierce competition where customers have more options than ever before. In such a tough scenario of competition, your operations, productivity and efficiency need to be nothing short of top-notch.
Adds Value To The Business
Digital infrastructure can increase the market value of the business along with the business volume and profit margins. Digital solutions also help employees and not just business processes. Even during the period of Covid-19, digital solutions helped employees to work from their home and be productive all the time. Real-time access to information keep employees updated on the latest developments in deals and customer interactions.
How The Things Transformed Amidst The Lockdown?
Digital transformation becomes an essential part of the business to adopt and not a secondary option anymore. Especially during the period of coronavirus lockdown, it has made a big impact on the way businesses worked before. It has definitely changed how small businesses manage different aspects of business operations.
For example, accounting is one of the most crucial tasks every business should take care of. During a pandemic, it was very difficult to manage the accounting operations while working from home for small businesses. Especially, the ones who are not in a situation to afford too many errors.
But with the help of accounting software, they were able to keep track of their accounting records such as amount receivables and payables, outstanding, etc. It also provided them the opportunity to conduct the business GAP analysis with the help of various MIS reports. Additionally, it even helped in strategic planning, direction, and control of financial processes. Moreover, it allowed the accounting team to manage entire financials from anywhere, which otherwise would not have been possible with the manual accounting software.
Summing It Up
The digitalisation of business helps in creating new growth opportunities. Companies need to adopt digitalization in their companies to gain a better competitive advantage and keep up with competitors. Today, Digitalization is growing and is being accepted across various industries and verticals. A well-constructed digitalisation plan can help reinvent various business processes, can improve quality and promote consistency in business operations.