Role Of Technology In Integrating MSMEs Into ONDC Ecosystem

Role Of Technology In Integrating MSMEs Into ONDC Ecosystem

SUMMARY

The country's MSMEs are anticipated to increase from 6.3 Cr to 7.5 Cr, with a CAGR of 2.5%

The ONDC ecosystem allows MSMEs to seize new possibilities, broaden their reach, and accelerate their growth.

Digital commerce, powered by ONDC, democratises access, allowing rural MSMEs to showcase their products on a national stage

Tech transformation has disrupted many industries, and the impact is expanding swiftly. The technology transformation in MSMEs has rapidly advanced the industry, resulting in a rise. The country’s MSMEs are anticipated to increase from 6.3 Cr to 7.5 Cr, with a CAGR of 2.5%. 

With the rise of initiatives such as the Open Network for Digital Commerce (ONDC), the integration of MSMEs into India’s digital economy has been particularly revolutionary. As the government attempts to empower its different enterprises, technology has emerged as a bridge, allowing MSMEs to compete with larger corporations by connecting them to digital markets, financial services, and customer networks.

The ONDC ecosystem, which is powered by cutting-edge digital technologies, allows MSMEs to seize new possibilities, broaden their reach, and accelerate their growth.

ONDC presents a revolutionary opportunity for MSMEs to tap into a vast digital marketplace. However, the successful integration of MSMEs into this ecosystem hinges heavily on the adoption and effective use of technology.

Digital Platforms And Mobile Applications

A crucial step in bringing MSMEs into the ONDC fold is the development of user-friendly digital platforms and mobile applications. These platforms should simplify the onboarding process, allowing MSMEs to easily register and list their products or services. Additionally, they should provide intuitive interfaces for managing orders, inventory, and customer interactions.

One of the core challenges MSMEs face in joining a digital commerce network is the complexity of the processes. Many MSMEs, particularly those who are less tech-savvy segments, may not have the resources or expertise to seamlessly enter the digital economy. Here, technology plays a crucial role in simplifying and streamlining the onboarding experience. By offering user-friendly interfaces, multilingual support, and step-by-step guides, these platforms lower the barriers to entry for businesses.

AI-Driven Innovation In ONDC: Enhance Search And Optimise Logistics

AI is revolutionising the way we interact with the digital world, and ONDC is no exception. Here are some of the key use cases of AI in ONDC:

Enhanced Search And Discovery

  • Semantic Search: AI can understand the context of user queries, leading to more accurate and relevant search results. For example, instead of searching for “red dress,” a user could simply ask, “What’s a good dress for a party?”  
  • Visual Search: AI-powered visual search allows users to upload images of products they like and find similar items across different sellers.  
  • Personalised Recommendations: AI algorithms can analyse user behavior and preferences to recommend products and services tailored to their needs.  

Efficient Logistics And Supply Chain Management

  • Demand Forecasting: AI can analyse historical data and current trends to predict future demand, helping businesses optimise inventory levels and reduce costs.  
  • Optimised Routing: AI-powered algorithms can determine the most efficient delivery routes, saving time and fuel.  
  • Fraud Detection: AI can identify and prevent fraudulent activities, protecting both buyers and sellers.

Chatbots And AI-Powered Customer Engagement

Chatbots, powered by AI, can serve as the first point of contact for customers, providing instant responses to queries and resolving common issues. This enhances customer satisfaction and builds trust. AI-powered analytics can help MSMEs gain insights into customer behavior, preferences, and market trends, enabling them to tailor their offerings and marketing strategies accordingly. 

For MSMEs with limited manpower, chatbots serve as a virtual customer service agent, available 24/7. They help reduce response times and ensure that customers receive prompt assistance, which is crucial in today’s fast-paced digital environment. 

Connecting MSMEs With Urban Markets

ONDC, coupled with technology, presents a unique opportunity to connect rural MSMEs with urban markets. Digital platforms can provide a level playing field, allowing rural artisans and producers to showcase their products to a wider audience. This can help boost rural economies and reduce disparities between urban and rural areas.

One of the most significant impacts of the ONDC ecosystem is its ability to connect MSMEs to urban markets. Technology bridges the gap between geography and opportunity, offering rural businesses a platform to reach a broader audience. Digital commerce, powered by ONDC, democratises access, allowing rural MSMEs to showcase their products on a national stage. Integrating rural businesses into the broader ONDC ecosystem, technology ensures that every MSME, regardless of its location, can compete on a level playing field.

Technology is undeniably an enabler for MSMEs, offering them the tools and resources needed to thrive in a digital-first economy. From AI-driven automation to digital payments and fintech innovations, the ONDC ecosystem provides a comprehensive framework for MSMEs to grow and compete. As India continues its digital transformation, the role of technology in empowering MSMEs cannot be overstated—creating a future where businesses of all sizes can succeed.

Note: The views and opinions expressed are solely those of the author and does not necessarily reflect the views held by Inc42, its creators or employees. Inc42 is not responsible for the accuracy of any of the information supplied by guest bloggers.

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