E-commerce, Data management and BPO service provider - NextWealth - PowerPoint PPT Presentation

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E-commerce, Data management and BPO service provider - NextWealth

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NextWealth Pvt Ltd, a leader in digital data and IT services, provides Business Process Outsourcing, Digital data transformation, and Data Management services. NextWealth has worked with many prestigious brands like BigBasket, CMS, and Freshworks. – PowerPoint PPT presentation

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Title: E-commerce, Data management and BPO service provider - NextWealth


1
Assisted Digitization Part 2 - Impact on MSMEs
In the first post I talked about unequal impact
of digitization (or digital technologies) on
different sections of consumers. I had emphasized
that people living in rural areas need assistance
to extract the benefits of digital technologies.
Assistance that would help them bridge gap with
digitally-savvy urban consumers who share the
enormous benefits. Like rural consumers, the
industry group of Micro, Small and Medium
Enterprises (MSMEs) too need assistance to
extract the benefits of digitization. The MSME
sector has emerged as a highly vibrant and
dynamic part of the Indian economy. It continues
to play a crucial role by providing vast
employment opportunities at comparatively lower
capital cost as compared to large industries.
The sector also helps in industrialization of
rural and backward areas, thereby assuring more
equitable distribution of national income and
wealth. The MSME sector contributes around 37 of
Indias Gross Domestic Product (GDP) and
encompasses over fifty million companies and
entrepreneurs accounting for a vast bouquet of
products/services that address both domestic and
export markets. When digital upsets the
equilibrium Today, all businesses, large and
small, are getting impacted by digital
technologies and they cannot afford to ignore
the sweeping change. The MSME sector too is
struggling to make sense of the opportunities
and challenges presented. This is in contrast to
the confidence and ability of large enterprises
that have the wherewithal to invest in the
necessary infrastructure and get the best advice
in the business. For example, organized retail
(like Reliance Fresh, More, Heritage Fresh and
others) and online e-commerce firms (Flipkart,
Amazon etc.) have employed digital technologies
to cut into the business of millions of kirana
shops dotting the country, especially the rural
markets. By themselves, MSMEs do not have the
ability or the capacity to face the onslaught on
their livelihoods. In short, this exciting and
vast sector is essentially isolated from
harvesting the benefits of digital technologies.
2
  • The fundamental problem
  • MSMEs are either unable, or slow to adopt digital
    technologies, not because they do not want to.
    The problem arises because solutions are not
    specifically designed and built for this sector.
    Some of the main impediments include
  • Lack of MSME-specific and cost-effective
    solutions
  • Lack of technology in-house skills and
    infrastructure
  • Lack of easy-to-use interfaces
  • Lack of financial capacity to invest in capital
    expenditure
  • The assistance MSMEs need
  • In the context of MSMEs, the need of the hour is
    assistance in the form of a Total Solution to
    their problems. This can be largely accomplished
    by re-purposing the same digital technologies
    used by larger enterprises. This comprises
    hardware, software, applications, communication
    bandwidth, simple user interface, training,
    support, and ease of use all in a box. This
    solution package needs to be offered at a very
    low, affordable and variable cost.
  • Importantly, there should be no fixed capital
    costs.
  • Assistance is here
  • Fortunately, such assistance is coming from
    different sources in different forms. Both the
    Governments (center and state) are giving strong
    support to address the above problems. Industry
    associations and trade bodies are responding to
    some of the issues by reducing the friction that
    occurs on course of adopting digital
    technologies. Finally, a slew of new- generation
    companies and start-ups are working overtime to
    capture a big slice of the opportunity to
    provide digital solutions to MSMEs.
  • The Government of India is giving high priority
    to the role of MSMEs in nation building by
    creating a separate department of MSME under a
    cabinet ranked minister. The department
    evangelizes the use of digital technologies
    through many initiatives for the sector and also
    coordinates with other departments and state
    Governments.

3
  • A case in point is the recent launch of an online
    portal and mobile MyMSME app to monitor
    different schemes promoted by the Government. The
    Government has also decided to implement
    Digital MSME scheme for the promotion of
    digital technologies by adopting Cloud
    computing. The objectives are to improve their
    competitiveness, business process
    standardization and productivity improvement
    all through the Cloud platform, thus reducing
    the burden of investment.
  • The roll out of Goods and Services Tax (GST)
    the new tax regime driven by the Government of
    India is a good example. It has come up with a
    Government-to-Business (G2B) portal that acts as
    a comprehensive platform for taxpayers to
    conveniently interact with and access the GST
    System. The portal has opened its application
    programming interfaces (APIs) so that third
    party application developers can use them to
    develop new and innovative solutions for GST
    compliance and also integrate with existing
    applications like SAP, Tally and other. Some of
    these new applications help MSMEs in uploading
    invoices, information and filing returns as
    required by GST. Taxpayers can access the secure
    GST system via desktop, mobile and multiple
    applications.
  • Recognizing the crucial need for assistance, the
    Government has introduced GST Suvidha Provider
    or GSP. The Governments endeavor is to build a
    vibrant GSP ecosystem and ensure its success by
    putting in place an open, transparent and
    participative framework for capable and
    motivated enterprises and entrepreneurs.
  • Confederation of Indian Industry (CII), Indias
    premier industry association, has created an
    online business resource center called MyCII
    covering four critical aspects of business
    operation
  • Business leads
  • Industry and regulatory information
  • Global and local networking
  • Latest industry research and knowledge

4
This platform has proved to be very valuable to
MSMEs. NASSCOM, not-for-profit industry
association representing Information Technology
(IT) and Business Process Management (BPM)
industry in India, initiated the E-Marketplace
(under beta testing) specifically for their MSME
members. This platform helps members with their
marketing activities and generates leads from
United States and Asia Pacific markets. Even
private sector enterprises and new-age startups
are offering assistance to MSMEs. For example,
CoreLogs offers to help identify potential
clients in the IT sector for products and
services. Another StartUp, Power2SME is on a
mission to empower SMEs and enhance their
overall productivity and deliver measurable
business value. The portal helps SMEs to focus
on their core business of accelerating growth
both in terms of revenue and development. The
challenge is in creating awareness, and then
acceptance. This calls for an elaborate and
broad-based plan to educate the target audience
on the advantages of new digital technologies
and their benefits. Smart MSMEs will do well for
themselves if they latch on to opportunities
provided by digitization with assistance coming
from the government agencies, trade bodies and
Start-Up ecosystem.
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