How embracing technology can help SMEs and startups optimise resources and scale

Sachin Nigam
Distributed by Contify.com
641 words
10 October 2021
Your Story
ATYOST
English
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Adoption of modern technologies like cloud, automation, and digitisation will not only raise productivity, but
also enable SMEs and startups to grow while optimising available resources.

SMEs are the pillars of not only the Indian economy but the entire world.

According to an estimate by World Bank, SME's represent 90 percent of global businesses and more than 50
percent of employment. The numbers are growing with each passing year.

Similarly startups are not far behind. According to the 2020-21 Economic Survey, the Indian government
currently recognises 41,061 startups, of which 39,000 startups have reported 4,70,000 jobs. These numbers
clearly signify the importance of SMEs and startups on our economy and how leveraging these can ultimately
lead to tremendous growth.

But the path is not so simple. Technology needs to play a major role to effectively harness the potential of
SMEs and startups. Adoption of modern technologies like cloud, automation, and digitisation will not only
raise productivity but will also ensure economic growth while optimising available resources.

Here's how tech adoption can help SMEs and startups:

Make informed decisions

Modern technologies like big data and machine learning can help companies to get insights into business
trends and forecasts that can help in streamlining their spend on the right areas.

For example, in the manufacturing sector cloud-based applications can help manufacturers monitor their
production levels seamlessly. They can also predict machine failures and understand the various levels of
raw materials needed to control production levels.

Reduced operating costs

Technology is not an expenditure but an investment. Investing in technology can help brands to reduce their
various operational and marketing costs significantly. If we just look at digital marketing, it offers a wider
outreach than traditional marketing channels at a fraction of the cost.

AI and Robotic Process Automation can help in automating mundane workflows and help in rightsizing the
human workforce. Removing traditional physical servers and data centres, and adopting cloud technology
can reduce costs significantly.

There are many varying estimates on the percentage of how much a company can save by migrating to
cloud. The numbers might vary, but it is for certain that they are significant and create a huge difference at
the end of the fiscal year. This is extremely crucial for startups and SMEs as their investments are limited
compared to corporates.

Compete with global powers

We are in the midst of a technological industrial revolution where companies all around the globe are
leveraging technology to stay ahead. Businesses in US, Europe, and China are using modern technological

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advancement in almost all sectors, be it accounting, marketing & sales, inventory management, customer
service, and more to maximise efficiency, optimise performance, and drive business growth.

Indian businesses also need to follow suit otherwise we will not be in a position to compete in the
international market.

Reach more customers

The success of various online startups and SME's in India shows how companies can create more
opportunities by connecting with markets at the micro and macro level, providing scope of tapping large and
niche audiences through technology. This was earlier extremely expensive and outside the reach of small
businesses.

Technology has also enabled companies to facilitate new connections and blend online and offline
interactions. Also, thanks to the emergence of various online payment platforms online marketplaces have
emerged that have helped other businesses to reach uncharted markets and audiences.

If used efficiently, technology is the best bet for startups and SMEs to grow exponentially and optimise their
available resources. Ensure that the workforce is upskilled to be able to handle the advancement, otherwise
startups and SMEs will be in the same situation where major IT companies are today - a large workforce
without the right skillsets.

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