IMPACT OF DIGITALIZATION ON FIRM’S

PERFORMANCE IN SMALL & MEDIUM-SIZED

ENTERPRISES (SMES)

FINANCE MANAGEMENT PROJECT

PRESENTATION

Presented By :
Group 11
Manish Kumar (2019IMG-034)
Palak Jain (2019IMG-043) Presented To :
Sejal Jain (2019IMG-054) Prof. Rajendra Sahu
 INTRODUCTION
In India, SMEs are defined based on their investment in plant and machinery or equipment for
manufacturing or service sector activities and their annual turnover.

Micro Small Medium

Condition(s)
Enterprises Enterprises Enterprises

Investment in Plant and

<= Rs.1 crore <= Rs.10 crore <= Rs.50 crore.
Machinery or Equipment

Annual Turnover <= Rs. 5 crore <= Rs. 50 crore <= Rs. 250 crore

Source: What’s MSME | Ministry of Micro, Small & Medium Enterprises. (2023, February 1). What’s MSME | Ministry of Micro, Small & Medium Enterprises. https://msme.gov.in/know-about-msme 1 / 18
 INTRODUCTION

Digitalization has a significant impact on SMEs:

Cost Savings: Digitalization helps SMEs reduce costs by eliminating the need for physical
infrastructure, reducing the use of paper, and automating processes.

Increased Productivity: Digitization helps SMEs boost productivity by automating routine tasks,
reducing errors, and improving collaboration among team members.

Improved Efficiency: Digitization helps SMEs automate their business processes, which leads to
improved efficiency.

2 / 18
 GOVERNMENT INITIATIVES

Digital MSME Scheme: It is a government initiative in India aimed at promoting the adoption of
digital technology among MSMEs to enhance their competitiveness in the global market.

Udyam Portal: It is an online platform launched by the Ministry of MSME for the registration and
regulation of MSMEs in India.

GeM portal: It is an online platform to facilitate the procurement of goods and services by various
government departments and organizations.

Credit Guarantee Scheme: It is aimed at providing collateral-free credit facilities to small and
medium enterprises (SMEs) to support their growth and development.

Technology Centre Systems Programme: It aims to enhance the competitiveness of MSMEs by

providing access to advanced manufacturing technologies and technical expertise.

3 / 18
OBJECTIVE

The objective of this study is to analyse the performance of Zodiac

Clothing across various KPIs in light of recent digitisation efforts, with a
focus on the period following 2013.

Furthermore, the study aims to evaluate the impact of digitisation on

various aspects of Zodiac Clothing’s business operations, such as its e-
commerce platform, social media presence, and IT security.

4 / 18
 ZODIAC CLOTHING COMPANY

Zodiac Clothing Company is an Indian clothing brand that specializes in men's

clothing. The company was founded in 1954 as "House of Zodiac" and has since
become one of India's leading men's fashion brands. It became a public limited
company in January 1994.

The company prides itself on providing high-quality and stylish clothing to its
customers. The brand strongly focuses on innovation and constantly updates its
collections to reflect the latest fashion trends.

Zodiac Clothing Company retails its products through three brands: ZODIAC (men's
formal wear), and ZOD! Club Wear and z3 (relaxed casual wear).

By FY2022, The company had a total investment of 49.4 Crores and a turnover of
128.24 Crores.

Source: Zodiac Clothing Company Competition, Moneycontrol. (n.d.). https://www.moneycontrol.com/competition/zodiacclothingcompany/comparison/ZCC 5 / 18

 ADOPTING DIGTALIZATION

Aggressively invested in their new website to generate revenue and make it a

primary point of sale and, ultimately, its biggest retail store.

Zodiac Clothing Company uses GajShield Cloud Security to secure its 130+ stores.
It has purchased the software in 2013.

Zodiac clothing company has improved it’s online presence drastically after 2013. It
has adopted the various digital marketing strategies using a third-party
consultancy company Fruitbowl

6 / 18
ONLINE PRESENCE AND USER EXPERIENCE
CHALLENGES

Product Shipments being delayed by 14-16 days

Not Optimized for Search Engine Optimization

Marketing funds spent in carpet bombing prospects

Almost no click below the first scroll

Broken user journeys and faulty payment gateway

7 / 18
Key Performance Indicators (KPIs) Critical Success Factors (CSFs)

Add to Cart rate User Experience

Payment Initiation Rate Payment Rate

Revenue Product Discoverability

Search Engine Rankings Top rankings in Search Results

Shipment Time Faster Deliveries

8 / 18
 SOLUTIONS
Introduced Zodiac 2.0 with a better user interface

Deploy quick fixes to increase ’Add to Cart and ’Payment Initiated’

Made product discoverability easier by optimising descriptions, meta-tags, and

product listings

Automated inventory management results

Implemented behavior analytics at each step of the user journey to derive

quantitative insights

9 / 18
 COMPARATIVE ANALYSIS
Key Performance Indicators
Pre Digitalization Post Digitalization
(KPIs)

Almost no click below the first scroll on Add-to-Cart actions increased by 115%
Add to Cart rate
website approximately

Broken user journeys and faulty payment

Stable payments interface, with Payment
Payment Initiation Rate gateways, estimated loss of 10,000-
Initiated increased by 60%
30,000 every day

Marketing funds spent in carpet bombing Revenue increased by approx. 40% due to
Revenue
resulting in negligible revenue Website

Not Optimised for Search Engine Page ranked at least 3rd in Google
Search Engine Rankings Optimisation, with page listed in 2nd page searches, leading to 2x successful checkout
of Google Search transactions

Shipment Time Shipments being delayed by 14-16 days Delivery time reduced to 7-8 days

10 / 18
 DIGITAL MARKETING CHALLENGES
Increase brand awareness and reach a wider audience through online channels.

To create visually appealing content and social media pages that reflect the
brand's image and values.

To keep up with the latest digital marketing trends and best practices to stay
relevant and competitive in the market.

They need to differentiate themselves from competitors and showcase their

unique selling propositions, especially for luxury products like the Biella Collection
.
Need to engage the audience in a more interactive and compelling way, and
provide direct appointment options to increase conversions.

11 / 18
Key Performance Indicators (KPIs) Critical Success Factors (CSFs)

User Base Customer Experience

Reach Digital Marketing Strategy

Revenue Targeted Marketing

Social Media Presence Content Strategy

12 / 18
 SOLUTIONS
Established a dedicated micro-site for their premium collections like the Biella Collection.

Created an engaging application featuring a video and a set of questions related to the

content to market the "Reasons Why" campaign.

Emphasised the superior quality, precise craftsmanship, and finesse of Zodiac Clothing's

offerings through the campaign.

Developed interactive applications, visually appealing emails, and captivating social media

pages to elevate online and digital presence.

Unveiled the premium collections on various social media platforms to generate audience

engagement.

13 / 18
 COMPARATIVE ANALYSIS

Key Performance Indicators

Pre Digitalization Post Digitalization
(KPIs)

User Base 254K Registered users Increased by 32K to 286K Users

Reach 1.9 Million People 7.6 Million People

Standalone Sales 6,330 Lakhs Increased by 1470 lakhs to 7800 Lakhs

Revenue
(2Q, FY2013) (4Q, FY2013)

Social Media Presence Negligible Social Media Presence Reach/Buzz on Facebook increased by 50%

14 / 18
 IT AND SECURITY CHALLENGES
Enforcing browsing restrictions such as limited access to YouTube during certain

hours.

Preventing data loss

Incorporating key-based authentication for factory appliances.

Ensuring secure connection to Head Office for all entities.

Implementing security features such as Firewalls, email and HTTP filters, policy

management, and malware filtering.

Building a consistent organisation wide VPN connection facility

15 / 18
 SOLUTIONS
Implemented Gajshield’s GS360dc appliance as a complete security solution for

the Head Office.

The appliance supported multiple internet links for fail-over, load balancing, etc

enhancing user browsing and restricting unauthorised internet access.

Implemented enterprise cloud client features for complete protection of data

across stores.

Redirecting Office mail and Application traffic via a VPN tunnel.

Allowing for client management from the Head Office and providing visibility into

their activities.

16 / 18
 COMPARATIVE ANALYSIS
Critical Success Factors
Pre Digitalization Post Digitalization
(CSFs)

A dedicated and complete security solution

Security Infrastructure No secure connection to Head Office
for the Head Office and stores

Group-wise browsing policy to enhance

No enforced restrictions on employee
Policy Management user browsing and restrict unauthorised
usage of internet during work hours
internet access.

Incorporated ICSA-certified firewall, ISP

Authentication / Fragile security system without Firewalls
level filtering, and many other security
Authorization and malware filtering
features

Enterprise cloud client features for

Data loss prevention No system to prevent Data Loss
complete data protection

No visibility on usage of IT Infrastructure Provided site-to-site VPN support and

Monitoring and Analytics
across the company visibility into their activities
17 / 18
 CONCLUSION
This study

highlights the positive effects of digitisation on the company's e-commerce platforms,

social media presence, and IT security.

stresses the importance of SMEs in the fashion industry adopting digital technologies to

remain competitive and meet evolving customer expectations.

provides best practices for effectively managing digital transformation and addresses

the challenges that SMEs face in adopting digital technologies.

underscores the importance of digitization in transforming the fashion industry by

improving operational efficiency, reducing costs, and reaching a broader customer base.

18 / 18
THANK YOU