Why is Technology Upgrade Important for MSMEs

Technology msme

Technology upgrades are a key factor in the overall growth of your company. Here are some reasons every MSME should adopt new technologies to improve their business processes.

  • Increase efficiency:Adoption of modern CNC machines and AutoCAD’s latest versions, advanced welding guns, etc. A manufacturing unit can make it easier to get work done. A new machine is cost-effective as it has a low maintenance cost and is energy efficient. Similarly, departments like marketing, customer service, etc. New technologies can also be adopted. HubSpot, WordPress, and other content management systems, such as HubSpot, can help you reach a wider audience through email marketing and blogs. Project management tools, on the other hand, can help you to manage your resources and work better. To improve customer service’s efficiency and speed, artificial intelligence is available.
  • Take advantage of government schemes:The Indian Government promotes initiatives like Digital India or Make in India. Businesses registered on portals Urdyam or MSME World Mart are eligible for subsidies, aids and incentives such as tax rebates and interest discounting on loans.
  • Improve your business operations. With modern AI tools, processes such as inventory management, sales forecasting, shop floor automation and human resource scheduling, and remuneration transactions have become simple and efficient. This has reduced the chance of errors to zero. This includes the complete production process from sourcing materials to delivering the product. Technology upgrades are also possible.
  • Keep your company relevant and competitive. Technology adoption can help you win over your competitors. Improved machines can increase productivity. New technology can optimise processes and improve operational efficiency. This will help you to stay ahead of your peers.
  • Gain access to new channels of sales:When you upgrade your technology, you’ll have access to new channels of sales. If you launch a website, or list your products on an ecommerce platform, you can improve your online presence and increase sales. Although selling products online can be costly initially, it will allow you to increase your sales by generating more leads through this new sales channel.

What are the best ways to upgrade technology in a business?

  • Computers older than seven year old should be replaced. It would cost 1.3x more to repair computers than to buy new ones.
  • You can set a date each month to review software updates. Updates are often free. However, updating your systems requires time.
  • For all your digital tools and equipment, you can sign up to an annual maintenance contract (AMC). AMCs can cost between Rs5000 and Rs25000, depending on how much software and systems you have.
  • Organise skill improvement training sessions for your employees. It is important to keep your employees up to date with technology. Digital learning platforms offer free or chargeable options depending upon the skills that you have.

What are your next steps?

  • Analyze your business operations and identify any existing technology that requires an upgrade.
  • You can choose to shortlist solutions from the available options based on your requirements and budget.
  • A few schemes have been created by the Government of India for MSMEs to support technology upgrades. You may be eligible for one of the following programs:
    • MSMEs get support with technology and quality improvement
    • MSMEs can design their own clinic
    • Lean Manufacturing Competitiveness Scheme
    • National Manufacturing Competitiveness Programme
    • Reimbursement of ISO 9000/ISO 14001 Certification
  • Use the trial period for the digital solutions you are considering adopting to find the one that works best for you.

Final thoughts

The dramatic shift of consumers towards online has changed the complete landscape for emerging businesses.

As a business, you need to focus on digital areas to increase your online sales and position yourself for growth.

You need to adopt new technologies like the cloud to digitise your business quickly and effectively. 

You also need to have agile operations, cybersecurity standards, and tools to create an enhanced customer experience for digital growth.

As a digital growth platform, at nexarc(a Tata enterprise) we aim to help you and your business in its digital growth journey. We offer a range of products, solutions and services, that will enable you to grow your business, solve challenges and optimise processes. 

To learn more about us and be a part of our community of emerging businesses and MSMEs in India, register now on nexarc.