The Indian manufacturing industries are primarily dominated by Small or Medium size companies. The best thing about these companies is that they are always striving to stay ahead through innovations and new technologies. They don’t hesitate in reinventing their strategies to increase their productivity. According to the statistics, the SMEs contribute to 17% of the GDP currently, and it is likely to increase and go up to 22% by 2020.
However, in the era of digitization, it is a need for the Small Medium Enterprises (SMEs) to digitize their entire process. Some of the positive effects of digitization are stated below.
● Increase productivity
● Provide flexibility
● Simplify operations
● Increase efficiency
● Lead to permanent optimization
● Be cost-effective
With a proper digitalization process in place, it will be easier for the companies to scale up and jump to the next level. It gives the ease of accessing and monitoring the workings of them from anywhere. In the long run, companies can reap many benefits if they digitalize their companies.
However, digitalization also comes with some challenges. There would be a need to work on skill development of the workers so that they can continue to be a part of the workforce. Therefore, along with the need to digitalize SMEs, there is also need to work on skill development of the workforce.
To conclude, it can be said that digitalization can significantly empower the SMEs. The Make in India campaign by the Indian government aims to bring the manufacturing SMEs at par with the global market. Estimates by the experts show that the industry of machine tools is likely to reach 1 billion in the next few years and SMEs can reap the benefits out of it if they make the right changes at the right time.