In an engaging event Xcelerate 2024 – Pune organized by CyberMedia Research and Schneider Electric; Vikash Mahajan, Founder and Managing Director of Whizible.com, delivered the keynote address and shed light on the challenges and opportunities MSMEs (Micro, Small, and Medium Enterprises) face in today’s digital age. With a strong emphasis on the necessity for digital transformation, Mahajan highlighted the hurdles that businesses, especially in the manufacturing sector, encounter when adapting to this shift.
The Digital Readiness of MSMEs
Mahajan began by addressing the audience, many of whom represented the manufacturing and SME sectors. Drawing on his experience with the Maratha Chamber of Commerce, Industries, and Agriculture (MCCIA), he underscored the stark reality of digital unpreparedness in the MSME sector. “At MCCIA, we launched a project to assess the digital readiness of this sector, which many of you belong to,” he said. The findings were eye-opening, revealing a widespread hesitation among MSMEs to embrace digital solutions.
One of the central takeaways from Mahajan’s message was the importance of changing mindsets. He emphasized, “Digital mindset is the first transition all of us at MSME need to make.” This shift, he argued, was crucial for MSMEs to expand beyond their local markets and compete on a global scale.
Breaking Down the Barriers to Digital Adoption
Mahajan elaborated on the persistent challenges MSMEs face in adopting digital tools. A common issue he observed was a lack of trust in IT vendors, which has resulted in missed opportunities for businesses to leverage digital solutions. He noted, “When an IT person goes and talks to an MSME manufacturing owner, the trust level is so low that the first instinct is to say, no, what he’s saying does not work.” This skepticism, fueled by past experiences and botched implementations, remains a major roadblock for MSMEs looking to digitize their operations.
Despite these challenges, Mahajan advocated for a practical, step-by-step approach to digital adoption. He encouraged MSMEs to start small, implementing digital initiatives that offer immediate benefits. “Talk about bits and pieces that we can do to add efficiencies at every stage,” he advised, urging businesses to focus on incremental improvements that build up over time.
Expanding Horizons Through Digital Tools
Mahajan also spoke about the immense potential that digital transformation offers MSMEs in terms of market expansion. He argued that digital tools break down geographical barriers, allowing small and medium-sized manufacturers to compete on a global stage. However, he warned that this also increases competition, as international players can now enter the local market just as easily. “I’m not competing with a guy in Chakan or Ranjangaon. I’m competing with a guy in Stuttgart, a guy in Minneapolis,” Mahajan said, emphasizing the global nature of today’s marketplace.
He also addressed the importance of customer relationship management (CRM) systems, pointing out that many MSMEs still operate without one. “If I go to a MSME company and tell them, do you guys have a CRM? They typically say, What is a CRM? ” So you can deduce what amount of technological gap there is”. Mahajan shared his concern and insights, reflecting the technological gap that still exists within the sector.
The Importance of Automation and Security
Another critical area Mahajan touched on was the role of automation in addressing the talent shortage that many MSMEs face. He quoted Deepak Karandikar, the current president of the Maratha Chamber of Commerce, saying, “As MSME manufacturers, we are a poaching ground for large companies.” The continuous loss of trained talent to bigger corporations has left many MSMEs struggling to sustain operations. Mahajan proposed automation as a solution, stating, “With automation, you now have the ability to look at every business process that you have and say, do I need to have this process dependent on an individual?”
However, Mahajan also cautioned against the security risks associated with digital adoption. He warned that while large organizations are better equipped to handle cybersecurity threats, MSMEs often lack the resources to invest in secure digital infrastructure. “As MSME, if you fall short of that for want of investment, for want of manpower, then we are creating an unequal field here,” he said, urging businesses to be mindful of security as they digitize.
Conclusion: A Call for Action
In closing, Mahajan encouraged MSME leaders to take the first steps toward digital transformation, regardless of the risks. He acknowledged the difficulties but stressed the necessity of staying competitive in a global marketplace. “The question is, who will get there fast?” he asked, challenging the audience to embrace digital change not just for efficiency but for survival.
Mahajan’s address resonated with the audience, offering a blend of realism and optimism about the future of MSMEs in India. By focusing on practical solutions, mindset shifts, and a phased approach to digital adoption, he provided a clear roadmap for businesses looking to navigate the digital landscape.
As Mahajan concluded, “I hope I’ve given you some ideas to think about. I’m not an expert in manufacturing or digital, but I just want to share some of those thoughts with you.” His candid insights and pragmatic approach left attendees with much to ponder as they left, equipped with new perspectives on how to approach the challenges of digital transformation.
Watch the full session here: https://youtu.be/QuXWsi5NNBQ
