In today’s rapidly evolving business landscape, digital transformation has become a key driver of success for small and medium-sized enterprises (SMEs). At Xcelerate 2024 Bhubaneswar, a panel of industry leaders gathered to discuss how digital innovation can help SMEs overcome challenges, boost efficiency, and accelerate growth. The discussion featured insights from Mr. Panda, a digital transformation expert, and Mr. Rajesh Parida, CEO of an IT company, among others, who delved into the significance of digital transformation, the role of AI, and how businesses can evaluate and implement new technologies.
Setting the Stage for Digital Transformation
As the panel discussion kicked off, the moderator set the tone by acknowledging the importance of digital innovation in today’s fast-paced world, particularly for SMEs striving to stay competitive. The focus was on the crucial role of IT leaders who, as the moderator noted, “are the ones advising management on how to leverage digital technologies to address key business challenges and enable faster growth.”
The first question went to Mr. Panda, who was asked to explain how digital transformation has become a top priority for organizations and how top management and business unit heads now recognize its significance.
“Digital transformation is like bringing innovation into your operational model, modernizing, and optimizing your business processes,” explained Mr. Panda. He emphasized that transforming a business is fundamentally about shifting the operational model with the help of technology. According to Mr. Panda, the key to successful digital transformation lies in understanding what he termed the ‘Golden Triangle’—the interdependence of people, processes, and technology.
He elaborated, “The people factor is about ensuring buy-in from everyone involved with the new technology. The process aspect includes blueprinting and re-engineering the existing systems, and technology selection involves considering scalability, ROI, and best practices.” By focusing on these three pillars, companies can ensure that digital transformation supports their business goals.
Embracing AI and Emerging Technologies
The next speaker, Mr. Rajesh Parida, CEO of a prominent IT company, was asked about the specific digital innovations that can help organizations like his and the business challenges these innovations address. Mr. Parida was clear: the future belongs to artificial intelligence (AI). “Digital innovation is now part of every stage of life, from basic necessities like food and housing to the way businesses operate. But the future lies in artificial intelligence,” he remarked.
He explained how AI, IoT, and other digital technologies are revolutionizing industries and that businesses must adopt them to stay relevant. “Those businesses that adopt AI and digital technologies will thrive, while those that don’t will struggle to stay competitive,” Parida warned.
In one particularly insightful case study, Mr. Parida described how AI technology was applied in an e-commerce business to solve the problem of product expiry. AI helped predict seasonal demand for products, reducing excess inventory and ensuring that manufacturing processes were better aligned with customer needs. “The goal of any business adopting digital transformation is to generate higher revenue. That’s where AI comes in—it helps businesses optimize their operations for better results,” he noted.
Measuring the Success of Digital Transformation
Another critical area of discussion was how companies can measure the success of their digital transformation efforts. Mr. Rath, another speaker on the panel, shared his insights on success metrics and how businesses can determine whether their digital transformation is effective.
“I always give a common example: when you take paper, you use it for writing, but also for creating a cover for a book. That’s innovation. You’re using the same material for different purposes, and that’s what digital transformation is all about—using your resources more effectively,” he explained.
Mr. Rath also provided examples from his company, where digital transformation initiatives have included automating processes for healthcare units and banks in the United States. These initiatives, according to him, helped streamline operations, reduce errors, and ensure compliance with stringent regulations. “Digital transformation is about making systems more transparent, scalable, and secure,” he said, pointing to the benefits of integrating cloud management and robust cybersecurity measures.
Evaluating and Implementing Digital Technologies
The discussion then shifted toward evaluating new technologies before implementing them in an organization. Mr. Panda shared his methodology for assessing the viability of new technology, emphasizing that it begins with a thorough understanding of the business problem.
“We first do our research and ideate with key stakeholders to blueprint and document the business processes,” said Mr. Panda. He stressed the importance of involving functional leaders in the decision-making process to ensure that the technology is aligned with the company’s needs and objectives.
“When evaluating technology, factors like cost, ROI, scalability, and user experience are critical. But beyond that, the technology must fit into the existing business environment and be interoperable with other systems,” he explained. Mr. Panda also underscored the need to document success stories and best practices from similar industries to strengthen the business case for new technology implementations.
Overcoming Challenges in Convincing Management
One of the most relatable challenges shared by the panelists was convincing top management to invest in digital transformation initiatives. Mr. Parida highlighted that, as a CEO, he frequently faces resistance when proposing new technologies, especially in service industries where managing manpower and tracking productivity are constant hurdles.
“We had to develop a system tracking software to monitor our employees’ activities—what websites they were browsing, how much time they spent on tasks, and their on-screen activity,” he shared. The result was a significant boost in productivity, from six hours per day to seven and a half hours, demonstrating how internal digital transformation can lead to tangible improvements before even extending these solutions to clients.
“Before suggesting digital transformation to our clients, we have to adopt it ourselves first,” Parida noted, emphasizing the need for IT to shift from being seen as a cost center to a revenue generator. “A strong IT infrastructure enhances business processes, improves cost efficiency, and leads to better customer satisfaction,” he added.
Small Steps, Big Impact: A Case Study in Digital Transformation
As the discussion neared its conclusion, Mr. Panda shared a personal experience that illustrated how even small-scale digital transformations can have a profound impact on business outcomes. He recounted a project from his previous organization, where a simple, low-cost digital solution drastically improved the company’s revenue.
“In my previous organization, we sold decorative veneer, and we used to bring customers to our plant to show them the product. This involved significant costs for logistics and accommodation. However, we realized that instead of physically bringing people in, we could create a virtual experience center using a high-resolution PTG camera, allowing customers to view the product remotely,” explained Mr. Panda.
This simple innovation resulted in an 8% revenue increase the very next month. “It might seem like a small implementation, but the business value was immense. It’s not about how expensive the technology is; it’s about how well it aligns with the business goals,” he said, stressing that digital transformation is ultimately about business transformation.
Conclusion: The Path Forward for SMEs
The panel discussion at Xcelerate 2024 Bhubaneswar provided invaluable insights into the role of digital innovation in overcoming business challenges and driving growth for SMEs. From AI and IoT to small-scale innovations, the consensus was clear: digital transformation is no longer a luxury but a necessity.
As Mr. Rath aptly put it, “It’s now or never.” For businesses to thrive in the modern world, adopting digital transformation isn’t just an option—it’s a requirement for sustainable growth and long-term success. Whether through optimizing internal processes, enhancing customer experiences, or unlocking new revenue streams, digital technologies offer a powerful toolset for tackling the challenges of today’s business environment.
The key takeaway? Start small if necessary, but start now. Digital transformation is the future, and those who embrace it will be well-positioned to lead their industries into the next era of innovation.
Watch the full session here: https://youtu.be/72Cp-sh5LVg
