The SME sector in India, comprising over 650 lakh companies, is poised for significant growth in the near future. Forbes reports that over 11 crore professionals are currently employed in SMEs across the country, and this number is expected to increase by 5 crore within the next year.
While the production capacity of SMEs is set to rise, sustainable growth demands a strategic approach. This is where data analytics comes into play. By leveraging the vast customer data pool available, Indian SMEs can make informed business decisions.
Opportunities Abound
Supply Chain Optimization: Big Data can help identify inefficiencies in supply chains, enabling SMEs to choose the best vendors and streamline operations. This not only saves costs but also enhances competitiveness.
Collaborative Decision Making: Data-driven decisions foster seamless collaboration among teams, leading to improved processes, new market opportunities, and accelerated growth.
Apart from the above reasons for most Indian SMEs, gaining access to foreign markets is the best way to break free of stagnant situations. With the help of Big Data, expanding their products into a global market will be achieved seamlessly. Since the customer preferences of different regions will be available through analytics, the companies can make changes to their production to suit these markets.
If SMEs start investing in developing their IT infrastructure, they will be able to build a sustainable and productive business that can thrive in the long run. By gaining access to market insights, businesses will be able to prepare themselves for any pitfalls along the way.
Addressing Challenges
The primary challenge that Indian SMEs need to work around is the lack of structured data policies. Aspects such as cyber security are largely overlooked by these organizations, and they need to invest in creating better strategies.
As per a report from Small Enterprise Magazine, 74% of Indian SMEs are unable to extract the right value from their data. This is a clear signal towards lack in IT infrastructure. Right from data collection to integrated analytical systems, these companies need to find the right infrastructure that works for them.
By taking the right approach towards integrating technology and finding relevant data sets, these SMEs can achieve growth like never before. The entire SME sector in India is currently undergoing a highly critical growth phase, and the best outcomes can only be achieved by allowing data to drive the decision-making.
Key Statistics:
- Data-Driven Decision Making: According to leading reports of 2024, companies that leverage data-driven decision making experience a 5-10% increase in revenue.
- Cybersecurity Threats: A report by IBM estimates that the average cost of a data breach for SMEs in India is around $2.4 million.
- IT Infrastructure Investment: A survey by NASSCOM found that over 70% of SMEs in India plan to increase their IT infrastructure spending in the next two years.
Conclusion
By adopting a data-driven approach, Indian SMEs can overcome challenges, unlock opportunities, and achieve sustainable growth. Investing in IT infrastructure, implementing robust cybersecurity measures, and leveraging data analytics will enable these businesses to thrive in the competitive landscape.
