– B Swaminathan

In today’s rapidly evolving business landscape, Indian SMEs (Small and Medium Enterprises) face increasing pressure to remain competitive and relevant. Adopting digital technologies has become crucial for their growth and sustainability. Digital transformation offers SMEs the opportunity to streamline operations, improve efficiency, and expand their reach to global markets. By leveraging tools like cloud computing, e-commerce, digital marketing, and data analytics, businesses can better manage resources, reduce costs, and enhance customer experiences.

The COVID-19 pandemic further highlighted the need for digital adoption, as many businesses with limited digital presence struggled to survive. SMEs that embraced digital tools were able to pivot quickly, maintain customer engagement, and even explore new revenue streams. In an exclusive chat with CMR, Mukundh Bhuvaraghavan, Director, Altrocks Tech Private Limited, an organization that has transformed multiple mid to large-size organizations, speaks on the ways SMEs need to adopt technology.

Q1. What are the key barriers that your SME faces when adopting new digital technologies, and how can these challenges be addressed?

Ans. They have a feeling that the digital technologies are for bigger organisations and their manpower may not be able to use these technologies. Actually, the manpower when trained can use these technologies. The problems faced by big and small organisations are more or less same.

Other key barriers SMEs face when adopting new digital technologies include high initial costs, lack of technical expertise, and resistance to change from employees. Many small businesses struggle with budget constraints, making it difficult to invest in advanced technologies. Additionally, a lack of digital skills hampers effective implementation. To address these challenges, SMEs can seek government incentives or funding programs to reduce financial burdens. Training programs can upskill employees and foster a culture of innovation. Furthermore, adopting scalable and cost-effective solutions can help businesses integrate digital tools gradually, making the transition smoother and more sustainable.

Q2. How do you measure the impact of digital adoption on your SME’s operational efficiency and overall business growth?

Ans. SMEs can measure the impact of digital adoption through key performance indicators (KPIs) such as productivity, cost savings, customer satisfaction, and revenue growth. Tracking time saved on manual tasks, reductions in operational costs, and improvements in customer service through digital tools can provide insight into efficiency gains. 

Additionally, analyzing metrics like website traffic, conversion rates, and online sales can assess the effectiveness of digital marketing and e-commerce efforts. Regularly reviewing financial performance and comparing pre- and post-adoption results will help determine how digital technologies contribute to overall business growth and competitiveness.

The efficiency can be measured in multiple phases. First if automated the processes get stream lined which will help in saving time. The next would be to help the decision process with accurate data points. 

Q3. What role do employee training and digital skills development play in the successful implementation of new digital tools within your SME?

Ans. Employee training is the key to success. The success of any technology is in its adoption. Employee training and digital skills development are crucial for the successful implementation of new digital tools within an SME. When employees are properly trained, they can effectively utilize digital tools, improving efficiency and reducing errors. Skills development ensures that staff stay up-to-date with the latest technologies, fostering a culture of innovation and adaptability. 

Additionally, well-trained employees are more likely to embrace digital changes rather than resist them, facilitating smoother transitions. Ongoing training also helps businesses maximize the full potential of digital tools, leading to better outcomes in productivity, customer satisfaction, and overall business growth.

Q4. How do you ensure cybersecurity and data privacy when integrating digital solutions into your SME’s operations, and what steps are taken to mitigate potential risks?

Ans. Cybersecurity is a key factor for both businesses and individuals today. It requires continuous training and information sharing.

Q5. What are your organization’s expansion plans in terms of regional and portfolio growth?Ans. As an organisation, we have decided to stick to ERP, cloud and Digital development for our customers. We are present across all major cities.