SME Digital World

Category: SME

India Focused on Bridging Infrastructure Gaps to Become Global Manufacturing Hub

Siemens Executives: India Focused on Bridging Infrastructure Gaps to Become Global Manufacturing Hub

According to senior executives at German manufacturing giant Siemens AG, India is actively addressing infrastructure challenges that have historically hindered its manufacturing growth, positioning the country to emerge as a top global manufacturing hub.
Cedrik Neike, a member of Siemens AG’s managing board and CEO of Digital Industries, emphasized India’s strategic importance, highlighting the country’s imminent rise as a significant global player. “It (India) has always been important, but it’s on the brink of being an absolute major player, and we will do everything we can to support India’s growth and success,” Neike told ET.
Sunil Mathur, managing director and CEO of Siemens India, pointed out India’s substantial capital expenditure (capex) commitments, with approximately 60% expected from the public sector and 40% from the private sector in the coming years. “There are not too many countries in the world that are spending $1.2 trillion of capex, so you will get the entire world coming in wanting to participate in India’s growth story,” Mathur stated.
Siemens is actively engaged in discussions with leading entities like the Tata group to design supply chains for semiconductor manufacturing. Additionally, Siemens is exploring partnerships with other firms for the design of semiconductor and battery factories, as well as product and production process design.
Neike highlighted India’s robust talent base, particularly in AI-centric development, emphasizing the country’s significance beyond being merely an “extended workbench” for Siemens. He underscored the pivotal role of Siemens’ Pune software center, which is globally recognized for its integration and innovation.
Neike also discussed the broader economic landscape, noting the importance of efficiency and sustainability in driving businesses towards artificial intelligence (AI) solutions. Siemens is leveraging AI internally to enhance efficiency, simplify products, and harness its extensive data for industrial and energy sectors.
In the context of global investments, Neike emphasized the significance of semiconductor manufacturing amid the AI revolution and geopolitical shifts. He also highlighted key focus areas for Siemens, including advancements in pharmaceuticals towards personalized medicine and the transition from internal combustion engines to electric vehicles in mobility.
Despite global economic variances, Neike highlighted India’s resilience in the discrete manufacturing segment and emphasized the energy sector’s growth driven by sustainability efforts and electrification needs, positioning mobility for a sustained upward trend.

April 29, 2024
Why the SMB Financing Gap in India is an Exciting Opportunity for Fintech Founders

Why the SMB Financing Gap in India is an Exciting Opportunity for Fintech Founders

Small and medium business (SMB) financing in India poses a substantial opportunity for fintech founders, who can harness technology to revolutionize SMB lending. Despite challenges, fintech innovators have significant potential to pioneer solutions across four key themes.
When SMB owners in India seek credit from banks today, they often face hurdles such as lack of credit history, insufficient collateral, and complex documentation requirements. Unable to meet formal lending criteria, many turn to informal sources like moneylenders, contributing to a fragmented market estimated at over $500 billion.
Despite SMBs contributing significantly to the national GDP, they struggle with a persistent financing gap due to challenges faced by formal lenders, including high operational costs (OPEX) and non-performing assets (NPAs) within the SMB segment. Traditional lenders and Non-Banking Financial Companies (NBFCs) have made limited progress in addressing this gap.
However, SMB financing in India presents a compelling opportunity for fintech founders to leverage technology and drive innovation in four key solution areas.
One such solution theme is anchor lending, which involves introducing a credible anchor between lenders and borrowers. Anchors help reduce operational costs and minimize NPAs by sharing risk through mechanisms like First Loss Default Guarantee (FLDG) or providing borrower data for underwriting.
Anchor-led lending leverages established institutions’ credibility to enhance SMBs’ access to finance, particularly in sectors like supply chain financing and education financing.
Another solution theme is embedded lending, where financial options are integrated with non-financial products or services. This approach enhances loan conversion rates and reduces distribution costs by embedding lending services into existing customer relationships.
A third solution, sunrise sector lending, focuses on emerging sectors with high growth potential, anticipating future financing needs not adequately addressed by traditional underwriting processes.
Finally, sachet lending targets small loans (less than Rs 2 lakh) for short durations, making use of digitization to reduce operational costs and enable prompt loan disbursement.
These innovative approaches signify the beginning of a transformative era for SMB financing in India. Fintechs and technology-led NBFCs are poised to drive substantial growth and bridge the financing gap by pioneering solutions tailored to the unique needs of SMBs in the country.

April 29, 2024
Indo-Japanese SME association on the anvil

Indo-Japanese SME association on the anvil

An initiative to forge an Indo-Japanese SME association is underway, aimed at facilitating Japanese small and medium enterprises (SMEs) to enter the burgeoning Indian market with support from both governments. Mehool N. Bhuva, President of the 70-year-old Indo-Japanese Association in Mumbai, emphasized the urgent need for intensified efforts to elevate India-Japan business partnerships to new heights.
Speaking at a conference in Mumbai, Bhuva outlined the vision behind establishing an Indo-Japanese SMEs association based in Mumbai, with members from both countries’ SME sectors collaborating to form partnerships and penetrate the Indian market. However, he stressed that such an initiative requires robust support from the governments of India and Japan, particularly in overcoming language, cultural, and visa-related barriers.
Bhuva highlighted the complementarity between Japanese resources—wealth and advanced technology—and India’s growing market potential, underlining the substantial investments made by Japan in Indian infrastructure projects like the Mumbai Trans Harbour Link. He anticipates further Japanese investments in emerging sectors such as semiconductors, IT, healthcare, and fintech in India.
Currently, around 1,500 Japanese companies operate in India, primarily large corporations with global reach and banks. Bhuva noted that compared to China’s 20,000 Japanese businesses, India offers ample opportunities to attract more Japanese enterprises into its vibrant market landscape.
In his role as the President of Mumbai-based consultancy Nichi Insurance Services Pvt Ltd, Bhuva assists Japanese businesses in navigating the Indian market, facilitating deals and investments that strengthen bilateral business ties. He highlighted the growing demand for IT talent from countries like India, the Philippines, and Vietnam among Japanese firms, underscoring the mutual benefits of fostering closer business collaborations.
The international conference, organized by the US-based Entrepreneurs’ Organization (EO) and attended by delegates from 65 countries, served as a platform to promote entrepreneurship and foster global business connections. Bhuva’s efforts align with the broader vision of enhancing Indo-Japanese business synergies and leveraging each other’s strengths to drive economic growth and innovation.

April 26, 2024
UK Fintech Tide Sets Sights on Indian SMEs with ₹1,000 Crore Investment Plan

UK Fintech Tide Sets Sights on Indian SMEs with ₹1,000 Crore Investment Plan

Tide, a UK-based financial platform specializing in small and medium enterprises (SMEs), is eyeing significant investments in India, targeting ₹1,000 crore by 2026 to expand its presence in the country. Oliver Prill, the Global CEO of Tide, highlighted India as the fintech’s second core market after the UK, aiming to achieve substantial growth within the next five to ten years.
Since its launch in India in December 2022, Tide has already established a strong foothold, with plans to increase its workforce to 1,000 employees by 2026. The company currently operates a product engineering center in Hyderabad, supporting its global operations.
Tide’s focus in India revolves around empowering micro, small, and medium enterprises (MSMEs) to formalize their businesses, addressing the annual inflow of nearly 2 million micro and small units seeking to enter the formal economy. Oliver Prill emphasized that Tide’s competition in India primarily involves moneylenders and informal cash-based practices, which the fintech aims to replace by promoting formalization.
“Our aspiration over the next 5-10 years is for India to become our second core market. This will require significant contributions to India’s development,” stated Prill, underlining Tide’s commitment to supporting India’s journey towards economic formalization.
Despite the vast opportunities in India’s SME sector, Prill emphasized that Tide’s market share aspirations remain modest, focusing on contributing meaningfully to India’s economic development rather than achieving high market penetration.
Tide’s expansion plans in India reflect its bullish outlook on the country’s evolving SME landscape, aligning with India’s rapid formalization and economic growth trajectory. The company’s investments in India extend beyond financial commitments, encompassing substantial support for people-related initiatives and marketing efforts to drive growth in the region.
While Tide faces challenges in its home market of the UK, characterized by a shrinking pool of SMEs, India represents a dynamic market with rapid formalization trends. Tide views India as a strategic hub for internationalization, with recent entries into markets like Germany reflecting the fintech’s global ambitions.
In addition to its investment plans, Tide has launched the Bharat Women Aspiration Index (BWAI) to champion women-led small businesses in India, highlighting the motivations, aspirations, and challenges faced by women entrepreneurs in Tier-II and beyond cities. This initiative underscores Tide’s commitment to fostering inclusive growth and supporting entrepreneurship in India’s evolving SME landscape.

April 26, 2024
Building a cloud strategy for SME
Building a cloud strategy for SME
In the past few years, cloud computing has become a quickly emerging and adopted idea, especially among SMEs. Because SMEs lack the resources to acquire technical competence, this technology is best suited for them. With the help of cloud computing, they may set up a suitable IT infrastructure that helps SMEs effectively compete in the commercial market.
SMEs can build an effective cloud strategy in several ways

Assess cloud computing requirements: SMEs should evaluate their IT needs, such as storage, computing power, and software requirements, and determine which cloud services (IaaS, PaaS, SaaS) best fit their business needs.
Evaluate cloud providers: SMEs should research and compare different cloud service providers based on factors like security, performance, compliance, and cost-effectiveness. They should ensure the provider meets their specific requirements.
Develop a cloud migration plan: SMEs should create a detailed plan for migrating their existing IT infrastructure and applications to the cloud. This includes identifying which workloads to move, managing the transition, and training employees
Ensure data security and privacy: SMEs should carefully assess the cloud provider’s security measures, data protection policies, and compliance with relevant regulations. They should also develop their own security policies and procedures.
Leverage cloud benefits: By adopting cloud computing, SMEs can benefit from increased agility, scalability, cost savings, and the ability to access IT services on-demand without upfront investments.
Maintain cloud governance: SMEs should establish clear policies and processes for managing cloud services, monitoring usage, and optimizing costs to ensure the cloud strategy aligns with their business objectives.

By following these steps, SMEs can build a comprehensive cloud strategy that enables them to leverage the benefits of cloud computing while mitigating the associated risks.
To know more, read further sources here: https://wolfconsulting.com/creating-a-cloud-strategy/
April 23, 2024
Busting the ERP Myth – Not for SME

Busting the ERP Myth – Not for SME

The go-to solution for most larger businesses facing operational challenges is an enterprise application suite that offers integrated management of all business aspects. Similarly, SMEs require technology that grows with them, streamlines processes, and maintains agility without sacrificing efficiency.
Despite its benefits, enterprise resource planning (ERP) software has long been perceived as too costly, complex, and feature-heavy for SMEs. The traditional view equates applying ERP to SME challenges to using a flamethrower to kill a mosquito—an overkill solution that might do more harm than good.
However, ERP has evolved significantly, debunking many misconceptions held by SMEs. In fact, a global IDC study reveals that 92% of SMEs identified as leaders (those outperforming their peers) are either using ERP software or planning to do so.

Myths about ERP

ERP is made for Large enterprises
The belief that ERP is exclusively designed for large companies is a misconception. ERP software is suitable for businesses of all sizes, ranging from small enterprises to large corporations. The crucial factor in determining the need for an ERP system is the complexity of the business processes, rather than the company’s size.
Any organization with multiple departments or intricate business processes that require integration and streamlining can benefit from an ERP system. Nowadays, many small and medium-sized businesses are adopting ERP systems to enhance their operations and improve efficiency. Additionally, with the availability of cloud-based ERP solutions, SMEs can easily implement ERP systems without the need for costly hardware or IT infrastructure, enabling them to stay competitive and cost-effective.
ERP is Costly
The belief that ERP systems are too costly for small to medium-sized Enterprises (SMEs) is a misconception. In reality, opting for an ERP solution can yield significant long-term benefits by reducing operational expenses.
Here are several ways in which an ERP system can help SMEs reduce operational costs:
1. Improved efficiency: ERP systems automate numerous business processes, reducing the need for manual labor and consequently lowering labor costs.
2. Better inventory management: SMEs can optimize inventory levels with an ERP system, minimizing excess inventory and reducing the risk of stockouts, thus saving money tied up in inventory.
3. Streamlined financial management: ERP systems streamline financial operations, minimizing errors and ensuring compliance with regulations, which can ultimately lower costs associated with financial management.
4. Enhanced customer service: By providing better access to customer data, ERP systems enable faster response times and personalized service, thereby improving customer satisfaction and loyalty.
5. Informed decision-making: ERP systems provide real-time data and analytics, empowering SMEs to make better decisions and respond more quickly to changing market conditions, potentially reducing costs associated with poor decision-making.
Additionally, Cloud-Based ERP Solutions have become increasingly available, offering a more cost-effective option for SMEs. These solutions require less upfront investment in hardware and software and can be easily scaled up or down as needed, making them more accessible and affordable for SMEs.
Implementation of ERP is irksome
While implementing an ERP system can be complex, it’s a common misconception that it’s irksome. With proper planning, clear communication, and adequate training, the process can be smooth and successful.
Key factors for a successful ERP implementation include:
1. Thorough planning: A well-planned process helps identify potential challenges and keeps the project on track.
2. Clear communication: Effective communication among stakeholders, including IT teams, business users, and consultants, is crucial.
3. Training and education: Providing comprehensive training ensures effective system utilization.
4. Choosing the right software: Selecting an ERP system tailored to the organization’s needs with dedicated support can mitigate implementation challenges.
ERP system is limited to the IT department
While the IT department plays a crucial role in the implementation of enterprise resource planning (ERP) systems, it’s a misconception to consider ERP solely as an IT system belonging exclusively to the IT department. ERP involves input from all departments and requires ownership from frontline workers to upper management.
Though the IT department is instrumental in ERP implementation, the success of ERP ultimately depends on the collaboration and involvement of every business department. Each department is integral to the overall success of ERP, and their active participation ensures ef
ERP, SCM, CRM and MRP are all same
CRM, ERP, MRP, and SCM are distinct systems that cater to different aspects of business operations and target various types of businesses. They can be deployed individually or in combination based on a company’s specific needs.
– Customer Relationship Management (CRM) focuses on managing interactions with customers and prospects, helping to enhance customer satisfaction and drive sales.
– Enterprise Resource Planning (ERP) integrates core business processes such as finance, HR, inventory, and procurement into a single system, providing a unified view of operations and facilitating streamlined workflows.
– Manufacturing Resource Planning (MRP) is specifically designed for manufacturing businesses, assisting in production planning, scheduling, and inventory control to optimize manufacturing processes.
– Supply Chain Management (SCM) involves the management of the flow of goods and services, including procurement, production, inventory management, and logistics, to ensure efficient operations and customer satisfaction.

While these systems may overlap in functionality to some extent, they serve distinct purposes and cater to different business needs. Companies may choose to implement one or more of these systems depending on their industry, size, and operational requirements.
Numerous myths surround ERP solutions, but it’s essential not to rely on them. Sorting out the faulty information is crucial for making appropriate decisions for your organization. To know more about ERP software for SMEs, Visit this website: https://proteustech.in/erp-software/

April 23, 2024
Must have digital tools for SME

What digital tools should you have for your SME?

Digital tools play a crucial role in the operations and growth of SMEs. They contribute greatly to the overall output and also influence the outreach of SMEs. Hence, identifying the correct tools for your business is an important task. Here are some must-have digital tools tailored specifically for small and medium-sized enterprises:

Website Builder
Establishing an online presence is essential for SMEs. Website builders like Wix, Squarespace, or WordPress (with plugins like Elementor) allow businesses to create professional-looking websites without the need for coding skills.

E-commerce Platforms
For SMEs involved in online retail, e-commerce platforms such as Shopify, WooCommerce (for WordPress), or BigCommerce provide comprehensive solutions for building and managing online stores.

Digital Marketing Tools
Tools like Google Ads, Facebook Ads Manager, and LinkedIn Ads enable SMEs to run targeted advertising campaigns, reach their audience, and drive website traffic or conversions. Additionally, email marketing platforms like Mailchimp or ConvertKit help SMEs engage with their customers through email campaigns.

Social Media Management Tools
Social media plays a crucial role in SMEs’ marketing strategies. Tools like Hootsuite, Buffer, or Sprout Social help manage multiple social media accounts, schedule posts, track performance, and engage with followers effectively.

Accounting and Invoicing Software
Accounting and invoicing software streamlines financial management tasks such as invoicing, expense tracking, and tax preparation. Options like QuickBooks, Xero, or Wave offer user-friendly interfaces and robust features tailored for SMEs.

Project Management Platforms
Project management tools facilitate collaboration and task management among team members. Platforms like Trello, Asana, or ClickUp help SMEs organize projects, assign tasks, set deadlines, and track progress efficiently.

Customer Relationship Management (CRM) Software
CRM software centralizes customer data, streamlines sales processes, and enhances customer relationships. Options like HubSpot CRM, Zoho CRM, or Salesforce Essentials offer features for contact management, lead tracking, and sales pipeline management.

Online Collaboration Tools
With remote work becoming increasingly common, online collaboration tools like Google Workspace (formerly G Suite), Microsoft 365, or Slack enable SMEs to communicate, share files, and collaborate in real-time regardless of location.

Cloud Storage and File Sharing Services
Cloud storage platforms such as Google Drive, Dropbox, or OneDrive offer secure storage, easy file sharing, and collaboration features, making it convenient for SMEs to access and manage their files from anywhere.

Cybersecurity Solutions
Protecting digital assets and sensitive data is paramount for SMEs. Antivirus software, firewalls, and cybersecurity suites from reputable providers like Norton, Bitdefender, or McAfee help defend against cyber threats and keep SMEs’ digital environments secure.

By leveraging these digital tools effectively, SMEs can streamline operations, improve productivity, and position themselves for growth in today’s digital landscape.

Read more: https://www.smeinstitute.ca/best-digital-tools-to-level-up-your-business/

April 19, 2024
HR Digital Transformation Through Online Payroll Solutions

How to Initiate HR Digital Transformation Through Online Payroll Solutions

As small and medium enterprises (SMEs) expand, managing payroll and financial operations can pose significant challenges. Embracing digitalization is crucial for ensuring resilience and efficiency amidst growth.
Across the globe, SMEs encounter common hurdles, with financial and cost management topping the list. SD Worx, a provider of HR software and services, underscores the importance of addressing these challenges, particularly as companies scale up.
Payroll management emerges as a critical concern as SMEs evolve and begin hiring employees. However, the complexity varies depending on factors such as geographical location and legislative requirements. For example, German organizations grapple with compliance issues due to intricate local regulations, while Dutch companies face hurdles in drafting employment contracts and navigating employment regulations.
Lorenzo Andolfi, an HR advisor at SD Worx, emphasizes the significance of expertise in payroll management, especially concerning compliance and data security. As SMEs reach around 150 employees, optimizing payroll processes becomes paramount, alongside workforce and talent management initiatives.

The Role of HR Digitalization
At the 100-employee mark, HR digitalization takes center stage, aiming to enhance operational efficiency and structure. This involves automating manual tasks and transitioning from basic technologies like spreadsheets to integrated systems with centralized databases.
Larger SMEs seek to consolidate disparate systems into unified HR and payroll platforms to streamline operations and reduce administrative burdens. The objectives include driving efficiency, and productivity, and fostering a positive employee experience to remain competitive.
Geographical Expansion and Regulatory Challenges
Beyond 50 employees, geographical expansion becomes a significant milestone for SMEs. However, navigating diverse legal and compliance frameworks across jurisdictions poses substantial challenges. Issues such as industrial relations, diversity initiatives, and compliance with regulations add complexity to expansion efforts.
Addressing the Expertise Gap
A prevalent challenge for SMEs lies in the lack of expertise, particularly in legal compliance and employment law. Many turn to financial advisors for support, leveraging existing relationships. Financial advisors often collaborate with external payroll and HR providers to address specific needs.
The Role of Payroll in Digital Transformation
Andolfi underscores payroll as the starting point for HR digital transformation, citing its foundational role and immediate impact on employee satisfaction and organizational trust. Cloud-based platforms offer advantages in scalability, flexibility, and integration, supporting international expansion efforts.
Maximizing Payroll Initiatives
Starting with payroll allows for easier automation of process-oriented activities, laying the groundwork for broader digitalization efforts. Careful selection of technology partners and consideration of cost concerns are vital for successful implementation.
Proactive Growth Strategies
Companies can proactively prepare for growth by choosing vendors equipped to support international expansion. SD Worx offers tailored payroll services packages, catering to evolving needs and promoting a unified approach across multiple countries.
Enhancing Employee Experience
Digitalization initiatives aim to enhance employee experience by offering benefits such as on-demand salary payments. Improving engagement and retention amid the ongoing talent war is a crucial aspect for SMEs.

Conclusion

As European SMEs navigate complex HR landscapes, digitalization emerges as a key strategy for managing people and payroll effectively. By embracing online payroll solutions and initiating HR digital transformation, businesses can streamline operations, gain insights, and drive growth in an increasingly competitive environment.

Originally posted on: https://www.raconteur.net/digital-transformation/how-to-kickstart-hr-digital-transformation-with-online-payroll

April 18, 2024
How essential is digitization
How essential is digitisation for MSMEs?
In today’s digital world, embracing digitisation is no longer optional for MSMEs (Micro, Small and Medium Enterprises). It’s a key driver for growth, efficiency, and staying competitive. Digitisation has been is specifically helping MSMEs improve customer management in many ways:

Enhanced Communication: Digital tools like social media platforms, messaging apps, and email marketing allow MSMEs to connect with customers more easily and quickly. This two-way communication fosters better relationships and faster resolution of issues.
Data-Driven Decisions: Digitisation facilitates the collection and analysis of customer data. This empowers MSMEs to understand customer behavior, preferences, and buying habits. Armed with these insights, MSMEs can personalize their offerings and marketing strategies, leading to higher customer satisfaction.
Improved Efficiency: Digitalisation streamlines processes like order tracking, invoicing, and customer service. Many MSMEs are adopting Customer Relationship Management (CRM) software to manage customer interactions and automate repetitive tasks. This frees up valuable time and resources to focus on delivering exceptional customer service.
Global Reach: Digital platforms like e-commerce marketplaces and social media enable MSMEs to reach a wider audience, even beyond geographical limitations. This expands their customer base and opens doors to new markets.
Personalized Experiences: By leveraging customer data, MSMEs can tailor their communication and offerings to individual customer needs. This could involve targeted promotions, loyalty programs, or personalized recommendations
Read more here: https://economictimes.indiatimes.com/small-biz/sme-sector/how-digitisation-is-helping-msmes-improve-customer-management/articleshow/109302551.cms
April 17, 2024