Page 158 - ICDEBI2018

International Journal of Trend in International Journal of Trend in Scientific Research and Development (IJTSRD)Research and Development (IJTSRD)
International Open Access JournalInternational Open Access Journal | www.ijtsrd.comwww.ijtsrd.com

ISSN No: 2456 ISSN No: 2456 - 6470 | Conference Issue – ICDEBIICDEBI-2018

INTERNATIONAL CONINTERNATIONAL CONFERENCE ON DIGITAL ECONOMY AND FERENCE ON DIGITAL ECONOMY AND

ITS IMPACT ON BUSINESS AND TS IMPACT ON BUSINESS AND INDUSTRYINDUSTRY

Organised By: V. P. Institute of Management Studies & Research, SangliOrganised By: V. P. Institute of Management Studies & Research, SangliOrganised By: V. P. Institute of Management Studies & Research, Sangli

“Digital India’s SME“Digital India’s SME’s Economy – Switching toSwitching to

Digital is aDigital is a Necessity not a Choice !!!”

Mr. Paresh S. Khetal
Assistant Professor Assistant Professor – Accountancy, Government Commerce College,Commerce College,
Vadali, Sabarkantha, GujaratVadali, Sabarkantha, Gujarat, India

INTRODUCTION
Digitalization of Indian business is majorly driven by Digitalization of Indian business is majorly driven by Lack of skilled manpower to manage technology Lack of skilled manpower to manage technology
the rapidly advancing digitization of consumers. This the rapidly advancing digitization of consumers. This setups
has led to increased data traffic and acceleratedhas led to increased data traffic and accelerated
establishment of new tech-based startbased start-ups to take According to NASSCOM, the estimated market According to NASSCOM, the estimated market
advantage of the growth opportunities. growth driven by SMAC is expected to be 30% rowth driven by SMAC is expected to be 30%
g
(US$1 trillion) by 2020.
The Micro, Small & Medium Enterprises (MSME) Medium Enterprises (MSME)
sector contributes about 8% of GDP. It also plays a sector contributes about 8% of GDP. It also plays a Key Drivers Escalating AdoptionKey Drivers Escalating Adoption of Digitalization
pivotal role in development of the economy by pivotal role in development of the economy by Today:
employing almost 80 million people, contributing employing almost 80 million people, contributing In India, the impetus for adopting SMAC has been In India, the impetus for adopting SMAC has been
about 45% of the total manufacturing output and 40% about 45% of the total manufacturing output and 40% facilitated by the following factors:facilitated by the following factors:
of exports of the country. The exponential growth in adoption of smart The exponential growth in adoption of smart
devices to enable easy access to 3G or 4G evices to enable easy access to 3G or 4G
d
However, in a rapidly digitalizing economy, these However, in a rapidly digitalizing economy, these networks
industries fail to keep pace. Online shoppers in India industries fail to keep pace. Online shoppers in India The increased popularity of social mediaThe increased popularity of social media
are growing at compounded annual growth rate are growing at compounded annual growth rate Rapidly increasing volumes of data being captured increasing volumes of data being captured
b
(CAGR) of 18% and will reach 220 million by the (CAGR) of 18% and will reach 220 million by the by businesses across customer touchy businesses across customer touch-points
year 2020. Unfortunately, out of the 51 million SMEs year 2020. Unfortunately, out of the 51 million SMEs Advancement made in analytic tools and Advancement made in analytic tools and
in India, less than 5-6% have an online presence. 6% have an online presence. technology that is helping to bring analytics closer echnology that is helping to bring analytics closer
t
t to business users and not limit it to statisticians o business users and not limit it to statisticians
The companies migrating to an online platform could The companies migrating to an online platform could and PhD-holders
potentially increase their revenues by 51%, improve potentially increase their revenues by 51%, improve Cloud enabling businesses to deploy mobility and ling businesses to deploy mobility and
analytic solutions in a costnalytic solutions in a cost-effective manner and
operational efficiency and broaden their customer.operational efficiency and broaden their customer. a
reducing time-to-market
Causes for Low Adoption of Digitalization in the Causes for Low Adoption of Digitalization in the
Past: Indian SME’s Need in Global Digital Scenario:ndian SME’s Need in Global Digital Scenario:
I
Lack of understanding of business benefits Lack of understanding of business benefits Incubation Platform:
technology can deliver across endtechnology can deliver across end-to-end value This directly points to thethe fact that India lacks
chains business incubation setup.setup. The industry majors
Lack of guidance on the inherent abilities of Lack of guidance on the inherent abilities of need to provide mentorshipmentorship to SMEs of their
technologies and how these can be integrated and technologies and how these can be integrated and domain, on how they couldcould be better aligned with
institutionalized in their businesses their objectives of a lowlow cost structure, broad
Resistance to incurring upfront investmentupfront investment-related basing their services andand products, and a more
costs to implement technology reliable environment for operation.operation.

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