Small and Medium enterprises (SMEs) have been utilising digital technology for various functions, with 60 per cent of them using it for human resources, 51 per cent for sales and marketing, and 48 per cent for finance, according to a report by industry body FICCI.
The report also revealed that the accounting software (such as Tally/ Vyapar/ Busy, etc.) and business applications like ERP and CRM were reported to be the most used digital tools by SMEs.
According to the report, most of the firms have experienced improvements in productivity and reductions in operational costs as a result of incorporating digital technology into their business functions.
Approximately 35 per cent of respondents reported a reduction in their annual operational costs by 11-20 per cent as a result of digitalisation, the report said, adding that another 30 per cent of respondents indicated that their annual operational costs had decreased by more than 20 per cent.
It said amongst the enterprises that reported selling through online channel(s), 24 per cent reported that more than half (50 to 75 per cent) of their overall sales came through online platforms like e-commerce platforms or own website.
Another 39 per cent respondents reported that one-fourth to half of their sales were through such online platforms, the report added.
The report noted that SMEs in India can also take advantage of Digital Public Infrastructure (DPI) for improving their access to finance and access to markets.
The survey findings reveal that while there is reasonable awareness about these platforms amongst the SMEs, there is a scope for further improving awareness and adoption of these platforms.
The FICCI Report on SMEs in India was conceptualised to assess the awareness of and preparedness for digitalization and sustainability by small and medium enterprises from the manufacturing sector in India.
It is based on a nationwide survey of more than 600 SMEs across 14 cities.
The report highlights how SMEs are adapting to the digital transformation taking place and adopting sustainability practices; it identifies the challenges in this regard and, more importantly, makes specific recommendations on how to overcome them.
(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)