Digital Literacy-Indian Business

June 14, 2021


Small and Medium Businesses (SMBs) structure the foundation of the Indian economy and make considerable contributions to the national economic indicator and household income. However, digital literacy has changed the operational landscape of SMBs, predominantly led by the consumers using the internet through mobile.

Government activities, for example, the Digital India Initiative, have been supplemented by private sector ventures to raise digital mindfulness and abilities among Indian SMBs. Internet adoption and digitization can help an SMB support its income. It benefits up to 2x quicker and scales homegrown and worldwide boundaries.

Notwithstanding, regardless of substantial digital profits, digital literacy adoption by Indian SMBs has been moderately low before. However, rising internet entrance, combined with imperatives of the COVID-19 pandemic, is empowering technology adoption across the SMB sector.


Each SMB has diverse IT necessities, and one encounters distinctive IT challenges than large enterprises, as their budget plan and staff for IT assets are highly different.

Digitalization of small and medium organizations (SMBs) can add Rs. 11,60,000–15,850,000 crore (US$158–216 billion) to India’s GDP by 2024 and add to the monetary recovery post-COVID19 pandemic. Moreover, as per a Cisco study on ”Digital Maturity of Indian SMBs,” SMBs that are more carefully developed appreciate twice as numerous advantages as income and productivity than those with an indifferent way to deal with digitization.

The study- Digital Maturity of Indian SMBs

The study is based on a review of SMBs in the Asia Pacific and was led by IDC and charged by Cisco. The 2020 SMB Digital Maturity Study assembled and dissected information from >1,400 SMBs across 14 business sectors in the APAC to evaluate difficulties and opportunities faced by organizations during their digital transformation venture. The 14 business sectors involved Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Thailand, Taiwan, and Vietnam. India right now positions ninth on this rundown, with capital ventures and a technically skilled labor force being the critical barrier in speeding up development.

Further explanation:

The report further explains that ~68% of Indian SMBs seek to digitally transform to present new items and benefits and separate themselves from the companion. In any case, being willing to accept change is just the main obstacle. As 84% SMBs revealed challenges in executing their digitalization objectives facing a deficiency of digital skills and sufficient ability, trailed by an absence of assets and understanding into information. ~70% said that they are speeding up a division to guarantee business congruity during COVID-19. ~60% perceive that companion is changing and that they should keep pace, while 50% seek digital transformation because of customer interest for change. Given the current situation, an ever-increasing number of customers are shopping online, causing a lift in online business deals; this gives SMBs the potential to change and expand on digitization.

“During this me, small businesses have been wrestling with drastically diminished liquidity, disturbed supply chains, and loaning difficulties. To bounce back, they need to rotate and adjust swirly, reconsider their action plans, and distinguish their place and job in the new normal. In these endeavors, most small businesses have understood that going digital is critical. Hence, they show an eagerness to disrupt themselves,” as per Panish PK, Managing Director, SMB, Cisco India, and SAARC.


Infrastructure Issues

Infrastructure requires government or private intercession and does not come under notice because of a lack of adequate funds. So, numerous SMEs don’t know about the different financing alternatives accessible to them from NBFCs and banks. In addition, most lack digital literacy to accumulate data from the internet.

Low productivity

Digitization has improved efficiency in reformist organizations by disposing of manual cycles and making them technology-based. However, traditional SMEs have slow processes, and their workers often lack basic computer skills. This hampers productivity.

Inadequate funds

Funds are needed for advertising or marketing the items offered by conventional SMEs. The absence of digitization brings about a slight flow of income and a lack of cost-benefit analysis. Digital marketing can end up being less expensive when contrasted with actual advertising, which customary SMEs can’t employ.

Absence of Innovation

Due to the shortfall of digital literacy, traditional SMEs can’t think of better approaches to attract customers. Since most buyers go online and use their tablets or mobile phones, formal SMEs fail to attract customers. Sometimes they can’t accept online payments or send e-bills.

Less secure

Since conventional SMEs rely upon manual activities for selling their items, there are high odds of human blunders in terms of the amount sold, payments made, total income, total cost, and so forth, bringing rather more risk than precision.

Higher expenses

Operational expenses, publicity expenses, and development costs are consistently higher for a customary SME when contrasted with a digitized one.

Absence of Training and Skills-

Lack of knowledge about using a computer, digital marketing, websites, social media, and web analytics hamper ordinary SMEs by adversely affecting efficiency. There is nobody to screen the everyday sales, profit, and competition this way.


Improved Customer Acquisition

Digitization permits SMEs to connect more with their intended target audience. And reaches customers in any country for upgraded visibility. Manage Customer connections more proficiently, and they can acquire customer insights through various tools. This will help in marketing products better and devise new sales channels.

Operational Efficiency

As a digitized SME, technology can help automate core processes, making an SME more productive. This will especially allow the use of assets and give more control of coordination.

Labor force Enhancement

With digital tools, SMEs can improve areas that need skill improvement. And identify shortfalls in the labor force. It turns out to be easy to track employee’s productivity, train them and make them mindful of the most recent concepts in digitization.

Risk Management

By digital adoption, SMEs can protect sensitive data and financial information through security programming. In addition, it allows for better protection of existing resources through advanced surveillance and makes logistics more powerful.

Improves Productivity

The incorporation of digital tools can help employees work quicker and more productively. In addition, they can work remotely, also at any time to meet business emergencies right away.


By digital adoption and digital tools, SMEs can assess the business better with metrics. Activity metrics like web traffic, process metrics like sales and acquisition, knowledge metrics like consumer insights, and individual metrics like employee satisfaction can help improve various parts of the organization.

Saves Costs

Digitization will help diminish operational expenses via automating center cycles and making everything smoothed out. Besides, SMEs can open up to any country on the planet for business without spending anything on advertising.

Reduces Manpower

Since digital adoption will make most business measures automated, labor requirements will go down. There will be less chance y of human blunder, and less monitoring will be required.


Digitization isn’t just about converting information and data yet about using technology to discover better approaches for working together. There are countless new solutions and developments present in the market that practically everyone can use. Innovation with digitization assistance helps businesses and SMEs in India think of new ideas and innovations and manage work effectively.

Stay tune with Vardaan for more articles.

Digital Literacy-Indian Business


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