India, one of the world’s fastest-growing economies, is on a mission to reach a $5 trillion economy, and the key players in this ambitious journey are the country’s mid-market enterprises (MMEs). These businesses, with revenues between Rs 250 crore – Rs 1,000 crores and employing over 500 people, are poised to become the next growth engines for the country. However, their path to success is not without challenges, and technology adoption has emerged as a critical factor in overcoming these hurdles.
A recent survey conducted by IPSOS-Lenovo, as part of the IT4SMB campaign, reveals that these MMEs are growing at a much faster rate than the overall economy. However, they face numerous challenges, including regulatory uncertainties, supply chain bottlenecks, and a shortage of trained talent. The most significant among these is the lack of adequate technology tools.
One such mid-market enterprise making waves in the healthcare tech sector is Medzell, a global B2B platform that connects Indian medical device manufacturers with international buyers. Medzell is revolutionising the industry by facilitating seamless business transactions through reliable technology and enabling easy digital transformation of Indian MSMEs.
The Power of Technology in Mid-Market Enterprises
A recent survey conducted by IPSOS-Lenovo, as part of the IT4SMB campaign, has shed light on the role of technology in the success and future of MMEs. The survey, which covered companies in both manufacturing and services sectors, identified specific areas where technology can solve or minimise the challenges faced by MMEs in their businesses.
The survey revealed that technology adoption is identified as a critical factor in driving future growth. From powering financial ecosystems to nurturing talent, MMEs need to leverage technology in all aspects of their businesses. Technology is a key driving force for non-linear growth, it can address the five key challenges MMEs presently face, including regulatory uncertainties, supply chain bottlenecks, and a crunch in trained talent.
Rise in Tech Spending and Digital Transformation
In line with the expectation of an ever-growing role of technology towards business digital transformation, the survey showed that more than 95 percent of companies have plans to continuously invest in upgrading and improving their digital infrastructure. Most MMEs are not in favour of heavy investments to create large in-house set-ups. Instead, preferences have clearly shifted towards investing in cloud technologies, process automation, cybersecurity, and other applications that fast track modernization and enhance productivity.
The Cloud Computing Revolution
Cloud adoption is a critical business priority for companies. By investing in cloud tech, businesses can reduce operational costs while becoming agile and taking advantage of new technologies. This transition towards a hybrid cloud model will require MMEs to create robust cyber architecture to secure their business and technology from any IPR losses due to cyber-attacks.
The Need for Digital Transformation & Modernization
As part of digital transformation and modernization, organisations believe that productivity applications form a critical element in succeeding in a hyper-competitive business environment. MMEs are increasingly focusing on rapid adoption of automation and analytics to reduce business disruptions and enhance productivity.
The Role of Tech Decision Makers
One of the key challenges cited by the mid-market companies that were surveyed is that their “IT decision makers” including chief information officers and chief technology officers spend most of their time in maintaining existing IT infrastructure and solutions. Hence it is imperative for IT suppliers/service providers to work in collaboration with MMEs to help the decision makers focus on their core objectives.
The Road Ahead
As India continues to emerge as one of the world’s fastest-growing economies, the role of MMEs is becoming increasingly significant. Their journey to grow into big corporations rests on their ability to embrace technology. With the right technologies and strategic investments in place, MMEs will be well-equipped to take on the next phase of India’s economic growth.As India steadily ascends the ranks of the world’s most rapidly expanding economies, the significance of MMEs is escalating. Their evolution into large-scale corporations hinges on their capacity to adopt and integrate technology. With appropriate technological solutions and judicious investments, MMEs are poised to navigate the forthcoming stage of India’s economic progression effectively.
Bridging the Gap: The Missing Middle
According to a report by SAP, India has 600 large mid-market enterprises with over $500 million in yearly revenue, and thousands more small businesses generating under $50 million a year. In between is a gap, often referred to as the “missing middle,” challenging the economy’s ability to maintain growth. To fill this vacuum, there is an immense opportunity for thousands of companies to rise from being small to midsize with the intention to grow into large mid-market enterprises over time. The key to this transition is the adoption of a digital strategy.
The success of India’s medium-sized enterprises (MMEs) and their part in India’s $5 trillion ambition hinges largely on their ability to leverage modern technology. With the right technologies and strategic investments in place, MMEs will be well-equipped to take on the next phase of India’s economic growth.
Going forward, technology will define both business sustainability and growth. In such a scenario, aligning company strategies with the right technology support will put MMEs on a higher growth trajectory.
Medzell, with its innovative approach and commitment to building reliable technologies, is leading the way in the digital transformation of the healthcare sector. By connecting Indian medical device manufacturers with global buyers through a B2B platform, Medzell is not only contributing to India’s economic growth but also revolutionising the healthcare industry.
References:
- Technology adoption by MSMEs drives significant growth
- How India’s Mid Market Businesses Can Eliminate The ‘Missing Middle’?
