Most startups and MSMEs (Micro, Small & Medium scale Enterprises) fail to even initiate their journey of automation. The first step is often the toughest. Use of organizational software systems such as ERP (Enterprise Resource Package) and CRM (Customer Relationship Management Software) integrated into the ethos of working takes time and needs proactive involvement of leadership. Adaptation and acceptance happens in phases in organization as stakeholders gradually assimilate learnings of technology and no longer perceive it as an outside threat. It is only after that that the gains of technology start to manifest including change in behavior of employees while transitioning from unplanned activities to routinized/ habitual use of technology.
Digital Technology have opened a plethora of avenues for small business enterprises and entrepreneurs in order to reach out its customers to create an impact, innovate and grow. However, the need of hour is for MSME’s to take a lead in adopting digitalization and make it an integral part of business strategies and harnessing it across their value chain which will lead this new wave of inclusive and sustainable growth. Because without technology there is no edge and without an edge, new businesses and old cannot survive in the long-run.
How can start-up adapt to the changes in automation landscape?
Post liberalization era in 1991, when the Indian manufacturing sector was nearly written off, to post 2003 when it caught attention because of its resurgence, to a spectacular turn around in 200-2007, Indian Manufacturing sector has come a long way. An easy example that comes to mind is that of automation of prefabrication construction process in tower construction. Integrated, construction automation process can solve the problem of labour shortage. In order to identify the tasks best suited for automated construction, different levels of automation are important. Cross-functional integration and competitive priorities can positively influence the business performance of manufacturing enterprises. It is very important to include two behaviour of extended and emergent uses which can lead to the assimilation of automation to consequence uses.
Automation and Anxiety: Will smarter machines cause a danger of mass unemployment?
What governs the vulnerability of masses falling victim to automation is not whether manual or white-collar work will get automated. Rather, the concept of repetition is more important in discerning which work-items will probably get automated in the future. For most occupations, partial automation is more likely than full automation in the medium term as technologies will mostly provide newer opportunities for job creation in the medium term. To assess the implications of automation, we focus on work activities rather than whole occupations as a starting point. We consider work items to be a convenient measure since businesses are aggregations of different activities, where each discrete activity have different potential for automation. Economists are perturbed about ‘job polarisation’ where middle-skill jobs are declining but both low-skill and high-skill jobs are expanding. With the introduction of newer technologies an interesting new pattern is observed: Rather than destroying jobs, automation redefines them. Rising automation is now very much a hot topic of public discussion.
The future: AI and Application of Business Analytics in MSME
Innovations in digital technology, data analytics, artificial intelligence and manufacturing automation are fuelling demand for newer skills with more challenging and higher paying job opportunities. On the horizon is a new wave of opportunity related to the use of AI, pushing the frontier of what machines are capable of doing in all aspects of business and economy. AI can also be broadly constructive for society helping tackle some ‘moonshot’ challenges including climatic change or curing disease. In today’s world managerial decisions are increasingly based on data driven models and analysis using statistical and optimization methods that have dramatically changed the way business operate in most domains including service operations, marketing, transportation and finance. Business Analytics is important to provide perceptions that inform business decisions and can be used to automate and optimize business process.
Relevance of Industry Thought Leadership
Automation and AI are at the cutting-edge of human knowledge today. The larger agenda of plugging the demand-supply gap of thought leadership in key areas of corporate governance should be addressed quickly now more than ever. Businesses should conceptualize, create and manage portfolio of Thought Leadership modules in order to facilitate their transformation from a subject matter expert into an Industry Thought Leader. This will help innovative companies to connect with prospective clients. From a macro-perspective, grooming and transforming experts into Industry Thought Leader is the need of the business world today. It is an effective strategy to accelerate innovation in currently stagnant industries and help drive inclusive growth in not just developed, but developing economies as well. In the field of manufacturing, AI and automation are the domains of new Thought Leaders of this field. The age of disruption demands a disruptive way to arrive into the future. Thought Leadership might prove to be one of the key weapons in our arsenal in our journey towards the future.