Need for Digitalization and Servitization of MSME’s in India

Purpose - The recent change in the economic environment has caused harsh consequences to various micro, small and medium enterprises (MSMEs) in India. With most customers either hesitant to travel to these businesses or cannot reach the markets due to government regulations, these businesses have seen their revenues plummet to the lowest, and most have been shaving off savings to survive. These changes in the environment have asked these MSMEs to adjust and formulate newer strategies. This article highlights strategies that can be or should be used by the enterprises. Methodology – Approach used in this article was case-study method. Seeking information and ideas which portray the problem and the solution distinctly, through secondary data including news articles, reports and publications were utilized. Analysis – One of the strategies discussed in this paper is the conversion of businesses to services, and the tangibility of the existing business offerings is reduced. The reduction in tangibility is defined as Servitization, which helps the business gradually adjust to the service economy as well as build a long-term market share. This article focuses on suggesting & explaining business process and how to apply the solution which can be used by the enterprises for the problem at hand after examining various issues faced by them.