Using digital technology in running businesses can help MSMEs (Micro, Small, and Medium Enterprises) reach a larger consumer base.
Anni Karimatul Fauziyyah, a lecturer in the Applied Bachelor Program in Internet Engineering Technology at the UGM Vocational College (SV UGM), stated that digital transformation for UMKM or MSMEs is a priority for strengthening the economic foundation.
She thoroughly reviewed this topic as a speaker at UMKM Class Series #5, organized by the Directorate of Community Service (DPKM UGM). This UMKM Class Series #5 theme was “Optimizing Technology to Improve Business Efficiency.”
“This is where the urgency of the cloud for MSMEs comes in. There are already 20.5 million MSMEs that have gone digital. There are still 9.5 million MSMEs targeted to enter the digital platform because the government aims for 30 million MSMEs to go digital by 2024,” Fauziyyah said at DPKM UGM, Tuesday, Jul. 2, 2024.
According to Fauziyyah, MSMEs can move to the cloud and create tangible economic and societal benefits.
Speaking about the government’s urgency in digitalizing MSMEs, she stated that studies show that digitalizing MSMEs positively impacts the national economy.
Unfortunately, there are still challenges due to the limited digital skills and capabilities of MSME actors.
She explained, “With the target of 30 million digital MSMEs by 2024, training is needed to improve the digital literacy skills and capabilities of MSME actors.”
The second speaker, Dzikri Rahadian Fudholi, discussed the essence of digitalizing MSMEs for operational efficiency. Repetitive and manual tasks often cause slow and inefficient business processes.
“AI as a solution for business process automation is expected to speed up workflows, reduce human errors, and lower operational costs,” Fudholi explained.
The same applies to customer service. Problems faced include slow and inconsistent responses to customer inquiries and complaints, which can lower customer satisfaction.
“AI solutions like AI-based chatbots and virtual assistants can provide customer support. Responses can be fast and accurate, enhancing the customer experience,” Fudholi added.
The Director of Community Service, Dr. Rustamaji, appreciated the younger generation’s use of IT for their businesses. They can easily ship goods from one place to another.
That is why UGM organized UMKM Class Series #5 with the theme “Optimizing Technology to Improve Business Efficiency” because not all MSME actors can digitalize their businesses.
“As a people’s university, UGM must be alongside MSME actors, especially since these MSME actors have risked their wealth and time to develop their businesses,” he said.
Dr. Rustamaji acknowledged that being an entrepreneur is not easy. Businesses experience ups and downs and uncertainties. Everything is uncertain; some MSMEs benefited during the COVID-19 pandemic, while others did not.
“Some could not rise during COVID. Therefore, those who are here are entrepreneurs who have risen. They are extraordinary, able to get through those tough situations, and have been chosen by God to pursue business as a way of life,” he said.
Author: Agung Nugroho