IMPACT OF DIGITALIZATION ON FIRM’S

PERFORMANCE IN SMALL & MEDIUM-SIZED

ENTERPRISES (SMES)

FINANCE MANAGEMENT PROJECT

PRESENTATION

Presented By:
Group 11
Manish Kumar (2019IMG-034)
Palak Jain (2019IMG-043)
Sejal Jain (2019iMG-054)
 INTRODUCTION
In India, SMEs are defined based on their investment in plant and machinery or equipment for manufacturing
or service sector activities.

Micro Enterprises: Enterprises with investments up to Rs. 1 crore and turnover up to Rs. 5 crores.
Small Enterprises: Enterprises with investments up to Rs. 10 crores and turnover up to Rs. 50 crore.
Medium Enterprises: Enterprises with investments up to Rs. 50 crore and turnover up to Rs. 250 crores.

Digitalization has a significant impact on SMEs:

Cost Savings: Digitalization helps SMEs reduce costs by eliminating the need for physical infrastructure,
reducing the use of paper, and automating processes.

Increased Productivity: Digitization helps SMEs boost productivity by automating routine tasks,
reducing errors, and improving collaboration among team members.

Improved Efficiency: Digitization helps SMEs automate their business processes, which leads to
improved efficiency.
 GOVERNMENT INITIATIVES

Digital MSME Scheme: It is a government initiative in India aimed at promoting the adoption of
digital technology among MSMEs to enhance their competitiveness in the global market.

Udyam Portal: It is an online platform launched by the Ministry of MSME for the registration and
regulation of MSMEs in India.

GeM portal: It is an online platform to facilitate the procurement of goods and services by various
government departments and organizations.

Credit Guarantee Scheme: It is aimed at providing collateral-free credit facilities to small and
medium enterprises (SMEs) to support their growth and development.

Technology Centre Systems Programme: It aims to enhance the competitiveness of MSMEs by

providing access to advanced manufacturing technologies and technical expertise.
OBJECTIVE

The objective of this study is to analyse the performance of Zodiac

Clothing across various KPIs in light of recent digitisation efforts, with a
focus on the period following 2013.

Furthermore, the study aims to evaluate the impact of digitisation on

various aspects of Zodiac Clothing’s business operations, such as its e-
commerce platform, social media presence, and IT security.
 ZODIAC CLOTHING COMPANY

Zodiac Clothing Company is an Indian clothing brand that specializes in men's

clothing. The company was founded in 1954 as "House of Zodiac" and has since grown
to become one of the leading men's fashion brands in India. It became a public limited
company in January 1994.

The company prides itself on providing high-quality and stylish clothing to its
customers. The brand has a strong focus on innovation and constantly updates its
collections to reflect the latest fashion trends.

Zodiac Clothing Company retails its products through three brands: ZODIAC (men's
formal wear), and ZOD! Club Wear and z3 (relaxed casual wear).
 ADOPTING DIGTALIZATION

Aggressively invested in their new website to generate revenue and make it a

primary point of sale and, ultimately, its biggest retail store.

Zodiac Clothing Company uses GajShield Cloud Security to secure its 130+ stores.
It has purchased the software in 2013.

Zodiac clothing company has improved it’s online presence drastically after 2013. It
has adopted the various digital marketing strategies using a third-party
consultancy company Fruitbowl
ONLINE PRESENCE AND USER EXPERIENCE
CHALLENGES

Product Shipments being delayed by 14-16 days

Not Optimized for Search Engine Optimization

Marketing funds spent in carpet bombing prospects

Almost no click below the first scroll

Broken user journeys and faulty payment gateway

Key Performance Indicators (KPIs) Critical Success Factors (CSFs)

Add to Cart rate User Experience

Payment Initiation Rate Payment Rate

Revenue Product Discoverability

Search Engine Rankings Search Engine Optimization

Shipment Time Reduced Shipment Time

 SOLUTIONS

Introduced Zodiac 2.0 with a better user interface

Deploy quick fixes to increase ’Add to Cart and ’Payment Initiated’

Made product discoverability easier by optimising descriptions, meta-tags, and

product listings

Automated inventory management results

Implemented behavior analytics at each step of the user journey to derive

quantitative insights
 COMPARATIVE ANALYSIS
Key Performance Indicators
Pre Digitalization Post Digitalization
(KPIs)

Almost no click below the first scroll on Add-to-Cart actions increased by 115%
Add to Cart rate
website approximately

Broken user journeys and faulty payment

Stable payments interface, with Payment
Payment Initiation Rate gateways, estimated loss of 10,000-
Initiated increased by 60%
30,000 every day

Marketing funds spent in carpet bombing

Revenue Revenue increased by approx. 40%
resulting in negligible revenue

Not Optimised for Search Engine Page ranked at least 3rd in Google
Search Engine Rankings Optimisation, with page listed in 2nd page searches, leading to 2x successful checkout
of Google Search transactions

Shipment Time Shipments being delayed by 14-16 days Delivery time reduced to 7-8 days
 IT AND SECURITY CHALLENGES
Enforcing browsing restrictions such as limited access to YouTube during certain

hours.

Preventing data loss

Incorporating key-based authentication for factory appliances.

Ensuring secure connection to Head Office for all entities.

Implementing security features such as Firewalls, email and HTTP filters, policy

management, and malware filtering.

Building a consistent organisation wide VPN connection facility

 Key Performance Indicators (KPIs) Critical Success Factors (CSFs)

Inter-organization security User Experience

Employee Browsing Restriction level Payment Rate

Uptime Product Discoverability

Data loss prevention Search Engine Optimization

IT Usage Monitoring across organisation Reduced Shipment Time

 SOLUTIONS
Implemented Gajshield’s GS360dc appliance as a complete security solution for

the Head Office.

The appliance supported multiple internet links for fail-over, load balancing, etc

enhancing user browsing and restricting unauthorized internet access.

Implemented enterprise cloud client features for complete protection of stores.

Redirecting Office mail and Application traffic via a VPN tunnel.

Allowing for client management from the Head Office and providing visibility into

their activities.
 COMPARATIVE ANALYSIS
Key Performance Indicators
Pre Digitalization Post Digitalization
(KPIs)

Almost no click below the first scroll on Add-to-Cart actions increased by 115%
Inter-organization security
website approximately

Broken user journeys and faulty payment

Employee Browsing Stable payments interface, with Payment
gateways, estimated loss of 10,000-
Restriction level Initiated increased by 60%
30,000 every day

Marketing funds spent in carpet bombing

Protected Security System Revenue increased by approx. 40%
resulting in negligible revenue

Not Optimised for Search Engine Page ranked at least 3rd in Google
Data loss prevention
Optimisation, with page listed in 2nd page searches, leading to 2x successful checkout
mechanisms
of Google Search transactions

IT Usage Monitoring across

Shipments being delayed by 14-16 days Delivery time reduced to 7-8 days
organisation
 DIGITAL MARKETING CHALLENGES

Increase brand awareness and reach a wider audience through online channels.

To create visually appealing content and social media pages that reflect the
brand's image and values.

To keep up with the latest digital marketing trends and best practices to stay
relevant and competitive in the market.

They need to differentiate themselves from competitors and showcase their

unique selling propositions, especially for luxury products like the Biella Collection
.
Need to engage the audience in a more interactive and compelling way, and
provide direct appointment options to increase conversions.
Key Performance Indicators (KPIs) Critical Success Factors (CSFs)

Add to Cart rate User Experience

Payment Initiation Rate Payment Rate

Revenue Product Discoverability

Search Engine Rankings Search Engine Optimization

Shipment Time Reduced Shipment Time

 SOLUTIONS
Established a dedicated micro-site for their premium collections like the Biella Collection.

Created an engaging application featuring a video and a set of questions related to the

content to market the "Reasons Why" campaign.

Emphasised the superior quality, precise craftsmanship, and finesse of Zodiac Clothing's

offerings through the campaign.

Developed interactive applications, visually appealing emails, and captivating social media

pages to elevate online and digital presence.

Unveiled the premium collections on various social media platforms to generate audience

engagement.
 COMPARATIVE ANALYSIS
Key Performance Indicators
Pre Digitalization Post Digitalization
(KPIs)

Almost no click below the first scroll on Add-to-Cart actions increased by 115%
Add to Cart rate
website approximately

Broken user journeys and faulty payment

Stable payments interface, with Payment
Payment Initiation Rate gateways, estimated loss of 10,000-
Initiated increased by 60%
30,000 every day

Marketing funds spent in carpet bombing

Revenue Revenue increased by approx. 40%
resulting in negligible revenue

Not Optimised for Search Engine Page ranked at least 3rd in Google
Search Engine Rankings Optimisation, with page listed in 2nd page searches, leading to 2x successful checkout
of Google Search transactions

Shipment Time Shipments being delayed by 14-16 days Delivery time reduced to 7-8 days
CONCLUSION

This study focuses on evaluating the impact of digitization on Zodiac Clothing

Company's performance across various KPIs since 2013. It highlights the
positive effects of digitization on the company's e-commerce platforms, social
media presence, and IT security. The study stresses the importance of SMEs in
the fashion industry adopting digital technologies to remain competitive and
meet evolving customer expectations. Additionally, the study provides best
practices for effectively managing digital transformation and addresses the
challenges that SMEs face in adopting digital technologies. It underscores the
importance of digitization in transforming the fashion industry by improving
operational efficiency, reducing costs, and reaching a broader customer base/.