The Diamond Industry’s Problem With Digital Technology

Technology has become the essential tool for even the smallest business to run its operations more efficiently and cost effectively.

While technology has revolutionized diamond mining and manufacturing, the industry has, in general, been slow to utilize the broader benefits from a competitive perspective. This is despite research from analyst firm IDC highlighting how small and mid-sized businesses that have embraced digital technology consistently show faster growth.

A rising number of companies are realizing just how essential IT is to their future, according to a global study of over 3,000 small and medium-sized enterprises (SMEs) released this year on behalf of IT company SAP. Some 39% of respondents in the survey acknowledged active participation in the digital economy is essential to their survival over the next three to five years.

One of the main problems the diamond industry faces in adopting technology is the fragmented, unorganized nature of the sector given that it is generally characterized by small, family-owned operations. This has placed a large onus on industry bodies to help firms understand the benefits technology can bring to their business.

One of the first to make a proactive move toward achieving this has been the Surat Diamond Association (SDA). Its recent partnership with Microsoft India aims to encourage over 20,000 small businesses to adopt technology into their growth strategy.

“We are living in a technology enabled world and it is important for organizations of all sizes and sectors to adopt technology if they wish to succeed,” says Dinesh Navadiya, president of the SDA. The initiative was undertaken after a study titled ‘Ahead of the Curve: Lessons on Technology and Growth from Small Business Leaders’ reported that the SME sector in India has the potential to increase revenue by as much as $56 billion, if businesses were empowered with technology.

The partnership between the SDA and Microsoft follows the growing recognition of the success of diamond businesses that have already put technology at the core of their operations.

“Nobody has done it better than the Indians, in my opinion,” says Sabyasachi Ray, executive director, Gem & Jewellery Export Promotion Council (GJEPC). “If you were to see Surat 20 years ago and if you go around today, you will see the way companies have embraced technology.”

The question now is how many companies working in the diamond business throughout the world will follow suit.