IT for SME

ED on Packaged Software - Missing Long-term Visions

2008-03-12T12:15:00.000+05:30

Indian IT firms are already reeling under pressure due to rupee appreciation and competition from across the world. A strategic maneuvering against these uncertainties has been foraying into tailor made IT packages for the domestic market especially for SME users. Last couple of years SMEs have been the focus for many small IT firms due to more and more SMEs in the manufacturing and non-IT sectors going for IT adoption.

India focused IT firms will certainly pass on this ED escalation to their clients. This is a major cause of concern since Indian SMEs are highly wary of the price factor resulting in a slow down in IT adoption. IT adoption is crucial for Indian SMEs to cut cost, gain speed and reach the global markets.

Keeping in mind the dual advantage from domestic IT usage, FM should either rollback the ED increase from 12% to previous 8% or exempt tiny & small units below 50 corers from paying ED.

Vinod Menon

IT adoption …the fearfull plunge

2007-06-01T19:41:00.000+05:30

Businesses, small or big, the progress depends on how the CEO leads the team in change management. While traveling through the unconventional route he and his team comes face to face with mountains, strong currents and deep waters…..if one knows destination is Manassarovar, the journey continues come what may …

IT adoption is not simply putting a new attire studded with gadgets & technology …It is how IT makes the organization’s process upside down towards good. Transparency, speed, accountability, information availability are some of the good by-products of IT adoption.

Then why do small businesses resist IT? Some of the reasons could be as below. ( Let us have more reasons from all…please add)

1) Yet to realize speed at which global business is moving.
2) Organization is lead by technocrats from the old school of thought for whom change means death.
3) Lack of IT awareness and reluctance to learn.
4) Unable to align IT with business goals.
5) Not seeking or non availability of good IT mentors with business knowledge.
6) I DON’T WHAT TO CHANGE
7) Fear of transparency
8) ?
9) ?

In one of our presentation on how a small business and IT firm can come together to make IT happen, we put an image of a child depicting a small business CEO - taking a brave plunge into deep waters. Instead of receiving the message from the picture ( taking brave plunges) many business CEOs had comments on the pic saying it is very fearful ! here is a comment I received from a CEO

“……one slide where the baby plunges into water is slightly disturbing…..”

YES even an imaginary picture about change can be fearful to many and most of them prefer to be in their present comfort zone….

Let us have your comments

Vinod Menon

Indian SMEs adopting IT – who is driving the trend?

2007-05-27T11:11:00.000+05:30

Indian SMEs adopting IT – who is driving the trend?

Without any preamble let me put it directly - at the macro level NO ONE Really! In the micro level a few ambitious Small enterprises are adopting IT and in that few, only the minority reap benefits from adopted IT.

This small minority makes a considerable impact on the IT industry’s overall revenue from the domestic market adding excitement to IT firms and media on the growth of enterprise applications market in India.

The Myopia: Growing market size for IT products is a direct result of SMEs adopting IT.
The fact: Growing market size for IT products is a direct result of a microscopic fraction of the small sector adopting IT.

What about the rest - the SME majority. They are far from right IT adoption.

Initial indications from our recently commissioned SME – IT survey proves my above comments.

Why do the majority still stay away from IT adoption? Good question. This is what I have to say.

1) They do not want transparency – Not really an IT problem …
2) No one to guide them on IT adoption
3) IT salesmen are the wrong ones to guide a small enterprise on IT adoption – at least many
are not trained to handle a small enterprise.
4) Lack of drive and determination from the management – CEO
5) SMEs fears and feel shy and go into a shell - when IT salesmen use management jargons
and technical terms to show up there wisdom ( Remember if you show up you will throw
up)
6) No plans to grow – let me run my firm as long as I can…..
7) We tried – paid through our nose and burnt our hands …
8) Confused …which vendor to select – everyone down the road nowadays is an ERP vendor !
Some says 2 lakhs …others 50 lakhs ??????

How should we drive IT awareness among SMEs? Here are my suggestions and comments

1) “ By IT firms – through educating SMEs”

Comment: (Remember education is not sales presentations, cocktails and dinner)
IT firm apart from their sales team should have a SME mission team who instead of sitting before their PCs and Laptops move around from morning till evening in industrial areas, meet SMEs - talk to them (80% listening 20% talking) have Chay with them in the local tea shop, love him, learn from him……discuss and give digestible Gyan

2) “SMEs should drive it themselves – it’s for them to realize…”
Comment: Bad suggestion. If your IT organization pays you till your market realizes about the need for your product, enjoy that luxury.

3) “Media should educate them”
Comment: 100% I agree their role. Unfortunately Tech magazines like PC world, Chip, BenefIT etc are hardly read by SMEs in the manufacturing sector.

4) “SME associations and Clusters”
Comment: They should – but they have lots of lobbying and politicking to be
done rather than educating their members ( There are exceptions however…..)

Let me end abruptly. Please let us have comments/suggestions from all

Vinod Menon