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| Functional Information
for SMEs : Technology |
An interesting point to note is that typically
small business adoption of new technology lags big business by
2-3 years. Smaller companies have been limited to using software
to automate and manage a few of the functionalities like
accounting, contact management and sales. These have been done
by using software from different vendors with little or no
integration across these packages.
In fact, there is not much of real information management in
many SMEs (small and medium enterprises) - it is all in people's
heads and pads, there are few systems. The owner-manager has
little time to go and figure out a process and a system for that
process. And yet, if something came along which could be used
easily and without customization - yes, no need for consultants
and system integrators - then it would be used. In many cases,
the owner-manager realise that the current processes and systems
will not scale. They are good enough for to manage growth 20-30%
a year. But they cannot manage and enable growth 100% a year, or
more. This story is perhaps replicated in millions of such
companies.
These are the companies which need a technology e-business
solution: what they need is a software suite automating and
integrating not just a company's internal functions, but also
helping it collaborate with its partners. Along with the
software, they need the services to help them manage their IT
infrastructure (computing and communications) and help them with
their core business processes.
Why do these companies need such a solution? Because that's how
business is going to be done in the future by all the survivors
(companies which grow, and have a competitive advantage, not the
living dead), that's the only way companies can be efficient.
This is where the true promise of the Internet lies, it is also
in some ways the Holy Grail of business: building that perfect
enterprise. It will never happen, but companies can definitely
come close.
In the WTO regime, domestic markets will face increased threats
because of lowering of tariffs leading to freer entry of foreign
goods and because of foreign companies establishing
manufacturing bases locally. The developing countries will have
greater opportunities in the sectors where they have cost base
competitive advantages e.g. textile, agriculture etc. As the
world market get opened up under WTO regime, SSIs need to
upgrade their technology to avail this opportunity to increase
their share. The vulnerability of SMEs in the WTO regime could
be summarised as under:
• Loss of protected environment;
• Greater competition from imports;
• Reduction in conventional subsidy;
• Technology gap;
• Quality and standard gap; and
• Environmental regulations
SME Sector due to inaccessibility of proper information and
un-affordability of R & D facilities often found wanting on the
technology front.
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