IT for SMEs

Small and Medium Scale Enterprises have their own set of problems where Information Technology can pitch in and provide effective solutions. In this digital world where technology is transforming almost every aspect of human life, SMEs cannot afford to miss on the leverage Information Technology can provide.

Automation of different business processes has been the focus of IT in the past decade. Different tools were designed to automate operations like book keeping, order booking, lead management, process scheduling etc. These systems were mainly used by large organizations owing to high costs, complexity involved in implementations and the longer return period for the investments made on these solutions.

With the advent of internet technologies like cloud computing and increasing focus of IT companies to cater to small businesses, the scenario is changing rapidly. Now IT solutions can be obtained on a rental basis and hassle free scalable solutions are being developed to suit the requirements of businesses of all sizes. This provides SMEs an opportunity to leverage technology for their growth.

In order to derive maximum value from these solutions, there needs to be a transformation in the way they conduct their businesses. With rising competition and growing needs for expansion, it may be time for an SME to utilize IT as an enabler and make it an integral part of different business processes.

In order to derive maximum value from these solutions, there needs to be a transformation in the way they conduct their businesses. With rising competition and growing needs for expansion, it may be time for an SME to utilize IT as an enabler and make it an integral part of different business processes.

IT throws up genuine possibilities for the SMEs to modify their business processes across different functions. Some of these have been discussed below.

MARKETING

The usual website with static pages providing information regarding services is the general IT face of marketing for an SME. This can be transformed to provide a more interactive and informative experience for the website visitors and generate possible leads. Web 2.0 has provided alternatives like social networking sites, blogs etc which can be effectively used to support the marketing function without incurring any additional cost (zero budget based marketing).

SALES AND SERVICE

Sales and service are the touch points where a company can differentiate itself from its competitors for both B2B and B2C transactions. A proper order management from order receipt till delivery at required time & location and providing transparent information to client regarding the status of their order is the key to success in this area. IT can help in receiving orders online making the entire world as thea market place, tracking the status at different stages and providing this information to the customers.

OPERATIONS

From procurement of raw material to the delivery of finished goods, IT can provide insights for better planning and minimizing waste. ERP solutions of the past were too bulky and costly to be of value for small businesses, but there are customized solutions coming up which provide supply chain management at attractive pricing. For instance, for a restaurant chain owner operating multiple stores in a city, IT can help in better procurement, proper distribution of resources and materials, real time inventory tracking leading to operational excellence.

SMEs need to understand the solutions being offered to them and the value that they can derive from these solutions. Some of the basic parameters which need to be kept in mind before implementing a solution are:

Internal and External Customer Experiences:

These need to be clearly identified and the solutions need to be measured on as to what extent these are being catered to. Service Level Agreements need to be constructed properly.

In order to derive maximum value from these solutions, there needs to be a transformation in the way they conduct their businesses. With rising competition and growing needs for expansion, it may be time for an SME to utilize IT as an enabler and make it an integral part of different business processes.

Infrastructure Costs:

For an SME, cash flows are a pain area and they cannot afford to make investments with very long payback period. The hardware and software costs need to be properly assessed and these should fit in the overall financial planning of the company.

Business Continuity:

While assessing a solution, the problems which may arise during implementation and downtime after the implementation need to be assessed properly. An improper network connection may lead to halt in the assembly line. These risks need to be analyzed properly and back up plans should be formulated. A lack of these measures may have disastrous consequences for the business.

Service Provider:

Companies should properly assess the technological and operational capabilities of the service provider. Geographical alignment becomes an important factor for service requirements.

At the end of the day business is all about solving customers’ problems profitably and achieving maximum levels of efficiency and effectiveness in doing so. Information technology can go a long way in helping a business achieve this objective.

Ashish, a game freak and a back to back movie-buff, is also a topper. The former is by choice and the latter is "by mistake"!! Not the herd-following kinds, he hardly ever sleeps in class, hardly ever gets tensed and hardly ever speaks. After doing his Electrical Engineering from DayalBagh Educational Institute, Agra, he spent the next 2 years working in Satyam till IIFT beckoned. Apart from running around in the park, he also dips his feet into a little creative designing here and there.