Indian SMEs adopting IT – who is driving the trend?

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