Study on Opportunities, Challenges and Cost-effective Information Technology practices for

Small & Medium-sized Enterprises

RM SudhakarDirector & CEO, Netsoft Solutions India Pvt. Ltd.

Batch: August 2012

Under the Guidance of

Dr. Y VijayakumarPRINCIPAL

Shirdi Sai Engineering College, Bangalore

Agenda• Introduction

• Need for the Study

• Literature Review

• Gaps Identified

• Theoretical Framework

• The Present Research Work

• Research Methodology

• Q & A

Introduction

• SMEs in India

• IT involvement and penetration in Indian SMEs

• My realization

Need For the Study

• Challenges and problems faced by SMEs in India How these problems and challenges are addressedacross the globe?

• Advantages and benefits of IT

• Opportunity for SMEs

• Motivation after need recognition

The Questions to be probed

• Is the current business model of Indian SMEs suitable to deliver efficient and effective solutions to their customers and meet the challenges posed by their overseas counterparts?

• Is the myth that most of the SMEs in India are not inclined towards implementing IT solutions fearing high investments and low returns true?

• Are there any cost effective IT solutions suitable for Indian SMEs?

• Is the Indian SME willing to adapt to IT solutions if it meets their requirements?

The review of the studies undertakenAuthor/ researcher Title of the work Journal Details, with title,

Vol, issue, Page no,

Outcome of the Study Remarks

Parker, Richard

Andrew (2008)

Explaining

successful

information

management in

small business

Doctoral thesis Studies UK in general focused on small businesses

alone with more systematic and scientific way of

Research and concludes stating conduct one case

study in significant depth using a reproductive

research strategy to develop critical realist ideas

further.

Morteza Ghobakhloo,

Mohammad Sadegh

Sabouri, Tang Sai

Hong, Norzima Zulkifli

Information

Technology

Adoption in Small

and Medium-sized

Enterprises; An

Appraisal of Two

Decades Literature

Interdisciplinary Journal of

Research in Business ,Vol. 1,

Issue. 7, July 2011(pp.53-80)

IT has critically become indispensable tool for daily

operations of organizations.

More comprehensive study of IT adoption within

SMEs investigating SME-related influencing factors

simultaneous with other aspects (drivers, enablers

and inhibitors) of IT adoption seems to be necessary

Prof. H.L. Nagaraja

Murthy

Problems Being

Faced by SMEs in

India

(An Attempt to

Study MSME

Segment Minutely)

Published on

IndianFaculty.com:

14/04/2012

SMEs in India face a number of problems - absence

of adequate and timely banking finance, non-

availability of suitable technology, ineffective

marketing due to limited resources and non

availability of skilled manpower.

The review of the studies undertakenAuthor/ researcher Title of the work Journal Details, with title,

Vol, issue, Page no,

Outcome of the Study Remarks

Morteza Ghobakhloo,

Tang Sai Hong,

Mohammad Sadegh

Sabouri and Norzima

Zulkifli

Strategies for

Successful

Information

Technology

Adoption in Small

and Medium-sized

Enterprises

Information 2012, 3, 36-67;

doi:10.3390/info3010036

Due to the numerous advantages of IT, SMEs are

trying to adopt IT applications to support their

businesses. IT adoption by SMEs differs from larger

organizations because of their specific

characteristics, such as resources constraints.

Federici, Tommaso ERPs IN SMEs: EX-

POST EVALUATION

OF

SUCCESS FACTORS

ECIS 2007 Proceedings

Available at:

http://works.bepress.com/tf

ederici/3

The introduction of ERPs into SMEs cannot be

based on a sheer reproduction of the experiences

with larger companies and represents a new

challenge with significant peculiarities to be

considered. ERP introduction is evaluated as a

success and that the benefits obtained are

mostly related to the simplification of internal

procedures, a much easier information

retrieval, an improved performance management

and some increase in production efficiency.

The gaps identified• Mapping SMEs and IT solutions organizations in India

• Comprehensive study of IT for SME as a whole not done, as most of them are with reference to any specific challenge or opportunity.

• SMEs is big in number, challenge to cover them in a sophisticated way for certain study.

• Empowering SME business through the aid of IT

• Support system for success factor in IT implementation is hardly worked on.

• A model system for the SMEs to adapt IT in a successful manner.

• How SMEs can take the benefit of the external Eco system towards IT & growing in the business?

Theoretical and Conceptual

framework

Demographics Profile

Expectation & Perception

Descriptive, Exploratory & Case study based

Relationship

IT &SMEs, SMEs & Competition, Pressure & Innovation

The Present work

The Research Enquiry / Statement of the Problem:

IT is no more an option for Business

including SMEs!

The Present work

Research Design:

By conducting a literature review, it was found that most of the Indian SMEs is facing a lot of challenges in implementing IT. To get a clear picture about the same a descriptive research has to be conducted to identify variables which may answer research questions. Variables like IT solutions, affordability, business model, and ….. will be identified and studied.

Type of design:Qualitative, Descriptive, Explanatory,

<-Case method>

Population:SMEs in India

Sample size: 300?

Sample design: based on region, size, sector, type,

entrepreneurial style

Data collection:Primary data through questionnaire

and personal interview.Secondary data through MSME

Organization, NASSCOM, Research Organizations

The Present work

Research Objectives:

• To study the existing structure of the SMEs

• To study and understand the underlying factors that influence the organization perform efficiently and effectively

• To understand the problems and challenges faced by SMEs that could possibly be addressed by proper implementation of IT, which in turn can enhance the overall productivity of the organization

• To understand the various categories of SMEs that have adapted IT solutions

• To study various IT solutions available that caters to SMEs including the modules available

Methodology

Sampling Population:

• Organisation to study: General study not focused on any single organization or type

• Sampling details: Judgmental sampling is used (sample is selected based on the input provided by industry experts)

Sources of Data Collection:

• Primary data through questionnaire and personal interview.

• Secondary data through company manuals, journals, specific websites.

Mode / method of Data Collection:

• Questionnaire and personal interview.

Methodology

Analysis of the Results / Statistical Analysis:

• Use of MS Excel.

Limitations of the Study:

• Geographical Limitations

• The time frame is less

• Responses may be biased in some industries by some respondents

• Peer influence may lead to inaccurate dataScope of the study:

• The study is inclusive of all the SMEs in India irrespective of the industry they are in.

Methodology

Utility of the Study:

The outcome of this research shall be an open web tool or best possible guidelines that can be easily downloadable or available as a handbook for any SMEs to get all that is required for the successful IT implementation in their organization, which shall help them towards the business progress by identifying the opportunities to make the better use of IT, how to overcome the common challenges in implementing the IT and the best possible cost-effective way of implementing IT all these with the clear case-study .

Chapterisation

• Cover and Initial Pages

• Executive Summary

• Chapter 1: Introduction

• Chapter 2: Review of Literature

• Chapter 3: Research Methodology

• Chapter 4: Data Analysis and Interpretation

• Chapter 5: Summary of Findings

• Chapter 6: Conclusion and Recommendations

• Bibliography

• Annexure

RM Sudhakar - Brief CV

• Director & CEO at Netsoft Solutions India Pvt. Ltd.

• Total 15 years experience in IT Solution out of which 12+ years as an Entrepreneur.

• The majority of the experience in serving & interacting with the SMEs

• MBA (IT), SM University; MS Computer Science, Manipal University

• The vision is to Empower Business & Living.

Plan of Action for next 2 years

Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Aug 15ACTIVITIES

Extensive review of literature

Preparation of questionnaire and questions for personal interview

Sampling Design

Data collection after approval from concerned authorities

Data correction and Processing

Data analysis using appropriate analytical tools

Preparation of report

Final submission

Q / A

Thank You

RM SudhakarDirector & CEO, Netsoft Solutions India Pvt. Ltd.

www.rmsudhakar.com

http://www.linkedin.com/in/rmsudhakar