Interview With Rajesh Kumar , Business Head – Portal Solutions, Milagrow
Has IT industry given due support to SMEs?
Traditionally, IT industry has been after large scale SI or ERP contracts because the size of single deal is multi-million dollar. Small and medium businesses do not have capex capability to generate high interest in the traditional IT vendors. Additionally, SME do not have the same business problems as large organizations, and hence their solution requirements are considerably different. Needless to say, there is a gap between the needs of SMEs and IT as we know it.
What are the challenges that an SME faces while implementing IT tools?
Challenges are many. The first and foremost is identification of a reliable partner who would help them identify a solution to their real business problem, not something that the vendor wants to sell! The second is identification of a trustworthy vendor who can do the actual implementation. Sometimes these two roles can be performed by the same entity as well. The second challenge is internal, which is the mindset. Many times, CEOs of many SMEs do not perceive the need to invest in IT to gain any competitive advantage because their own IT awareness is not high. This is changing now. Of course, there are problems in not knowing what type of in-house IT setup to have.
How can an SME decide the right ERP for its business?
It requires no expertise to say that the right investment in the right IT tools brings in a competitive advantage to a business. The challenge is to identity the right IT tool. Organisations must consider a mix of on-premise as well as On-Demand IT solutions. Since SMEs cannot invest in complex, lengthy and expensive RFP process, ERP or any other solution an important value point is the quality of references. Organisations must also look for vendors that have dedicated SME focus. Also, a solution must be judged to be better if the solution is specialized for your industry. This requires less customisation and saving of precious rupees. And last, but not the least, the vendor must be trustworthy.
How can government assist the SMEs in becoming technology driven?
