Post on 22-Dec-2015
description
Role of IS in SMEs/ MSMEsGROUP 3 |ADHIRAJ|ASHESH|INDERJIT|MEGHNA|PRATEEK|REVIN
OUTLINE
Defining MSMEs
Factsheet
Why IT/IS adoption in MSMEs?
Possible Information Systems Solutions for SME
Level Of SMEs - IT/IS adoption
Issues and challenges
Case Studies
Defining MSMEsManufacturing Enterprises –
Investment in Plant & Machinery Service Enterprises-Investment in Equipment
Description INR INR
Micro Enterprises Upto 25Lakh Upto 10Lakh
Small Enterprises Above 25 Lakh & upto 5 Crore above 10 Lakh & upto 2 Crore
Medium Enterprises above 5 Crore & upto 10 Crore above 2 Crore & upto 5 Crore
FactsheetSMEs employ close to 40% of the work force
The country's 1.3 million SMEs account for 40% of India's total exports
MSMEs contribute only 8% to GDP
Why IT/IS adoption in MSMEs?
ResponsivenessIncreased turnoverBetter customer serviceBetter capacity utilizationLower working capital requirementAccurate forecastingReduction of manpower
GlobalizationImproved overall efficiencyFlexibility
Possible Information Systems Solutions for SME
Accounting software such as Tally In house developed customised software Integrated Transactional Information Systems such as
Radix, MakeESS, Octopus-Eand Tech Solutions etc. Micro ERP systems such as NAVISION Web Enabled ERP systems such as iBaaN, IFS etc.
Level Of SMEs - IT/IS adoption
• PC equipped with advanced software such as database and ERP
• Internet• Intranet• Video
conferencing• Creating websites
• PC equipped with basic hardware and software
• Land line• Phone• Fax• Mobile
BASIC
COMM
UNICATIO
N BASIC IT/IS
ADVAN
CED
COM
MIU
NICATIO
N
ADVANCED
IT/IS
Issues and challenges
• Lack of Awareness about technology
• Lack of IT support personnel
• Lack of IT Literacy
• Lack of Experience in Using Consultants
Case Study: Ayush Hospital
Situated in Bhubaneshwar with no other branches anywhere.
Provides a large number of facilities that range from cardiac to providing MRI scans.
The MIS is designed to manage administrative, clinical and financial aspects of the hospital.
A network of 35 terminals located in different departments
The software used is PCS Prodoc
The IS at Ayush Hospital
General Display
Reception Billing Costing
Stores Labs Pharmacy
OT Wards User
Impact of MIS implementation
Integration of various departments in the hospital which ensures smooth functioning.
Inventory control got better
Reduction in time of various patient care processes.
Increase in number of patients by 20%
Average increase in revenue due to this increase number by Rs 20000
Reduction in number of staff due to MIS=5
The Return on Investment due to MIS was 314%
Case study 2
Company A is the oldest surgical disposable needles and syringes manufacturing company
With 100 employees, it enjoys 15 percent market share in the disposable needles and syringes market
Plant and machinery together with the technology was brought from Korea. It is an ISO 9001 certified company.
IS implementation at the company
Previous approach Post liberalization the company enjoyed a monopoly status
It did not have a proper IS for manufacturing and other peripheral business activities.
Present Approach: The company adopted proper IS practices (in 1991) that focused on
fast and accurate flow of information.
It invested extensively in EDI, internet, extranet, intranet, web sites, bar-coding, fax, etc. and framed a proper IS strategy
Company also hired professional help outside from consultants
Impact of MIS implemetation
Faster communication that resulted in increased responsiveness to customers.
The information about the suppliers could be tracked online
Automatic release of purchase orders.
Online information for internal functional control
Conclusion
Analyse how IS can benefit the organization.
The companies should not defer implementation of IS to the extent where their existing processes become outdated.
Proper implementation of IS can result in higher returns, stable processes and improved customer service for the organization
Right technology, Right time.
THANK YOU!!!