Contribution since August,2008

National MSME Conclave19 November, 2014

Use of ICT to make MSME more competitive and sustainable

Tapan K. Patra Director

ACTO(Association of Competitive Telecom Operators)

Agenda• What is ICT• Why ICT is must for MSME• Adoption and business transformation through ICT• Issues to use ICT in MSME and it’s solutions• Use of Cloud solutions for ICT adoption• New scopes in ICT for MSME

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What is ICT

Information Communication Technology( ICT) is an umbrella term that includes any communication device or application, encompassing phones, ipad, email, internet, computer, network hardware and software, servers, satellite systems, optical fibre system and so on, as well as the various services and applications associated with them.

• It combines Information technology with communication technology for faster and efficient flow of information.

• Communication( Telecom/ Datacom) provides connectivity to flow information across geography.

• Business requires information on products, services, market, customer, policy rules etc and it has be updated which requires faster flow of information.

• Information to be collected, processed, communicated and to be presented as requires for.

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Flow of Information leads to Knowledge and knowledge transforms into wisdom which is essential for business vision & strategy

Why ICT for MSME

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In last five years ICT has changed the social eco system • 920 + million mobile connectivity • E- commerce and Online services• New terminology- Social media like Facebook, Twitter, linkedin, Whatsapp etc• Proliferation of smart phones, internet and usage of IT devices

Business eco system bound to get change with this change in social eco system• Online purchase/order,• Online payment • Delivery at home• Customer engagement• Compliances and transparency• Consumer surplus in terms of money &time

ICT adoption is not a mere choice now but MUST to survive

ICT adoption in MSME

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In last 5-10 years ICT has changed the business ecosystem

Information and Communications TechnologiesActing as an Enabler and as a Differentiator

ManagementTeam

Innovation

CommercialAdvantage

FinancialPerformance

CustomerValue

Business transformation through ICT

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Old State

• Less efficient• Lack of Innovation• Poor Management• Cost driven• Not Customer-Led• Lack of Planning• Lack of Investment• Lack of Growth

Step Change

• More Efficient• Some Innovation• Focused Management• Value Driven• Customer-Led• Business Planning• Investment Plan• Growth Recognition

• Improving Efficiency• Constant Innovation• Strong Management• Value Driven• Customer-Led• Planning Cycle• Continuous Investment• Continuous Growth

Continuous Improvement

Recognised scope for improvementLooked at their business objectively

Recognised weaknessesCompleted planning

Improved focusMade some investments (infrastructure, people)

Managing their business differentlyLooking for opportunities to improve

Constant recognition of what brings successMore optimistic and innovative environment

Better place to workThe right kind of growth

More profit

ICT is now recognised as contributing up to 50% of business growth

Business transformation through ICT

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Technology Adoption

Internet connectivityBroadbandEmailWebsiteLAN/WANWirelessApplication integration

ICT that impacts the business

Importance of ICTDemands of Customers

Demands of SuppliersIT skills within organisation

InfluencesSupport

Attitudes and Impact

Benefits gained to-dateReturn on investmentBusiness growth profileAttitude to future adoption

Business Processes

Ordering onlinePaying onlineSelling online

Online collaborationSharing knowledge online

Managing supplier relationships Managing customer relationships

Strategy and MotivationImportance of ICT

Demands of CustomersDemands of Suppliers

IT skills within organisationInfluences

Support

Importance of ICTDemands of Customers

Demands of SuppliersIT skills within organisation

InfluencesSupportBusiness

Transformation

Through ICT

ICT + Innovation+ Networking Miracle

Issues to use ICT in MSME and it’s solutions

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Issues

• High cost of IT & connectivity•  Broad band connectivity• Lack of power supply• Lack of confidence •  Lack of awareness of Internet use • Lack of skills.

Govt’s Initiative:Speedy implementation for NOFN project to provide broad band

connectivityNew broad band policy is being preparedAnnouncement of Digital India programDevelop 100 smart citiesE Governance programIncentives for MSME from DeitY/STPISkill development programFocus on ease of doing business

Solutions• Cost are reducing• Use of Cloud to avoid capex• Technology supports for low

power usage• Use of smart phones

increasing at very fast rate• Young generation tech savy

Use of Cloud solution

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• Capital Expenditure(CAPEX) is getting converted into operational expenditure (OPEX).

• Device and Local independent• Simple and cost effective• Pay as you use model facility • Supports custom made solution• MSMEs does not have to invest in IT personnel for

maintenance purpose.• Secure and maintained by service provider.• Local vendors are available to provide cloud service

Advantage of Cloud solution

New scope for MSME in ICT sector

New scopes in ICT for MSME

• VNO( Virtual Network Operator) is under consideration by DOT. It may open up a huge scope for MSME to resale of data, voice, video/content etc without having much capital investment.

• Cloud services• Smart city program• M2M (Machine to Machine communication) with many verticals like

• Transport, connected cars• Smart meter• Agriculture• E health

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Q & A

Questions - Answers

THANKS

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