Leverage ebiz for growth of MSMEs

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Ebusiness offers SMEs away to gain competitive advantage. Ebusiness as opposed to Ecommerce helps to provide e-enablement to all aspects of business from manufacturing processes to HR,marketing,finance and sales,etc...and not just the selling or buying through electronic means.

Transcript of Leverage ebiz for growth of MSMEs

  • 1. Dolly BhasinLeveraging E-Businessfor Growth of SMEsSPH Consultancy & Eservices Pvt. Ltd.

2. Ms. Dolly Bhasin is a Knowledge Entrepreneur and has been a serial entrepreneur forlast 11 years. She had worked for 15 years in Sukhadia University, Indchem Electronics,LSS Inc. before starting her own company SPH Consultants in 1989. A gold medalistElectronics and Communications Engineer with specializations in Sales and Marketing,Business Administration (Singapore) and Masters in Tourism (Nottingham). Overall shehas over 26 years experience in diversified areas in applying ICT in Businesses as wellas government and has implemented over Rs 50 crores worth projects in India, some ofthem winning awards and accolades. A recipient of special award from Mayor of Los Angeles at USABF 2009, Goldman Sachaward (2009) and Golden Icon award for a project SENET (2005) for Min of MSME. Shehas been invited in many National/International SME conferences and seminars. SPH Consultancy & eServices Pvt. Ltd. is a 5 yr old venture with focus in eServices andconsulting to SMEs and Tourism businesses. Supporting entrepreneurs throughelearning and knowledge dissemination and conducting training programs for 20countries on SME issues, SPHCES has impacted over 30,000 entrepreneurs directlyand over a million indirectly. SPHCES actively supports and incubates student startupsto develop innovative products and develop GO TO MARKET strategies. The e-marketingservices to SMEs are being launched with the help of strategic partners usingweb, mobile and digital devices. 3. What is E-Business? E-business (electronic business) is theconduct of business processes usingelectronic mediums (generally on theInternet). These electronic business processesinclude buying and selling products,supplies and services; servicing customers;processing payments; managing productioncontrol; collaborating with business partners;sharing information; running automatedemployee services; recruiting; and more. 4. Growth of E-Business inIndia Forecasts predict that B2B revenue will soon farexceed business-to-consumers (B2C) revenue. Early entrants in Mfr. were Automobile sector Maruti integrates its entire value chain of Suppliers, Vendors,manufacturing and distribution Hero Cycles integrates its entire ERP and Manufacturingpipeline with sales and Marketing to achieve JIT inventory Many more adoptions but miles to go New Business Models in Travel Business IRCTC MakeMyTrip iXigo Many More.. 5. Current E-Business Adoption in IndianSMEs Mostly the SME Adoption of Ebusiness has been onretailing on the Internet (also called e-tailing) or inEcommerce (Buying and Selling on Web), is fuelled by Third party marketplaces (Alibaba, Indiamart, Flipkart, etc.) Promotional sites (Groupon, Snapdeal, etc.) Info Intermediaries- GlobalSources, Product Finder, etc. Successful E Business depends on a critical threshold ofonline users, the precursor to a critical threshold of sellers& buyers 6. Why E-Business? Business Automation Finances Accounting and Payroll HRM Sales and Marketing Business Communications Differentiators Faster, More Geographic spread, globalmarkets, new Biz models E-Biz allows interesting Tech Adoption Strategies Use of Shared resources Cloud (SAAS, PAAS and IAAS) Use of Mobile Technologies Web for distribution of Info and Order booking Internet of Things allows near natural interfaces 7. What is E-Business? EC + BI + CRM + SCM + ERP Ecommerce: enable the buying & selling process, is abouttransactions Business Intelligence refers to the gathering of secondary andprimary information about competitors, markets, customs and more Customer Relationship management involves retaining bothbusiness and individual customers through strategies that ensuretheir satisfaction with the firms and its products. Supply Chain Management involves co-ordination of distributionchannels to deliver products and services effectively and efficientlyto customers. Enterprise Resource Planning refers to back office operationssuch as order entry, purchasing, invoicing, inventory control, etc. toplan and manage the resources of the enterprise. 8. E-Business Community 9. E-Business Adoption inSMEs 10. Ebusiness vs EcommerceE Business E business is a broader aspectwith e commerce, Internetmarketing, e procurement etc. E-business applications strive togive a good idea of theircompany, promoting the valuesthey use to market their business Transactions involving money are"e Commerce" activities includingthe interactions with businesspartners, customers, vendorsE Commerce E commerce refers to onlinetransactions - buying and sellingof goods and services over theInternet involving transaction ofmonetary nature E commerce is a subset of EBusiness. E-commerce focuses onappearance much more than e-business. 11. Ecommerce in India India's e-commerce market was worthabout $3.8 billion in 2009, it went up to$12.6 billion in 2013. In 2013, the e-retail market was worthUS$ 2.3 billion. About 70% of India's e-commercemarket is travel related. India has close to 10 million onlineshoppers and is growing at an estimated30% CAGR vis--vis a global growth rate of810%. Electronics and Apparel are the biggestcategories in terms of sales. 12. Tips for E-Business Adoption inSMEs Visioning the E-Business Transformation Business Process Assessment Building Roadmap and Execution Plans Developing Organizational Capacities SKILLS - for doing the desired work (the technical skills) WILL - the attitude towards work (soft skills) Capacity the enabling environment (technology, legal, Skills andknowledge of workforce, tools, techniques) Methods to improve E-Biz Adoption Workplace Learning and Continuous Learning (elearning?) Knowledge sharing 13. Training for E-Business AdoptionIT Training SequenceMiddleIT Training ContentAttitude Knowledge SkillsTop Frontline 14. Role of Government in E-Business Building SME trust and confidence e-government trust : trust of the citizen/SMEs SME-trust: trust of SME's in E-biz as a Business enabler Building SME Common e-Infrastructure Facilitation of e-governance through e-identity, e-signatures, e-securityand e-trust mechanisms Secure Payment Gateway Trade Exchange Platforms Policies need to Align with Change in Business Environment Global Changes in Standards and Best Practices The ICT policies and SME policies need to be synergised to achievemaximum benefits.ICT Policy ICT Policy SME Policyfor SMEs 15. informationnetworksTalkUsers 77M 400M500M 1000MReadBuyPublishTrade1994 20032006communication1998 2000Relate?2010+Promoting E-Business 16. E-Business Benefits to SMEs Connectivity:Better & faster communicationsGlobal connectivity Networking Access to global markets Productivity:Just in Time ProductionKnowledge drivenEnhanced learningSeparates the Information aboutproduct from physical productDistribution and Logistics Competitiveness: Creation of Virtual Value chain Supply Chain Management Bring Buyers and Supplierstogether Faster Reach and Response Collaboration amongst smallservice providers to deliver largerorders Knowledge Power: Better Skills, Knowledge,Attitudes Cope with Adverse Scenarios Strategic Thrusts to captureGlobal Markets 17. SPH Consultancy & eServices Pvt. Ltd.D 251, Ashok Vihar Phase 1, Delhi 110052Tel: 91-11-47591321Email:sphces@sphconsultants.comWeb: www.sphconsultants.com