Article on IT adoption among SMEs

Without any preamble let me put it directly - at the macro level NO ONE Really! In the micro level a few ambitious Small enterprises are adopting IT and in that few, only the minority reap benefits from adopted IT.

This small minority makes a considerable impact on the IT industry’s overall revenue from the domestic market adding excitement to IT firms and media on the growth of enterprise applications market in India.

The Myopia : Growing market size for IT products is a direct result of SMEs adopting IT.

The fact : Growing market size for IT products is a direct result of a microscopic fraction of the small sector adopting IT.

What about the rest - the SME majority. They are far from right IT adoption.

Initial indications from our recently commissioned SME – IT survey proves my above comments.

Why do the majority still stay away from IT adoption? Good question.

This is what I have to say.

• They do not want transparency – Not really an IT problem …
• No one to guide them on IT adoption
• IT salesmen are the wrong ones to guide a small enterprise on IT adoption – at least many are not trained to handle a small enterprise.
• Lack of drive and determination from the management – CEOSMEs fears and feel shy and go into a shell - when IT salesmen use management jargons and technical terms to show up there wisdom ( Remember if you show up you will throw up)
• No plans to grow – let me run my firm as long as I can…..
• We tried – paid through our nose and burnt our hands …
• Confused …which vendor to select – everyone down the road nowadays is an ERP vendor ! Some says 2 lakhs …others 50 lakhs ??????

How should we drive IT awareness among SMEs ?

Here are my suggestions and comments

• “ By IT firms – through educating SMEs”
  Comment : (Remember education is not sales presentations, cocktails and dinner) IT firm apart from their sales team should have a SME mission team who instead of sitting before their PCs and Laptops move around from morning till evening in industrial areas, meet SMEs - talk to them (80% listening 20% talking) have Chay with them in the local tea shop, love him, learn from him……discuss and give digestible Gyan
• “SMEs should drive it themselves – it’s for them to realize…”
  Comment : Bad suggestion. If your IT organization pays you till your market realizes about the need for your product, enjoy that luxury.
• “Media should educate them”
  Comment : 100% I agree their role. Unfortunately Tech magazines like PC
  world, Chip, BenefIT etc are hardly read by SMEs in the manufacturing sector.
• “SME associations and Clusters”
  Comment : They should – but they have lots of lobbying and politicking to be done rather than educating their members ( There are exceptions however…..)

Let me end abruptly. Please let us have comments/suggestions from all Let me have your comments posted at http://www.itforsme.blogspot.com

Vinod Menon