MSME E-Competitiveness
Micro, Small and Medium Enterprises (MSMEs) are very important contributors to GDP, exports and employment in India.
While large enterprises have the financial and technical resources to invest in ICTs and reap the resulting benefits, the same is not possible in case of MSMEs. In some cases large Indian enterprises have attained world-class scales and efficiencies but MSMEs continue to lag behind their global counterparts. Unless the MSME sector proactively embraces ICT and realises its benefits, India, as an economy, is unlikely to achieve its true potential.
Attaining competitiveness is a major challenge faced by Indian MSMEs. ICT can play a very important role in making MSMEs globally competitive. Many studies have proven that a higher level of ICT penetration and utilisation by MSMEs makes them more competent and productive. The ICT use has very positive impact on MSMEs working in different sectors, be it Pharma, Textile, Automobiles or any other sector. However different sectors are at different levels of E-readiness and differ in ICT acceptance.
In general, the state of ICT adoption by Indian MSMEs is far from encouraging and is one of the major handicaps in their path of becoming globally competitive. A majority of the MSMEs are still in the nascent stages of ICT adoption. The foremost reason being their lack of knowledge about the business performance improvement potential of ICT.
The focus is on adopting best practices to exploit the opportunities provided by ICTs to improve performance and visualize a “digital SME” in the process characterized as:-
· An MSME whose products and services are predominantly digital;
· An MSME which uses digital methods as the primary means of carrying out core operations - marketing, sales, service etc (e.g. a pure dot com);
· An MSME that exploits the benefits of digital methods to a significant extent.
Project Vikas
Project Vikas supported by NMCC and Microsoft was started in February 2006 with the objective to promote the successful adoption of Information and Communication Technology (ICT) by micro, small and medium-sized enterprises in India and contribute to their competitiveness.
In this section, you will find the experiences and work done for the Information and Communication Technology (ICTs) under project VIKAS in 25 MSME clusters. The Programme is currently implemented in 6 clusters. In implementing VIKAS, strategic partnerships have been established with cluster level associations and national level institutions. Project VIKAS facilitates the progressive process of investing in information and communications technologies (ICT); applying them to transform business processes like market research, production, finance and management; improving firm management and technical skills; and transacting business with other businesses, governments and manufacturing units by better use of ICTs.
Cluster E readiness Assessments
Under project VIKAS as a first step cluster e readiness studies are conducted to understand the different pressure points in the value chain where ICT can improve the competitiveness of MSMEs. So far the following studies have been completed:
· Tirupur Knitwear Garment Cluster
· Pune Auto Component Cluster
· Ahmedabad Pharmaceutical Cluster
· Agra Leather Cluster
· Chennai Auto Component Cluster
· Ludhiana Textiles and Garment Cluster
· Noida General Engineering Cluster
· Noida Textiles and Garments Cluster
Pursuing activities in the sectors/ areas of manufacturing, at the cluster level the programme is implemented by Apex Cluster Development Services (ACDS) a Delhi based cluster development consulting company.
News from clusters
· E readiness centre at Tirupur to be inaugurated soon
· Presentations by PWC on Business Processing Mapping in Pharmaceutical Cluster Ahmedabad on 24 April 2006
· Seminar on CRM for Pharmaceutical companies held in Ahmedabad on 24 April.
· SME days celebrated at Pune, Tirupur and Delhi in December 2006