leverage ebiz for growth of msmes

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Dolly Bhasin SPH Consultancy & Eservices Pvt. Ltd. Leveraging E-Business for Growth of SMEs

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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.

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Page 1: Leverage ebiz for growth of MSMEs

Dolly BhasinSPH Consultancy & Eservices Pvt. Ltd.

Leveraging E-Business for Growth of SMEs

Page 2: Leverage ebiz for growth of MSMEs

Ms. Dolly Bhasin is a Knowledge Entrepreneur and has been a serial entrepreneur for last 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 medalist Electronics and Communications Engineer with specializations in Sales and Marketing, Business Administration (Singapore) and Masters in Tourism (Nottingham). Overall she has over 26 years experience in diversified areas in applying ICT in Businesses as well as government and has implemented over Rs 50 crores worth projects in India, some of them winning awards and accolades.

A recipient of special award from Mayor of Los Angeles at USABF 2009, Goldman Sach

award (2009) and Golden Icon award for a project SENET (2005) for Min of MSME. She has 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 and consulting to SMEs and Tourism businesses. Supporting entrepreneurs through elearning and knowledge dissemination and conducting training programs for 20 countries on SME issues, SPHCES has impacted over 30,000 entrepreneurs directly and over a million indirectly. SPHCES actively supports and incubates student startups to develop innovative products and develop GO TO MARKET strategies. The e-marketing services to SMEs are being launched with the help of strategic partners using web, mobile and digital devices.

Page 3: Leverage ebiz for growth of MSMEs

What is E-Business? E-business (electronic business) is the

conduct of business processes using electronic mediums (generally on the Internet).

These electronic business processes include buying and selling products, supplies and services; servicing customers; processing payments; managing production control; collaborating with business partners; sharing information; running automated employee services; recruiting; and more.

Page 4: Leverage ebiz for growth of MSMEs

Growth of E-Business in India Forecasts predict that B2B revenue will soon far

exceed 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 Manufacturing

pipeline 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…..

Page 5: Leverage ebiz for growth of MSMEs

Current E-Business Adoption in Indian SMEs Mostly the SME Adoption of Ebusiness has been on

retailing on the Internet (also called e-tailing) or in Ecommerce (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 of online users, the precursor to a critical threshold of sellers & buyers

Page 6: Leverage ebiz for growth of MSMEs

Business Automation◦ Finances◦ Accounting and Payroll◦ HRM◦ Sales and Marketing◦ Business Communications

Differentiators – Faster, More Geographic spread, global markets, 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

Why E-Business?

Page 7: Leverage ebiz for growth of MSMEs

EC + BI + CRM + SCM + ERP Ecommerce: enable the buying & selling process, is about

transactions Business Intell igence refers to the gathering of secondary and

primary information about competitors, markets, customs and more Customer Relationship management involves retaining both

business and individual customers through strategies that ensure their satisfaction with the firms and its products.

Supply Chain Management involves co-ordination of distribution channels to deliver products and services effectively and efficiently to customers.

Enterprise Resource Planning refers to back office operations such as order entry, purchasing, invoicing, inventory control, etc. to plan and manage the resources of the enterprise.

What is E-Business?

Page 8: Leverage ebiz for growth of MSMEs

E-Business Community

Page 9: Leverage ebiz for growth of MSMEs

E-Business Adoption in SMEs

Page 10: Leverage ebiz for growth of MSMEs

Ebusiness vs Ecommerce

E Business E business is a broader aspect

with e commerce, Internet marketing, e procurement etc.

E-business applications strive to give a good idea of their company, promoting the values they use to market their business

Transactions involving money are "e Commerce" activities including the interactions with business partners, customers, vendors

E Commerce E commerce refers to online

transactions - buying and selling of goods and services over the Internet involving transaction of monetary nature

E commerce is a subset of E Business.

E-commerce focuses on appearance much more than e-business.

Page 11: Leverage ebiz for growth of MSMEs

Ecommerce in India India's e-commerce market was worth

about $3.8 billion in 2009, it went up to $12.6 billion in 2013.

In 2013, the e-retail market was worth US$ 2.3 billion.

About 70% of India's e-commerce market is travel related.

India has close to 10 million online shoppers and is growing at an estimated 30%

CAGR vis-à-vis a global growth rate of 8–10%.

Electronics and Apparel are the biggest categories in terms of sales.

Page 12: Leverage ebiz for growth of MSMEs

Tips for E-Business Adoption in SMEs 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 and

knowledge of workforce, tools, techniques) Methods to improve E-Biz Adoption ◦ Workplace Learning and Continuous Learning (elearning?)◦ Knowledge sharing

Page 13: Leverage ebiz for growth of MSMEs

IT Training Sequence

Middle

IT T

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FrontlineTop

Training for E-Business Adoption

Page 14: Leverage ebiz for growth of MSMEs

• 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-security

and 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 achieve

maximum benefits.

ICT Policy SME PolicyICT Policyfor SMEs

Role of Government in E-Business

Page 15: Leverage ebiz for growth of MSMEs

information

77M 1000M500MUsers

networks

400M

ReadBuy

Publish

Trade

1994 2003

Talk

2006

communication

1998 2000

Relate?

2010+

Promoting E-Business

Page 16: Leverage ebiz for growth of MSMEs

Connectivity:Better & faster communicationsGlobal connectivity

Networking Access to global markets

Productivity:Just in Time ProductionKnowledge driven Enhanced learningSeparates the Information about

product from physical productDistribution and Logistics

• Competitiveness:

– Creation of Virtual Value chain

– Supply Chain Management

– Bring Buyers and Suppliers together

– Faster Reach and Response

– Collaboration amongst small service providers to deliver larger orders

• Knowledge Power:

– Better Skills, Knowledge, Attitudes

– Cope with Adverse Scenarios

– Strategic Thrusts to capture Global Markets

E-Business Benefits to SMEs

Page 17: Leverage ebiz for growth of MSMEs

SPH Consultancy & eServices Pvt. Ltd.D 251, Ashok Vihar Phase 1, Delhi 110052

Tel: 91-11-47591321Email:[email protected]

Web: www.sphconsultants.com