More and more small-to-medium-size businesses (SMBs) are using technology to punch above their weight against much larger competitors
BANGALORE, INDIA: A latest study on ‘Automating the Indian SMB', by Zinnov, a leading Globalization and Market Expansion Advisory firm, which has analysed the opportunities and challenges in technology adoption in the growing SMB sector in India. The study found that there is an addressable opportunity in 10 million small and medium businesses in the country as on date, and further identified leaders and laggards in the technology adoption lifecycle among SMBs in India. It says, this addressable opportunity is expected to reach 11 million by 2015, with 22% in the retail sector and 20% in professional services. Manufacturing, Food and Entertainment and Education are sectors with growing potential for technology adoption.
Indian SMBs are demonstrating significant potential to adopt technology, led by the need to be more efficient, improve ecosystem connect and to keep pace with the growing mobile workforce, apart from aiding payments/collections.Today, Accounting Solutions (45%), Order Processing (39%) and Design (32%) are the biggest areas where technology is being used, followed by Optimization (30%), People Management (24%), Procurement (23%) and Customer Acquisition (22%).
Few quick facts from the survey:
a) 55% of Indian SMBs are in the unorganized sector, where the business is run for subsistence by first-generation owners with few defined business processes
b) Excluding rural businesses, mom-and-pop stores and organizations without fixed premises or hired employees, the total addressable market size in India is 10 million in 2012. This is expected to reach 11 million by 2015
c) Retail and professional services are the largest verticals among addressable SMBs
d) 94% of the total addressable SMBs have fewer than 10 employees
e) While more than 5 million SMBs have PCs, around 2 million are connected to the internet and half a million have websites
Many SMBs are characterized by low PC adoption and manual processes, as the owners are being old and traditional. SMBs need to be educated about how technology has been primarily seen as an enabler in reducing operational costs. Their motivation to adopt technology includes the high level of flexibility and customization offered by technology vendors, and is influenced by their peer group and partners. Owners who are young and energitic, the present generation are influenced by the needs of technology adoption.
GO Thu Apr 4 at 04:48 PM
"Retail and professional services are the largest verticals among addressable SMBs". This itself can open up huge volume of business for technology firms. Greytip Online http://www.greytip.in