Importance of ICT to SMEs

BANGALORE,INDIA: A frequently cited reason behind SMEs' slowness in adopting ICT is that they lack the financial muscle required for it. Beyond doubt, this argument holds water -- lack of finance has always remained an Achilles' heel for many of our small entrepreneurs. Lack of awareness and ICT illiteracy are equally responsible for this, which becomes evident when we consider the poor rate of adoption of even some inexpensive ICT technologies among them.

There are several mental roadblocks that are responsible for making ICT systems unpopular among SMEs. A majority of them nurture the misconception that ICT solutions always dig deep into one's pocket and they are therefore basically meant only for larger business.

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Besides lack of awareness, ICT illiteracy is also responsible. Many SMEs realize that ICT is critical to productivity and performance but due to lack of technical knowledge they find themselves at a loss when needing to choose the appropriate ICT solution. Some of them who invest in ICT systems fail to benefit from these systems due to inability in implementing or maintaining these systems appropriately.

SMEs can shift from our conventional way of doing business to the smarter ICT way, starting with comparatively cheaper solutions like e-commerce, B2B marketplace or cloud computing and then moving towards more sophisticated solutions like CAD, CAM, Design tools, CRM, online exhibition, vendor management services, software for financial planning and management, etc.

Adopting ICT may not seem profitable as of now, but SMEs must keep in mind that in today's marketplace, which is characterized by increasing competition, these technologies, sooner or later, will be critical to success. They cannot afford to shut their eyes to these developments, which have potential enough to dictate success and survival of a small business. The ones lagging behind will suffer.

Source: www.smetimes.in