| Small and medium-sized enterprise (SMEs) has | | | | Private Limited (ACPL). ACPL, one of the world's |
| become the talk of town today. SMEs can be well | | | | largest producers of empty hard gelatin capsules has |
| defined as organizations with turnover that falls | | | | chosen SAP because of its strong presence in India, |
| below some specific limits. | | | | great service backup & support. |
| A lucid elucidation of the term SME would further | | | | The company is currently running five plants situated |
| manifest its close association with European | | | | in Maharashtra. These plants are successfully serving |
| commission (EU). The abbreviation, SME is generally | | | | about 1, 000 customers worldwide. |
| used in the EU & many other international | | | | The general manager (IT), Mr. Nitin J. Parekh, says, |
| organizations including World Bank, the United States | | | | "We choose SAP because of its strong presence in |
| & the WTO. The term has also become quite | | | | India & the positive response of several pharma |
| familiar in many other countries. | | | | companies who were already using SAP". |
| Earlier, European commission had its own definition of | | | | ACPL was able to solve many problems during the |
| what constitutes an SME; however, EU has now | | | | implementation of SAP. Currently the company |
| standardized the concept. The current definition of an | | | | focuses on integrated IT network. This facilitated the |
| SME goes like this "companies with fewer than 50 | | | | organization to make quicker & instant decision. |
| employees are 'small' & those with fewer than | | | | Director of Associated Capsules Private Limited Mr. |
| 250 are 'medium' sized companies". | | | | Karan Singh confirms, "SAP has brought transparency |
| Association with SME may prove to be the source of | | | | into the system. Very soon, our customers will be |
| ultimate and ever-increasing progress to many | | | | able to place orders through the Internet". |
| entrepreneurs. Clicking on the right technology is the | | | | Navin fluorine, a leading fluorine & specialty |
| key to success. | | | | chemicals company choose SAP's, ERP solution. |
| SMEs today must be totally prepared to accept | | | | Choosing SAP has offered pure business solutions to |
| considerable challenges and also be thoroughly | | | | the organization. Now Navin fluorine is rich in |
| equipped with all the necessary assets to deal with a | | | | capabilities to achieve significant savings. This is |
| client-base that is inquisitive, intelligent and well | | | | facilitated by SAP's ability to track complex |
| educated. | | | | procedures. |
| Today, SMEs have shifted their focus to information | | | | Sanjay Mittal, head of IT at Navin fluorine quotes, |
| technology (IT) as the industry has realized that IT | | | | "SAP has helped us become a truly integrated, |
| plays a prominent role in the current economic | | | | process-based organization that allows us to respond |
| progress worldwide. | | | | to market challenges". Within just a year after SAP |
| The majority of SME Business sectors now consider | | | | was implemented the company enjoyed significant |
| IT as their key to success & economic growth. | | | | benefits. These benefits included smoother flow of |
| IT in conjunction with calculative business strategy is | | | | information, enhanced productivity and improved time |
| the magic potion for the growth of SME. | | | | to market. In a Nutshell, the company has |
| Most entrepreneurs across the globe have a notion | | | | successfully been able to recover its return on |
| that the ever-increasing competition may prove to | | | | investment (ROI) within the first year of |
| be a big hurdle for SMEs. However, experts believe | | | | implementation. |
| that implementation of correct technology that would | | | | Not only Navin fluorine & Associated Capsules |
| offer a unified & updated view of operations is | | | | Private Limited have benefited by this newest |
| the key to enhanced business-process-efficiency. | | | | technology, but also thousands of SMEs across the |
| Including IT in to a business unit may not be an easy | | | | globe have benefited and enhanced their productivity |
| task. Most businesses initiate with a simple system, | | | | successfully. |
| one that works to maintain the basic business | | | | Choosing SAP offers the following benefits to an |
| operations indicative of a start-up company. | | | | organization:a) SAP offers pure business solutionsb) |
| What most businesses ignore is upgrading the | | | | SAP offers local help within a countryc) SAP is a |
| technology. This culminates into inadequate collections | | | | global leadership in the ERP solution spaced) Manages |
| of outmoded applications. | | | | growth in an organizatione) SAP has a global resource |
| Another flipside of having an obsolete system is the | | | | base and offers an organization, the opportunity to |
| information gap. Data Stored in multiple locations is | | | | expand its' presence across the globe.f) Today, SAP |
| often not connected resulting in business process | | | | is the only vendor that offers the Auto CAD |
| breakdowns & loss in revenue. | | | | interface that allows engineering designs to be fed |
| Installing an upgraded system would offer great | | | | onto a bill of material, thereby making it easy for the |
| profits to an SME. The benefits also include instant | | | | customers to make decisions.g) It is the market |
| optimization of business processes, reduction in | | | | leader in offering solutions to SMEs. |
| operational costs & enhancement in customer | | | | SAP is a pioneer & the leader in the Indian SME |
| acquisition & retention. An SME can efficiently | | | | market. It is the ultimate business solutions in the |
| cut down its total cost of ownership with the help of | | | | country and offers the crème of business |
| adopting newest IT technology. | | | | solutions to the SMEs here. |
| What business solution should SMEs look for? | | | | In the first quarter of 2006, SAP has been successful |
| This may be the question that puzzles most | | | | in signing on over more than SME customers. |
| entrepreneurs. The solutions are just few words | | | | SAP currently focuses on offering two solutions |
| away. Read the points given below to look out for | | | | designed specifically for SMEs namely, SAP Business |
| adequate business solution.a) Industry Specificity: | | | | one & mySAP All-in-one solutions. |
| Industry specificity offers best practices and domain | | | | SAP business One is a user-friendly business & |
| knowledge of the vertical/sub vertical that the SME | | | | operational management solution for businesses that |
| operates in.b) Flexibility/Scalability: This is one of the | | | | have few employees. The other facility, mySAP |
| most advantageous features that are really | | | | All-in-one is a prepackaged micro-virtualized templated |
| significant. An industry must be flexible enough to | | | | solution. It is equipped with content, tools & |
| incorporate current systems with existing disparate | | | | methodologies that facilitate effective implementation |
| or outmoded applications.c) Operational transparency: | | | | of turnkey. SAP channel partners sell, deploy and |
| The strict requirements of global accounting & | | | | support both SAP Business one & MySAP |
| corporate governance have pressurized businesses to | | | | All-in-one solutions. |
| possess greater transparency, time lines & | | | | As already discussed, SAP has contributed a lot to |
| accuracy in both financial reporting & managerial | | | | the Indian market. It has developed a strong partner |
| control.d) End-To-End & Real-Time Visibility: The | | | | ecosystem to offer mySAP All-in-one solutions to |
| up-to-the-minute upgraded information across | | | | most enterprises based in India. |
| manufacturing, customer relationship management, | | | | Alan Sedghi says, "Our business partners bring |
| & finance is the current demand of business | | | | extensive domain expertise in specific micro-vertical |
| environment.e) Integration: Ideal business software | | | | segments & geographies." |
| for SMEs is defined as one that is instinctive, flawless | | | | SAP is leading in India with over 20 mySAP All-in-one |
| and user-friendly. Hence business owners must | | | | partners in the country and that offer over 20 |
| consider software that is easy to integrate into the | | | | micro-vertical solutions certified by SAP. |
| existing system of the company.f) Ease-of-use | | | | Some of SAP partners includeo Bristle coneo Wiproo |
| & User Empowerment: Usability is the main | | | | Siemens Information Systems ltd.o Patnio Polariso |
| feature that must be considered as a key | | | | Oak Brooko Caritor |
| component by a company when choosing a software | | | | Some of the country's micro-vertical industries such |
| or adopting a technology.g) Analytics: Strategic and | | | | as automotive suppliers, Pharmaceuticals, |
| operational success of a company depends on an | | | | Construction, Rubber, Textiles, Apparels etc. are also |
| understanding of a company's customers & | | | | enjoying the benefits of SAP solutions. |
| prospects. In addition, a fact-based understanding of | | | | There are many customers who are contented with |
| company's suppliers, partners & employees in | | | | mySAP All-in-one solutions and Adeep locks, Navin |
| conjunction with wide economic indicators is | | | | Fluorine, DCM engg., Calcom Cements, Murudeshwar |
| extremely important. | | | | ceramics & Luxor writing are few of these |
| If we take a glimpse into the history, most SMEs | | | | customers. |
| trusted on limited business software. A traditional | | | | The launch of SAP Business One has also been quite |
| SME would run on an accounting & financial | | | | successful and there are plans to further enhance |
| reporting package. The payroll or sales management | | | | SAP's focus on the small & midsize businesses in |
| areas were managed by separate software. | | | | India. The president & CEO of SAP South Asia, |
| The main reason may be the non-affordability of | | | | Alan Sedghi adds, "We are witnessing very significant |
| these companies to embrace benefits of | | | | interest from Indian small enterprises for SAP |
| sophisticated, integrated company-wide ERP systems | | | | Business One. We have signed with Hewlett Packard |
| utilized by big businesses. | | | | (HP) as a national distributor & are also in |
| Times have changed now. SAP, one of the most | | | | discussion with a few more partners for expanding |
| popular business vendors has successfully come out | | | | our distribution reach". SAP has been eventually |
| with business management systems. These systems | | | | successful in building a multi tier channel ecosystem. |
| are specifically designed for SMEs. SMEs can now look | | | | SAP financing is also a strategic step by SAP |
| forward to deploy the most sophisticated business | | | | solutions based in South Asia to offer simple, cost |
| software solutions, that would offer them more than | | | | effective, predictable & financing for SAP |
| just financial & accounting updates. The newest | | | | customers who currently exist as well as those who |
| technology introduced by SAP would offer extensive | | | | are prospective customers. SAP financing is specially |
| capabilities to manage the entire business, covering all | | | | designed to meet the specific needs of the customer |
| specific & crucial areas. These solutions would | | | | by combining all relevant costs into a quantifiable |
| efficiently offer great profits to an SME. | | | | monthly payment. |
| Almost all SMEs across the globe understand the | | | | Leading analysts like frost & Sullivan have |
| importance of focusing more & more on IT. | | | | authenticated SAP's leadership and presented SAP, |
| However, the main hurdle they are facing is the | | | | the valuable "frost & Sullivan market leadership |
| inability to afford the exorbitant amount of | | | | award in India Mid-Market" for two years |
| investment. The low equity capital of SMEs serves as | | | | consecutively. |
| a barrier in receiving credit from a bank. This has left | | | | This is the biggest achievement for SAP. Hence, the |
| many entrepreneurs in this industry in a dilemma. | | | | award is enough to offer credibility to the business |
| SAP serves as the ultimate financial solution in this | | | | solutions. |
| regard. | | | | The software requirements of SMEs are experiencing |
| According to Alan Sedghi, President & CEO of | | | | a transformation. SMEs are under great pressure to |
| SAP South Asia, "SAP offers two solutions designed | | | | keep tabs on their processes & financial |
| specifically for small & midsize companies-SAP | | | | progress even more closely these days. |
| Business one & the prepackaged mySAP | | | | The main reason behind this is the introduction of |
| All-in-one solutions to the SMB segment in India". | | | | stricter accounting & corporate governance |
| He also adds- "SAP Business one is an easy-to-use | | | | requirements, the compulsion to agree with the US. |
| business & operational management solution for | | | | Sarbanes-Oxley Act & comply with the |
| emerging & dynamic businesses ranging in size | | | | international financial reporting standards. |
| from as low as a few employees". | | | | SAP has played a major role in promoting SMEs that |
| The SME sector constitutes approximately 95 | | | | were striving to face the tough competition in the |
| percent of the total industrial units in India. Small | | | | industry. |
| enterprises include 99.4 percent of the country's SME | | | | SAP possesses the most integrated, affordable |
| world. | | | | & business management solution. These |
| The current economy of SME is enjoying great | | | | powerful features of SAP have facilitated SMEs to |
| profits as per a global survey conducted by Crisil, | | | | move ahead and emulate in the industry. |
| HSBC Bank & grand Thortom. | | | | In a nutshell, SAP is ready to take SMEs to the next |
| Many SMEs in India have given a warm welcome to | | | | level. |
| SAP. One such company is Associated Capsules | | | | |