1. 1 ICT for SMEs in Myanmar Presented by Thaung Su Nyein

2. 2 Self-Introduction Name: Thaung Su Nyein Email: tsn@planet.com.mm Name: Thaung Su Nyein Email: tsn@planet.com.mm –Joint-Secretary (2) Myanmar Computer Professionals Association (MCPA) –Managing Director Inforithm-Maze  A local ICT consultancy and development firm  Also, a publisher

3. 3 Today’s Agenda Our experiences with providing/utilizing ICT services for SME’s in Myanmar Our experiences with providing/utilizing ICT services for SME’s in Myanmar Needs and Challenges Needs and Challenges Problems Problems

4. 4 Focus Definition of E-business Definition of E-business –Any ICT process conducted over a computer- mediated network to enhance business My presentation to focus on: My presentation to focus on: –Process –Infrastructure –Technologies –Market –Note: this presentation is about challenges

5. 5 Challenges

6. 6 Awareness Farmers know very little about ICT Farmers know very little about ICT –Same goes for virtually every other sector Many business owners Many business owners –Do not use computers –Do not have email Key decision makers not aware of ICT Key decision makers not aware of ICT –Reluctant to allocate significant resources

7. 7 Culture Way of doing business Way of doing business –Very casual –Oral –Personal

8. 8 High Costs of ICT Computers are expensive Computers are expensive –Compared against labor costs In a typical developed country In a typical developed country –5 clerks x $2,000 –= $10,000 per month ($100K per year) –Biz owner would more likely spend $10,000 on a customized IT system In developing countries In developing countries –5 clerks x $30 –= $600 per month

9. 9 Unclear Requirements Customers can’t adequately explain what they want or need Customers can’t adequately explain what they want or need Scope is always changing Scope is always changing

10. 10 Changing Procedures Office procedures may change Office procedures may change Government regulations and procedures may change Government regulations and procedures may change

11. 11 Domain Knowledge Lack of domain knowledge Lack of domain knowledge –ICT providers also clueless about business nature

12. 12 Service Quality Traditionally, Myanmar’s quality of service across all sectors is weak Traditionally, Myanmar’s quality of service across all sectors is weak –It takes a lot of effort to get a waiter’s attention at a restaurant –Owner-first mentality  Instead of customer-first

13. 13 Technology Changes Advancements in technology are fast Advancements in technology are fast Difficult to keep pace, for both Difficult to keep pace, for both –SMEs –ICT providers –Regulators

14. 14 General Business Skills ICT providers are technically strong ICT providers are technically strong But, weak in other business aspects But, weak in other business aspects –Marketing –Public relations –Human resource management –Contractual agreements –Legal matters –Government regulations

15. 15 Management Skills Technopreneurs may sometimes lack management skills Technopreneurs may sometimes lack management skills –Start up a company with 3 friends –How to manage it when 100 employees?

16. 16 Market Situation Spending power of SMEs is important Spending power of SMEs is important If the market is down, then ICT usually goes to the bottom of things-to- do list If the market is down, then ICT usually goes to the bottom of things-to- do list

17. 17 Market Size & Type When market is too small, ICT providers may lose focus When market is too small, ICT providers may lose focus Business types are still more labor- intensive, not too much based on information yet Business types are still more labor- intensive, not too much based on information yet

18. 18 Software License Fees Some solutions may require use of expensive proprietary software products from overseas (i.e. Oracle database server) Some solutions may require use of expensive proprietary software products from overseas (i.e. Oracle database server) –$100,000 for Oracle license –$2,000 for local ICT developer

19. 19 Problems

20. 20 Electricity In some provincial cities, electricity is still a problem In some provincial cities, electricity is still a problem

21. 21 Telecoms Infrastructure In some provincial cities, phone exchanges do not yet support data transfer capabilities In some provincial cities, phone exchanges do not yet support data transfer capabilities –No dial-up access to the Internet –Costly satellite-based solutions available, but not affordable for most SMEs

22. 22 Intellectual Property Intellectual Property is the lifeline of ICT firms Intellectual Property is the lifeline of ICT firms –We want to protect our innovations How do we also convince the market to not accept pirated software usage? How do we also convince the market to not accept pirated software usage?

23. 23 Needs

24. 24 Local Language Myanmar Character set still not yet available to developers Myanmar Character set still not yet available to developers How to translate English terms to Myanmar language? How to translate English terms to Myanmar language?

25. 25 Venture Capital On average, an American company receives $8 million from VC firms On average, an American company receives $8 million from VC firms Amount of VC funding in the US from 2000-2004, in billions, in US dollars

26. 26 Human Resource For SMEs to succeed, Myanmar needs higher levels of standards in education and training For SMEs to succeed, Myanmar needs higher levels of standards in education and training –Managers –Executives –Software engineers –Hardware engineers The levels of most graduates of Myanmar universities are lower than overseas graduates The levels of most graduates of Myanmar universities are lower than overseas graduates –Some Myanmars are geniuses, but most of us aren’t

27. 27 ICT From Beginning Need to include ICT from the beginning in the core basic education curriculum Need to include ICT from the beginning in the core basic education curriculum Need to design ICT literacy modules for adults / managers Need to design ICT literacy modules for adults / managers

28. 28 Access Devices High cost of computers and other access devices High cost of computers and other access devices –Desktops – 5 lakhs –Laptops – 15 lakhs –PDAs – 4-5 lakhs –Mobile Phones – 10 lakhs  GPRS / Data not yet available Retail prices high – because of high import barriers Retail prices high – because of high import barriers –Taxes –Procedures Low demand due to high prices Low demand due to high prices –The Indian Simputer began selling for $200 in 2003 as volumes increased

29. 29 Media It is up to the mass media (TV, radio, newspapers, journals, magazines) to promote the benefits of ICT It is up to the mass media (TV, radio, newspapers, journals, magazines) to promote the benefits of ICT If we do not expose ourselves, we will get left behind If we do not expose ourselves, we will get left behind

30. 30 Access Nationwide Using any means available, Myanmar needs to hook up Using any means available, Myanmar needs to hook up Some available technologies (i.e. satellites) may be too costly Some available technologies (i.e. satellites) may be too costly –Government-led demand to push costs down Resource-sharing schemes Resource-sharing schemes –Public Access Centers

31. 31 ICT Cartoon

32. 32

33. 33 Conclusion Myanmar has come a long way in terms of ICT development compared to just 3-4 years ago Myanmar has come a long way in terms of ICT development compared to just 3-4 years ago But in the past 2 years, no major ICT innovations or projects were implemented successfully But in the past 2 years, no major ICT innovations or projects were implemented successfully SMEs and ICT providers need to reacquaint themselves SMEs and ICT providers need to reacquaint themselves

34. 34 Thank You Any comments? Thaung Su Nyein Joint-Secretary (2) Myanmar Computer Professionals Association