Contribution since August,2008 National MSME Conclave 19 November, 2014 Use of ICT to make MSME more competitive and sustainable Tapan K. Patra Director ACTO(Association of Competitive Telecom Operators)

Agenda What is ICT Why ICT is must for MSME Adoption and business transformation through ICT Issues to use ICT in MSME and it’s solutions Use of Cloud solutions for ICT adoption New scopes in ICT for MSME 2

What is ICT Information Communication Technology( ICT) is an umbrella term that includes any communication device or application, encompassing phones, ipad, , internet, computer, network hardware and software, servers, satellite systems, optical fibre system and so on, as well as the various services and applications associated with them. It combines Information technology with communication technology for faster and efficient flow of information. Communication( Telecom/ Datacom) provides connectivity to flow information across geography. Business requires information on products, services, market, customer, policy rules etc and it has be updated which requires faster flow of information. Information to be collected, processed, communicated and to be presented as requires for. 3 Flow of Information leads to Knowledge and knowledge transforms into wisdom which is essential for business vision & strategy

Why ICT for MSME 4 In last five years ICT has changed the social eco system million mobile connectivity E- commerce and Online services New terminology- Social media like Facebook, Twitter, linkedin, Whatsapp etc Proliferation of smart phones, internet and usage of IT devices Business eco system bound to get change with this change in social eco system Online purchase/order, Online payment Delivery at home Customer engagement Compliances and transparency Consumer surplus in terms of money &time ICT adoption is not a mere choice now but MUST to survive

ICT adoption in MSME 5 In last 5-10 years ICT has changed the business ecosystem Information and Communications Technologies Acting as an Enabler and as a Differentiator Management Team Innovation Commercial Advantage Financial Performance Customer Value

Business transformation through ICT 6 Old State Less efficient Lack of Innovation Poor Management Cost driven Not Customer-Led Lack of Planning Lack of Investment Lack of Growth Step Change More Efficient Some Innovation Focused Management Value Driven Customer-Led Business Planning Investment Plan Growth Recognition Improving Efficiency Constant Innovation Strong Management Value Driven Customer-Led Planning Cycle Continuous Investment Continuous Growth Continuous Improvement Recognised scope for improvement Looked at their business objectively Recognised weaknesses Completed planning Improved focus Made some investments (infrastructure, people) Managing their business differently Looking for opportunities to improve Constant recognition of what brings success More optimistic and innovative environment Better place to work The right kind of growth More profit ICT is now recognised as contributing up to 50% of business growth

Business transformation through ICT 7 Technology Adoption Internet connectivity Broadband Website LAN/WAN Wireless Application integration ICT that impacts the business Importance of ICT Demands of Customers Demands of Suppliers IT skills within organisation Influences Support Attitudes and Impact Benefits gained to-date Return on investment Business growth profile Attitude to future adoption Business Processes Ordering online Paying online Selling online Online collaboration Sharing knowledge online Managing supplier relationships Managing customer relationships Strategy and Motivation Importance of ICT Demands of Customers Demands of Suppliers IT skills within organisation Influences Support Importance of ICT Demands of Customers Demands of Suppliers IT skills within organisation Influences Support Business Transformation Through ICT ICT + Innovation+ Networking Miracle

Issues to use ICT in MSME and it’s solutions 8 Issues High cost of IT & connectivity Broad band connectivity Lack of power supply Lack of confidence Lack of awareness of Internet use Lack of skills. Govt’s Initiative: Speedy implementation for NOFN project to provide broad band connectivity New broad band policy is being prepared Announcement of Digital India program Develop 100 smart cities E Governance program Incentives for MSME from DeitY/STPI Skill development program Focus on ease of doing business Solutions Cost are reducing Use of Cloud to avoid capex Technology supports for low power usage Use of smart phones increasing at very fast rate Young generation tech savy

Use of Cloud solution 9 Capital Expenditure(CAPEX) is getting converted into operational expenditure (OPEX). Device and Local independent Simple and cost effective Pay as you use model facility Supports custom made solution MSMEs does not have to invest in IT personnel for maintenance purpose. Secure and maintained by service provider. Local vendors are available to provide cloud service Advantage of Cloud solution

New scope for MSME in ICT sector New scopes in ICT for MSME VNO( Virtual Network Operator) is under consideration by DOT. It may open up a huge scope for MSME to resale of data, voice, video/content etc without having much capital investment. Cloud services Smart city program M2M (Machine to Machine communication) with many verticals like Transport, connected cars Smart meter Agriculture E health 10

Q & A Questions - Answers THANKS Questions - Answers THANKS 11