This document discusses how small and medium enterprises (SMEs) in India are increasingly adopting technology to improve their business operations and efficiency. It provides examples of SMEs using technologies like biometric systems, fleet tracking systems, and project management apps. While technology adoption faces barriers like cost, lack of skills, and security concerns, the government and private sector have initiatives to support SMEs. Overall, technology is opening new opportunities for SMEs and the industries that serve them.

1. THE DAVIDS OF TECHNOLOGY…
THE ONCE TECHNOLOGICALLY CHALLENGED MSMES ARE SPEEDILY
EVOLVING INTO SURPRISING DAVIDS IN THE BOOMING BATTLEFIELD FOR A
POTENTIAL INFORMATION TECHNOLOGY REVOLUTION, DRIVEN BY
MICRO, SMALL AND MEDIUM WARRIORS, SPREADING THEIR WINGS AT
THUNDEROUS SPEEDS, READY TO TAKE ON THE GOLIATH OF HURDLES IN
THEIR SUCCESS… SHEETAL BHAN KHER GETS YOU THE SCOOP FROM
GROUND ZERO.
Over the last few years, the fraction of MSMEs that have
adopted technology, have benefited by efficient resource management, easier customer
acquisition, better tracking of business performance, improved quality of deliverables, increased
financial savings, easier remote access, improved internal communication and everything that
eventually leads to highly increased efficiency.
Resource Management today, including human resources, is being executed
increasingly through customized technological solutions, by MSMEs which fall under the
Tech Aspirer and Moderate Tech adopter categories. Biometric fingerprint systems have
become extremely common in offices throughout the country including the two and three
tier town and cities. They are not only being used for attendance but also for security
purposes and for managing distribution of access to sensitive data. Availing a customized
biometric management system for your enterprise today is just a few clicks away thanks

2. to the internet, and the growth in the IT and Data Management service providing
Enterprises around the country.
“ Before employing our services, our client manually
managed fifty commercial vehicles. Their common
problems included faulty reporting of fuel expenses,
scammed travel logs, and major losses due to vehicle
theft. After installing our tracking and safety products, the
owners know which driver took which vehicle, on which
route, at what time. He also knows through a few taps on
his smart phone, how many stops the vehicle made, which
door was opened when, how many people travelled in the
vehicle and how much fuel was bought from which
location. Within the last three months, our devices have
more than paid for themselves, cutting losses by 83%” says
Ankit Shah, Sales Head at Red Diesel, a small enterprise specializing in fleet tracking
systems.
On being asked about the sourcing of their device hardware, Ankit rather proudly says,
“Our devices are all made in India. It would definitely be cheaper to source hardware
from china, but devices manufactured in India come with much more credibility and
makes our life easier when we need post sales services from the manufacturers. Most
potential clients are delighted and relieved when we tell them that the devices are Indian
manufactured.”
Things are looking up for IT service providers as well as technological devices
manufacturers. There is no denying that Indian manufactured products do have an
upperhand at credibility than their Chinese counterparts. Hardware like biometric
systems, Apache Servers, Mail Servers and Application server and terminals are highly in
demand. Other than that, low cost Tablets, Barcode system hardware, security cameras,
motion detectors and GPS tracing devices are widely used .
“As a small enterprise, even a little mismanagement can
mean major inconveniences for us and our clients and we can
afford neither. We make sure that no unnecessary resources are
used. We use the online “Project Management App” BASECAMP
to manage various projects in an organized manner. We have
servers that we use for back up of all our projects in case of any
unfortunate data loss. We use our self created custom software
that we use for remotely generating invoices for clients on the
go.” Says Jesal Nathwani, Partner at IT solutions and services
company Hands in Technology.

3. 10 COMMANDMENTS OF SOCIAL
NETWORKING FOR ANY MSME.
1. Youare what you tweet
2. Viewyour social media profiles
as your one,unitedonline
presence
3. Don’t sculpt an idol
4. Be mindful ofyour language
5. Take a break from social media
6. Don’t share your personal
informationon social media
7. Don’t delete negative comments
8. Be faithful to your connections
9. Don’t copy content
10. Don’t lie
RINKU DUDANI , SOCIAL MEDIA
STRATEGIST.
GETTING SOCIAL
The rise of the internet Accessibility over smart phones and the boom in social media
impact has led to the blossoming of various Social Media Service Enterprises. From Strategic
Media and Marketing to social media PR / Online Marketing the social media has opened up
as a booming service industry field. Helping the customers find you when they are search for
relevant things on the internet itself is a specialized service called Search engine marketing
(SEM). Among the many other portfolios emerging in the social media
platform one of the most popularly employed these days is the Social
Media strategist.
On being asked about the scope of growth in this field, Rinku
Dudani, a 23yr old social media strategist and consultant says, “ We
help translate our client’s passion into consumer driven messages that
engage people and build strong brand connections. We follow Twitter
and Facebook trends and capitalize on this to optimize our marketing
towards the mainstream, Building Awareness and publicity. This is a
service that can never be expendable.”
On asking whether the scope of the social
media is limited to facebook and twitter, Rinku
maintains that the platforms are in an evolution
phase and that the next big thing in social media
for small entrepreneurs is Instagram, Video
Blogging and vine videos on Twitter!
ANALYTICS
In this day and age of technology, the
potential customer for an MSME can be anywhere
in the world and the only thing connecting them
with you is the internet. Millions of dollars and
crores of Rupees are being invested by Major
companies and enterprises for establishing and
maintaining their Online Presence. Indian MSMEs
not only provide services to local clients but also to
international businesses intending to get a piece of
the India Growth Story. This phenomenon gives
rise to yet another aspect, Media Intelligence.
It is only obvious that if businesses are
investing so much funds into media marketing,
they need services to analyze their decisions and
gauge the outcomes of the same for making

4. informed strategic moves. This is where media intelligence
companies like Kanalytics come into picture.
“We provide a media intelligence platform for the decision
maker. Basic tracking of media has been there for ages. What we
do is track all kinds of mass media, like TV, Newspapers and
Magazines, Social Media and E Media and then apply market
accepted parameters to give to our clients a one stop platform
where they can easily understand all about their own media
coverage, also of their competition and state of their industry, and
finally we suggest what they should do to make themselves
stronger in each form of media. It’s a complete package that helps a
brand, a corporate, a product or personalities become a strong
product” Says Ashutosh, CEO of Kanalytics, a Media Intelligence and Analytics firm.
The industries that employ these services are varied. From political parties to art and cultural
festivals to realty builders and the local grocery stores, all intelligent enterprises want to milk
the opportunities the world wide web provides. “Shrine Media was one of the companies
involved in LakmeFashion week. We have posted record numbers in terms of social media
followings and publicity that has garnered millions of followers for their show last year which
was huge success. Lakme Fashion week said it was their biggest year in terms of publicity and
brand awareness. “Says Rinku about one of her projects.
With the world’s fascination about Indian political evolution, almost all major as well as
brand new political parties employed the use of the social media to reach out to their vote banks
during the 2014 elections. Prime Minster Narendra Modi’s social media strategies are the talk of
the town. “WE helped our current Union Minister Shree Nitin Gadkaris team to track and analyse
the media in the year before the last Parliamentary election which he won. His team would know
who the leader should meet, when to meet, what topic to talk about and what are the
contemporary hot topics to dwell on or avoid. “
The social media service industry boom has also created new horizons for small time specific
service providers like content creators and graphic artists. Hundreds of web development
services providing micro enterprises have mushroomed across the country. The internet is here
to stay and so the enterprises providing services for the same.
GOLIATH, BARRIERS TO TECHNOLOGY ADOPTION
COST.
The mother of all barriers to most things for MSMEs is the High Cost Factor.
However, there is a wrongful assumption that technology is expensive. A lot of
management technology that can be highly useful for the MSME sector is online and

5. 0% 10% 20% 30% 40%
High cost of Hardware
High cost of Software and IT services
Concern for Privacy and Security
Lack of Technologically Skilled Employees
Difficulty of Learning and Implementation
Less Customer Service from Tech Service…
Manual Methods Working Well Enough
Lack of Education and Training to Set Up or Use
Concerned With Sharing Company Info
Lack of Expert Ongoing Technical Support
35%
33%
28%
26%
25%
24%
22%
21%
21%
20%
Top barriers of technology adoptioninIT MSMEs
free. E.g., google offers tracking and plotting systems that work beautifully on any smart
phone these days. Also google provides analytic services at nominal rates. One can use
Software and Apps like Teamviewer and Basecamp for better project management and
execution even without having your own office. Mostly, uninformed presumptions
regarding cost of technology also escalate its prices. Low Awareness of, latest market
trends and lack of research between healthy competitors gives rise to the belief in the
MSMEs that they will constantly need help from some heavily paid technician . Their
expectation of Return of interest falls considerably. The concerns include the fact that
they will need to renew software licenses and that constant up gradation will mean
constant expenses.
A large number of companies want to go the cloud technology way; however, it is
a widely shared sentiment among them that the cost of hardware and software is the
reason they cannot.
LACK OF TECHNICALLY ABLE HUMAN RESOURCES
A highly tiring task for every enterprise is to first acquire and then retain skilled and
unskilled Man Power. Most skilled labour that joins an MSME, does so only to gain
experience and job hopping makes sure they get paid better. As a result, a manager is
living in contant insecurity that his best worker will be poached by the slightly higher
paying manager from the competitor firm. As a result, the manager sees hardly any sense
in hiring a person at a high salary due to his technical knowledge only to lose him/her to
another enterprise, that too with their trade secrets.
This insecurity among MSMEs creates ecosystems that run on the assumption
that they to fully understand complicated technology based systems; which they believe

6. is not possible without years of training. No employee would want to become dependent
on skills of a person who can walk out of his company at the next better offer. Such
dependency would mean dilution of power which is ideally an employer’s worst fear.
Especially if the employees themselves are not technically well informed.
LACK OF AWARENESS:
In Most MSME//s, the decision makers are change averse people from the
older generation who have become hardened with experience of the traditional
manual methods of running their businesses. They recognize technology as mere
products that will make life easier for their employees and not a means to run
their business more efficiently and thus more profitably.
“Today you are saying that this is the latest technology, tomorrow it will
be obsolete . then I have to again pay for upgradation. I might s well pay my staff
to do this work without wasting money on this technology” quips confidently
fabric manufacturer Chaman Jethia. At the same time, his grandson, who is in line
to take over the reins of Jethia Textiles informs me quite excitedly that he has
already started working with some graphic designers to create content or the
facebook page he shall be publishing soon enough.
It pretty much sums up the current phase of technological transition that
our MSMEs are in.
PRIVACY AND DATA SECURITY
It is quite understandable how, the
idea of storing extremely sensitive data like
accounts, invoices, client data bases and
passwords onto a virtual cloud would
unnerve the less technologically
enlightened. The conspiracy theorists,
which openly propagate that there is no
real privacy in the cloud don’t really help
the situation either. Obviously the
enterprises worry about doubtable access
to their data, especially the government.
However, they find backing up data in
easily perishable mediums like CDs and HDDs more feasible not realizing they are
risking loss of data as well as losing out on opportunity to be able to make
calculated and informed decisions based on data analytics of earlier business that
they have done.

7. INFRASTRUCTURE INADEQUACY
Technology can move mountains but even the most sophisticated technology is no use
without power and connectivity.If SaaS and Cloud technologies areto be genuinely propagated,
broadband connectivity reliability isan issuethatneeds to be dealt with urgency and flawlessness.
Lack of broadband connectivity and frequent power outages, in the small as well as bigtowns,end
up making the suggestion of usingcloud technology to MSMEs almostjoke-like.
As per the plan of National Telecom Policy,the government had put asideINR30,000
Crore for layinga fibreoptic cablenetwork across India.“The aimis to have 175 million
broadband connections by 2017 and 600 million by 2020 includingvillagepanchayatsand all
habitations.“says the Ministry of MSME and Intuitjointreport.
The production costs of goods increaseexponentially when they are produced in bad
infrastructureas compared to when then they aremanufactured in better conditions.This in turn
affects the entire economy, not justthe MSMEs , as the MSMEs accountto 40% of India’s
manufacturing.

8. INNOVATIVE SCHEMES UNDER THE
NATIONAL MANUFACTURING
COMPETITIVENESS PROGRAMME
(NMCP)
1. Marketing Support/Assistance
to MSMEs (Bar Code)
2. Support for Entrepreneurial
and Managerial Development of
SMEs through Incubators
3. Enabling Manufacturing Sector
to be competitive through
Quality Management Standard &
Quality Technology Tools
(QMS/QTT)
4. Building Awareness on
Intellectual Property Rights (IPR)
for MSME
5. Lean Manufacturing
Competitiveness Scheme for
MSMEs
6. Mini Tool Rooms (MTR)
7. Design Clinic Scheme for
design expertise to MSMEs
Manufacturing sector (DESIGN)
8. Marketing Assistance &
Technology Upgradation Scheme
in MSMEs
9. Technology and Quality
Upgradation Support to MSMEs
10. Promotion of ICT in MSME
Manufacturing Sector (ICT)
Ministry of MSME
THE SHIELD OF STAKEHOLDER
INITIATIVES
Invisible to the common aspiring business man,
there are various schemes intended to help MSMEs
which also provide support for technological
upgradation. The “Credit Linked Capital Subsidy Scheme
for Technological Upgradation” is one of them. In a base
study of 728 cases by the Ministry of MSMEs and
NIESBUD, 63% of the cases applied for subsidy and of
these 63% that utilised this scheme, 99% claimed that it
proved beneficial for their growth and finances.
According to the same Research,73% of those who used
the “Micro Loans from NGO” scheme found it extremely
beneficial.
Of course it is unfortunate that the participation
in various MSME training programs and skill
Development schemes is low, due to the lack of
awareness and change-averse mindsets. However, the
overall satisfaction delivered from these, variety of
services available to MSMEs is extremely high. For e.g. As
per feedback research conducted by the ministry of
MSME, 98% of all trainees of the NSIC program have
found the training helpful and empowering. Of the
respondents who received training from vocational
institutes, an unbelievable and almost utopian 100%
were satisfied with the results. As our villages turn into
smart villages under the guidance of the Prime Minister’s
vision, support and training that is provided by the village
panchayats (though not the most commonly accessible
as of now due to lack of connectivity,) need to be
promoted and advertised as the service that has, even in
its limited reach, 98% participant satisfaction.

9. AIMING FOR THE BULLS EYE. LOADING THE SLING SHOT.
Kaun kehta hai aasman mein chedh nahi ho sakta, koi patthar to tabhiyat se uchaalo
yaaron…
Who says it is impossible to perforate the skies? Did you fling the stone with passion?
If there is anything about our country that is undeniable, it is our ability to overcome obstacles
and grow, no matter what the odds. The government has gone out of its way to help out the
MSMEs through various stakeholder initiatives; however the scope for improvement is
humongous.
There needs to be a platform for consistent communication between industry experts,
the ministry of MSMEs, Stakeholders and the MSMEs themselves. The 30 odd Development
Institutes run by the ministry need to be utilized more efficiently and as per the suggestion of a
research done by intuit and NIESBUD, turn them into expanded one-stop-shop models where
MSMEs can access info regarding schemes that they could benefit from . Another fantastic
suggestion is that the government should pool and expand resources by inviting global brands to
invest in the shared infrastructure. These centers must also have a cloud bank of software
resources. Similarly, a “labour exchange” can be created by bringing together knowledgeable
technicians who can further give base-line technical training to others and help create healthy
competition.
It is important that the MSMEs are approached and counselled about the ROI of
technology adoption at the right time. There are entry points at various stages of a company’s
evolution. It is essential to identify these and provide Intel and guidance at these times to
encourage intelligent technology adoption. Most commonly these entry points are at the
beginning of a company’s expansion or in the earlier stages.
It is essential that technology adoption is an easy process especially for the MSMEs, with
emphasis on the user friendliness of this technology. Language itself can simplify major
apprehensions. For e.g., at factory in Gujrat, there must be detailed instruction manuals in
Gujrati for the respective technology being employed. For a company using local manpower, this
will boost confidence levels to major highs. Easy installment facilities, credit options, free trial
periods etc. can boost the MSMEs above their affordability apprehensions for technology.
In spite of all this, MSMEs need to understand that with some proactivity and community
efforts, they can truly benefit from the growth friendly phase of the country. “MSMEs have to
realize that “small” does not mean Local. Small does not mean that investment on the right IT
infrastructure is a waste. Small does not mean it does not need media and communication to
grow in the current world. Industry trends are essential to understand and this can only come
with higher IT and internet awareness, to know which trends to adopt, which to let go, what has
better ROI etc. “ says Ashutosh.

10. At the end of the day, what is an Enterprise but the people who work in/for it? Pride in what one
does, Perseverance, a sense of adventure, willingness to grow every moment as enterprises and
as human beings in an inclusive fashion and foremost, devotion towards the dignity of labour
can behead any goliath blocking India’s realization of the development dream.