Role Of IS fo MSMEs

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Role of IS in SMEs/ MSMEs GROUP 3 |ADHIRAJ|ASHESH|INDERJIT|MEGHNA|PRATEEK|REVIN

description

A glossary of emerging technologies

Transcript of Role Of IS fo MSMEs

Page 1: Role Of IS fo MSMEs

Role of IS in SMEs/ MSMEsGROUP 3 |ADHIRAJ|ASHESH|INDERJIT|MEGHNA|PRATEEK|REVIN

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OUTLINE

Defining MSMEs

Factsheet

Why IT/IS adoption in MSMEs?

Possible Information Systems Solutions for SME

Level Of SMEs - IT/IS adoption

Issues and challenges

Case Studies

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Defining MSMEsManufacturing Enterprises –

Investment in Plant & Machinery Service Enterprises-Investment in Equipment

Description INR INR

Micro Enterprises Upto 25Lakh Upto 10Lakh

Small Enterprises Above 25 Lakh & upto 5 Crore above 10 Lakh & upto 2 Crore

Medium Enterprises above 5 Crore & upto 10 Crore above 2 Crore & upto 5 Crore

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FactsheetSMEs employ close to 40% of the work force

The country's 1.3 million SMEs account for 40% of India's total exports

MSMEs contribute only 8% to GDP

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Why IT/IS adoption in MSMEs?

ResponsivenessIncreased turnoverBetter customer serviceBetter capacity utilizationLower working capital requirementAccurate forecastingReduction of manpower

GlobalizationImproved overall efficiencyFlexibility

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Possible Information Systems Solutions for SME

Accounting software such as Tally In house developed customised software Integrated Transactional Information Systems such as

Radix, MakeESS, Octopus-Eand Tech Solutions etc. Micro ERP systems such as NAVISION Web Enabled ERP systems such as iBaaN, IFS etc.

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Level Of SMEs - IT/IS adoption

• PC equipped with advanced software such as database and ERP

• Internet• Intranet• Video

conferencing• Creating websites

• PC equipped with basic hardware and software

• Land line• Phone• Fax• Mobile

BASIC

COMM

UNICATIO

N BASIC IT/IS

ADVAN

CED

COM

MIU

NICATIO

N

ADVANCED

IT/IS

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Issues and challenges

• Lack of Awareness about technology

• Lack of IT support personnel

• Lack of IT Literacy

• Lack of Experience in Using Consultants

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Case Study: Ayush Hospital

Situated in Bhubaneshwar with no other branches anywhere.

Provides a large number of facilities that range from cardiac to providing MRI scans.

The MIS is designed to manage administrative, clinical and financial aspects of the hospital.

A network of 35 terminals located in different departments

The software used is PCS Prodoc

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The IS at Ayush Hospital

General Display

Reception Billing Costing

Stores Labs Pharmacy

OT Wards User

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Impact of MIS implementation

Integration of various departments in the hospital which ensures smooth functioning.

Inventory control got better

Reduction in time of various patient care processes.

Increase in number of patients by 20%

Average increase in revenue due to this increase number by Rs 20000

Reduction in number of staff due to MIS=5

The Return on Investment due to MIS was 314%

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Case study 2

Company A is the oldest surgical disposable needles and syringes manufacturing company

With 100 employees, it enjoys 15 percent market share in the disposable needles and syringes market

Plant and machinery together with the technology was brought from Korea. It is an ISO 9001 certified company.

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IS implementation at the company

Previous approach Post liberalization the company enjoyed a monopoly status

It did not have a proper IS for manufacturing and other peripheral business activities.

Present Approach: The company adopted proper IS practices (in 1991) that focused on

fast and accurate flow of information.

It invested extensively in EDI, internet, extranet, intranet, web sites, bar-coding, fax, etc. and framed a proper IS strategy

 Company also hired professional help outside from consultants

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Impact of MIS implemetation

Faster communication that resulted in increased responsiveness to customers.

The information about the suppliers could be tracked online

Automatic release of purchase orders.

Online information for internal functional control

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Conclusion

Analyse how IS can benefit the organization.

The companies should not defer implementation of IS to the extent where their existing processes become outdated.

Proper implementation of IS can result in higher returns, stable processes and improved customer service for the organization

Right technology, Right time.

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THANK YOU!!!