Saas Technology for Smes

Topics: Enterprise resource planning, Software as a service, Small business Pages: 11 (4196 words) Published: January 30, 2013
SaaS Technology for SMEs
Kriti Soral|

Table of Contents
Small and Medium sized Enterprises2
SMEs in India3
SMEs and ERP3
Barriers to implementation of ERP systems in SME’s4
Strategies used5
Saas Technology5
Advantages of SaaS for SMEs6
SaaS Vendors7
Case Studies7
SAP for 10 Users Company- Heckler & Koch GB7
SaaS ERP for Oxford Bookstore9

Small and Medium sized Enterprises (SMEs) can mostly be considered as responsible for driving the competition prevailing in economic sectors. The definition and standards of a SME is different for different countries. These enterprises play an important role in setting the market trends and with this a need of using Enterprise Resources and Planning systems (ERP) for optimizing and automating their traditional business processes has aroused. But often ERP systems development, implementation and maintenance are very costly which makes it difficult for SMEs to use them. As a solution to these problems ERP system vendors now offer all the facilities of ERP system to the company without actually installing the hardware and software on the client side and this facility is referred to as Saas technology. This paper discusses SMEs of India, barriers of implementing ERP in SMEs, strategies used by ERP vendors and brief description of SaaS technology. Small and Medium sized Enterprises

SME sector has been identified as an accelerator for economic growth across the globe. SMEs are generally classified as the firms requiring low investment requirement, operational flexibility, location wise mobility, and import substitution (Govt. of India). The definition and standards of a SME is different for different countries. A micro, small and medium sized enterprise is defined according to their annual turnover, balance sheet total and staff headcount (Europa). SMEs as referred to industry Canada are enterprises that have employees less than 500 and other firms with employee headcount more than 500 is classified as a large business (Ward 2008). According to the European Union standards and policies designed for SMEs, the firm that employs persons less than 250 and whose annual turnover does not surpass EUR 50 million is recognized as a medium sized enterprise. Similarly an enterprise that employs less than 50 employees and with annual turnover of less than EUR 10 million is a small enterprise and a firm that employs less than 10 people and with annual turnover of less than 2 million is a micro enterprise (Europa). SMEs in India

In India, a standard definition for SME was given in 2006 by Ministry of Micro, Small and Medium Enterprises, Government of India. However this definition can change looking at the changes in economic scenarios of the country. In India, the definition of SME is different for manufacturing sector and service sector. Manufacturing Sector: A manufacturing sector is the one engaged in production, preservation and processing of goods. According to the Micro, Small and Medium Enterprises (MSMED) Act, 2006 a micro enterprise is when the investment is less than approximately USD 46,339. A small enterprise should have investment ranging between USD 46,339 and USD 9,26,785 and a medium sized enterprise should have investment in plant and machinery ranging between USD 9,26,785 and USD 18,53,570 (Small and Medium Business Trends). Service Sector: A service sector includes investment of equipment. For a micro enterprise the equipment investment should be approximately of or less than USD 18,573. A small enterprise must not exceed the investment of approximately USD 37,14,720 and the firm in which investment ranges between USD 37,14,720 and USD 9,26,785 is called a medium sized firm (Small and Medium Business Trends). The micro, small and medium sized enterprises play a very important role in the economic growth of India. The contribution of this sector in the growth of manufacturing, exports and...
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