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Posts Tagged ‘ SME ’

By John Mark V. Tuazon
Computerworld Philippines
June 24, 2010

The harvest is plenty, and so are the laborers, but a huge fence is getting in the way of the gather. This is the peculiar situation in which SAP, a Germany-based software solutions provider, has found itself in regarding efforts to translate its enterprise wins to SMEs.

Having achieved huge successes in the large enterprise space with their robust software solutions tailored to specific industries, SAP is now grappling with the fact that all too many SMEs are finding their solutions expensive.

“One of our biggest challenges in [dealing with] SMEs is getting our message across, in breaking impressions that SAP [for SMEs] is not at all expensive,” Patrick Tan, director for small and medium enterprises, SAP Philippines, said during an interview with Computerworld Philippines during the first SAP Summit 2010, held Tuesday.

Tom Kindermans, senior vice president for SME, SAP Asia Pacific and Japan, upheld Tan’s view, saying it is still an aspect of the business they are working on. “We’re still suffering there,” he shared. “That is a hard fact [that we have to deal with].”

This is, partly if not entirely, the reason why in 2008, the company decided to run a campaign, saying SAP is for great companies, but not just for big companies.

“We also hold events, like [Tuesday’s] SME Summit, where at least 30% of the attendees are our existing customers,” Tan added.

Speaks for itself
If it’s any measure, SAP’s efforts to change SME perceptions may have translated to growth from the sector. Kindermans reported that at least 50% growth in the SME space originated from Asia for the first quarter of 2010, and that at least 43% of their global customers are new adopters.

At least one-third of the vendor’s global revenue, Kindermans revealed, come from SMEs, one of SAP’s “best kept secrets,” according to the executive.

In the Philippines, Tan estimates that the company has a tight hold of at least 60% of the market, a majority of which were implemented through their partners. “We kept majority of our partners since we started the [SME] business in 2005, because we want to ensure that our partners are sustainable also,” he said.

A different land to till
Aside from managing perceptions, Kindermans noted that essentially, the functional needs of SMEs are no different from those of large enterprises, but that SMEs “want value delivered much faster.”

“SMEs want to see instant value. In 12 to 15 weeks, they want to see something up and running,” Kindermans clarified.

The payback for the implementation, additionally, is not just measured in money values, according to Tan. “Some [client] examples achieve ROI within just four months. But the advantage is it offers SMEs more possibilities to enter new market,” he explained.

Swift implementation of solution is also the reason why SAP packaged their SME offerings—the SAP Business One and SAP All-in-One—in such a way that is bundled and easy to implement, without overhead costs or additional IT staff.

“SMEs are not overly structured—they have no IT departments,” Tan clarified. “They ask us how their business processes can be fixed, so we try to package something [that is] ready to run, easily implementable, sustainable, and [easy to] maintain.”

New Version
To exemplify these characteristics, SAP’s latest release—SAP Business One 8.8—will incorporate automated processes, such as the upgrade wizard, that will eliminate the need for a dedicated support staff for the application.

Additionally, the new software release will deeply incorporate CRM throughout the entire solution. “We’re seeing the blending and blurring of applications,” related Richard Duffy, SAP Business One product evangelist, during an earlier press briefing. “Customers want to live in just one app alone.”

Pulling inspiration from famous social networking site Facebook—which, along with Twitter and other Web 2.0 apps, is embedded within the updated version—version 8.8 will directly embed Web 2.0 functionalities so users won’t have to go outside of the main application screen to retrieve pertinent information.

Moreover, users will see increased presence of business intelligence capabilities within the SAP Business One application, following the firm’s acquisition in 2007 of BI app firm Crystal Reports. “SMEs are bound by the challenges of business management applications that are good at recording info, but do not do good on insights,” Duffy explained. “[With these BI functions], SMEs can make business decisions based on their date.”

Incidentally, subscribers of SaaS-deployed SAP BI On-Demand can upload their data over the cloud application and have the option of presenting the data graphically or doing additional analyses with it, Duffy said.

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E-Biz Enablers

By Fei Lumbania on December 2, 2009

By Tom S. Noda
Published in the CWP November 2009 issue

As the Internet continues to evolve and improve with technologies such as Web 2.0, the expectations of the growing number of netizens are also changing as they expect improved features from websites they patronize—putting pressure on companies with online storefronts and a market opportunity for technology providers.

A big reason for the heightened expectations is that sites like YouTube, Amazon, eBay, Flickr and Facebook continue to push the envelope in terms of new features and the online experience in general, says Gene Alvarez, Gartner’s vice president of e-commerce and CRM research.

In fact, Gartner reports that although IT budgets are shrinking anywhere between 5% to 25%, companies are expected to sharpen the online shopping experiences of their companies’ customers.

“That’s the real big challenge here for e-commerce organizations: The bar keeps rising despite the economy,” says Alvarez. “Whether in business-to-consumer or business-to-business e-commerce, as customers are exposed to new capabilities, they expect those at all other Web sites.”

The demand for new features in websites has not gone unnoticed by many technology providers who have launched software and services that aim to improve the online storefront of companies.

Only recently, Google launched its Google Checkout store gadget that can be embedded in any website without the need to engage in “complicated coding.” It helps people create an online store “in a matter of minutes” with the gadget application using Google’s Checkout electronic payment service and its Docs spreadsheet application.

In the Philippines, a number of technology vendors are currently moving towards the development of e-business applications both in the B2C and B2B space.

For example, ePLDT, Inc. a local ICT firm and wholly-owned subsidiary of the Philippine Long Distance Telephone Company (PLDT), is now in the process of developing a suite of business applications that will be available online. It will be a Software-as-a-Service (SaaS) type of service which the company will announce probably by the 1st quarter of 2010.

Meanwhile, two other firms, DataOne Asia Philippines Inc. and Ripple E-Business International, Inc., are both offering products and services for business organizations to benefit from e-commerce. DataOne claims to empower company websites, while Ripple claims to be one of the fastest-growing software companies catering to the retail and distribution industry.

Jojo Colina, head of the product management and development group at ePLDT, explains the difference between e-commerce and e-business. He says the placing of one’s information online for promotions is already e-business. But when one starts selling online, it crosses the line of e-commerce.

“Marketing and site optimization all fall under e-business but it may still be called e-commerce but e-commerce is very specific. It is the negotiation of the exchange of value of goods. And that’s the traditional definition of e-commerce,” says Colina.

E-BIZ PARTNER
Servicing a wide range of enterprises across various industries, ePLDT has tools that enable e-commerce and e-business, says Colina. He describes ePLDT at present as more of an infrastructure-enabler type.

Colina explains ePLDT’s portfolio of products is all Internet-related and everything the company offers can be employed in an e-business infrastructure.

“We do not yet make our services available in an e-commerce form, where you go to a portal and click to just sign up for services,” he says. “But our services right now are more geared towards enabling those who are into the e-commerce and e-business fields.”

Colina says from its security certificate authority services, ePLDT has its own payment gateway services and a hosting data center facility.

He says ePLDT is affiliated with the largest certificate authority (CA) firm VeriSign, Inc., a known issuer of digital certificates worldwide. It offers trust services that accelerate the deployment of secure e-commerce applications.

However, for its payment gateway services, ePLDT offers the GetLoaded online PIN purchasing portal that allows an entity to accept online payments. And for its hosting facility, it has its own data center called Vitro.

“As an affiliate of VeriSign, we offer all sorts of certifications. We also provide managed security, firewalls, antivirus, and anti-spam which are all essential to any entity that wishes to participate in e-business,” says Colina.

Colina adds ePLDT can go as far as providing application development as well.

“We have right now customers in the banking sectors and companies that have online stores that use our certificate authority to ensure the authenticity of the transactions,” Colina says, although declining to name the clients.

Colina advises that when selecting a vendor for e-business or e-commerce solutions, one must look for a vendor with a track record and financial capability.

“There has to be a relationship of trust, and that is usually established by an e-commerce site employing the services of a trusted certificate authority that will issue a certificate to verify that it is a real organization and it has gone through some process of verification of its identity,” he says. “It’s a matter of statistics, whether your IT service provider will be there or not.”

EMPOWERING WEBSITES
Meanwhile, DataOne, which envisions itself to be the leading provider of the so-called “new generation telecommunication services” aims to cater to companies engaged in e-business.

“Our company is supported by a carrier-grade technology which offers flexible and innovative solutions to deliver all the potential of convergence,” says Cyril Rocke, president and CEO of DataOne.

Rocke says DataOne offers VoiceOne solution and the WebTalk service, two technologies that are not only meant to aid companies in e-business but to others as well who are involved in sales and customer service, firms with toll free hotlines, multinationals with extensive channel distribution, corporations with global customers, and other companies with extensive mobile workforce.

“VoiceOne goes beyond the traditional voice-based system. It serves as the voice service provider to the enterprise, outbound, inbound, and domestically,” he says. “It’s the converging of voice and data over a single network.”

Rocke explains what VoiceOne does is that it eliminates complexities such as integration with legacy systems and also voice quality problems. It is a solution that offers PBX-like features without the high costs of purchasing and maintaining PBX systems.

However, Rocke claims companies that are into e-business can take advantage of DataOne’s WebTalk service which enables a website to become “the entry point for all business communications.”

In using WebTalk, Rocke says there is no need to have a phone number or download applications, only easy-to-use buttons. Its other features are: No complex IVRS (Interactive Voice Response System), no per minute charges, no expensive toll-free numbers, and no complex integration with existing systems.

“WebTalk empowers your website by turning it into an active site. Voice communication and interaction can take place via a customer’s click in your website,” Rocke says. “Your website won’t be static anymore if you use WebTalk.”

Rocke shares DataOne will soon be targeting around 50,000 companies, or “all” companies in the Philippines with the dot.ph domain for its WebTalk service.

E-BIZ FOR SMES
Yet for Ripple, it has a flagship product called Barter Retail Solution – an end-to-end solution for mid-tier supermarkets, departments store, hyper-marts, depots and other retail establishments.

Some of the well-known clients of Ripple at present include Ever, Super 8, and Gaisano Mall of Davao.

Victor Javier, president and CEO of Ripple, says “Barter solution is ‘online’ since it connects multiple establishments (branches and warehouses) together, allowing retail businesses to capture real time performance of every location.”

Javier says the e-business solution captures the processes from purchasing of goods to point of sale (front end and back-end operation). It also handles customer relationship management and promotion management, covering the entire retail operation.

“Barter provides retail owners real time information of their sales performance and efficiently tracks their inventories to the item level, thus, maximizing revenue and profitability, as well as minimizing loss,” he says.

Among its list of mid-tier clients, some of Ripple’s clients already have existing systems while others are starting from scratch. “We are able to help both types of clients by implementing best practices or transform their existing process to become more optimized and efficient.”

Focusing on retail technology, Ripple is pushing itself to become more than just another enterprise resource planning (ERP) solutions firm.

“There are many IT companies offering different solutions. As a retail solutions company, we extensively invest in research and development of different technologies that can be applied in a retail environment,” Javier notes. “While most local IT companies focus on reselling foreign packages or being a box pusher, Ripple continues to innovate and develop Barter solution which I believe is fit for the Filipino sharp trader.”

A member of the Philippine Software Industry Association (PSIA), Javier comments that “e-commerce is slow in taking off in the Philippines.”

Javier says the traditional way of buying things, like going to supermarkets and malls is still the norm of today’s consumers. It is the reason on why Ripple is focused on becoming the IT arm of retail firms, mostly small-and medium-size enterprises (SME).

“Although e-commerce experienced a major hype in the past, not many people are making their purchases online,” Javier notes. – With notes from Juan Carlos Perez (IDGNS)

SIDEBAR:

Tips to Stretch the E-Commerce Budget

In order to stretch their resources and meet management’s expectations, e-commerce units can take various steps, including reducing the money they spend on developing in-house applications, says Gartner, Inc..

In particular, IT departments shouldn’t invest on creating their own applications for basic e-commerce functions, since those can be implemented at a lower cost through commercial “off the shelf” software.

Specifically in the case of rich Internet applications (RIAs), the custom development work should be limited to those applications that will generate high sales conversion rates.

“You waste money if you have developers supporting commodity capabilities,” says Gene Alvarez, Gartner’s vice president of e-commerce and CRM research. A company’s e-commerce developers should be focused on building the types of made-to-measure applications that will give the company an edge over its competition.

In addition, IT departments must make sure that their e-commerce groups are maximizing the use of technology tools and products the company already owns.

At the negotiation table, IT departments should be merciless when dealing with their e-commerce software vendors and aim to lower their 2009 license fees between 20% to 50%.

Finally, IT managers need to take stock of their e-commerce staff to see if there are employees elsewhere doing the same tasks, such as separate marketing people for online and offline operations, in which case the work can be consolidated and personnel reduced, according to Gartner. –Juan Carlos Perez, IDGNS

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By John E. Dunn
Techworld.com
April 15, 2009

LONDON- Small businesses uptake of cloud computing is heading for a mini-boom, UK online services vendor Gooroo has claimed, after carrying out its own survey of the sector.

The company found that 54 percent of those surveyed said they’d be using cloud services for key functions by 2010, 31 percent of whom described their plans as “firm”.

The fly in the ointment was that the sample size was very small - only 30 SME-level directors - and there is also the possibility that the survey was self-selecting because it was carried out using a survey of companies already interested in Gooroo’s services , but the detail offers interesting detail on motivation.

Around 65 percent of respondents said their primary motivation for investing in the cloud was to reduce IT costs, ahead of improved efficiency (50 percent), greater flexibility (50 percent), ease of setup (46 percent), and the ability to access business applications from any location (42 percent).

Important cloud apps for the sector were, predictably, accounts, (50 percent), e-commerce management (25 percent), enterprise resource planning (ERP, 21 percent), and customer relation management (CRM, 18 percent).

Another response suggested that the cost of conventional software licensing might be weighing on director’s minds - a total of 61 percent had postponed or were going to postpone software spending.

“The finding that surprised us was many SMEs were not just planning to use cloud applications to get new functionality: in many cases they wanted to replace software they already had; 90 percent of respondents said they already used an accounts package, yet this was top of the list of desirable cloud software,” commented Gooroo’s general manager, Dean Miles.

Drawing firm conclusions from a small survey carried out by a vendor with a vested interest in talking up the technology is treacherous. But it does suggest that the one sector for whom cloud computing could offer a technology boost for relatively little downside could be SMEs with under 50 employees, a segment not yet well served.

Surprisingly, the one application area not mentioned in the survey was security. Perhaps not coincidentally, Gooroo’s app focus is subscription access to ERP, accounting, and CRM.
Home

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By Thomas Wailgum CIO.com

FRAMINGHAM- For [small and midsize businesses, ERP implementations can be dicey endeavors. ERP rollouts involve not only huge capital outlays, but also long implementation times, significant IT resources and intense cultural change. These factors can be especially daunting to a small but growing business attempting to move off of familiar QuickBooks or Excel spreadsheets.

MORE ON CIO.com SAP Who? Inside One of SAP’s Smallest ERP Customer Success Stories ERP Implementation Success: Odds Are Stacked Against You Inside Oracle’s Plans to Conquer the SMB Applications Market

The average SMB ERP implementation takes 10 months, though the installation work continues long after the go-live date hits, according to recent Aberdeen Group survey data of 920 SMBs. The financial costs can be just as significant: SMBs with less than $50 million in annual revenue will typically pay nearly $300,000 for ERP software and services, while larger businesses (revenues between $100 million to $250 million) will spend $1.4 million, the survey data states.

“Given this level of investment, one would think ROI would be top of mind for most companies,” writes Cindy Jutras, VP and research fellow at Aberdeen in a March 2009 report, “Measuring the ROI of ERP in SMB” (registration required).

But it’s not. The data shows that 52 percent of respondents “sometimes” or “never” estimate ROI in order to cost-justify an ERP project (48 percent “always” do it). And post-rollout, 75 percent “sometimes” or “never” measure ROI after the completion of ERP projects (just 25 percent do this “always”).

In other words, many SMBs feel “compelled to make this investment,” Jutras writes, “simply because they view ERP as a necessary infrastructure to support the business.”

Of course, Jutras’s point is that determining ROI pre- and post-rollout is key to achieving success with ERP projects, especially with resource-challenged SMBs in these tough times.

“A well-managed ERP implementation can be a continuing source of cost savings and operational improvements which help companies survive and thrive in these troubled economic times,” she states. “The strategic goals of standardizing and accelerating business processes and providing improved visibility are essential to improving business execution, which in turn supports the organizational goals of revenue and profit growth.”

During the last decade or so, enterprise software vendors and their customers have paid particular attention to cutting the total cost of ownership (TCO) of ERP applications. However, “focusing exclusively on TCO is no longer enough,” Jutras contends. “The focal point must now expand to include ROI of ERP projects in order to justify continued investment and maximize business benefits.” (For more on enterprise software, see the Enterprise Software Unplugged blog.)

The horrendous economic conditions that SMBs now face have pushed “reducing costs” to the top of the ERP strategies to-do list, according to the Aberdeen survey data. The mantra “must reduce costs” has displaced “growth expectations” and “customer service” as the leading ERP business drivers.

Jutras contends, however, that cutting ERP investment simply isn’t the right strategy right now.

“With the downturn in the economy, a knee-jerk reaction may be to stop any discretionary spending on ERP projects just when their cost-saving, operation-improving potential is needed the most,” she writes. “Given the current economic uncertainty, it is now more critical than ever to keep these projects alive.”

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By AvantiKumar
Computerworld Malaysia

KUALA LUMPUR- Malaysian broadband provider JARING Communications has launched new high-speed broadband packages to help small and medium enterprises (SMEs) reduce IT costs during the economic slowdown.

JARING Communications chief executive officer Dr Mohamed bin Awang Lah said that JARING Biz-on-Net is available in three packages. “JARING Flite SME Gold, Silver and Bronze–tailored to meet the needs of different sizes of SMEs. These bundles range from broadband, web hosting, easy-to-use website builder, website visitor analyser, SME map locator to Internet telephony and e-mail services.”

“Our easy-to-use Website Builder provides tool for SMEs to build online applications e.g. automate common office procedures or deal business online and generate company’s multi-channel marketing and sales drives through e-commerce,” said Dr Mohamed. “The website visitor analyser helps SMEs in tracking and analysing the behaviours of visitors to their website which will be the basis for SMEs to determine the effectiveness of their website and the key to success in everything from sales and marketing to Customer Relationship Management.”

Focus on short-term business value

“Every business is challenged to focus on short-term business value while preserving a coherent IT architecture,” added Dr Mohamed. “Recognising this need, All-new JARING Biz-on-Net, is designed to ease upgrades and help customers reduce operational costs through total internet solution package that rides on reliable high-speed broadband connection.”

“Newly set-up SMEs can save as much as RM6,717.00 (US$1,831) in their first year of operation and focus more on their core business, increase productivity, enhance efficiency and effectiveness and improve their customer service rather than worrying about the upfront cost of acquiring products individually,” he said. “The bundles, which come in three packages, offer the same services at different levels of speed and capacities, depending on the size, scope, and general requirements of the client.”

“For SMEs, it is important to have a technology partner that is reliable and deploys the best solutions to help grow their businesses and be competitive. This is why JARING has included another unique feature in this bundle, known as SME Map Locator, an official business directory of the SMI (Small and Medium Industry) Association of Malaysia. The web allows quick identification by customers and partners and is able to link SMI/SMEs nationwide.”

“On top of that, subject to approval, newly start-up SMEs can take advantage of the Broadband Grant which is given in the form of a matching grant where 50 per cent of the approved project cost is borne by SMIDEC in the first year of operation,” he said. “The new JARING Biz-On-Net is available starting from a monthly cost of RM899 (US$245) for the Bronze package.”

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By Tom S. Noda
Computerworld Philippines
February 13, 2009

Aiming to deliver a unified communications (UC) service that is affordable for small and medium enterprises (SMEs), Cisco Philippines and Infocom Technologies Inc. have partnered to provide the “first ever” managed UC solution service in the Philippines.

Dubbed as “Office-in-a-Box,” the package includes outbound VolP (Voice over IP), high-speed Internet (DSL), SIP (Session Initiated Protocol)-based IP-PBX (IP-based private branch exchange, which is the brains of a telephony system), e-mail hosting, Web hosting, video conferencing, firewall and anti-virus.

“We took advantage of industry-leading and proven unified communications technology from Cisco to create the first managed solution with flexible payment schemes,” said Edgardo Bautista, president and CEO of Infocom, a wholly-owned subsidiary of ePLDT. It is a former Internet service provider that recently turned into an Internet Solutions Provider.

Stephen “Tep” Misa, newly-appointed country manager of Cisco Systems Philippines, said the company is aggressively marketing the technology being part of the $100 million investment project of Cisco for SMEs worldwide.

“The No. 1 priority for SME owners is growing their companies, not becoming technology experts,” Misa said. “This solution offering from Infocom takes away all the headache and upfront costs of acquiring next-generation technologies and enables them to focus on their business.”

And as an added solution in taking away the IT hurdles for SMEs, Infocom included in its service package an assigned IT specialist who will provide up to four hours of on-site support per week.

Bautista said Infocom prepared for the product since September of 2008, noting the company not only has a lot of Cisco certified professionals but also technically-inclined customer support agents.

“It is converged data and voice network, connectivity, online presence, and friendly and responsive customer service all in one package,” he added.

According to Bautista, at the heart of the solution is the Cisco Unified Communications Call Manager Express which handles call processing and easy deployment of Cisco Unified IP phones; the Cisco Unity@ Express for voice messaging (voice mail) and Automated Attendant which replaces an operator and helps companies save on manpower; an integrated 8-Port Power over Ethernet (PoE) local-area network (LAN) switch which helps reduces energy costs; and network security functions including the Cisco 10S firewall which protects the wide-area network (WAN) entry point and virtual private
network (VPN).

“A good business needs a stable and resilient infrastructure in order to thrive in this fast-paced, competitive environment—and Office-in-a-Box offers that,” Bautista said. “The service can effortlessly enable integration of commonly-used desktop applications such as Microsoft Outlook and Outlook Express, Lotus Notes, and a host of customer relationship management (CRM) software applications. With these features, Office-in-a-Box aims to help SMEs increase productivity, improve cost management, enhance customer service, and open new markets for the client.”

Yet Misa said a wide array of Cisco Unified IP phones is supported through the PoE ports. “The Office-in-a-Box also allows business owners and employees to securely connect to their office network even while they are traveling or working from home through the virtual private network (VPN).”

Both executives claimed the economic advantage of the service is that it does not require a big cash outlay. The clients instead will be billed monthly over a 36-month period. It also lets companies save up to 85% on overseas phone bills via VolP.

Bautista said with the ongoing global financial crisis, the Office-in-a-Box would serve as a tool for companies to save money, wherein one doesn’t need to be an IT expert or a giant firm to avail of a seamless communication infrastructure.

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