Every demography has it own cluture. When it comes to India, we are extremely good in making cutting edge software. But when it comes to effective adoption, it leaves a big question. There are may reasons for this.
When it comes to an #ERP system for the #MSME segment in manufacturing, it still has a huge untapped potential. This cannot be tapped the way it is done in the other parts of the developed markets of the world.
Adhoc management style and Lack to time sense, affects the growth:
Many #MSMEs are still works on the age old process. They employ known contact of people on the job and does not provide necessary training that the job demands. We all know in India, by and large we are not too sensitive about time. This results in adhoc management-style of functioning across the enterprise. This affects the growth. #MSMEs are always on a fire-fighting & cash crunch situation.
Insecurity of the work force:
As an extension of the above, large white-collared work force still wish to keep the data close to their control. A combination of lack of professionalism and time sense, affects adoption of IT tools.
ERP vendors and Partners struggle:
Many ERP vendors who focus on Indian market really struggle to make their ends meet and several of them ran out of market. This is mainly due to lack of market preparedness. When it comes to the #ERP in the #MSME segment, the Indian market expects & demands:
- FREE ERP
- Low cost ERP
- Ready to use ERP
- ROI guaranteed ERP
- ERP with affordable AMC
- Quick support and resolution in case of bugs
- Regular upgrades.
- Assured long-term support
Like a Fast food culture, MSMEs want ERP the same way. Low cost, easy & ready to use ERP will be their choice.
#GST in India is blessing in disguise:
Before #GST, the enterprises had 18 months of time to create, modify, delete, add & meddle with their books of accounts. After GST it is just 40 days all the Sale, Purchase, Debit and Credit note has to be accounted for and the returns to be filed. No modifications and changes are allowed what so ever. This covers about 70% of their transactions. Over and above, in each transaction the line item wise records for all the goods and service. E-Way bill makes the compliance more strict.
This is making the need for book keeping with high level of quality mandatory. Closing of the books of accounts in MSMEs will be like banks on a daily basis.
On the other hand, this is going to tremendously improve the data visibility for the enterprise and help them to run their business much better.
CAs will find it difficult:
As an extension, #CAs need to replace their accounting software with a right ERP system to ensure that the quality of data is improved, in line with the #GST rules to avoid wrong documentations. Also there is hardly any time for verification and reconciliation of records. CAs necessariely has to work as an extended arm of the enterprise on a real-time basis to audit their books of accounts on a monthly basis.
Like large corporate, the MSMEs also need close their books of accounts on a monthly basis. There is no chance of any backdated entries as it were done in the pre-GST era.
CAs and GST Consultants:
Many CAs and GST consultant are constantly trying to educate their MSME clients on the GST compliance. They are sick and tired of doing this job. The easy way out is to give them a ERP software and configure all the masters and transactions as per GST. It is a done deal. Any amount of gyan is not going to help both the parties without an ERP system in place.
Syscon with 2 decades of experience, has the magic-pill:
At Syscon, with our undivided attention to this segment for the past over 2 decade has several following advantages:
1. #1 ERP vendor under #DigitalMSME scheme
2. MOU with Telangana Industrial Helath Clinic (TIHCL) as a preferred #ERPvendor.
3. Low cost and ready to use ERP solution with GST
4. 2 users FREE for 6 months.
5. Implementation time within 2-4 weeks.
All stake holders will be benefited:
“Value Creation” & “Job Creation” is the objective. Unlike gambling, here all stake holders are benefited.
The full ecosystem like #ERPvendors, Implementation partners, #CAs Chartered accountants, #CompanySecretaries, #GST Consultants, Freelancers, Vendor development & supply chain professionals, Training institutes, Industry associations, MSME units has to work together to drive this initiative.
We have a very novel and collective solution to address this. We need stake holders at all parts of the country to make this work to derive business benefits.
Write to us at: email@example.com (or) make a signup . Depending upon your profile and market location, we will get back to you with suitable working arrangements.
This article is written by S Vijay Venkatesh – MD & CEO of Syscon. The views expressed are personal.