TEA E-Readness Center

E-Readiness

Enhancing the Competitiveness of SME"S with ICT

As global competitiveness becomes a reality, Small and Medium Enterprises (SMEs), specially in the manufacturing sector, face a huge challenge.

In the earlier protected economy scenario, even inefficient SMEs in the manufacturing sector managed to be profitable. But with the global competition arriving, Indian SMEs need to continuously reinvent themselves to stay competitive, efficient and profitable.

Driving Growth Through ICT

Many studies conducted worldwide on the SME sector have revealed a direct co-relation between competitiveness and ICT penetration. The more an SME harnesses the power of ICT, the more it has been found to be competitive.

In India, while the large manufacturing units have taken to ICT in a big way, the SMEs are yet to reap the benefits of ICT on a large scale. This has led to a ‘competitiveness gap’ and the SMEs now need to concentrate on adopting ICT to bridge the distance between them and the world. This is imperative, if India is to grow as an economy.

Driving Growth Through ICT

AIMS AND OBJECTIVES OF PROJECT VIKAS

1. Background

The programme will support the long-term growth and competitiveness of the SMEs in selected clusters in India.

Project Vikas has a long term objective of increasing the competitiveness of the Indian manufacturing sector through a combination of multi-divisional strategies which will include:

Using ICT as a medium to revamp access to market:

Enhanced access will empower SMEs to undertake direct, faster and better transactions.

Apt and focused training for refining skills and creating human capital:

SMEs face constraints of geographical clusterings which is a major handicap in attracting quality talent. Upgrading of existing local manpower and reduced dependency on external agencies will enable SMEs to tap local talent. Local ITIs and polytechnics provide a promising potential source of recruits.

Evolving internal efficiencies:

By way of intense ICT intake and automating procedures to reduce costs and enhance capacities for accessing, processing and disseminating information and collaboration.

Commencement of ‘Knowledge Networks’:

To share the latest market know-how and best IT practices. Networking with low-cost and relevant R&D linkages to stimulate innovation and ensure continuous product improvement.

High level IT penetration and practice in the manufacturing sector:

Weak penetration of IT has been identified by NASSCOM as one of the key reasons for the low competitive ability of the SMEs.

Advancing enlargement of a local software ecosystem:

To fortify IT absorption and put forward relevant customized solutions, currently the missing link in the chain.

Project Vikas will incubate and nurture an ecosystem of Independent Software Vendors (ISV) to ensure continued, high quality and relevant ICT support to the clusters.

THE THREE PHASES OF IMPLEMENTING PROJECT VIKAS

1. Background

Phase I:

Understanding cluster needs and preparing a cluster action plan, improving local participation in cluster level activities.

Phase II:

Improving skill sets of the cluster based on the action plan with an aim to increase the level of ICT in the business processes.

Phase III:

The reward phase. This phase will see actual increase in the productivity due to ICT usage in different firms and organizations in the cluster.

IMPACT OF THE PROGRAM

Innovative changes in management, technology and access to statistical information to facilitate faster decision making.

Inland Container Depot (ICD)

TEA Education and Cultural Academy

India Knit Fair (IKF)

NIFT-TEA Knitwear Fashion Institute (NIFT-TEA)

Netaji Apparel Park - New Tirupur

TEA - St. John Logistics Pvt Ltd

Tirupur Knitwear cluster

Agra Footwear Cluster

Ahmedabad Pharma Cluster

Chennai Auto Cluster

Ludhiana Textiles Cluster

Pune Auto cluster

Chennai LeatherCluster