The status of adopting standardized business processes is quite low in Indian SME sector. However with the technological advances, globalization and need for efficient operations to be competitive, SMEs are slowly and steadily transforming towards standardized business processes. Analysing this change as an opportunity to serve the SME domain, explained his views and observations regarding the status of process driven atmosphere among Indian SMEs. In an exclusive interaction with BusinessNonstop, Kaustubh highlighted some core issues that this sector is facing and also suggested how these challenges can be tackled effectively.
What are the key business processes that are becoming major area of concern for Indian SMEs?
The key areas of concern for SMEs in India are –
- Technological up gradation / Assistance (for product and processes)
- Opportunity / platform to access international market
- Knowledge about international trends / competition
- Complex statutory processes (Taxation etc)
- Financial Management
- Access to Capital (Long term / Short Term)
What challenges do you foresee in adoption of better systems and processes specially among SME segment?
The challenges that we foresee in adoption of better systems and processes are as under –
a. Visualization of benefits: Most entrepreneurs do not see value in changing systems and processes. The decisions to adopt a system are mainly based on the cost and not the benefits. The challenge is to convince entrepreneurs to weigh the long term and intangible benefits of adopting better systems and processes against the initial expenditure on transformation
b. Business Process Mapping: To start any kind of transformation of systems and process, one must map the existing processes followed by gap analysis and articulating road map for transformation to standardized processes. However, we have often observed that the current process mapping is by passed by the service providers and the systems are implemented without thinking about the business and existing processes. As a result the dissonance between the new systems, old systems and the business needs grows and the whole initiative fails.
c. Support on implementation: The migration to standardized systems and processes often requires an external support over a longer period till the migration is complete. The SMEs often undermine the importance of such support and try to reduce the cost by reducing the time frame of engagement of external service providers. As a result the migration / change remains incomplete and the actual benefits are not realized. Further the whole initiative fizzles out due non visibility of advantages of migration.
What are the key pain points of entrepreneurs from the growing businesses?
- Access to Capital (Long term / Short Term)
- Marketing support
- Availability of Human Resources
How does Reevolv work with it’s clients in order to ensure best outcome from this engagement?
We work in 4 stages with our clients as under
a. Initial Assessment (Diagnostic): As part of initial assessment, we visit the company and understand broader processes followed and understand interlinkages across organization. The observations are then mapped against management briefings with objective of process improvements. Based on this assessment, we present a detailed roadmap for process improvement / transformation based on company’s objectives and vision. The roadmap covers all the areas which need intervention and assigned responsibilities for every task.
b. Implementation: After the finalization of the road map, the implementation phase starts where in Reevolv implements the roadmap along with the company’s internal team. The inbuilt review of the project by the top management of the company helps in speedy execution and addressing issues if and when they arise. The inclusive approach across organization helps garner confidence of the employees of the company and the ensures the employees work toward common goal of transformation. The implementation phase concludes after the proposed changes and transformations are executed and systematized.
c. Post Implementation Support:The new systems / processes need a constant monitoring for internal adherence to standards. Slippages in this phase can lead to procedural collapses as per the new systems. Reevolv extends support to clients by facilitating regular reviews and trouble shooting on the new processes and continues till the processes are stabilized.
What is your roadmap for activity for next one year?
We will continue to focus our offerings towards the SME segment. Recently we completed an exhaustive GAP IDENTIFICATION exercise for a food catering company based out of North India.We will focus on such companies. We are also coming up with automated MIS solutions for SME Companies based on Excel as we see that a lot of promoters end up spending money on software which ends up as a wasteful expenditure. This will be a big help to SMEs.
We are also focusing on innovative structures which can help manufacturing SMEs make significant tax savings which will add to their cash flows. Since we work a lot with PE / VC funds we will help relevant SMEs raise funds through this channel
Last but not the least Research is the back bone of Reevolv. We plan to expand our product offerings in the research vertical. We will have a specific focus on consumer insights so that SMEs can benefit from it and market their products vertical
How big is the market for business consulting in India?
The estimated size of consulting business in India is upwards of $1.5 Bn. Please note that these are rough estimates.