Apps for SMEs

During my recent interaction with Bastin Gerald, CEO, Apptivo, US ( >http://bit.ly/F4TBastinG ), one of the questions I brought up was about the challenges faced by SME app developers like him. “Apart from manpower and funding, which pretty much cover the entire gamut of executing the idea, the biggest challenge is to match your execution to customer expectations,” he says. “Are we developing the right set of apps that are focused on the right customers? Are we giving customers what they want in a phased manner? Are we keeping them waiting for too long? Will they go somewhere else?”

The next biggest challenge, in Bastin Gerald's view, is to ensure you stay ahead of the technology curve and do not get left out. “How do you keep your innovation machine awake and ready to take advantage of the innovations that are happening in the marketplace?” Our conversation continues over email.

Excerpts from the interview.

What are the apps that SMEs look for the most?

Although we tend to look at SMEs as one big chunk, we know several smaller sub-segments exist within SMEs. Depending on their needs, SMEs look for all kinds of apps. The most popular horizontal (not specific to any sub-segment) apps tend to be CMS, CRM, project management, timesheets and invoicing. And we are getting requests for apps specific to industries, which are being developed.

Your observations about the IT expectations of SME entrepreneurs.

We've observed two key expectations:

(a) They prefer one integrated application/platform instead of many separate applications.

(b) They need a software system/platform that allows them to start small and grow with the same. For example, a business may just need a system to collect their leads and orders for now. After a few months, they may need a customer service system. A good software platform should allow them to extend and expand their business processes by adding new apps, when they need them. They are weary of a big bang approach.

Do large enterprises benefit by actively promoting IT integration with SMEs?

Absolutely. It's very obvious that timely information is powerful knowledge. So, large enterprises can benefit immensely by promoting and actively pushing for such integrations. For example, based on the capacity constraints you see at one vendor, you can reallocate work to another vendor.

Apart from providing timely information, such integrations can also provide business process interactions at the extended enterprise level. For example, you can put a hold on shipment from your vendor right from your system through this IT integration.

Are there differences that the Indian market presents as regards SME apps?

With respect to business processes, there are not many differences. There are certainly differences in terminology and also on legal and tax-related apps. We tend to handle these by providing configurable options that are specific to India.

There are also differences between industry verticals. Someone who sells rice might sell in kilos, while someone who sells TVs will sell them in plain counts. Our apps are configurable and with a little help can be tailored to meet these different business requirements.

Your views on the apps that will make the most difference to SMEs.

Based on my interactions with businesses in India and the US, there are still many small businesses that lack the basic IT infrastructure to run their business efficiently. I saw an analyst report recently that says 75 per cent of the small businesses have not implemented any kind of software solution to manage their business and still rely on antiquated methods to manage their business processes.

One of the main goals while I conceived Apptivo was to bring best-in-class business processes to the reach of small entrepreneurs, and make it affordable and easy for them to uptake. We've achieved the first goal – Apptivo has 40+ apps that are free and come with no strings whatsoever. From an easy to uptake and use standpoint, we are constantly making improvements to our platform and apps and our users will continue to see newer, improved versions in the coming months.

With this context, I feel that SMEs will benefit from more than one category of apps that will help them streamline their business.

Having said that, no SME is in a position to spend a tonne of money on implementing any kind of software system, which is the primary reason why adoption hasn't kicked in yet. So, with a platform like Apptivo, SMEs can pick an app that addresses their biggest pain point. If your projects keep slipping, start with project management. If you have constantly screaming customers, start with customer service. If you keep losing your sales leads, start with the leads app. Once you see some benefit and get to know the system better, you can pick an app that addresses your next biggest pain point and so on.

Insights from your experience with large enterprises.

I've worked with two large companies — Sundaram Clayton Ltd, and Oracle, and a smaller company — CashEdge. I've learned how to do just about anything – key business processes, dealing with people, dealing with customers, etc.

Although these are important and help quite a bit in the entrepreneurial journey, there are several invisible transformations these experiences create in an alert entrepreneur. The major takeaways from these experiences (in no particular order) are:

Strong quality orientation: Develop a culture that builds quality into everything that is being developed/built and continuously improves the quality. Quality is everybody's business, not just that of the quality assurance department.

Focus on the total product: What a customer buys from the shop or from your sales people isn't your product. It is just a part of your product. The whole experience matters – how do they buy, how do they install, how do they use, maintain, and finally how do they dispose off.

Customer is always right: Even when he is wrong, he is right, unless he is asking for something illegal. Don't win the argument and lose the customer. The customer may not have purchased and used your product according to your specification. But it still isn't his fault. And the negative publicity associated with dissatisfied customers is just not worth it.

According to a study, it takes nine positive reviews to nullify the effect of one negative review.

Change is inevitable: We should have plans. We should have budgets. Operating a business without these is plain wrong. But don't marry yourself to them. Build your plan with some flexibility. There are so many extraneous factors that influence your business that you want to be receptive and change course when necessary.

Build a network of advisors: This is extremely key for any entrepreneur. You need a sounding board to bounce your ideas off. And you need a few people who can pull some strings to make certain things happen for you. You may have to give away some equity from your business to your advisory team, but as long as you form the right team, it will be well worth it.

>dmurali@thehindu.co.in

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