'SMBs want the same things as large firms: value and innovation'

Q&A: Ramesh Narasimhan, IBM India/South Asia Director, general business

Small and medium businesses (SMBs) are big business for IBM. The company says that SMBs across sectors are spending despite the slowdown, and it expects to see increased momentum in 2010. Ramesh Narasimhan, director, general business, IBM India/South Asia, spoke to Seema Sindhu on why SMBs are important to Big Blue. Edited excerpts:

Why is small business big for IBM?
Well, 75 per cent of the world’s GDP comes from SMBs. Mid-size and smaller companies represent more than 90 per cent of all businesses and employ over 90 per cent of the world’s workforce. They produce more patents and innovations per employee than large firms.

 

How are SMB needs different from those of large enterprises?
SMBs across the world want the same things as large enterprise clients: value and innovation. India is no different. They’re also facing the same challenges as their larger cousins. The difference is that SMBs lack the resources to address those challenges.

How does IBM address the needs of SMBs?
IBM focuses on building integrated, multi-product IT solutions to help SMBs innovate in today’s challenging times. Our solutions are exclusively designed for SMBs with high flexibility and better ROI in mind, rather than simply repackaging enterprise solutions at a cheaper price. We have introduced solutions like IBM Cognos Express and IBM Express Advantage, which offer end-to-end solutions to SMBs.

We address the needs of SMBs through our channel partners. Our first priority is to develop existing partners through training, solution enablement and attrition management.

Elaborate on IBM’s ‘smarter planet strategy’. Smaller businesses are the lifeblood of the global economy and smarter planet provides a great framework for helping these companies cut costs, boost productivity and grow. Recently, we announced the application of IBM’s smarter planet initiative to the mid-market. This involves helping mid-size businesses better analyse data, become greener, work smarter, and build an information technology infrastructure that’s dynamic, flexible and easy to manage.

What are IBM’s unique SMB-centric initiatives in India?
We have invested in the development of products and services specifically priced and designed for SMBs under the brand name ‘Express Advantage’. IBM’s Express portfolio comprises hardware, software, services, solutions and financing and is designed to meet specific needs of SMBs. IBM Express Systems are easy to install, deploy and manage, and very affordable.

Additionally, we launched Smart Business, which is a breakthrough way for SMBs to acquire, use and manage technology that is radically simple.

What do SMEs want in the downturn?
A recent study by IBM reveals that the top technologies for enhancing competitiveness over the next five years at high-growth mid-size organisations are business intelligence and analytics. A majority of small and mid-market decision makers identified business intelligence and analytics — the ability to see patterns in vast amounts of data and extract actionable insights — as their top priority for improving competitiveness.

SMBs are seeking faster and more affordable business analytics solutions that can give them the information insights they need to effectively navigate through these difficult times - but without the costs and complexities that come with traditional enterprise solutions.