Manufacturing Competitiveness
Manufacturing has been one of the crucial sectors for India’s
sustainable development, employment generation, continued economic
growth and fostering innovation. India’s manufacturing sector is now at
an inflection point, and it is critical for Small and Medium Enterprises
(SMEs), to significantly enhance competitiveness in a global
environment.
Microsoft India is taking initiatives to provide a holistic and
scalable, five year action plan to enhance the competitiveness of
India’s SME sector. This will be done through a multi-pronged strategy,
encompassing skill and capacity building, knowledge creation and
dissemination, and enablement of linkages in the cluster ecosystem. The
project signifies a long term commitment by Microsoft India to help the
Indian SME sector address its ‘soft’ challenges and gear up to
effectively to face global competition.
It is hoped that this program will not only kick-start the process of
making the Indian SME sector competitive, but will also establish “Made
In India” as a global brand to be reckoned with.
Project Vikas
Project Vikas launched by Microsoft in December, 2005 with an investment
of USD 15 million over a period of five years is designed to enhance the
global competitiveness of India’s Small and Medium Enterprises (SME) sector.
This would be done through a multi-pronged strategy, encompassing skill and
capacity building, knowledge creation and dissemination, and enablement of
linkages in the cluster ecosystem.
The project in association with National Manufacturing Competitive Council (NMCC)
signifies a long term commitment by Microsoft India to help the Indian SME
sector address its ‘soft’ challenges and gear up to effectively face global
competition. It is hoped that this program will not only enhance efficiency
and competitiveness, but make the job sector more vibrant and foster growth
in the local software ecosystem.
What are the key deliverables of Project Vikas?
The long term objective of Project VIKAS is to improve the competitiveness
of the Indian manufacturing industry so that they are able to compete at a
global level. This will be achieved by a multi-pronged strategy that enables
SMEs towards:
Using IT to provide enhanced access to markets: Many SMEs are hamstrung by
limited access to markets, especially overseas markets. Providing them the means
to access world markets, through ICT enablement, will eliminate a major barrier
and empower them to transact directly with their customers.
Improving skills and creating human capital through relevant and
focused training: Two factors limit SME access to skilled personnel:
geographical clustering and inability to attract quality talent. It is
therefore important to upgrade the skills of management and their existing
employees to enable informed decision-making and reduce dependence on
external agencies. More importantly, skills need to be locally developed and
made available to clusters, in a continuous manner, through engagement with
local ITIs and polytechnic training institutes.
Creating internal efficiencies through increased ICT absorption,
thereby reducing operational and transactional costs by automating
repetitive processes and improving their capacities for information access,
processing, collaboration and dissemination.
Development of 'Knowledge Networks' to enhance sharing of best
practices across clusters, collation and dissemination of information of
latest trends and developments related to markets and IT. The networks will
include the creation of R&D linkages to ensure that SMEs have access to
relevant and affordable R&D, foster innovation and ensure continued product
improvement.
Increasing IT penetration and usage in the manufacturing sector: A
recent NASSCOM study had highlighted the extremely poor penetration of IT in
the Indian manufacturing sector. This is the main cause for the Indian SMEs
being unable to compete at a global level.
Fostering the growth of a local software ecosystem to support the
assimilation of ICTs and providing relevant and customized solutions to the
local manufacturing sector. Unless local software vendors are aligned with
each cluster, it would be difficult for individual SMEs to either develop
customized solutions specifically tailored to their requirements or to
sustain the continuous enhancement and upgradation required in their IT
systems. Project Vikas will incubate and nurture an ecosystem of such ISVs
to ensure that continued, high quality and relevant ICT support is available
to the cluster.
Other information chain infrastructure like R&D linkages. SMEs do not
have inherent capacities to undertake R&D even though they might need this
for a continuous improvement of their product portfolios. Without continuous
product improvement SMEs will be unable to effectively compete in the global
environment. It is, therefore, important to create linkages between the
Cluster and organizations with R&D capabilities such as IITs, RECs, and
other institutes to provide access to focused R&D to the clusters as well as
creating the appropriate mechanism to share the research within the cluster.
For the program delivery Microsoft has partnered with NMCC. Microsoft will
work with NMCC for:
Delivering a Competitiveness Enhancement
Program for small and medium enterprises in the Indian manufacturing sector.
Partnering to create knowledge networks amidst identified clusters across
India to facilitate backward and forward linkages, key essentials for the
manufacturing sector. The networks will additionally enhance access to
markets; improve skills through relevant and focused training and provide
for relevant and customised solutions for the manufacturing sector. This
would energise NMCC's efforts to establish a sustainable growth path for the
small-medium enterprises in India.
Providing a framework for
knowledge networks which will help create a self sustaining eco system of
knowledge creation and sharing with the industry associations. Towards this
Microsoft will partner with polytechnics and training institutes to create
centers of excellence and partner with local academic institutes located in
the regions to provide R&D support. Further, Microsoft will engage with
Independent Software Vendors and the developer community to incubate
customized IT applications for these clusters.
NMCC will be the overall coordinator of the initiative for ICT adoption,
partnerships within and outside the cluster with relevant organizations and
management of assets such as internet portals set up as part of the
initiative at the national level.
Microsoft has already established contacts with leading industry bodies,
local associations, academia, financial institutions and identified auto
components, pharma and textile as the pilot segments in the SME space.
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