Small and medium sized (SME) enterprises are defined as organization with a turnover that is under particular peculiar limitations. The moderate enterprise employs around 50 workers while the medium sized enterprises have fewer than 250 staffs. Entrepreneurs start with overmuch set-ups and their supreme success rests on application of the correct technologies. Such enterprises are changing over their attention to (IT) information technology, as industries have realized that IT, in co ordination with right business strategy, takes on a pivotal role behind the ever so maximising progress of SME.



Entrepreneurs consider that competition with MNCs can be a hurdle in the way of their development but professionals opine that implementation of proper technology providing an integrated system is the key to improved business skill. Information Technology in business unit keeps the primary commercial operation which needs to be upgraded periodically, else outmoded applications leads to severe data gap. The stored data in several positions is usually not interconnected, leading to breakdowns in the business procedure and revenue loss.

Today, SAP (Systems Application Products in Data Processing) is the most favourite business vendor and it has successfully originated business management systems designed for SMEs. The small and medium organizations can now look forward to utilising the most prosperous business software solution that offers up more than financial and accounting updates.

SAP was accomplished in 1972 by five ex-IBM engineers in Walldorf, Germany. It has since then flourished and is now one of the premier software developers in the world. The success behind the exponential growth of this organisation is established on it's first integrated organization wide package called SAP R/2. This was further developed and led to the release of SAP R/3 which is utilized world wide.

Such technology offers intensive capabilities which handle whole commercial procedures covering specific as well as serious regions. The answers in effect provide tremendous profit to whatever SME through it's functional controls covering financial and management accounting, sales and distribution, manufacturing planning, production and inventory, etc. SAP serves the full financial answers projected specially for small and medium sized organizations such as SAP Business One and the pre-packaged My SAP All-in-One Solution to the SME class in India.

SME sector in India makes up to or so 95% of all the industrial units. Numerous SMEs who have successfully applied SAP are ACPL, Navin Fluorine, WIPRO, Bristle Cone, Siemens, etc.

Associated Capsules Private Limited is today the widest producer of Gelatin Capsules and is successfully operating five units in Maharashtra. It has established it because SAPs fundamental service, back-up and support and has solved several problems by facilitating quick and instantaneous management decisions. This integrated based system enables the company to reply to the different market challenges; smoothes flow of vital commercial data, heightens productivity and improves time management.

As already outlined, SAP has made huge contribution to the commercial market in India. It has already brought up a strong partner eco system which is proving to be very fruitful. Numerous of the automotive suppliers, pharmaceuticals, construction, textiles and rubber business houses are enjoying the profits of SAP solution.