Small and medium sized (SME) enterprises are defined as organisation with a turnover that is under particular specified limitations. The small organization utilizes around 50 staffs while the medium sized corporations have fewer than 250 staffs. Entrepreneurs start with much set-ups and their supreme success rests on application of the right technologies. Such firms are changing over their attention to (IT) information technology, as industries have visualise that IT, in co ordination with right business strategy, takes on a pivotal role behind the always maximising progress of SME.

Entrepreneurs conceive that competition with MNCs can be a hurdle in the course of their development but experts opine that implementation of proper technology providing an integrated system is the key to improved business skill. Information Technology in business unit maintains the basic commercial operation which needs to be upgraded periodically, else outmoded applications leads to severe information gap. The stored data in several positions is commonly not interconnected, leading to breakdowns in the business process and revenue loss.

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

SAP was set in 1972 by five ex-IBM engineers in Walldorf, Germany. It has since then expanded and is now one of the premier software developers in the world. The success behind the exponential growth of this company is placed on it's 1st integrated company 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 provides intensive capabilities which handle whole commercial functioning covering specific as well as main areas. The results in effect offer huge gains to any SME through it's functional controls covering financial and management accounting, sales and distribution, manufacturing planning, production and inventory, etc. SAP serves the total financial solutions designed specially for small and medium sized corporations such as SAP Business 1 and the pre-packaged My SAP All-in-One Solution to the SME part in India.

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

Associated Capsules Private Limited is today the greatest manufacturer of Gelatin Capsules and is successfully operating 5 units in Maharashtra. It has installed it because SAPs essential service, back-up and support and has solved some troubles by facilitating quick and instantaneous management decisions. This integrated based system enables the enterprise to answer to the different market challenges; smoothes flow of vital commercial information, heightens productivity and improves time management.

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