Johannesburg, 16 Jul 2010
Mobile enterprise applications have the potential to meet the business software and communications needs of very small enterprises in emerging economies.
This is according to Danie Kok, SAP research director and co-manager of the SAP Meraka Unit for technology development, and a speaker at the upcoming ITWeb MobileBiz conference.
Kok says there are approximately 26 million small, medium-sized, and micro enterprises in emerging economies in Brazil, Russia, India, China, and SA, and about 12.5 million (48%) of those are very small enterprises (VSEs)
According to a report by Mike Herrington, from the University of Cape Town's Graduate School of Business, 55.8% of VSEs say they need additional software in the areas of sales and marketing, finance and accounting, HR and administration, and basic ERP functionality.
Kok argues that using mobile technology to meet these needs can help VSEs in developing countries to overcome initial business challenges associated with cash flow, stock control, debt control and job scheduling.
He says many VSEs are willing to use software on mobile devices to enhance and support their business initiatives. This in turn offers many business opportunities for software vendors and results in a noticeable socio-economic impact.
Kok explains that mobile devices are more cost effective and efficient than traditional PC and office-based applications. “Accessing the Internet via a mobile device is much cheaper and [easier],” he says.
According to him, there are many benefits for VSEs using mobile services in rural areas. He explains that collaborative procurement processes via mobile technology in rural areas offer better pricing options, make cash flow processes faster and easier to manage, while invoices can be sent directly to suppliers via a mobile device.
Mobile business in general has “huge potential to improve the SA economy”. He explains that it will support economic prosperity in the country by creating more job opportunities.
Mobile technology has a large role to play in developing regions, says Kok, where 'first world' technology has been a poor fit to date. “More research is needed into mobile technologies and other ICTs suited to emerging markets, though.”
“Although it is clear that there are large differences in assumptions related to the cost, power, and usage, there has been little work on how technology needs in developing regions differ from those of industrialised nations,” notes Kok.
“We argue that Western market forces will continue to meet the needs of developing regions accidentally at best,” he states.
Kok will elaborate on how mobile enterprises can benefit VSEs at the ITWeb MobileBiz conference at Vodaworld in Midrand, on 28 and 29 July.
For more information on the event, click here.
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