New model to boost technology adoption

In a bid to encourage small- and medium-sized enterprises (SMEs) to adopt enterprise resource planning (ERP) solutions with minimal investment costs, the Industrial Promotion Department plans to launch a project called "ERP for SME", using the software-as-a-service model.

The one-year project aims to introduce the software-as-a-service concept to Thai SMEs as a means of helping them reap the benefits of information technology without big initial investments.

One of the main problems among Thai SMEs is their lack of competitiveness because they do not use technology, said Vatee Phiravaranuphong, director of the Information Technology Division of the department's Bureau of Management Strategies.

The project will make SMEs aware of the new model of software adoption and help them increase their competitiveness by adopting technology without a big cost. They will not need to buy software, but instead pay for initial implementation and a monthly fee for continued use.

Moreover, the department will meet half of the implementation cost for SMEs who join the project, as well as meeting their monthly payments for one year. It plans to attract 100 SMEs in the manufacturing sector to join the project, from industries such as jewellery, food, tourism, and textiles.

"Our aim is not only to support SMEs, but also to educate them about software as a service. Then, when the project ends after one year, they will be familiar with the model and will be able to continue for themselves," Vatee said.

He said the software-as-a-service model was a new trend for software adoption that helped users to avoid big initial costs. It is not yet widely used in Thailand, but is seen as a good model to help SMEs adopt information technology.

Vatee said TOT would be responsible for the Internet data centre and a hosting service for local software houses, as well as enabling SMEs to gain access to the hosting server to use ERP solutions.

"TOT will charge local software houses for hosting services. But this cost will be supported by us for one year," he said.

The project also aims to help the local software industry. Local software houses will be able to join the project and offer ERP solutions for use by participating SMEs. The department's support will amount to Bt1 million per software house, on the understanding that software houses must provide ERP solutions for SMEs under the software-as-a-service model free of charge for one year. Participation is limited to local firms.

"ERP solutions for the manufacturing sector have four modules: manufacturing, financial, marketing and sales, and human resource management. It is up to the SMEs which modules they want to use. They can choose all of them. We will support them with 50 per cent of the first-time implementation cost, up to Bt200,000 per SME," Vatee said. 

The department will work with partner organisations including Software Park Thailand, the Software Industry Promotion Agency (Sipa) and the Association of Thai Software Industry (ATSI) to recruit local software houses that have ERP solutions to join the project. About 10 local software companies are expected to participate.

 "The total budget for this project is Bt42 million," Vatee said. "Of this, Bt24 million is to support the first-time implementation of software for SMEs and to provide free service from local software houses for one-year. Bt2 million is for TOT to provide free hosting for local software houses over one year, and Bt16 million is for training and activities to promote the project and to build awareness of the software-as-a-service model."

In a second phase scheduled to begin next year, the project will expand to other applications such as hotel management, financial services and call centre solutions, Vatee said.