Inroads to the Philippine SME Market, 2005

This IDC study aims to better define the small and medium-sized enterprise (SME) segment of the Philippine economy, and in doing so, provide valuable insight to information and communication technology (ICT) vendors of the direction and trends, which SMEs will be following for the year ahead. Moreover, this study will identify specific drivers and inhibitors in relation to SMEs' IT spending behavior, which will establish the corresponding relationship between possible inroads that ICT vendors can take towards the SME market.

"Vendors must be responsive and respect the particular needs of SMEs. Product and service offerings must be based on the inherent characteristics and needs of a Filipino SME. Value-added services, regardless of alliances with other vendors, must be sought out in order to effectively convince the SME the benefits of adopting IT-based solutions. As most SMEs are still in the initial phase of IT adoption, vendors must educate and orient SMEs to the substantial benefits of moving from traditional business processes towards IT-centric solutions. It is during this education process where SMEs should realize the true rewards and value of intended ICT solutions," says Manuel J. Ravago, research manager, IDC Philippines.