Small and medium sized (SME) enterprises are defined as organization with a turnover that is below certain special limits. The small organisation employs around 50 employees while the medium sized organizations have less than 250 workers. Entrepreneurs start with such set-ups and their supreme success rests on application of the proper technologies. Such organizations are switching their attention to (IT) information technology, as industries have realized that IT, in co ordination with right business strategy, plays a pivotal role behind the always maximizing 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 volunteering an integrated system is the key to improved business skill. Information Technology in business unit holds the standard commercial operation which needs to be upgraded periodically, else outmoded applications leads to severe selective information gap. The stored data in several positions is ordinarily not interconnected, leading to breakdowns in the business process and revenue loss.

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

SAP was accomplished in 1972 by 5 ex-IBM engineers in Walldorf, Germany. It has since then flourished and is at once 1 of the premier software developers in the world. The succeeder behind the exponential growth of this firm is located on its first integrated corporation wide package called SAP R/2. This was further developed and led to the release of SAP R/3 which is utilised world wide.

Such technology extends intensive capabilities which manage entire commercial functioning covering particular as well as important areas. The results effectively offer up big benefits 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 finished financial results projected 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 section in India.

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

Associated Capsules Private Limited is now the biggest manufacturer of Gelatin Capsules and is successfully functioning 5 units in Maharashtra. It has established it because SAPs essential service, back-up and support and has solved various problems by facilitating quick and instantaneous management decisions. This integrated based system enables the company to reply to the various market challenges; smoothes flow of vital commercial info, enhances productivity and amends 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. Some of the automotive suppliers, pharmaceuticals, construction, textiles and rubber business houses are loving the profits of SAP solution.