MAKATI CITY -- Amid looming economic recession in the Philippines, enterprise software would still find good business in countries where small and medium enterprises (SMEs) thrive, business software giant SAP said.
SAP Philippines said it has bagged a deal with Rice in a Box (RBX), its latest client for its SAP Business One software.
RBX has 65 stores in Luzon, of which 24 are franchise-owned.
Lester Pimentel, RBX President, said they would use the SAP business software for its supply chain management, receipts and billings management and salary management.
Pimentel said the company has moved from using independently developed applications to deploying package solution to better streamline operations without the hassle of having to go back to the developers for updates or changes.
The executive stressed that they intend to grow their business further by opening at least five new branches every month.
"We started this business 10 years ago with only P80,000 but we only implemented an IT infrastructure just after two years. As we grow, we will need IT even more to streamline our operations and minimize risks," Pimentel said.
Patrick Tan, SAP Philippines Director for Small and Medium Enterprises, said SMEs like RBX are often operated by young entrepreneurs familiar with technology.
Tan admitted it was easier to convince small operators to implement enterprise resource management and supply chain management applications. SAP has been known for years to service mainly large corporations and organizations.
SAP service partners in the Philippines are increasingly providing support services to SMEs.
While SAP is expanding its market to SMEs, the Philippine subsidiary still sees business from so-called “vertical markets” that require more robust business software.
"We estimate that in the coming years, SMEs will grow exponentially but not as big as the traditional corporations. However, this means that we've spread our portfolio to a wider market of clients," Tan said.
SAP Philippine stressed it will continue targeting SMEs with products and services to widen their local market portfolio.