VIRTUAL CLUSTERS
APPROACH PAPER
1
TABLE OF CONTENTS
1. BACKGROUND
2. MISSION STATEMENT
a. VISION
b. MISSION
c. STRATEGIC THEMES
d. OBJECTIVES
e. PERCEIVED BENEFITS
3. SCOPE
4. PLAN OF ACTION – PHASE I
a. CREATION OF A PLATFORM
b. MOBILIZATION OF RESOURCES
c. BUILDING AWARENESS
d. LEVERAGING NIESBUD’S CURRENT SERVICES
5. OPERATION PLAN – PHASE II
6. FINANCIAL PLAN
7. BUSINESS MODEL
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I.
BACKGROUND
The National Institute for Entrepreneurship and Small Business Development, NIESBUD, an
autonomous Institute under the Ministry of MSME, Govt. of India, had conceptualized a
portal on Virtual Clusters aimed at producing a beneficial effect for the society as a whole. It
is a concept conceived to synergize the functioning of Micro, Small and Medium Enterprises
with all the other stakeholders – namely the financial bodies, academic institutions,
facilitators, plus the industry federation, in a mode that ascertains speedier growth and
effective mutual benefits. The whole notion of Virtual Clusters was perceived as a dream
project for the MSME ministry, who have resolved to take up the challenges in reaching out
whole heartedly to people involved with the Small and Micro Enterprises. To this effect, a
workshop prior to its launch was held on 19th of February 2014. This workshop was
applauded from all quarters and the Portal was officially launched on 1st of March 2014, at
an MSME event held at Vigyan Bhavan, New Delhi. The development of website was
handed over to NIESBUD on 18th July, 2014. The work is progressing quite well towards the
realization of its vision and mission, since then.
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II.
MISSION STATEMENT
VISION
To create an integrated virtual ecosystem for facilitating the sustenance and growth of
MSMEs
MISSION
Providing an integrated platform with access to global market information, enabling
exchange of ideas, best practices and facilitating multilateral transactions
STRATEGIC THEMES
 Enterprise Growth
 Enterprise Sustenance
 Engagement amongst stakeholders including Industry, Institutions and Academia
 Enterprise Start up
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OBJECTIVES
 To bring together various the stakeholders like MSMEs, Academia, Institutions,
Professionals at one platform
 To ignite engagement amongst all the stakeholders for sustainable eco system of
MSME sector
 To serve as a common platform for providing modern business tools, management
techniques and processes that cater to the demand of MSME
 To provide an integrated platform for problem logging and provide customized
solutions. In the first phase, 5 problems, each of major ITC HS , shall be identified
and solution thereof shall be provided : e.g. problems in Food processing, Textiles,
Chemicals and allied sectors, plastic industry, will be identified, prioritized, grouped
and resolved
 To provide MSMEs access to global market and the supply chain
 To facilitate interaction between Academia and Industries for mutual engagements
resulting in sustenance and growth of MSMEs, for technological improvement in
manufacturing processes, talent acquisition, and enterprise creation.
 To cater to the demand of the industry, NIESBUD Naukri portal will be integrated
with the platform
 To popularize Government Schemes and to provide single gateway for accessing
benefits under the eco system and close looping the utilization of benefits
 To facilitate the creation and up-gradation of resources for enterprise development
and growth, through E-Learning modules, NIESBUD has already uploaded 4 E –
Learning modules
 To provide students exposure to the MSME sector through Industrial Projects and
Internships.
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PERCEIVED BENEFITS

Single window access for end to end information – saves time and money

Balanced sectoral growth keeping in mind the overall requirements of the nation

Resolution of the top issues faced by the Industry will provide an impetus to industry
growth and will give insight into the industry for process improvement

Reduced per transaction cost and logistics cost by process optimization and
providing economies of scale to MSME

Increased penetration of the benefits of government schemes to the end users

Expansion of MSME to the international market and improved sourcing of cost
effective and new technologies

Optimum talent utilization, improved national productivity and increased
contribution to GDP

Students as interns would bring in fresh ideas and solutions at a reduced cost for the
MSME sector
III.
SCOPE
 Ecosystem Building
o Securing linkages with the prominent organizations for MSME growth
o Bridging the gap between the job seekers and job providers
o Providing an open forum for exchange and creation of ideas and best
practices
 Credit
o Disseminating the information about government subsidies and funding
schemes
o Facilitating loans and investment from Banks, Financial Institutions and
Angel, Crowd funding respectively
o Financial advice from experts for starting, sustaining and growing business
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 Technology
o Facilitating technological development and up-gradation through Domain
experts
o Promoting E-learning by hosting a multitude of courses online, in
collaboration with best national and international knowledge partners
o Facilitating technological interventions for business process optimization
 Infrastructure
o Facilitating the infrastructure up-gradation by bringing together expertise and
industries from various sectors like Power, Electricity and allied regulations
o Improving the infrastructure to match the competition in the Global Industry
o Sharing information regarding SEZ, EOU and other commercial zones
 Marketing
o Develop and utilize marketing network for empowering MSME
o Facilitate updated marketing information for growth of enterprises
o Create and spread awareness of the marketing opportunities
o Assist MSME in responding to market opportunities
The above diagram represents sub – systems of the virtual cluster ecosystem.
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IV.
PLAN OF ACTION
We aspire to achieve 20% year on year growth for the MSME sector through the Virtual
Cluster Initiative.
To conceive an idea is smart work, but to popularize it and to broaden its reach is smarter
and harder to achieve. The broad level Plan of Action for the execution of this project is as
under:
PHASE I
CREATION OF A PLATFORM

The popular banks/ institutions/ companies already registered and/or associated in
some way with the portal, will be highlighted in order to cater to the needs of
MSMEs

The website will be compatible with mobiles and Tablets

The website would be linked to MSME clusters existing abroad so that the members
also have an option to connect to clusters in the countries they want to trade with or
expand

Online/Offline chat options will be provided to solve students queries/doubts in the
form of mentoring/group chat

Users will be able to upload photos/videos that can help others, post screening of
such content by the administrator

The count of people visiting the website will be included
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
The info graphics will be used to interact with the customers and spread awareness
about virtual clusters

NISBUD has already published the list of Industry, Domain Experts and Institutions on
the website, and this will be an ongoing process for publishing fresh registrations. A
category wise list for better networking amongst the members will be provided.
Reports can be classified and spooled using specific filters
o
o
o
o
o
o
o
o
ITC Code wise
District – wise
State – Wise
Schemes wise
Performance and Credit Rating Scheme wise
Product/service wise
Professional Profiling
Institutions Profiling

Articles like “10 Important things a start-up should know”, “10 common mistakes
made by start-ups”, “10 myths about Angel Investors”, “10 easy steps for writing a
proposal”, etc. will be shared on the website

Frequently Asked Questions, RBI Circulars, Ministry and Departmental updates
including Central and State Government, will be included as a part of Online Library
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
Pin code wise mapping of stakeholders

A standard template to receive feedback/suggestions from people will be included

Toll free number integration for easy access

E- Marketing, E-Branding, E-Promotions, will be facilitated

Facilitating Legal Advisory services through the portal

B2B and B2C thread will also be implemented to facilitate the network building,
information sharing, and supporting customized solutions

Glossary of terms, additional resources for reference, MSME dictionary, will be
included as a part of Online Library
MOBILIZATION OF RESOURCES

The site will contain information on clusters in India and their products, so that the
members can access them for trade/facilitation

Important links, addresses and checklists will also be included. A Calendar of
events/trainings planned can also be uploaded on the website to promote reach and
to improve mobilization

Information on Quality, guidelines on statutory compliances required by MSME will
also be provided on the website

Determination of the IPR needs of clusters and registration of clusters for
geographical indication (GI) will be done
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BUILDING AWARENESS

A publicity campaign using the print media, especially the local newspapers will be
undertaken, even leaflets can be included in the newspapers for market penetration

Freebies like no/reduced registration fee/ other privileges, will be offered to the
industry big-wigs to join, that would capture the attention of the masses

Advertisements will also be placed and/or invited for the portal for generating
revenue or networking

Success stories and real time experiences will be posted and be visible to everyone,
testimonials of the stakeholders can also be included

Propagating the slogan – “SINGLE WINDOW ACCESS FOR MSME”
LEVERAGING NIESBUD’s CURRENT SERVICES

The prospective/ existing stakeholders will be provided with a monthly/bi-monthly
update on the achievements and foresights of the Institute, tools and techniques
required for smooth operations of projects

The website will be connected to existing facilities like E- Learning Platform for
training and skill development; Blog as a forum for open discussions;
msmenaukri.com website for job seekers and providers

NIESBUD has uploaded 10 E –Learning modules which will be increased to 150
modules by the end of 2015

NIESBUD has already uploaded the ITC HS Codes for various industries like;
Manufacturing and Service Sector for standardization and will be using the same for
filtering the target groups in the future
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Virtual Cluster Ecosystem
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V.
OPERATIONAL PLAN - Phase II
The idea is to encourage industry associations, Universities and domain experts and other
stakeholders to register on the website. The various facilities and benefits available in the
ecosystem to be made available in structured form so that anyone can access the
information easily. With this intent the website is devised to make the latest knowledge
and best technology available to the entrepreneurs in a cost effective manner that can
catalyze the MSME sector growth all around. The discussion forum would allow the
members to post questions, clarifications, view, opinion, solutions etc. However, a pool of
experts would be there to moderate the discussion.
The operational Plan will consist of the following documents:
1. Action Plan to be prepared on the basis of strategic themes followed by relevant
Action Plan/Activity under the theme, Measures & Targets, Single Point of Contact
for the Activity, Budget requirements and timeframe, to achieve the same.
2. Process Reference Model for the operational procedure
3. Creation of in-house expertise for pooling of resources on the web as well as to
moderate the discussion
4. A five year business plan
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VI.
FINANCIAL PLAN
A website launch needs to stanchion upon certain requirements including manpower. It can
be elucidated as below –
 The website needs to be maintained every day by a team of back-office IT experts.
 There is also a need to constantly update it in order for it to stay in tune with the
times. This requires a team of professionals.
 The security against proliferation and/or other cyber thefts/crimes has to be
ascertained and reoriented from time to time, requiring skilled professionals.
 For the feedback mechanism to be active and functional, a team needs to work upon
it regularly.
 A team of experts needs to monitor the website operations and analyze its
effectiveness proficiently.
The complete financial plan and the resource requirements will be shared along with the
Budget.
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VII.
Business model
1. Membership
 Enterprises
 Suppliers
 Consultants
 Academic Institutions
2. Transaction Service charges
 NIESBUD will charge a nominal service charge on transactions executed
through Virtual Cluster
3. E – Learning
 Per programme usage
4. Webcast
 Nominal registration fee
5. Solution and Best Practice Implementation charges
6. Consultancy charges
7. Back office services on demand
 NIESBUD will create a pool of resources catering to common back office
needs of the MSME sector like Compliance, Legal, Recruitment,
Accounting, Salary Processing
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A. Status on Virtual Cluster Portal as on Aug 31, 2014
COMPLETED TASKS
1.
Discussion Forum created and accessible for all stakeholders
Done
2.
ITC Codes uploaded in portal
Done
3.
Payment gateway link in the Virtual Cluster portal
Done
4.
Reports can be classified and spooled using specific filters
ITC Code, District – wise, State – Wise, Schemes availed
MSME Schemes availed, Performance and Credit Rating Scheme wise
Done
5.
Resource update on the portal - RBI Circular for MSME
Done
6.
Links to various Ministries and Departments of Govt. of India to be
provided in Useful Links
Done
7.
Projects can be uploaded, edited and viewed in the portal
Done
8.
Apply for Loan option uploaded on Virtual Clusters portal
Done
9.
Upcoming events uploaded on the portal
Done
10.
Option for feedback provided to the stakeholders
Done
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A. Status on Virtual Cluster Portal from Sep to Oct 31, 2014
COMPLETED TASKS
1.
Helpline No. updated on Homepage
Done
2.
Home page content modified
Done
3.
Action plan prepared on mycii pattern
Done
4.
Food and Auto Component write up added on home page
Done
5.
Common Loan Application Form and Credit Score Form linked on home Done
page
6.
Formatting ,alignment and font size changed for whole VC portal
Done
7.
"Resources" link updated with the following:
Done






Business.gov.in
Cluster Observatory
My CII
CSIR Rural technologies
MSME News Network
RBI Financial Literacy Initiatives
8.
Report filtration done state wise
Done
9.
Closely working with NSIC and EKRA team to increase the no. of
Registration
Done
10.
"SME around the globe" updated under "Links" with the following
information:
Done
11.

Virtual Cluster portals from Europe, Australia, Indonesia

TCI Network for Cluster expertise and Competitiveness

APEC for Sustainable Economic Growth and Prosperity

Global Digital Supply chain portal for the Automobile Sector

East Asia Forum for analysis and research on SME policy
Info graphic Video prepared
Done
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12.
Under ITC code Type of Services added
Done
13.
Industry report and complete framework of VC portal discussed with
CII Team to structure further action plans
Done
14.
Image gallery prepared for VC Portal
Done
15.
Invitation box posted on other NIESBUD sites to invite more members
on VC portal
Done
16.
Credit Score Assessment for MSME uploaded on Home Page
Done
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TASK COMPLETED TILL, Feb 28, 2015
Status
1.
Discussion forum may have an auto alert notification going to the
members, to let them know about the activity on forum
Done
2.
Pan India Campaign may be launched inviting All MSMEs to join the
Virtual Cluster Platform; this may be done using print media and
online teasers.
Advertisement may also be considered on Google add words, Face
book and other promotional Sites.
Done
3.
Seminars and workshops are being conducted at Management
Colleges to promote Virtual Cluster among the Engineering and
Management Students
Done
4.
Online library can be added
Done
5.
Ministry FB page can be linked on footer on VC portal
Done
6.
A field can be created on the Registration Form for uploading the
Photo of the member on VC portal
Done
7.
Contact US page can be linked with the Ministry' Contact page
Done
8.
Link of Directories provided
Done
9.
Business Tools may be provided (available free online)
Done
10. Governance Knowledge center may be added under “Resources” Tab.
It provides governance related knowledge with well researched
documents, working papers, government reports, best practices
across industries, case studies etc.
Done
11. Auto Alert for registration has been added on the Home Page on the
“Discussion Forum” Tab to motivate the visitor for Registration on
Portal
Done
12.
Done
Below mentioned links added under “Resources”
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1. Money Bhaskar
2. Filing of Entrepreneurs Memorandum
3. Prepare a winning Project Report
4. Credit Information Bureau of India (CIBIL) and How it is helpful
to MSME ?
5. Credit Rating Agencies in India and How They function to help
MSME?
6. Controller General of Patents Design & Trademark
Department of Industrial Policy & Promotion
13.
Below Mentioned “Type of Report” added under Report Section
Done
1. PIN Based Report
2. ITC Code based Report
3. Activity based Report
4. PCR Scheme Based Report
5. Govt. Scheme Availed Based Report
On Home Page Website Counter Added (Shows the number of People
visited on Portal)
Done
15. Facebook Link added on Home Page at the bottom, along with the link
of Ministry Facebook Page
Done
16. “What’s New” Tab Added to having
Done
17. Mentioned links updated under Resource Section :
Done
14.
1) Tax information Network
2) Registrar of Companies Contact
3) Service Tax Department
4) Central Board of Excise and Customs
5) International Organization for Standardization
6) Quality Council of India
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7) Controller General of Patents Designs and Trademarks
8) Indian Exhibition Industry Association
9) SME Conferences India
10) SME Finance Forum
11) SME Times India
12)SME Channels - IT Magazine
13)MSME News Network
14)Malaysia SME Paper
15)India SME Forum
16) Tech - world
17)SME Insider
18)International Organization for Standardization
18. Virtual Clusters “Welcome Page “ revised ( comes after user Login)
Done
19. 12000 e-mails have been sent to Industries and with the result of that Done
people have started posting queries on discussion Forum and joined
Virtual Clusters Facebook page
20. 40 to 45 companies are getting registered on Virtual Clusters on Daily
Basis.
Ongoing
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STATUS UPDATE – April 10 , 2015
I.
Registrations
(Status as on April 10, 2015 – Comparative Analysis with reference to the data as on Oct 30, 2014)
Sl.
Stakeholders
1
Industry
2
3
II.
As on April 10, 2015
As on Oct 31, 2014
Increase (%)
28200
23735
15.84 %
Academic Institute
410
186
54.64 %
Domain Expert
180
109
39.45 %
Action Points
Task May be Completed by May 31 , 2015
Status
1
A combined Registration form may be created with CII to upload on
VC Portal
Apr 30, 2015
2
Sector specific alerts could be sent to the users
Apr 30, 2015
3
A Mobile compatible android Application may be developed
May 30, 2015
4
"Product and Services" may be added along with an Expert's detail
profile
Apr 30, 2015
5
Online videos and chat session may be shared
Apr 30, 2015
6
Information from US Small Business Administration to be updated
under “Resources” tab
Apr 30, 2015
7
SME News, Innovations and Events may be updated under the Links
Tab which has information and resources from various SME portals
Apr 30, 2015
8
Sector Specific articles/Detailed Notes may be added
Apr 30, 2015
9
Mobile version of website may be developed
May 30, 2015
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10
Success stories of Entrepreneurs may be added on the Home Page
(NIESBUD may be referred for its Success stories)
Ongoing
11
“Major drawbacks of Sick Units” could be mentioned in the form of
Detailed case study
Apr 30, 2015
12
List of the Entrepreneurs who have successfully taken loan through
PMEGP and RGUMY with their Experiences may be added
Apr 30, 2015
13
One day workshops, awareness programmes, seminars can be
conducted at colleges and Industry to promote the VC Portal
4 workshops have
been conducted
respectively in
March and April,
2015
Workshop Calendar
is being prepared for
the next months
14
Virtual Cluster Brochure may be revised and added on the Home Page
April 30, 2015
15
Professional “Business Solution provider Agencies” may be added on
the portal in a separate cell where they may provide solution
regarding the queries
Apr 30, 2015
16
An Under Domain Expert Section , their Expertise Area , photograph
and detailed Profile may be added
Apr 30, 2015
17
A search option may be added on the home page for users to search
the various items on the portal, with ease
Apr 30, 2015
18
The links of Discussion Forum may be shared over all the Social Media
avenues we have for Virtual Clusters.
Apr 30, 2015
19
Tele -calling to Industry Associations and Federations to facilitate
understanding of Virtual Clusters and increase registrations
Ongoing
20
The resources may be segregated and classified into parameters like
Credit, Technology, Infrastructure and Marketing and respective links
may be placed under those headers
Apr 30, 2015
List of Mentors can be shared on Virtual cluster who are registered on
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21
niesbud.nic.in
completed
22
Entries to be invited for Virtual Cluster Slogan to be used as a tag line
for the portal
Apr 30, 2015
The Industry Report to be classified into the following groups:
Apr 30, 2015
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24

State Wise

ITC Code Wise

Industry Wise
The Domain Expert Report to be classified into the following groups:

State Wise

Industry Wise
Apr 30, 2015
25
Invitation to include service industry like Credit rating Agencies and
Consultancy firms under Industry or Domain Expert group
Ongoing
26
Invitations to be sent to Alumni Cell of prominent business schools
and engineering colleges like IIM , XLRI, IIT, etc. to join virtual clusters
Ongoing
27
Invitations to be sent to industry Associations and Federations for
registering on Virtual clusters portal
Ongoing
28
Mail to be sent to registered members for facilitating onboarding as
business partners on E-Commerce Platforms like Snapdeal, Amazon,
etc. to grow their business
Ongoing
29
A newspaper advertisement to be printed in dailies for information
dissemination and inviting relevant audience to join the portal
Apr 30, 2015
30
A list of incentives/grants/schemes of various ministries for different
sectors may be prepared and uploaded for users
Apr 30, 2015
31
Link to Industry Associations and Federations to be provided on Virtual Apr 30, 2015
Clusters portal
32
Live presentation of Virtual clusters to be conducted during various
seminars/workshops of various associations and federations
Ongoing
24
33
Mails and letters to be sent to 1500 identified large industries for
further cascade of benefits to their vendors in MSME segment for
registering on Virtual clusters portal
Apr 30, 2015
34
Brief note to be added on importance and process of Credit Scoring
under the Resources section of Virtual Clusters portal
Apr 30, 2015
35
Discussion Forum to be linked to Social Media pages so that the
activity on Facebook, Linkedin, Twitter, etc. may directly reflect on
Virtual Clusters portal
Apr 30, 2015
36
Sample Project reports and templates may be uploaded on the portal
for member benefit
Apr 30, 2015
37
Under resources page, a specific tab may be creating focusing on
benefits and development of Women Entrepreneurs
Apr 30, 2015
38
The sectoral profile may be linked to separate pages wherein the
following information may be provided:
Ongoing
1. Introduction of the sector
2. Products relevant to the sector
3. Market demand of the produce – region wise
4. Skill Set required to start an enterprise in the sector
5. Limitations/Challenges in the sector
6. Industries/Experts registered on the portal in the mentioned
sector
7. Manpower requirements in the sector that maybe linked to
MSME Naukri portal
39
International participants being trained in NIESBUD may be invited to
join Virtual Clusters portal as they are a part of MSME in their country,
this will help to form Global linkage and may pave way for trade
Ongoing
40
Short Film and Videos may be created and Brochure can be revised for
the better promotion and Marketing of Virtual Clusters
June 30, 2015
41
The number of registrations @ 500 per month
Ongoing
25
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