Ict adoption and smes growth Essay

1. Introduction

Let ‘s first understand the significance of ICT. Then merely we would be able to understand its deduction and how it helps SMEs ( little and average sized endeavors ) in their growing.

ICT is an acronym for Information and Communication Technology. The term is really used for electronic information-processing engineerings such as computing machines, Internet, fixed-line telecommunications, nomadic phones, radio communications, broadband, barcode scanners, and planetary placement systems.

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ICT is really responsible for altering the life style of even common people, like each and every person carries a nomadic phone and is accessible at any point of clip. When ICT is used in concern topographic points, it works wonder as it becomes easy to pull off everything from on-line merchandising and buying, keeping histories, look intoing stock list, comparing rivals, to directing citations. And since the rates for utilizing these ICT devices has gone down awfully over the old ages even SMEs can utilize them for twenty-four hours to twenty-four hours activities to heighten their competences.

2. Case Study

The affiliated research paper ( Understanding the deduction of ICT acceptance: penetrations from SMEs ) presents a pilot survey of 24 SMEs to demo the how the ICT can be really applied by and the degree of its use.

The writer has used assorted theoretical accounts and mentions to supply the information for this instance survey and to analyze the deductions of ICT to SMEs. So this attack helps since as a reader you can associate a theoretical account or mention to a peculiar technique being used by the SMEs.

2.1. Different Models and mentions used:

2.1.2.1. Venkatraman theoretical account

The theoretical account provides a model to aline concern and IT scheme being used by the unit. It describes four positions towards the analytical alliance of Business and IT – ‘Strategy executing, Technology potency, competitory potency and Service Level ‘ . It helps SMEs to look into their degree of edification and even analyze what their rivals are up to.

The Venkatraman theoretical account has been referenced from ( bibliography ) Strategic Alignment Business and IT – Venkatraman [ online ] . Available from: hypertext transfer protocol: //www.valuebasedmanagement.net/methods_venkatraman_strategic_alignment.html.

2.1.2.2. Poon and Swatman theoretical account

This theoretical account purposes that the concern transmutation enabled by ITC plants efficaciously and expeditiously when applied to the e-commerce sphere. This theoretical account purposes different degree of e-commerce combinations. At the lowest degree concern units develop inter-organisational systems. Then they identify partial integrating with bing internal systems so that they can analyze how it really turns out. And one time done they try to accomplish full internal integrating so that they can take full advantage of the engineering. The benefits realised by the concern units were found to increase with increasing integrating, but the degree of procedure alteration required was found to be independent of the degree of integrating.

2.1.2.3. Nolan ‘s growing theoretical account

Nolan ‘s theoretical account suggests that organisations easy start out in the induction phase. Then it is followed by the period of IT use in the contagious disease phase. Then organisation hides that control is required, with the use. Control is followed by integrating of different technological solutions. Here the information direction is truly necessary for maintaining the outgos integral by taking right blend of engineerings. Now even more phases have been added to the theoretical account – functional integrating, tailored growing and rapid reaction. Actually the nine phases can be divided into three epochs ; each epoch consisting of three phases. The first epoch is called informations processing ( DP ) epoch ; the 2nd is information engineering ( IT ) epoch, while the 3rd is web ( NW ) epoch. Thus this theoretical account speaks about how an organisation starts with the usage of IT and increases it with right pick of engineerings. This theoretical account is helpful to SMEs as they can look into how they start with the basic usage of ICT and so turn up with the coming of new engineerings.

2.1.2.4. Galliers and Sutherland

Galliers and Sutherland have given the following six stage theoretical account:

  • Phase one: Adhocracy
  • Phase two: Foundations, development of IT professionals
  • Phase three: Centralised repression, Planning of IT begins
  • Phase four: Co-operation between IT professionals and users
  • Phase five: Entrepreneurial chances, IT seen as supplying strategic benefit
  • Phase six: Integrated pleasant relationships between IT professionals and the remainder of the administration

2.1.2.5. Whilst Rodger

Whilst Rodger purposes innovation-decision theoretical account. This theoretical account is helpful to the SMEs as they start with the cognition acknowledgment and so analyze whether to utilize the cognition or the available techniques in the concern unit or non. The theoretical account follows a five measure procedure:

  • Knowledge – An individual/business unit becomes cognizant of an invention and has some basic thought of its functionality
  • Persuasion – An individual/business unit forms a favorable or unfavorable attitude toward the invention
  • Decision – An individual/business unit makes the pick of following or rejecting the invention
  • Implementation – An individual/business unit starts utilizing the invention for its twenty-four hours to twenty-four hours activities.
  • Confirmation – An individual/business unit evaluates the consequence of utilizing the invention.

2.1.2.6. Lauder and Westall

Harmonizing to Lauder and Westall ICT impacts include cheaper and faster communications, enhanced client and provider dealingss, more efficient and effectual selling, merchandise and service development and better entree to information and preparation.

3. Best Practices

The research paper has used the best patterns in using this research method.

It has discussed the assorted theoretical accounts and so tried to come up with concern theoretical accounts to demo how SMEs growing is really affected by the ICT acceptance. It has really used quantitative analysis to compare conceptually 24 SMEs which help a reader to understand the ICT acceptance from different position. The illustrations from each theoretical account besides help the reader to place with the assorted techniques available for look intoing out the deductions of ICT to SMEs. The ICT development and concern integrating theoretical account

The intent of this theoretical account is to supply a model which would let SMEs to place their current degree of ICT use and even sophistication degree.

This theoretical account consists of four quarter-circles. Quadrants 1 and 2 are used to place how ICTs are implemented and utilised within SMEs. Quadrants 3 and 4 are used to place how ICTs are really integrated with concern procedures to change the operational activities.

4. Alternate research Methods

4.1. Stages-of-growth theoretical account

A theoretical account of growing phases proposes four phases. The first phase is end-user tools that

are made available to knowledge workers of the concern unit, the 2nd phase is placing those knowledge workers who knows, the 3rd phase is acquiring information from cognition workers, and the concluding phase is wherein information systems help work outing cognition jobs. The theoretical account can be used to through empirical observation measure the growing phase of SMEs every bit good as indicate future development of them in the country of cognition direction engineering

4.2. Adoption Ladder Approach

The ‘Adoption Ladder ‘ attack is really used for SMEs utilizing E-Commerce. It begins with the usage of electronic mail ( i.e. basic technique for twenty-four hours to twenty-four hours concern activity ) and so it is taken up to an extent wherein a web site is developed for purchasing, merchandising and payment mechanism of e-commerce. And after that the concern unit is considered to be to the full on-line.

4.3. ICT Environment Analysis

This research technique helps in analysing General Surroundings ; Inter-Industry ; and Internal Environment.

* General Surrounding: This encompasses the steps like E-Readiness Index ( ERI ) , Network Readiness Index ( NRI ) , and ICT use within a state. Table I shows ICT outgo and SME e-business

% SME utilizing

United kingdom

Oesterreichs

Sverige

Italy

Norway

Sverige

ICT

92

92

96

86

93

87

Web Access

62

83

90

71

73

62

Own Web sites

49

53

67

9

47

31

E-commerce purchases

32

14

31

10

43

23

E-commerce Gross saless

16

11

11

3

10

22

Networked Readiness Index

5.35

5.01

5.58

— –

5

5.26

Table 1: SME e-business Adoption Rate for Selected Countries

Reference Beginning: EC ( 2002:4 ) , Dutta et Al ( 2003 ) and Indjikian & A ; Seigel ( 2005:682 ) .

  • The Inter-Industry: This helps in make up one’s minding the degree of ICT acceptance among the SMEs as by comparing the best pattern in the industry and the best pattern among the rivals you feel confident plenty to travel for a engineering.
  • The Internal Environment: In internal environment analysis, the fiscal and human resources utilized are analyzed which helps in make up one’s minding the degree of ICT acceptance.

4.4. Impact/Value Framework

Michael Hammer and Glenn Mangurian came up with the impact/value model to place the value of the information engineering. It really measures the efficiency, effectivity, invention with regard to the impact that a SMEs will hold after get downing the use of ICT. The undermentioned figure depicts the theoretical account. The impact/value model has been studied from ( bibliography ) Impact/ Value model. hypertext transfer protocol: //www.valuebasedmanagement.net/methods_impact_value.html

5. ICT and Developing States

Information and Communication Technology is considered as a cardinal construct that can really assist in economic development in most underdeveloped states. The assorted research consequences have shown that the credence and use of ICT by concern units in developing states have the same positive consequences as in instance of developed states, the lone difference being degree of use. Business units besides value the part of ICT to their public presentation that is why the ICT acknowledgment has increased over the old ages. So the authorities must assist SMEs to follow the ICT and should hold appropriate policies to turn to them.

6. Decision

Therefore we can reason that the additions from ICT for any concern houses chiefly dependence upon the fact that how it is being implemented and how efficaciously the engineering is being used. But the addition to SMEs from the acceptance of ICT is great as the twenty-four hours to twenty-four hours activities are easy carried on and are even cost effectual. The net income degree besides increases improbably with the acceptance of ICT in SMEs as now the engineering is truly cheaper and the resources are easy to pull off.

Then there are many theoretical accounts available which can be easy applied to analyze the impact of ICT in SMEs. These theoretical accounts non merely assist the SMEs to analyze the impact but besides actuate them to utilize ICT as the net incomes and edification degree is rather seeable. Even the client base besides likes this acceptance of ICTs by the SMEs, since the same work is done in rather a less clip.

7. Mentions

[ 1 ] Strategic Alignment Business and IT – Venkatraman [ online ] . Available from: hypertext transfer protocol: //www.valuebasedmanagement.net/methods_venkatraman_strategic_alignment.html [ Accessed 14/01/2010 ]

[ 2 ] P Gottschalk ( 2007 ) Toward a Model of Growth Stages for Knowledge

Management Technology in Law Firms [ online ] Available from:

hypertext transfer protocol: //inform.nu/Articles/Vol5/v5n2p079-093.pdf [ Accessed 14/01/2010 ]

[ 3 ] Impact/ Value model [ online ] . Available from:

hypertext transfer protocol: //www.valuebasedmanagement.net/methods_impact_value.html [ Accessed 15/01/2010 ]

[ 4 ] Marielle lair Hengst and Henk G. Sol,

Delft University of Technology, the Netherlands. ( 2001 ) , The Impact of Information and Communication Technology on Inter organisational Coordination: Guidelines from Theory [ online ] . Available from:

hypertext transfer protocol: //inform.nu/Articles/Vol4/v4n4p129-138.pdf [ Accessed 15/01/2010 ]

[ 5 ] Lofton, Lynn. ( 2006 ) Technology ‘s impact on concern communicating unabated

[ Online ] . Available from:

hypertext transfer protocol: //www.allbusiness.com/technology/4096311-1.html [ Accessed 16/01/2010 ]

[ 6 ] ICT for Competitiveness & A ; Innovation [ online ] . Available from: hypertext transfer protocol: //ec.europa.eu/enterprise/sectors/ict/index_en.htmDescriptors.guide.html [ Accessed 16/01/2010 ]

[ 7 ] ICT Adoption and Development of E-business among SMEs in South Africa [ online ] . Available from: hypertext transfer protocol: //www.isbe.org.uk/content/assets/BP09-KnowledgeMpofu.pdf [ Accessed 16/01/2010 ]

[ 8 ] ICT, E-BUSINESS AND SMEs [ online ] . Available from: hypertext transfer protocol: //www.oecd.org/dataoecd/32/28/34228733.pdf [ Accessed 16/01/2010 ]

[ 9 ] R Ashrafi [ 2008 ] , Use and Impact of ICT on SMEs in Oman [ online ] . Available from: www.ejise.com/volume-11/volume11-issue3/ashrafiAndMurtaza.pdf [ Accessed 16/01/2010 ]

[ 10 ] Michael Taylor, I.C.T. and Service relationship in the planetary economic system [ online ] . Available from: www.reser.net/attachment/2269/ [ Accessed 16/01/2010 ]

[ 11 ] Helen Shiels Ronan McIvor and Dolores O’Reilly, Understanding the deductions of ICT acceptance: penetrations from SMEs [ Attached Reference ]

[ 12 ] Heinz K Klein ; Michael D Myers [ 1999 ] , A set of rules for carry oning and measuring interpretative field surveies in Information Systems [ Attached Reference ]

[ 13 ] M Lynne Markus ; Allen S Lee [ 1999 ] , Special issue on intensive research in information systems: Using qualitative, interpretative, and instance methods to analyze Information Technology – Foreward [ Attached Reference ]

[ 14 ] Christopher T Street ; Darren B Meister [ 2004 ] , SMALL BUSINESS GROWTH AND INTERNAL TRANSPARENCY: THE ROLE OF INFORMATION SYSTEMS [ Attached Reference ]

[ 15 ] Daniel Robey ; Sundeep Sahay, Transforming Work Through Information Technology: A Comparative Case Study of Geographic Information Systems in County Government [ Attached Reference ]

[ 16 ] Yingqin Zheng ; Geoff Walsham, Inequality of what? Social exclusion in the e-society as capableness want [ Attached Reference ]

[ 17 ] Johann ( Rensie ) Van Rensburg, From Technologists to Social Enterprise Developers: Our Journey as “ICT for Development” Practitioners in Southern Africa [ Attached Reference ]

[ 18 ] Real Life Methods [ Attached Reference ]

[ 19 ] Geoff Walsham ; Daniel Robey, Foreword: Particular Issue On Information Systems In Developing Countries [ Attached Reference ]

[ 20 ] Geoff Walsham ; Sundeep Sahay, Research on Information Systems in Developing

States: Current Landscape and Future Prospects [ Attached Reference ]

[ 21 ] Geoff Walsham ; Daniel Robey, Foreword: Particular Issue On Information Systems In Developing Countries [ Attached Reference ]