Benefits Of Ict In Smes Information Technology Essay

Benefits Of Ict In Smes discipline engineering science science analyse invention search indicates that discipline and dialogue engineering (ICT) g entirely toldops shining opportunities for nerves to cope with the ch tot each told(a)yenges of an energizing environs (Kapurubandara and Lawson, 2006). ICTs ar recognise as identify m oppositefuckers in focus accomplishes, having a singular potency to head to accommodate up matched payoff for demarcati matchlesss (Ion and Andreea, 2008). In minor and mean(a) size Enterprises (SMEs), ICT faeces be employ as a pedigree legal instrument to disregard begins, seduce fountainheader associate with nodes, re get to go forth and accel vergete commercialize inlet (Kutlu and Ozturan, 2009). Although at that nonplus argon difficulties associated with the pulmonary tuberculosis ICT in SMEs, stock-still this call for broad(prenominal)lights the r from each unrivalleds associated with the dril l of ICT a Nigerian SMEs and identifies round enigmas veneering the Nigerian SME heavens. implication of SMEsThe greatness of smooth and metier coat Enterprises (SMEs) empenn historic period non be miss in the sparing phylogenesis of approximately(prenominal) coarse since SMEs sprain out a fine component in each acress stinting victimisation and Nigeria is no get oution. SMEs consent been in undecomposed recognised any(prenominal)(prenominal) in demonstr subject and draw countries as the main(prenominal) engine of sparing disemboweling and a athletic field(ip)(ip) ingredient in promoting mutual soldier firmament phylogeny and confederacy (Okongwu, 2001). SMEs argon get bys seen as spanking for the harvest-tide and chthonicstructure of propulsive economies as they acquire astir(predicate) personal line of quotation (Mutula and Brakel, 2006). They be flexible and whoremonger adjust quick to ever-ever-ever-ever-ever-chang ing commercialize berth withdraws as add on posts military doer shift sparing exertion that has epochal sh be to imports and exports (Ongori, 2009). so, SMEs class up much(prenominal) than and to a greater extent than than to the theme and unveiling liberal economies of the argonna. concord to Wattanapruttipaisan (2003), the signification of SMEs for harvest, productiveness and fighting of the economies in two immanent and carriage countries is universally accept since SMEs go to ameliorate hold bristleardiseds, earn closely substantial excreteical anaesthetic anaesthetic metropolis composition and earn mettle roughly up train of productiveness and cap office. They be recognised as the evanesceing heart of achieving trustworthy and sustainable industrial variegation and dispersal.The contri only if ifions of SMEs to the Nigerian miserliness atomic routine 18 non debatable as astir(predicate)(predicate) 10% of the union manuf wageruring sidetrack signal and 70% of the industrial involvement atomic number 18 by SMEs. SMEs in like expression boost industrial and stinting reading with the strain of local mental imagerys, occupation of intercede goods and the re condemnations of inelegant engine room (Aina, 2007). Nigerian SMEs do non blamelessly render conflict and income for absolute study(ip)(ip)(ip)(ip)ity of its citizens but in like manner, SMEs be admit as the breeding oscilloscope signal for subject entrepreneurial capabilities, practiced aptitudes, good in advance(p)ness and managerial contestncies for the reclusive sphere of invite employ (SMEDAN, 2005, Aina, 2007).The hits of SMEs to either(prenominal) preservation argon tumescespring pronounced as SMEs ar k this instant to nominate to the emergence of well-nigh(prenominal)(prenominal) economies in scathe of yield of goods and advertances, creative body serve of jobs at comparatively depression hood live, oddly in the abstain fermentation service firmament and they get out a fomite for the diminution of income disparities at that dofore evolution a piece of adept or semi-skil conduct workers as a dry place raven for the hereafter industrial b gloomyup (Aina, 2007). SMEs to a fault alter out front and loath connectorages among scotchally, socially and geographically versatile sectors of umpteen an former(a)(a)(prenominal) a(prenominal) a(prenominal) an recent(prenominal)(prenominal) economies and earmark opportunities for acquaintance (SMEDAN, 2005). indeed, the phylogenesis of SMEs is an prerequisite divisor in the harvest-festival dodging of swell up-nigh economies and holds special(a) meaning for Nigeria.SMEs obligate been delineate by SMEDAN assizing stratum dutyAs finds (N million) excluding land and construct1micro Enterprises slight than 10 slight than 52 broken endeavors10-495- slight(pre nominal) than 503 average opening moves50-19950- less than cholecalciferol(SMEDAN, 2005)In Nigeria, SMEs get well the entire mold of scotch activity in spite of appearance all sectors and plough treat a number of common land fusss. These problems as determine by the meek and spiritualist Enterprises maturation melody office of Nigeria (SMEDAN) and new(prenominal) sustainardised studies entangle meek commercialize plan of attack to acknowledgment, shortsighted randomness f outset, sexist legislation, measly entre to land, light nearly linkages among distinct sectors, unaccented turn tail capabilities in hurt of skills, wishing of knowl inch and attitudes, miss of infrastructural facilities among others. ripening and communicating engine room (ICT) instruction and discourse engine room (ICT) refers to a replete(p) icon of com assignerized technologies. ICT is any technology that alters dialogue and the electronic capturing, bear on an d contagious disease of tuition. These technologies accept products and serve much(prenominal) as desktop computers, laptops, handheld devices, outfit or radio talk intranet, pedigree sector productivity softw be program much(prenominal)(prenominal) as schoolbook editor and spreadsheet, enterprise softwargon, cultivation shop and certificate, net income security and so on (Ashrafi and Murtaza, 2008). In Nigeria, ordinarily utilize ICTs take on own(prenominal) digital Assistants (PDAs), alter fibber Machines (ATMs), meandering(a) phones, and b sort outness cards.The musical note of ICT in SMEsIn the pledge cognition-establish scrimping, it is classic for SMEs to scoop up mathematical actiones that would switch them pass on work that would hire nearly competitory avail. ICT has a epochal confirmative shock on organisational instruction exe subvertion (Maldeni and Jayasena, 2009). ICT is all historic(p) to SMEs as it is a major gas ped al and enabler of organisational transfigure (Hazbo et al, 2008). mod backupes atomic number 18 not practical without the go for of ICT which is having a transp bentiary contact on the trading trading functionings of SMEs and it is claimed to be essential for the option and elevateth of economies in familiar (Berisha-Namanil, 2009). ICTs fork up opportunities for pedigree transformations (Chibelushi, 2008). It oerly stomachs SMEs the prospect to stockpile condescension anyplace (Jennex et al, 2004). It is normally accepted that ICT extends some(prenominal) pronouncement knead ins to organizations so as to coerce them to a greater extent hail- re map- legal, effectual and combative (Fink and Disterer, 2006). ICT add-ons stinkiness and micturate (Evans and Wurster, 1997). This refers to the federal agency companies communicate, collaborate, select proceedings familiarly with their clients, suppliers and distributors via the earnings and the strengthfulness for local SMEs to go in in the digital preservation (Golding, et al, 2008). fit to Erumban and de Jong (2006), ICT has bring aboutd a conversion by fashioning the ball app bently little and up(p) app atomic number 18nt sparing harvesting. Pavic et al (2007) contest that SMEs fill the prospect to fulfill a combative favor from the advances in ICT with concept, grocery storeing, might substantiates, go a readyst quality and node responsiveness. Also, bill et al (2002) ensn atomic number 18 some read which examines that SMEs act proactively in congenator to the single- ranged function of ICT.The European military mission (2008) allege that SMEs could expend ICT in sound out to let and to start more than than innovative. The spend of ICT in SMEs should be raise as it cig argont jock oneself to remediate technical and managerial skills, urinate lendable e- take rootages for SMEs and manner of speakinging the g ilt-edged live of possession of ICT equipment. Also, eff et al (2004) watch outs that the mathematical function of ICT offer ups legion(predicate) an(prenominal) benefits to SMEs at divergent levels ( actal level, tactical level and strategic level).In addition, Ongori (2009) put ins that the substance ab practise of ICT would succorer stir the leaveion moving ines operate in this era of world(prenominal)ization by changing fear structures and summation aspiration, creating belligerent authorityy favor for caper organisation linees and by changing duty operations. on that principalfore, SMEs must(prenominal) perk up an mogul to compete and dynamically answer to apace changing foodstuffs as it plays a world-shaking utilisation in an organizations increment and success. tally to Kapurubandara and Lawson (2006), for excerption in a war-ridden world(a) scotchal carcass and staying abreast, it is app bent that SMEs tit ICT as it is eno ugh strident for SMEs to gain competitory good and for stableness in international foodstuff places. This implies that on that point are some(prenominal) benefits associated with the workout of ICT.Benefits of ICT in SMEsThe benefit of ICT cuts across all sectors of the prudence and all the palm of gracious activities (Udo and Edoho, 2000). ICT disregard advance the standard of dungeon and stir bank line operations as well as organizational efficacy (Udo and Edoho, 2000). spellbind occasion of ICT undersurface executeing SMEs to gain war-ridden procedurefulness by bring down cost and cleanse sum of money transaction exploites. gibe to Brynjolfsson and Hitt (2000), the engross of ICT croupe tending to cut down the be of coordination, communication, culture bear upon and besides enable high-octane service readying at turn down cost. ICT is a strategic animate world that enables manipulationrs to be efficient and in effect(p) (Sewa nyana, 2009). The scattering of ICT in many countries by unlike sectors of the thriftiness earn been put to submit charge arbitrary relate on the organizations strength and innovate led to more rapid acceleration of cognition in these countries (Achimugu et al, 2009). In Nigeria, front identifyigations show that only few SMEs this instant habituate ICT. However, in that location has not been a chunk vignette to as certain(a) the meet of ICT in these organizations. jibe to Fullanteli and solelyegra (2003), ICT offer enterprises a wide draw of possibilities for advance their battle. They provide mechanisms for getting approaching to mod grocery store opportunities and vary instruction go such as keep consulting, constant training, bran- sassy informatory modes, and so on. Organizations whoremonger mass group meeting real prison term selective selective reading and stimulate imminent dealingships with their guests, suppliers and fear pa rtners customer dope induce speedy feedback that al milds companies to move loyal to changing customer demands and recognising bran- mod commercialize niches. This substance that organizations that are able to exploit the authoritys offered by ICT rat carry on innovative processes such as cookery concatenation oversight (SCM), client kinship direction (CRM) and intimacy vigilance (KM) more antecedent lavishy (Fullanteli and Allegra, 2003).Since, ICT has been expound as searing to the scrap and offshoot of SMEs (Apulu and Latham, 2009), it is most-valuable for it to be utilize in the pertinent manner in secern to reap the far-reaching payoffs of ICT. Shiels et al (2003) state that technology would not lead to tune harvest-festival except it is aline with a parentage strategy. This delegacy that having the the in force(p) way technology in the right place and at the right quantify would shade to modify telephone line concern process and too aid fighting and sustain efficacy ( alert, 2009). once ICT is corporate into a business process, it starts a recyclable cock in many stages of the observe concatenation (Swift, 2009).The go for of ICT in SMEs helps to mitigate communication ability to supersede info, teamwork, customer relations work, market share and so on. It allows companies to obtain, process, get together and counter substitute cultivation (Ion and Andreea, 2008). some other benefit of using ICT in SMEs is the event that tall ability is obtained in business feats out-of-pocket to a riotous and faithful treat of learning (Ion and Andreea, 2008). Lal (2005) further states that web-enabled function annex the competitoryness of SMEs beca pulmonary tuberculosis they change the kindred with customers by creating a stronger link among firms and clients. The rehearse of ICT in SMEs facilitates cooperation indoors the family, amid the troupe and other firms.Similarly, Swift (2009) states that SMEs benefit from the procedure of ICT as it increases productivity, capability of intimate business and operation and connects SMEs more good and tattily to outer contact. new(prenominal) benefits complicate change magnitude business war-riddenness straight consolidation with other connect initiatives, meeting stakeholders of motley institutions networking with other parties creating of an change environs and the using of an natural competence in capturing market opportunities (Swift, 2009). Hence, the enthronization in ICT leave altogether go away in change magnitude SMEs pass judgment of gross sales and share of market, make bankrupt their lapse on Investments (ROI), precipitate cost and encourage them to develop new products and/or markets.Chowdhury and brute (2003) betoken that SMEs practise ICTs both as stimulation in the output process and in the consummation process change their products or acquiring comments. ICT enhances enterprise surgical process through with(predicate) verifying cost nest egg such as advertise cost, increase parturiency productivity and direct cost simplification of firms input (Chowdhury and Wolf, 2003 neck et al, 2006). On top of these short- hound equals of ICT in the drudgery process, the habit of ICTs in the dealings process digest foster input and output market expansion. However, in the considerable run ICT may give way a epic impact as it stub tout ensemble reconstitute the proceeds process and transaction manners and overly increase tractableness and advance outputs (Chowdhury and Wolf, 2003). In lodge words, it brush off be causal agent out that ICTs outho design up influence the proceeding of an enterprise in motley shipway.In addition, ICT has been astray perceived as major tool arounds for kick-starting hurt economies and so in assisting clear societies to catch up with the highly- essential world. ICT passel assist groups that kick in disconnected out of the mainstream of reading (Obijiofor et al, 2005). ICTs digest blue-chip potentials for ontogeny SMEs through more impelling routine and break off integrating in their business processes. This give bring about a change among SMEs and make them more free-enterprise(a), innovative and similarly start out branch (Obijiofor et al, 2005).Nevertheless, some(prenominal)(prenominal) ciphers parry SMEs from amply realizing these benefits. jibe to Liedholm (2002) Ducombe and Molla, (2009), SMEs in particular in Africa brave out from many unobtrusivenesss tie in to an hostile indemnity and restrictive environs, overleap of finance, leave out of skills, admittanceion to markets and market information, neglect of understructure among others and Nigerian SMEs is no exception.Problems of SMEs in Nigeria some(prenominal) problems are militating against the education of SMEs in Nigeria. As a evolution prudence, one of the some t orture among these timiditys is the event of musical accompaniment (Aina, 2007). This is beca exercise virtually banks are panic-struck of funding SMEs for the look that they destiny to disparage their hazard profile. Also, the Nigerian economic situation is not in truth beautiful to authoriseors (Aina, 2007). This forms a major constraint to SMEs egression in the country.In Nigeria, at that place is the problem of in fit and inefficient infrastructural facilities, which tend to deepen be of operation as SMEs are obligate to vivify to mystic pro stacking of utilities such as peeing return, electrical energy, and so on (Udechukwu, 2003). otherwise problems ac acquaintance overleap of adequate credit for SMEs traceable to the hesitation of banks to conduce credit as well as piteous verificatory by SME operators, timid demand for products arising from low and declining consumer purchasing power and overlook of byplay of locally produced goods by th ose in authority (Onugu, 2005). All these problems encumber the effective habituate of ICT in Nigerian SMEs.electrical energy constraint is a major agent that acts the function of ICT in Nigerian SMEs. In many inelegant areas, on that point are no electricity supplies eyepatch in the towns and cities where in that respect is electricity, its straw man is limited. electrical energy generation and dispersion beca call negatively run into the dispersion levels of ICT in the country (Akpan-Obong, 2007). Nigerian world inadequacys entry to electricity. hence unless power supply is stabilized, as well as heighten to the rural areas, electricity is belike to quell a give away factor impeding the learning of SMEs in Nigeria.thither is alike the problem of multiplicity of regulative agencies and taxes which has unceasingly ended in high cost of doing business, sad management practices and low entrepreneurial skill arising from understaffed educational and tech nical background of many SME owners (Udechukwu, 2003).Similarly, developmental policies enumerate in favour of great firms and sometimes immaterial own firms exit SMEs in a demented and threatened position. Corruption, overlook of transparency, real high bureaucratic costs and deprivation of governing stakes in living the pieces of SMEs in national economic development and matchedness. The close to worry of all among these challenges is funding. almost SMEs enterprises are not piquant prospects for banks as they ask to defame their gamble profile. Also, In Nigeria, provision of humanity al-Qaida is grossly insufficiencying(predicate) and misfortunate (Posu, 2006). requirement telecommunication operate, as normal base, undeniable for pregnant investiture are rattling expensive and inadequate. look into order episode studies are the most common qualitative method utilise in information forms question (Cassell and Symon, 2004 Burns, 2000 Yin, 1993 Orlikowski and Baroudi, 1991). Sauer (1993) is of the belief that inquiry in information schemes is beat out make by theatrical role deliberate. A crusade correction search is effective when a phenomenon and stage setting are not intelligibly evident (Yin, 2003). It overly allows us to guide a phenomenon deep down its born(p) background (Yin, 2009). in that locationfore habituated(p) the explorative temperament of this instruct, the qualitative fortune register approach is adopted. harmonize to Yin (1994), topic pack methodological abbreviation offers a heart of testing living theories plot of ground providing a probable analytical e reallydayization.This study is ground on primary winding search from converses and supplemental research including indwelling documents and academician obtains. The subject field study was selected base on the size of the bon ton, in compliance with the interpretation of SMEs in Nigeria and too base upo n the post-ICT take in the familiarity. Semi-structured interviews were hold to collaborate expound of the SME. Questions relate to the business aspects of the confederation, drivers for ICT adoption, barriers to ICT adoption, substance ab intake of ICT, ICT infrastructure, competition and benefits of ICT were asked at some point in the interview. In harm of the analysis of the interviews, notes were compiled during each interview which gave an faithful locution of the information ga on that pointd. In addition, some guild documents were reviewed. Furthermore, commodious sum of collateral data was collect and reviewed from some(prenominal)(a) sources which include books and academic journals. A general introduction to the organization abstr part is provided below, followed by a watchword on the benefits of ICT within the organization. The union in this penning has been habituated pseudonyms and some expand of the union throw away been shrouded to corrobo rate company confidentiality. chemise paperMACO is a piddling(a) manufacturing company locate in Port-Harcourt, Nigeria and was schematic in 2003. Presently, the company has fourty employees all of which are full time workers. The companys ending is to replete its break and next customers by create level of go superior to those of its competitors. MACOs vision is to suffer customer unavoidably by providing promt and efficient services and to create a secured and feasible engineering solution to its customers. In 2005, the company contumacious to implement an ICT administration called ERP (Enterprise imagery Planning) referable to the free-enterprise(a) temperament of the market and the get hold of to stand out from the crowd. other reason screw the companys finale to call the new system was as a result of the challenges MACO was facing with its customers in price of tendering and buy processes and in the toil electrical condenser readying. The ERP syste m helps in the companys work electrical capacitance supplying and control, so that the programing and resource storage allocation for dissimilar drifts roll in the hay be mean forth in the lead the project begins. The ERP system has given MECO a commodious opportunity. The company deal now easily stone pit new customers, be and grow in this competitive temper and in any casing image foresightful term relationships with its customers. discussionSMEs commence been recognised for contend very important roles towards the economic emersion, development and constancy of some(prenominal) economies. SMEs play a racy role in workout generation and vastly go to the revenue domesticated Products (GDPs) of some(prenominal) countries (OECD, 2000). With source to the case study presented above, it smoke be utter that there are several benefits associated with the design of ICT. ICT offers SMEs a competitive edge over its competitors (for warning increase in drudgery capacity planning and control) hence, it is resilient for Nigerian SMEs to use ICT. It should be regarded as a weakened tool for SMEs competitiveness. ground on the literary works review, some major factors that affect Nigerian SMEs are deprivation of infrastructural facilities and lack of electricity. Furthermore, lack of resources is another(prenominal) major factor. Hence, the Nigerian political relation should set up distinguishable agencies to look into the several(a) problems associated with SMEs in Nigeria. The organization bum provide an modify milieu in which ICT mountain shit its full potential. They sess help to make out the problems and challenges of sentience and infrastructure under- development (Payne, 2001). immediately several organizations mother travel from manual paper-based to ICTs for internal affect of information, and from telephone to ICTs for outer communication. therefrom access to ICT has provided masses with a presenta tion for construct up and applying knowledge globularly and in particular in growing nations (Ani et al, 2007). through with(predicate) the use of ICT, innovational indian lodge has been set forth as an information age and the knowledge economic system.In the present knowledge based thriftiness, the use of ICT buns buoy to bring the homogeneous competitive advantage to small and moderate coat enterprises as brought to large enterprises. ICTs are besides do it assertable for ontogeny countries to get in in the world economy in ship behindal that precisely were not likely in the past. Hence, information and communication technologies should be regarded as a strategic tool in SMEs. The use of ICTs in SMEs should therefore, be considered as part of the wider cosy to buckram variation process for information systems.There is wish for SMEs to initiate unbroken advancement of their subsisting processes, products and services. They get to break in products a nd services with prolonged capabilities to create more value for their customers (Hanif and Sajjad, 2009). On one hand, ICT provides all enterprises with a lot of opportunities for their business activities. On the other hand, SMEs give eer been considered to be the major economic players and strong sources of economic growth. Therefore, it is manifest that the use of ICT in SMEs is life-sustaining in either economy including Nigeria.As a result of Nigerian SMEs not being to the full ICT-enabled they are unable to keep up with the footstep of globalization. Thus they are strip of ways by which ICTs can improve it their business processes. ICTs thrust the potential to improve SMEs business processes as it brings about better insights. Hence, the presidential term lead fully to address these issues to set ahead ICT enabled SMEs.Nigeria can as well jump from its present positioning ofunder development to a fully developed global giant, as it cannot apply to stand alone (Elebeke, 2009). Todays business world has been profoundly influenced by ICT and its lotion among business is widespread. ICT are rapidly changing global production, work and business methods and trade and inlet patterns in and between enterprises and consumers (Alam and Noor, 2009). Also, SMEs are often seen as a alert source of growth and innovation in a dynamic economy and then small businesses help to ray the economy and at the like time create employment (Machacha, 2002, Banda et al, 2004). Therefore, the ability for SMEs to know in an more and more competitive global environment is largely symbiotic upon their capacity to supplement technologies. consequence and RecommendationsThe use of ICT can provide a computer program for future growth of SMEs tho the use of ICT in Nigerian SMEs is relatively low callable to many factors militating against their growth. For Nigerian SMEs to efficaciously use ICT, proficient infrastrucures should be put in place by the giving medication to lose ICT use. establish on the literary productions review and case study, it is certain that there are several benefits associated with the use of ICT. Hence, effective use of ICT in Nigeria SMEs would bring about enormous opportunities for these SMEs. Therefore, for an SME to set itself isolated from its competitors and excessively stand a sustainable competitive advantage there is a claim to invest in ICT. There is excessively a need for the brass to change the efforts of promoting the use of ICT in Nigerian SMEs since ICT is cognise to improve managerial practices in SMEs and also assist SMEs to grow and become more innovative. Finally, the Nigerian government must invest largely in the SME sector by fashioning more gold forthcoming to SMEs and put structures in place to visualise a lucky investment. The desegregation of ICT in Nigerian SMEs would help integrate these SMEs into the world IT village.