The role of ICT in enabling SMMEs

1. THE ROLE OF ICT IN THE DIGITAL ECONOMY –
A CATALYST FOR THE SUPPORT
& FOR THE GROWTH OF
SMALL MEDIUM ENTITIES
A plenary paper presented to the SABIC March 2016

2. 2
TABLE OF CONTENTS
INFORMATION COMMUNICATION TECHNOLOGY (ICT) DEFINED
THE ROLE OF ICT IN SMALL MEDIUM ENTERPRISES
QUESTIONS AND ANSWERS
HOW SMALL MEDIUM ENTERPRISES CAN EMPLOY ICT IN RUNNING
THEIR BUSINESSES
SMALL MEDIUM ENTERPRISES AND ICT ADOPTION BARRIERS

3. 3
INFORMATION COMMUNICATION TECHNOLOGY (ICT) DEFINED
THERE IS NO UNIVERSAL DEFINITION FOR INFORMATION COMMUNICATION
TECHNOLOGY (ICT) BECAUSE OF ITS DYNAMIC NATURE.
““ICT refers to technologies that provide access to information through
telecommunications...”

4. 4
THE ROLE OF ICT IN SMALL MEDIUM ENTERPRISES
 ICT is a critical business strategy enabler and assists small businesses to
stay ahead of competition.
EXAMPLE:
e.g. a furniture business that carves furniture manually vs. the one that:
 Uses technology to design the furniture
 To create prototypes
 To manage quality assurance
 To carve and mould the furniture
ADVANTAGES:
 Makes more furniture in a short space of time
 More customers (no back log, quick to market, flexible customer designs)
 Quality products
 Cost effective which means more volumes to market

5. 5
SURVEY – INTERACTIVE DISCUSSION
1. How many business people think ICT is very expensive?
2. How many people think ICT is a very difficult to manage?
3. Do you think ICT would add any value to your business?

6. 6
SMALL MEDIUM ENTERPRISES AND ICT ADOPTION BARRIERS
 Lack of knowledge on key technologies that can enable their business to stay
relevant and ahead of competition.
 Lack of strategic ICT skills
 Techno Phobia – the fear of the unknown
 Perceived high set-up and maintenance costs & therefore lacking of funding
 The dynamism/continuous change in technology requires continuous learning
and business evolvement.

7. 7
HOW SMALL MEDIUM ENTERPRISES CAN EMPLOY ICT IN RUNNING THEIR
BUSINESSES
 Awareness of Information Communication Technology as a key tool to
enabler business – conducting a business assessment to ascertain the value
technology would add to the business.
 The development of an ICT Strategy based on customer needs & aligned
to the business strategy– this element can be outsourced to a consulting
businesses as opposed to an in-house resource as that would cost more.
 Making ICT part of the decision making process – involve an ICT strategist
in your key business decision processes
 Instil an innovative and learning culture within the starting with the business
leadership to the rest of the team

8. THANK YOU!!
Q & A