SMEs and ICT
In reality ICT is a business tool. The value of ICT to SMEs is often determined by the extent to which ICT is deployed within the organization and the effectiveness of its use. ICT has long been an important tool in the business armory of larger organizations and is often used to gain a competitive advantage in the market place.
Very low costs and the revolution in Internet technologies afford SMEs a lot of advantages, but some threats too. On the one hand, large enterprises can gain a disproportionate advantage from e-business by exploiting economies of scale. Their operations have the critical mass to make use of advanced ICT systems. Many SMEs in contrast still struggle with the requirements of digital connection with their suppliers and or customers.
Increasingly, many SMEs who fail to cope with the requirements of the digital economy face the risk of elimination from the value system that tend to be orchestrated by bigger companies. Additionally, competition is now global and companies with a good understanding and use of ICT are gaining a larger percentage of the market and keeping it, with very intelligent use of their ICT resources. Read more