ICT adoption by SMEs in the non-ICT sector: From simple to complex products; we can start somewhere…

One cause of limited adoption is the lack of dynamism between ICT firms and SMEs outside of the ICT sector.

Most ICT firms have not provided goods and services tailored to SMEs in the past because demand from SMEs has been low.

The result is a vicious cycle of limited supply and limited demand that ultimately excludes SMEs from the benefits of ICT. It is worth noting is that there are other factors that also contribute to the limited supply and demand of ICT for SMEs.

While most of the SMEs are aware of the potential benefits of ICT, they are unsure of how to select the right solution. Most SME owners are often at a loss when needing to choose the most appropriate and cost-efficient product.

Even if SME owners have a strategic understanding of why they should adopt ICT, their staff is often untrained.

Meanwhile, a range of products exist on the market from use of basic communications with a fixed line or mobile phone, fax, whichever is more economical or most convenient for their business.

This allows the SME to communicate with suppliers and customers without having to pay a personal visit. After acquiring basic communication capabilities, the next ICT upgrade is usually a PC with basic software.

Even without Internet connectivity, SMEs can use PCs for basic word processing, accounting, and other business practices. With the Internet, SMEs are able to use more advanced communications capabilities such as email, file sharing, creating websites, and e-commerce; small businesses CRM software.

SMEs in manufacturing may adopt more complex IT tools such as ERP software or inventory management software, the list is constantly growing. SMEs may adopt the tools progressively

Adoption of ICT can improve a business, whether through cost saving, enabling to communicate quickly, increasing productivity, developing new business opportunities, and connecting to global networks or expansion to new markets.

The onus to adopt ICT into business operations is on the owners or managers because they determine the overall strategy of the firm, and they make the decision whether or not to adopt ICT.

Mid-level managers are usually the ones to implement the ICT project and thus need to have a deeper knowledge of how to implement it, so their training should include a mix of strategy and implementation skills.

Frontline employees are the ones who will use ICT on a daily basis. It is, therefore, more important to concentrate their training on the actual skills required than on the strategic benefits of ICT. The difference in training based on the roles of people in the firm is critical.

Given the benefits that ICT can bring to SMEs, it’s hightime businesses seeking to remain at the cutting edge embraced ICTs in their core business.

ICT firms should target small enterprises and turn their attention towards the untapped SME market and push to capture SME customers by increasing awareness.

SMEs exposure to workshops and training seminars that encourage ICT adoption by SMEs and its concrete benefits is inevitable.

For efforts to be fully translated into lasting results, there is need to integrate these two areas; the growth of the ICT sector and supporting the growth of SMEs.

However, the fact remains and is undeniable; SMEs that have not adapted to the faster pace and increasing complexity of the way businesses are conducted will lose out to the increasing competition brought about by globalisation.

To have a competitive edge and have a market presence in a fast growing economy there is need to embrace technology and innovation. The benefits of adopting ICT into SMEs operations are endless and uncontestable.

The writer is an SME Development Expert.