Lecture 3. A methodology for M-Tansformation of small and medium enterprises

A Methodology for M-Transformation of

Small and Medium Enterprises

Lecture 3

Introduction

• Organization worldwide come to realize that in the ever changing business world, survival and success is closely linked to adopting information and communication technologies (ICTs). Along with the technology however, organizations have to also adjust their processes to take full advantage of the potential ICTs have to offer. This process, of technology adoption, linked with process adjustment and re-engineering is callede-transformation

M-transformation

• M-transformation is the process of transitioning an existing organization into the mobile business world.

• CBEADS - a framework, which provides a low overhead, low-cost infrastructure for e-business applications development and deployment.

• CBEADS©, which stands for Component-Based E-Application Development (and deployment) Shell.

Definition

M-Transformation – the evolution of business practices via the adoption of suitable processes and technologies that enable mobility and pervasiveness.

Perquisites to M-Transformation

1. business process adoption

2. adoption of suitable mobile technologies and products

Benefits from M-Transformation

• Better information flow between systems

• Improved customer projected image

• Rapid and dynamic customization of products and services

• Increased internal efficiency in managing human resources

• Improvement in employee morale coming from flexibility in the workplace

Major benefits from M-Transformation of SMEs

Why SMEs has fixated mindset

SMEs are not ICT experts, nor do they wish to understand the intricacies of mobile technologies. They want something that is simple and easy to use, and just works.

Causes of this mindset:1. SMEs have a unique “results-based” view of

doing business.

2. Their understanding of ICT technologies that could be suitable for mobility is very fragmented and incomplete.

SME characteristics affecting M-Transformation

Special characteristics of SMEs

• Small Staff Count Affected by Seasonal Conditions

• Small to Non-Existent ICT Budget

• Lack of Permanent In-House ICT Expertise

• Staff Have Limited Time and Critical Availability

• ICT Systems Establishment is Done Ad-Hoc

• Organizational Knowledge is Centralized and Tacit

• Very Limited Diffusion of ICT Knowledge among Staff

• Decision Making is Quick and Reactive

• Each Client is Very Highly Valued

ICT systems requirementsfor SME M-Transformation


• Solutions Quick and Easy to Deploy and Maintain– Solutions for M-Transformation suitable for SMEs must

be relatively straightforward and quick to deploy while requiring very little maintenance, if any at all

• Secure and Trustworthy– solutions are adopted to fulfil the technical part of the

M-Transformation must be secure and trustworthy

• Robust and Reliable– in order for users to gain confidence in the system

which will in turn guarantee its continuing use, it has to be reliable

– ICT should cater for incorrect use and be prepared to deal with end users that are not sufficiently trained in using the system


• Extensibility and Standards Compliance Are Paramount– IT systems developed or purchased must be

extensible, able to cope with change, an standards compliant

• Widely Available and Well Understood– IT systems selected to assist with M-Transformation

are widely available elsewhere and well understood

• ICT Solutions that are Easy to Use– Solutions are adopted to fulfil the technical part of the

M-Transformation have to be easy to use.– The more common the technologies used are, the

easier it is convincing an SME to embrace them

Business process adoption requirements for SME M-Transformation

• Small and Incremental Changes– adopting new business processes that allow for

mobility has to be done as a series of small and incremental changes, as opposed to the big-bang approach

• Adoption Must Minimize Risk by Changing Non-Core Processes First– changes during m-transformation is that these are

done to non-core business processes first

• Change Introduction Must Be Gradual and Reversible– the ability to be gradual and the changes

reversible

Business process adoption requirements for SME M-Transformation

• Return on Investment Must be Continuous and Apparent– every dollar spent towards that goal has to offer

and also be seen to offer value as soon as possible

– new or improved business processes should offer continuous and apparent return on investment (ROI).

• Change Should Gradually be Applied throughout the Organization– ensuring that changes to business processes will

cascade over time to reach as many staff members across the organizations as possible

Methodology requirementsfor M-Transforming SMEs

• The methodology for SME M-Transformation is very important because:– it is what will “glue” together the technology

on the one hand and the new or improved business processes on the other to produce the desired set of outcomes in the end—namely;

– it increases the efficiency of the organization;– it offers better management and utilization of

resources;– it allows for more responsive customer

service.

The methodology of M-Transformation needs to meet set of requirements

• Staged, Well-Communicated Process– must adopt an overall staged process that leads to full M-

Transformation;– must also for communicating the process in advance with

the stakeholders in the organization.

• Benefits of M-Transformation Must be Shown Quickly and Continuously– should ensure that the benefits of the efforts can be easily

seen and that they start to come into existence as early into the process as possible.

• Methodology Must be Balanced Between ICT and Business Processes Adoption– has to offer a balanced approach between technology

adoption and business process reengineering or adoption

The methodology of M-Transformation needs to meet set of requirements

• Plan for the Worse and Expect Resistance to Change

– has to be built taking the worse case scenario in mind, as well as the fact that people shall resist changes necessary for the full implementation of M-Transformation

• Methodology Evolution Must be Based on Feedback Received

– must have built-in feedback loops where input from the SME itself should be actively solicited and used to adjust the future steps or timing of those as prescribed by the methodology for M-Transformation

Actual steps involved in the methodology of M-Transformation

Considerations in selecting ICT for SME M-Transformation