Prospects of ICT Adoption

A Presentation by

Stephen A. Essel (CEC, MGhIS, MBA(ecommerce, TQM))Lecturer, Regent University College of Science & Tech.

(RUCST)

Delivered at the Annual Conferenceof the

Institute for Entrepreneurship and Enterprise Development

November 28 - 30, 2011Kumasi, Ghana.

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CEEREA, 2011. KUMASI POLYTECHNIC, KUMASI.

» Topic

The prospects of ICT & e-business technologies adoption by

SMEs and Entrepreneurs in Ghana.

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» OUTLINE1. Introduction2. Objective of this paper3. ICT & E-business technologies for SMEs

What is ICT & E-business technologiesICT & E-business technologies being used by

SMEs 4. CSF for ICT & E-business adoption for SMEs

ICT/E-business Adoption ladderBarriers to AdoptionCSF for Adoption

5. Conclusions & Future Research

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» INTRODUCTION

» Ghana’s ICT4AD policy˃ Has as one of its objectives as

“to support the development of a competitive high valued-added services sector to serve as an engines for accelerated development and economic growth with the potential to develop into a regional business-services and ICT hub”.

» Services sector and SMEs

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» OBJECTIVES

» to review the various ICT and e-business technologies that SME and entrepreneurs can adopt and use to enhance their business

» Identify factors that favor the adoption of these technologies including barriers preventing its adoption and usage.

» CSF for the adoption of ICT & E-business technologies

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» ICT & E-BUSINESS TECHNOLOGIES FOR SMEsWho is an SME?

» A definition from the Ministry of Trade and Industry (MOTI) indicates that they are enterprises that employ below 100 employees and has a fixed asset value of $1 million (Mensah, 2004).

» Characterized by˃ One person businesses and are mostly seen as

entrepreneurs ˃ They may operate an organized or an unorganized

enterprise˃ They are mostly engaged in retailing, trading or

manufacturing.˃ Lack technical know-how˃ Inability to acquire skills & modern technology

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» ICT & E-BUSINESS TECHNOLOGIES FOR SMEsWhat is ICT & E-business technologies?

» Use of information and communication technologies to aid in business transaction

» E-business is the use of electronic means to conduct an organization’s business and it seen as the transformation of business processes through use of internet technologies.

» Use can be categorized under these dimensions˃ Stand Alone ICT (computer-based ICT)

˃ Internet Adoption & Use (Email, website)

˃Use of mobile technologies (bulk SMS)24/1

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» ICT & E-BUSINESS TECHNOLOGIES FOR SMEsUse of ICT & E-business Applications by SMEs

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ICT Applications Average Percentage of Usage by SMEs

Spreadsheets 43% Accounts 47% Databases 39% Email 33% Internet 29% Faxes 23% Desktop Publishing 24% Others 14%

Table 1: ICT Application in Use by SMEs

Source: Koh and Maguire (2004)

» ICT & E-BUSINESS ADOPTIONAdoption has been low among SME and it has

been attributed to˃ low e-business readiness of customers and

suppliers; ˃ lack of awareness, expertise and knowledge by

SME.

» The adoption ladder˃ Step 1 Email˃ Step 2 Website˃ Step 3 Ecommerce˃ Step 4 E-business˃ Step 5 Transformed organization24

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» ICT & E-BUSINESS ADOPTIONBarriers to Adoption

˃ Lack of appropriate telecommunication infrastructure, qualified staff and ICT support

˃ Low internet penetration and internet access is expensive˃ Lack of, or minimal reach of e-payment systems˃ A preference for face-to-face shopping culture to online

purchases with anonymous people˃ Inappropriate legal systems and lack of government support˃ SME are not aware of the potential of ICT to enhance their

business operation˃ There are perceptions of unresolved security and privacy

issues˃ Many SME lack the necessary information technology skill-

base to engage˃ The high initial set-up cost and the perceived on-going costs

of ICT and e-business˃ Some SME are restricted in their ability to evolve their ICT

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» ICT & E-BUSINESS ADOPTIONInitiative that can be adopted to address these

barriers˃ Facilitating the establishment of interpersonal and

inter-business networking to promote cooperation between SME and among entrepreneurs

˃ Financial support from governments to SMEs to reduce some of the financial burdens associated with ICT and e-business adoption

˃ Develop local and regional portal (Web sites) that will serve several purposes such as individual and business networking, promotion of products and services,

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» CSF for ICT & E-BUSINESS ADOPTIONInternal Support˃ awareness and education,˃ guidance for appropriate hardware and software,˃ advice and direction for ICT and e-business.

External Support˃ improvement in national infrastructure such as

electricity and telecommunication, ˃ provision of financial assistance,˃ provision of tax incentives,˃ improvement in ICT diffusion,˃ improve collaboration among SMEs,

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» CONCLUSION

» Future Research Direction˃How SMEs can be supported to adopt & use

ICT & E-business technologies

˃ Conduct a research survey on SME in trading, retailing and manufacturing and find out which ICT & E-business technologies they are using

˃ Train entrepreneurs to equip themselves with appropriate ICT & E-business technologies 24

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THANK YOUFOR

LISTENING!

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Prospects of ICT Adoption

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