ICT Challenge for eBusiness in SMEs

ICT Challenge for eBusiness in SMEs

Neeta Baporikar (Ministry of Higher Education, CAS-Salalah, Oman)
DOI: 10.4018/jsita.2013010102
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Abstract

This paper forms the basis of a crafting eBusiness strategy. The aim of this strategy is to encourage and assist organizations in general and SMEs in particular, in the non-ICT producing sectors of the economy, to use Information and Communication Technologies (ICTs) in a way that will maximize their competitive advantage. Effective use of ICTs across all sectors of the economy can act as a driver to increase competitiveness. Relatively low levels of ICT usage by companies, outside of the ICT sector, is the contributing factor to the failure of organizations to catch up with productivity growth rates required to succeed. While most of the countries have now a strong ICT sector and the potential to do well in newly emerging ICT related industries, performance is far less impressive when it comes to the use of ICTs by SMEs in the non-ICT sectors of the economy.
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What Is “Ebusiness?”

The term “eBusiness” has a very broad application. It can describe companies operating in the ICT producing sectors as well as new emerging sectors and industries such as in the area of digital content. However, at a more fundamental level, the term eBusiness also describes the application of information and communication technologies to business processes in all sectors of the economy to reduce costs, to improve customer value and to find new markets for products and services. It is this aspect of eBusiness that is addressed in this paper. The paper not only intends to form the basis of eBusiness strategy but also aims at encouraging and assisting SMEs, including micro-enterprises, across all sectors of the economy, to use ICTs in a way that will maximize their competitive advantage. Effective use of ICTs by enterprises is a key element in building competitiveness.

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