Electronic Business Survey on South

African Tour Operators

Pascal VERHOEST
1
, Tina JAMES
2
, Mario MARAIS
3
, Leo VAN AUDENHOVE
4
1
TNO-ICT (NL) & DISC (B), Avenue Louise 479 Bte 57, Brussels, 15, Bel!iu"
Tel# $%& & 7'' &1&1, ()*# $%& & 7'' &1&, +")il# ,)s-)l.ver/oest01ru2is-.1e
2
Tri!r)""i-, 3 O Bo* 7&&47 L5nn6oo2 7i2!e, 3retori), 4, Sout/ A8ri-)
Tel# $&7 1& %44'&44, ()*# $ &7 1& %44'&44, +")il# tin)0tri!r)""i-.-o"
3
CSI7, 3 O Bo* %95, 3retori), 1, Sout/ A8ri-)
Tel# $&7 1& '41%771, ()*# $ &7 1& '41%%7, +")il# "")r)is0-sir.-o.9)
4
S:IT, (ree ;niversit5 o8 Brussels (<;B), 3leinl))n &, 15, Brussels, Bel!iu"
Tel# $%& 479 75 %& %4, ()*# $%& & 4&9 &' 41, +")il# leo.v)n.)u2en/ove0vu1.)-.1e
Abstract:
Tis con!ri"#!ion $resen!s !e res#l!s o% a $ilo! $ro&ec! on I'T #sa(e ") So#!
A%rican SMMEs in !e !o#ris* in+#s!r), Te Elec!ronic -#siness S#r.e) /E-S0
*e!o+olo() 1ic 1as !es!e+ %or a$$lica"ili!) in a +e.elo$in( co#n!r), in !is case
So#! A%rica, #ses 2#ali!a!i.e in+ica!ors an+ 2#an!i!a!i.e es!i*a!ions !o *eas#re !e
i*$ac!s o% e3"#siness $rac!ices, Te res#l!s, "ase+ on 44 %ace3!o3%ace in!er.ie1s,
1ere s#"s!an!i.e an+ so1e+ !a! !e a+a$!e+ OE'D *e!o+olo() co#l+ "e #se+
s#ccess%#ll), In !e So#! A%rican !o#ris* in+#s!r), I'T si(ni%ican!l) i*$ro.es !e
$er%or*ance o% !ese "#sinesses, Al!o#( I'T a+o$!ion re$resen!s a si(ni%ican!
o$era!ional cos! %or !e in!er.ie1e+ %ir*s, i! also s#"s!an!iall) con!ri"#!es !o
increasin( re.en#e an+ i*$ro.in( la"o#r $ro+#c!i.i!), On "alance !e res#l!s are
e5!re*el) $osi!i.e6 44,78 o% %ir*s re$or!s increase+ $ro%i!a"ili!), 1ereas %or 948 i!
re*aine+ !e sa*e as !ree )ears a(o, O% !e %ir*s !a! re$or!e+ increase+
$ro%i!a"ili!), 798 in+ica!e+ I'T as a con!ri"#!in( %ac!or, an+ 318 consi+ere+ I'T as
!e *ain con!ri"#!in( %ac!or, Te *os! $osi!i.e e%%ec!s are a!!ri"#!e+ !o !e #sa(e o%
!e In!erne! !o i*$ro.e c#s!o*er rela!ions in con&#nc!ion 1i! crea!i.e $ro+#c!
o%%erin(s /c#s!o*isa!ion, $ro+#c!3ser.ice "#n+lin(0, :in+in(s are consis!en! 1i!
researc a$$l)in( !e sa*e *e!o+olo() in ;es!ern an+ Eas!ern E#ro$e, Tis
incl#+es !e %in+in( !a! $osi!i.e e%%ec!s o% I'T !en+ !o "e "i((er %or in+#s!ries in
!ransi!ion, s#$$or!in( "#sinesses !o "eco*e in!erna!ionall) co*$e!i!i.e,
Keywords: Elec!ronic -#siness S#r.e), SMMEs, $er%or*ance in+ica!ors, I'T
#sa(e, !o#ris*, So#! A%rica,
1. Introduction
To#ris* as "een i+en!i%ie+ as one o% !e $riori!) sec!ors in !e So#! A%rican
(o.ern*en!<s Micro3Econo*ic Re%or* S!ra!e() /MERS0 o% 2442 an+ con!in#es !o "e one
o% !e sec!ors !a! as so1n s#"s!an!ial (ro1! in !er*s o% &o" crea!ion an+ i!s con!ri"#!ion
!o =DP, Te So#! A%rican !o#ris* in+#s!r) is o1e.er carac!erise+ ") a $re+o*inance o%
SMMEs, 1i! !e es!a"lise+ %ir*s lar(el) 1i!e3o1ne+ an+ e*er(in( s*all %ir*s
(enerall) "lac>3o1ne+, Onl) a an+%#l o% lar(e o$era!ors e5is!, 'orrec!i.e -lac> Econo*ic
E*$o1er*en! /-EE0 s!ra!e(ies a.e "een in!ro+#ce+ "#! !e lac> o% concre!e +a!a"ases
an+ $a#ci!) o% +a!a on !o#ris* SMMEs *eans !a! li!!le in%or*a!ion is a.aila"le !o assis!
+ecision3*a>in( in "#siness or in $olic) +e.elo$*en! ") !e (o.ern*en! ?1@, A
$reli*inar) s!#+) on I'T +i%%#sion in c#l!#ral !o#ris* ?2@, an+ !e onl) one 1ic as "een
carrie+ o#! !o +a!e in !e So#! A%rican !o#ris* sec!or, $ro.i+es e.i+ence !a! access !o
I'Ts is $ro"le*a!ic +#e !o !e i( cos!s o% !eleco**#nica!ions an+ I'T e2#i$*en!, 1i!
(enerall) lo1 le.els o% #n+ers!an+in( o% I'Ts, Te (ro1! in in!erna!ional !o#ris* !o So#!
A%rica 1as seen as a *a&or !o#ris* o$$or!#ni!), $ar!ic#larl) 1i! E#ro$ean an+ Nor!
A*erican !o#ris!s con!ri"#!in( #$ !o 448 o% !o!al re.en#e, ?1,2@
A(ains! !is "ac>+ro$, !e Elec!ronic -#siness S#r.e) /E-S0 1as la#nce+ as a
colla"ora!i.e ini!ia!i.e "e!1een So#! A%rican an+ E#ro$ean researcers an+ !e So#!
A%rican De$ar!*en! o% 'o**#nica!ions, !o !es! 1e!er !e E-S *e!o+olo() can "e
a$$lie+ in So#! A%rica, Te ai* o% E-S is !o in%or* in+#s!rialis!s, $olic)3*a>ers an+
+ecision3*a>ers in "#siness +e.elo$*en! s#$$or! a(encies a"o#! o1 can(es are
occ#rrin( in "#siness $rac!ice an+ o1 *#c !ese can(es *ean in !er*s o% econo*ic
$er%or*ance /$ro+#c!i.i!), co*$e!i!i.eness, e*$lo)*en!, inno.a!ion0, E-S #ses 2#ali!a!i.e
in+ica!ors an+ 2#an!i!a!i.e es!i*a!ions !o *eas#re !e i*$ac!s o% ac!#al an+ e*er(in( e3
"#siness $rac!ices,
Te nee+ %or !is !)$e o% researc as arisen %ro* .ario#s so#rces in So#! A%rica A
>e) (o.ern*en! o%%icials, cons#l!an!s, .ario#s na!ional an+ $ro.incial I'T ini!ia!i.es,
researc s!#+ies, an+ *ore recen!l) %ro* !e lac> o% a.aila"le +a!a !o s#$$or! !e
Presi+en!ial Na!ional =ro1! an+ De.elo$*en! S!ra!e(), Tese +isc#ssions a.e lea+ !o !e
%ollo1in( concl#sions6
No +e%ini!i.e an+ co*$reensi.e +a!ase! e5is!s on e*er(in( So#! A%rican e3
"#siness $rac!ices an+ in%or*a!ion %lo1sB
;e +o no! #n+ers!an+ !e role o% I'Ts in le.era(in( s$eci%ic in+#s!ries /$ar!ic#larl)
SMMEs0 an+ nee+ "e!!er +a!a !o ens#re !a! I'T in.es!*en!s are +irec!e+ 1ere
!e) $ro.i+e !e "es! le.era(eB
Da!a on e3"#siness $rac!ices re2#ires a colla"ora!i.e a$$roac "e!1een !e .ario#s
(o.ern*en! +e$ar!*en!s A onl) in !is 1a) can a soli+ +a!a se!, "ase+ on ne1
$ri*ar) researc, "e es!a"lise+B
No co**on in+ica!ors e5is! %or e3"#siness $rac!ices A !is is nee+e+ ") a n#*"er o%
(o.ern*en! +e$ar!*en!s !o s#$$or! i*$ro.e+ +ecision3*a>in( on !e +i%%#sion an+
#$!a>e o% I'Ts,
Te E-S s#r.e) *e!o+olo() is "ase+ on an ori(inal s!#+) carrie+ o#! in 2441 %or !e
OE'D in 17 sec!ors an+ 11 co#n!ries ?3@, A secon+ i!era!ion o% !e *e!o+olo() 1as !es!e+
in 2443 in a -el(ian s!#+) ?4@, Te !ir+ i!era!ion o% !e E-S *e!o+olo() 1as c#s!o*ise+
%or !e So#! A%rican con!e5! an+ a si*ilar a$$roac is also "ein( a$$lie+ in a ;orl+ -an>
s!#+) o% C24 %ir*s in %i.e Eas!ern E#ro$ean co#n!ries ?9@, Tis 1ill allo1 co*$ara"ili!)
across co#n!ries an+ con!inen!s, as 1ell as sec!ors,
Te So#! A%rican $ilo! s!#+) %oc#sse+ on !o#r o$era!ors, 1i! $ar!ic#lar e*$asis on
SMMEs an+ e*er(in( o$era!ors, Te +ecision !o selec! !o#ris* 1as "ase+ on !e $re*ise
!a! !is is a $riori!) (ro1! sec!or in So#! A%rica an+ also one in 1ic *an) "lac>
e*er(in( $la)ers are %in+in( "#siness o$$or!#ni!ies, I! is also a $ar! o% !e !o#ris* .al#e
cain !a! as *an) #$s!rea* an+ +o1ns!rea* lin>a(es, Te s#r.e) 1as con+#c!e+ %ro*
Marc !o J#l) 2449 an+ !e %#ll +a!a anal)sis 1as co*$le!e+ in Jan#ar) 244C, A%!er a "rie%
o.er.ie1 o% !e *e!o+olo() #se+, !is con!ri"#!ion $resen!s selec!e+ %in+in(s o% !e $ilo!
s!#+) /Mo+#les ' D D o% !e E-S 2#es!ionnaire, see -o5 10,
. !ethodolo"y
Te E-S *e!o+olo() allo1s +a!a collec!ion a! !e %ir* le.el, an+ $laces !e a$$lica!ion
an+ #!iliEa!ion o% I'T 1i!in i!s $ro$er con!e5! in !e %ir* an+ 1i!in +i%%eren! sec!ors, In
con!ras!, *an) e5is!in( s!#+ies o% !e i*$ac! o% I'T a.e loo>e+ a! na!ional, re(ional or
sec!oral i*$ac!s as !eir #ni!s o% anal)sis, Ho1e.er, s#c s!#+ies a.e o%!en li*i!e+
!e*sel.es !o !e role o% I'T ,er se, an+ %aile+ !o ca$!#re !e cri!ical role an+ co*$le5i!) o%
!e #!iliEa!ion o% I'T as a +e!er*inin( %ac!or in sa$in( !e i*$ac! on econo*ic o#!co*es,
Te *e!o+olo() %or !is $ro&ec! as, in $ar!, "een +esi(ne+ !o a++ress so*e o% !e
1ea>nesses o% e5is!in( s!#+ies, s#c as !o ena"le #s !o (ain a *ore co*$reensi.e
#n+ers!an+in( o% !e $rocesses !a! sa$e !e a$$lica!ion an+ #!iliEa!ion o% I'T, an+ !e
s#"se2#en! e%%ec!s on inno.a!ion an+ econo*ic (ro1!, A >e) o"&ec!i.e o% !e s!#+) 1as !o
anal)se an+ assess !e +i%%#sion an+ e%%ec!s o% I'T a! !e %ir* le.el in rela!ion !o la"o#r
$ro+#c!i.i!), $ro%i!a"ili!), co*$e!i!i.eness an+ inno.a!ion,
To so1 1ere an+ o1 ac!#al $er%or*ance (ains occ#r 1i!in %ir*s as a res#l! o% I'T
a+o$!ion, i! is i*$or!an! !o i+en!i%) a+o$!ion ra!ionales a! "#siness $rocess le.el,
:#r!er*ore, as !ese .aria"les are s#"&ec! !o .ario#s o!er %orces, i! is i*$or!an! !o
+e!er*ine !e e5!en! !o 1ic !e e%%ec!s are s#"s!an!iall) or #ni2#el) a!!ri"#!a"le !o I'T,
Tis is an i*$or!an! con+i!ion %or +e!er*inin( !e a++i!ionali!) o% I'T, Tere%ore,
$ara*e!ers an+ "enc*ar>s can .ar) no! onl) %ro* co#n!r) !o co#n!r) or %ro* in+#s!r) !o
in+#s!r), "#! also %ro* %ir* !o %ir*,
Bo# 1: Su$$ary of the EBS $ethodolo"y
In or+er !o "e a"le !o ans1er !e 2#es!ion o% o1 I'T !a>e3#$ an+ #sa(e rela!e !o co*$e!i!i.eness an+ econo*ic
$er%or*ance, si5 s#"32#es!ions are a++resse+ in !e +i%%eren! *o+#les o% !e s#r.e)6
3 Mo+#le A6 ;a! are !e carac!eris!ics o% !e en!er$riseF
3 Mo+#le -6 ;ic I'T a$$lica!ions are a.aila"le in !e en!er$riseF
3 Mo+#le '6 Ho1 are !ese a$$lica!ions "ein( #se+ in +is!inc! "#siness $rocessesF
3 Mo+#le D6 To 1a! e%%ec! are !ese I'T a$$lica!ions "ein( #se+F
3 Mo+#le E6 Ho1 +oes !e #sa(e o% !ese a$$lica!ions rela!e !o !e en!er$riseGs "#siness en.iron*en!F
3 Mo+#le :6 Ho1 +oes !e #sa(e o% I'T a$$lica!ions rela!e !o !e en!er$riseGs $oli!ical an+ re(#la!or) en.iron*en!F
:o2ule A ser.es !o i+en!i%) a n#*"er o% "asic carac!eris!ics o% !e en!er$rise an+ i!s $osi!ion in !e *ar>e!, Tese
Gcali"ra!ion +a!aG are i*$or!an! !o assess !e en!er$riseGs ca$aci!) !o a+o$! an+ #se I'T "#siness a$$lica!ions an+Hor !eir
ca$aci!) !o in%l#ence !e I'T #sa(e o% o!er en!er$rises in !eir *ar>e!,
:o2ule B, a"o#! 1ic !ecnolo(ies are a.aila"le in !e en!er$rise, is si*ilar !o !a! o% *os! I'T +i%%#sion s!#+ies, Tis
$ar! o% !e s#r.e) 2#es!ionnaire is lar(el) "ase+ on e5is!in( $roce+#res #se+ ") !e E#ro$ean 'o**ission an+Hor !e
OE'D an+ !is in or+er !o allo1 in!erna!ional co*$arison,
:o2ule C e5a*ines !e e%%ec!s o% I'T #sa(e as 1ell as o!er %ac!ors on $ro+#c!i.i!), co*$e!i!i.eness an+ inno.a!ion, In
a++i!ion i! in.es!i(a!es o1 I'T #sa(e an+ o!er %ac!ors rela!e !o eac o!er in increasin( or +ecreasin( !e %ir*s<
$er%or*ance an+ in !is con!e5! an in+ica!ion o% !e a++i!ionali!) o% I'T is $ro.i+e+,
:o2ule D on e%%ec!s assesses !e con!ri"#!ion o% I'Ts !o !e en!er$riseGs $er%or*ance, Te ai* o% !is *o+#le is !o
es!a"lis !e ca#sal rela!ionsi$ "e!1een !e #sa(e o% cer!ain !ecnolo(ies in cer!ain "#siness $rocesses !o !eir e%%ec!s,
incl#+in( ne(a!i.e e%%ec!s, Unli>e *os! s#r.e)s, !e E-S *e!o+olo() $ro+#ces !ese es!i*a!ions in a 2#an!i%ie+ an+
co*$ara!i.e 1a),
:o2ule + on !e rela!ion "e!1een !e en!er$rise an+ i!s en.iron*en! ai*s a! i+en!i%)in( so3calle+ s!ra!e(ic iss#es, 1ic
are no! easil) 2#an!i%ie+, I#es!ions rela!e !o !e rela!ionsi$ "e!1een !e en!er$rise an+ i!s "#siness en.iron*en!, in
$ar!ic#lar !e .al#e cain/s0 in 1ic !e en!er$rise is ac!i.e,
:o2ule ( rela!es !o !e $olic), re(#la!or) an+ "#siness en.iron*en! in 1ic %ir*s o$era!e, A s$eci%ic a$$roac, !es!e+ in
!e E-S s#r.e), is #se+ !o 1ei( !e rela!i.e i*$or!ance o% incen!i.es an+ o"s!acles !o !e #sa(e o% I'T a$$lica!ions,
O#r s!#+) 1as ai*e+ a! s*all !o#r o$era!ors in !e =a#!en( $ro.ince o% So#! A%rica,
1i! %#ll!i*e s!a%% n#*"ers ran(in( "e!1een 1314 an+ an a.era(e o% 439 s!a%% *e*"ers o.er
!e $as! !ree )ears, In !o!al 44 SMMEs 1ere in!er.ie1e+, T1o in!er.ie1s 1ere in.ali+a!e+
"eca#se !e) +i+ no! co*$l) 1i! o#r +e%ini!ion o% SMMEs /en!er$rises e*$lo)in( %e1er
!an 244 $eo$le0, Te n#*"er o% in!er.ie1s *a) see* s*all, "#! since o#r s#r.e) %oc#sse+
onl) on $ro3ac!i.e #sers an+ on onl) a s*all se(*en! o% !e !o#ris* .al#e cain, 1e "elie.e
!a! !e sa*$le is re%lec!i.e o% reali!ies, $ar!ic#larl) a*on( s*all e*er(in( "lac>
en!re$rene#rs, Te $ilo! sa*$le 1ere selec!e+ %or #sin( I'T in!ensi.el), s#ccess%#ll) an+
%or a $erio+ o% !i*e o% *ini*all) 3 )ears, as co*$are+ !o o!er %ir*s in !e sa*e sec!or,
O#r s!#+) incl#+es in!er.ie1s 1i! s#ccess%#l earl) a+o$!ers an+ !ere%ore is re$resen!a!i.e
o% !ren+s !a! are li>el) !o a%%ec! !e in+#s!r) or sec!or in !e %oreseea"le %#!#re,
%. Brief Technolo"y &sa"e 'rofile
All o% !e s#r.e)e+ en!er$rises 1ere #sin( one or *ore co*$#!ers +#rin( !e $as! !ree
)ears, 1448 o% !e %ir*s in o#r sa*$le #se+ a connec!ion !o !e In!erne! +#rin( !e las!
!ree )ears, 'onnec!ions !o !e In!erne! .arie+, A$$ro5i*a!el) one3!ir+ o% all en!er$rises
in!er.ie1e+ #se an analo(#e *o+e* .ia a s!an+ar+ /%i5e+0 $one line, a"o#! one3!ir+ #se
an ISDN connec!ion an+ !e las! !ir+ DSL, All o% !e s#r.e)e+ en!er$rises #se+ e*ail, In
a++i!ion !o !e In!erne!, *o"ile a$$lica!ions 1ere .er) $o$#lar a*on(s! !e in!er.ie1e+
%ir*s, Al*os! J78 also #se+ SMS or MMS,
In!erne! is !e *os! $o$#lar *e+i#* %or sales 1i! *ore !an 7C8 o% %ir*s, %ollo1e+ ")
e*ail /9J80 an+ SMSHMMS /3280, Te co**#nica!ion !ools e*ail /9J80 an+ SMSHMMS
/4280 are *ore %re2#en!l) #se+ !o $lace or+ers, :e1er %ir*s #se In!erne! %or !e $lace*en!
o% or+ers /4780 ra!er !an %or !e recei$! !ereo%,
T)1le 1# ;se o8 Internet 8or s)les )n2 ,ur-/)ses
Sales and purchases:
a co$parison Sales6 %ir*s recei.in( or+ers P#rcases6 %ir*s $lacin( or+ers
In!erne! 7C,328 47,378
E*ail 97,JK8 97,JK8
SMSHMMS 31,9J8 42,118
O% !e %ir*s recei.in( or+ers .ia In!erne!, 9J8 +i+ so ") *eans o% a $re3s!r#c!#re+
e*ail lin> on !eir 1e"si!e, 248 o% !e %ir*s recei.e+ !eir or+ers .ia a *ore a+.ance+ on3
line or+erin( %acili!) an+ 348 o% !e %ir*s sol+ !eir $ro+#c!s !ro#( !ir+ $ar!) 1e"si!es
s#c as s$ecialise+ In!erne! *ar>e! $laces,
A+.er!isin( is !e *os! $o$#lar #se o% co*$#!er ne!1or>s ") %ir*s, %ollo1e+ ") sellin(
(oo+s an+ ser.ices, $ro.i+in( c#s!o*er ser.ices, %inance an+ %inall) !e +is!ri"#!ion an+
sarin( o% in%or*a!ion, Mos! si(ni%ican!l), I'T is ") %ar a *ore $o$#lar sales cannel !an
i! is a !ool %or $#rcasin( an+ $roc#re*en!,
T)1le &# To, 8ive uses o8 -o",uter net6or=s
A+.er!isin( K7,378
Sellin( (oo+s an+ ser.ices K2,118
'#s!o*er Ser.ice JK,478
:inance 7J,K98
Sarin( an+ +is!ri"#!ion o% in%or*a!ion or +a!a 7C,328
(. Selected 'erfor$ance Indicators
Tis sec!ion re$or!s on %o#r $er%or*ance in+ica!ors #se+ in o#r s#r.e)6 !e e.ol#!ion o%
la"o#r $ro+#c!i.i!), o$era!ional cos!s, sales re.en#es an+ $ro%i!a"ili!), :or eac o% !ese
in+ica!ors, %ir*s 1ere as>e+ !o assess !e i*$or!ance in I'T #sa(e in $ro.o>in( o"ser.e+
can(es, Te es!i*a!es $ro+#ce+ ") o#r res$on+en!s allo1 a %irs! (eneral assess*en! o% !e
rela!i.e i*$or!ance o% I'T in rela!ion !o o!er %ac!ors !a! a%%ec! !e $er%or*ance o% %ir*s,
I! is also i*$or!an! !o re3e*$asise !a! o#r %i(#res are no! s!a!ic, "#! rela!e !o on(oin(
!ren+s %or !e las! !ree )ears, Percen!a(es #se+ in !e sec!ions +o no! con!ain !e o$!ional
res$onses o% L+on<! >no1<, Lno! a$$lica"le<, an+ Lre%#sal<, Tis allo1s %or *ore !rans$aren!
in!ernal co*$arisons "e!1een #sa(e $a!!erns an+ $er%or*ance in+ica!ors !an i%
L+is!#r"ances< 1ic .ar) $er 2#es!ion, are incl#+e+,
)abour 'roductivity
A .as! *a&ori!) o% C2,28 o% all res$on+in( en!er$rises in o#r sa*$le re$or! a la"o#r
$ro+#c!i.i!) increase co*$are+ !o !ree )ears a(o an+ onl) 9,48 s!a!e !a! o#!$#! $er
e*$lo)ee +ecrease+ o.er !e $as! !ree )ears, Moreo.er, !e re$or!e+ $ro+#c!i.i!) increases
are s#"s!an!ial, More !an J48 o% %ir*s 1i! i*$ro.e*en!s in $ro+#c!i.i!) re$or! increases
o% *ore !an 148,
T)1le %# Out,ut ,er e",lo5ee
*ow are outputs per
e$ployee different fro$
what they were three
years a"o+
,ith what percenta"e have outputs per e$ployee
increased-decreased co$pared to three years a"o+
To!al 43148 143298 293948 943798
793
1448
1443
1948 M 194 8
Lo1er 8 o% To!al 144,44 144,44
Hi(er 8 o% To!al 1J,24 3C,44 22,74 4,94 13,C4 4,44 4,94 144,44
798 o% %ir*s re$or! !a! I'T is a con!ri"#!in( %ac!or !o $ro+#c!i.i!), 1i! a $ro$or!ion
o% 12,98 e.en s!a!in( !a! I'T 1as !e *ain reason %or $ro+#c!i.i!) (ains o.er !e $as!
!ree )ears an+ C2,98 s!a!in( !a! i! 1as I'T alon( 1i! o!er %ac!ors, In or+er o%
i*$or!ance !ese %ac!ors are /10 in.es!*en! in e2#i$*en!, /20 or(aniEa!ional can(e, /30
!rainin( o% s!a%% an+ /40 ne1 *ar>e!in( s!ra!e(ies, Te i*$or!ance o% !ese o!er %ac!ors,
1i! or 1i!o#! connec!ion !o I'T #sa(e, in+ica!es !a! as a con!ri"#!in( %ac!or !o
$ro+#c!i.i!), I'T #sa(e is i*$or!an! "#! as (enerall) !o "e loo>e+ a! in !e con!e5! o% a
*ore (eneric se! o% *eas#res an+ e%%or!s !o increase $ro+#c!i.i!),
T)1le 4# ()-tors in8luen-in! -/)n!es in out,ut ,er e",lo5ee
*ow are outputs per
e$ployee different fro$
what they were three years
a"o+
.han"e in the output per e$ployee of
the business is due to
Mainl)
I'T
I'T an+
o!er
Mainl)
o!er To!al
Lo1er 8 o% To!al 14,2K J9,71 144,44
Hi(er 8 o% To!al 12,94 C2,94 29,44 144,44
Operational costs
Al*os! C98 o% all %ir*s +eclare !a! a.era(e o$era!ional cos!s $er #ni! o% o#!$#! a.e
increase+ 1ereas li!!le *ore !an 98 e5$erience+ a +ecrease co*$are+ !o !ree )ears a(o,
:or al*os! 348 o$era!ional cos!s re*aine+ a"o#! e2#al, 798 o% %ir*s s!a!e !a! increases in
$ro+#c!i.i!) cos!s are a"o.e 148, Ho1e.er, on a.era(e, increases in o$era!ional cos!s are
on a.era(e lo1er !an !e $ro+#c!i.i!) (ains,
T)1le 5# O,er)tion)l -osts ,er unit o8 out,ut
*ow are avera"e
operational costs per
unit of output different
for$ three years a"o+
,ith what percenta"e have your operational costs per unit of
output increased-decreased co$pared to three years a"o+
43148 143298 293948 943798
793
1448
1443
1948
M 194
8
To!al
Lo1er 8 o% To!al 144,44 144,44
Hi(er 8 o% To!al 19,44 99,44 14,44 19,44 9,44 144,44
I'T a$$ears !o "e a .er) i*$or!an! %ac!or in e5$lainin( increasin( o$era!ional cos!s,
Al*os! J38 o% %ir*s *en!ion i! as a %ac!or !a! as increase+ cos!s, I'T also ran>s i(er
!an !e o!er %ac!ors, o% 1ic ne1 *ar>e!in( s!ra!e(ies is !e *os! i*$or!an! %ac!or,
%ollo1e+ ") in.es!*en! in e2#i$*en!,
T)1le 4# ()-tors in8luen-in! o,er)tion)l -osts
*ow are your avera"e
operational costs per
unit of output different
fro$ three years a"o+
.han"e in operational
costs per unit of output is
due to
To!al
Mainl)
I'T
I'T
an+
o!er
Mainl)
o!er
Lo1er 8 o% To!al 144,44 144,44
Hi(er 8 o% To!al J,74 73,K4 17,44 144,44
Te o"ser.a!ion !a! I'T con!ri"#!es !o increasin( o$era!ional cos!s is no! a! all
s#r$risin(, Par!ic#larl) %or s*all an+ *icro "#sinesses, I'T re$resen!s a si(ni%ican!
in.es!*en!, Moreo.er, !e $ossi"ili!ies !o re+#ce "#siness $rocess cos!s !ro#( econo*ies
o% scale an+ sco$e are *#c *ore li*i!e+ !an in lar(e cor$ora!ions,
As is also +e*ons!ra!e+ in o!er 2#es!ions rela!in( !e #sa(e o% I'T !o can(es in
$er%or*ance, I'T is rarel) a s!an+3alone %ac!or, I'T is cri!ical in !a! i! is !e sin(le *os!
ci!e+ %ac!or o% can(e in o#r s#r.e), "#! *os! o%!en i!s e%%ec!s are rela!e+ !o o!er %ac!ors,
/evenues fro$ sales
Te n#*"er o% %ir*s !a! re$or! re.en#e increases is ra!er lo1, co*$are+ !o !e n#*"er
!a! re$or!s $ro+#c!i.i!) increases, 4C8 o% !e %ir*s in+ica!e re.en#es %ro* sales !o "e
i(er !an !ree )ears a(o, Al*os! 3J8 re$or! e2#al re.en#es an+ 1C8 o% !e %ir*s re$or!
lo1er re.en#es, As 1i! o$era!ional cos!s, 798 o% %ir*s re$or! re.en#e increases a"o.e
148, "#! on a.era(e, !e *a(ni!#+e o% re.en#e increases +oes no! co*$ensa!e %or !e
increase+ o$era!ional cos!s,
T)1le 7# 7evenue tren2s
*ow are total revenues
fro$ sales different
fro$ three years a"o+
,ith what percenta"e have total revenues fro$ sales
increased-decreased co$pared to three years a"o+
To!al 43148
143
298
293
948
943
798
793
1448
1443
1948
M 194
8
Lo1er 8 o% To!al C4,44 44,44 144,44
Hi(er 8 o% To!al 29,44 C2,94 12,94 144,44
Sli(!l) *ore !an J28 o% %ir*s re$or! !a! I'T con!ri"#!es !o increasin( re.en#e,
T#s, 1ils! I'T is an i*$or!an! ca#se o% cos! increases, i! is also an i*$or!an! ins!r#*en!
%or increasin( re.en#e, al!o#( on a.era(e, !e a*o#n! o% increase +oes no! %#ll)
co*$ensa!e %or !e cos!s,
T)1le '# ()-tors in8luen-in! revenue
*ow are revenues fro$
sales different fro$
three years a"o+
.han"e in the revenues
fro$ sales is due to
To!al
Mainl)
I'T
I'T
an+
o!er
Mainl)
o!er
Lo1er 8 o% To!al 33,34 CC,C7 144,44
Hi(er 8 o% To!al 9,K4 7C,94 17,C4 144,44
Te !ree *os! i*$or!an! o!er %ac!ors %or "rin(in( a"o#! can(es in re.en#e are ne1
*ar>e!in( s!ra!e(ies, %ollo1e+ ") !e e5can(e ra!e o% !e Ran+ an+ ca$i!al in.es!*en! in
e2#i$*en!,
'rofitability
Ver) %e1 %ir*s re$or! +ecreasin( $ro%i!a"ili!) o.er !e $as! !ree )ears /a"o#! 980,
Ho1e.er, !e n#*"er o% %ir*s !a! re$or! increasin( re.en#es /4980 is s#r$asse+ ") !e
$ro$or!ion o% %ir*s s!a!in( !a! i! is *ore or less e2#al /9480, T1o %ac!ors e5$lain !is
rela!i.e s!a(na!ion, :irs!l), al!o#( a"o#! J48 o% !e %ir*s !a! re$or! i(er $ro%i!a"ili!)
*en!ion increases o% *ore !an 148, !e *a(ni!#+e o% !ese increases on a.era(e is less
!an %or $ro+#c!i.i!), Tis in+ica!es !a! %or *an) %ir*s, $ro+#c!i.i!) i*$ro.e*en!s +onG!
*a>e #$ %or increase+ o$era!ional cos!s6 Secon+l), on !e re.en#e si+e, *an) %ir*s re$or!
!a! !e s!ren(!enin( So#! A%rican Ran+ a(ains! *a&or c#rrencies as a+ a ne(a!i.e
e%%ec! on re.en#es,
T)1le 9# 3ro8it)1ilit5 tren2s
*ow are profits fro$
sales different fro$
three years a"o+
,ith what percenta"e have profits fro$ sales increased-decreased
co$pared to three years a"o+
43148 143298 293948 943798
793
1448
1443
1948
M 194
8
To!al
Lo1er 8 o% To!al 94 94 144
Hi(er 8 o% To!al 24 4C,7 C,7 C,7 C,7 C,7 C,7 144
798 o% %ir*s *en!ion I'T as one o% !e con!ri"#!in( %ac!ors !o increasin( $ro%i!a"ili!),
448 o% %ir*s a!!ri"#!e !ese e%%ec!s !o I'T alon( 1i! o!er %ac!ors, 'a$i!al in.es!*en! in
e2#i$*en! is *en!ione+ *os! %re2#en!l), %ollo1e+ ") ne1 *ar>e!in( s!ra!e(ies, Tis *eans
!a! *ore !an 318 consi+ers I'T !o "e !e ")in %ac!or con!ri"#!in( !o increase+
$ro%i!a"ili!), Tis is s#r$risin(l) i(er !an o!er re$or!e+ +irec! e%%ec!s o% I'T on
$er%or*ance, I! +e*ons!ra!es !a! I'T can "e a cri!ical, i% no! +ecisi.e %ac!or %or %ir*s !o
increase $ro%i!a"ili!) an+ !is +es$i!e increasin( cos!s an+ e5!ernal %ac!ors ne(a!i.el)
in%l#encin( re.en#es, I! also s#((es!s !a! !ere are *ore a$$ro$ria!e 1a)s !o #se I'T !o
increase %ir*sG $er%or*ance !an o!ers,
T)1le 1# ()-tors in8luen-in! ,ro8it)1ilit5
*ow are profits fro$
sales different fro$
three years a"o+
.han"e in the profits
fro$ sales is due to
To!al
Mainl)
I'T
I'T
an+
o!er
Mainl)
o!er
Lo1er 8 o% To!al 94,44 94,44 144,44
Hi(er 8 o% To!al 31,24 43,J4 29,44 144,44
0. Innovative Effects at Businesses 'rocess )evel
T#s %ar, o#r s#r.e) as $ro.i+e+ es!i*a!es o% Go1 *#cG I'T is con!ri"#!in( !o1ar+s
i*$ro.in( !e $er%or*ance o% !e !o#r o$era!ors s!#+ie+, I! le%! #nans1ere+ !e 2#es!ion o%
Go1G !ese en!er$rises o"!aine+ !ese res#l!s, i% an), O#r s#r.e) a++resses !is iss#e ")
in.es!i(a!in( !e e%%ec!s o% +i%%eren! !)$es o% inno.a!ion a! "#siness $rocess le.el, Tese
!)$es are $rocess inno.a!ion, $ro+#c! inno.a!ion an+ rela!ional inno.a!ion,
Process an+ $ro+#c! inno.a!ion are 1ell3>no1n conce$!s, "#! !e conce$! o% rela!ional
inno.a!ion *a) re2#ire so*e e5$lana!ion, Te conce$! o% rela!ional inno.a!ion in+ica!es
!e 1a) %ir*s inno.a!e in !e 1a) !e) are con+#c!in( "#siness 1i! s#$$liers an+
c#s!o*ers an+ *ore s$eci%icall) !e !ransac!ional as$ec!s o% !ese rela!ions, I! is narro1er
!an !e conce$! o% s!ra!e(ic inno.a!ion, 1ic is so*e!i*es #se+ !o in+ica!e !e 1a) %ir*s
re$osi!ion !e*sel.es .is3N3.is o!er $la)ers in !e %iel+, incl#+in( %or e5a*$le
(o.ern*en!,

'rocess Innovation
In areas s#c as !as> a#!o*a!ion an+ or(aniEa!ional can(e, i*$ro.e*en!s 1ere *o+era!e
an+ !e con!ri"#!ion o% I'T li*i!e+ or e.en *ar(inal, Tese %in+in(s are consis!en! 1i! !e
na!#re o% !e "#sinesses #n+er scr#!in), In!ernal $rocesses are o% li*i!e+ co*$le5i!) an+
*a(ni!#+e an+ +o no! necessaril) re2#ire I'T sol#!ions !o "e an+le+ e%%ec!i.el),
Ho1e.er, %ir*s *ana(e+ !o si(ni%ican!l) increase !e s$ee+ an+ relia"ili!) o% "#siness
$rocesses, !e) $er%or*e+ "e!!er in in%or*a!ion *ana(e*en!, an+ I'T $la)e+ a +e!er*inin(
role in acie.in( !ese i*$ro.e*en!s, A(ain, !e na!#re o% !e "#sinesses el$s !o
#n+ers!an+ !is %in+in(, in $ar!ic#lar !e nee+ o% !o#r o$era!ors !o "ri+(e +is!ances, !o
i*$ro.e on *o"ili!) an+ !i*e3*ana(e*en! an+ !o access s#$$liers s#c as o!els, airlines,
!o#ris! a!!rac!ions, oli+a) resor!s an+ so %or!,
'roduct and /elational Innovation
So*e si(ni%ican! e%%ec!s 1ere also %o#n+ in !e area o% $ro+#c! inno.a!ion, Pro+#c!
inno.a!ion concerns $ossi"ili!ies crea!e+ %or ne1 $ro+#c! o%%erin(s, c#s!o*isa!ion o%
$ro+#c!s an+ ser.ice "#n+lin(, :or e5a*$le, !e In!erne! ena"les !e a"ili!) !o %le5i"l)
o%%er a 1i+er ran(e o% ser.ices, !o allo1 c#s!o*ers !o selec! "e!1een +i%%eren! o$!ions an+
!o $ro.i+e a++i!ional Ge5!ernalG ser.ices !o !e ini!ial o%%er, s#c as car ren!al or ins#rance,
E%%ec!s o% I'T on $ro+#c! inno.a!ion 1ere o"ser.e+ *os!l) in con&#nc!ion 1i! ne1
*ar>e!in( s!ra!e(ies an+ i*$ro.in( c#s!o*er ser.ice le.els,
Te rela!ionsi$ "e!1een I'T, $ro+#c! inno.a!ion, ne1 *ar>e!in( s!ra!e(ies an+
c#s!o*er ser.ices le.els !ies i! !o !e real* o% rela!ional inno.a!ion, in $ar!ic#lar !e
/crea!i.e0 #se o% !e In!erne! as a sales cannel, Posi!i.e e%%ec!s in !er*s o% rela!ional
inno.a!ion concern !e n#*"er o% c#s!o*ers or s#$$liers, !e .al#e o% sales or $#rcases
$er c#s!o*er or s#$$lier, !e n#*"er o% re$ea! c#s!o*ers or s#$$liers an+ !e .al#e o% sales
$er re$ea! c#s!o*er or s#$$lier, Posi!i.e e%%ec!s 1ere %o#n+ *os!l) in c#s!o*er rela!ions

1. .onclusions
'o*$arison o% !e %in+in(s o% !is s#r.e) 1i! o!er s!#+ies #sin( !e E-S a$$roac
s#((es!s !a! !e con!ri"#!ion o% I'T !o "#siness $er%or*ance !en+s !o "e $ro$or!ionall)
lar(er in less *a!#re in+#s!ries or *ar>e!s, :i(#res are no! concl#si.e "#! !e ar(#*en! can
"e +e%en+e+ !eore!icall) on !e (ro#n+s !a! !e con!ri"#!ion o% I'T #sa(e !o "#siness
$er%or*ance 1ill !en+ !o "e *ore *ar(inal in in+#s!ries !a! are alrea+) i(l) $er%or*in(
an+Hor a.e alrea+) in!e(ra!e+ a+.ance+ I'T sol#!ions !o !a! e%%ec!,
Vie1e+ %ro* !e $ers$ec!i.e o% an econo*) in !ransi!ion, !is also $res#$$oses !a! !e
necessar) #*an, %inancial an+ !ecnical reso#rces %or !e e%%ec!i.e !a>e3#$ an+ #sa(e o%
I'T are a.aila"le, An) o"ser.er o% !e So#! A%rican econo*) 1ill a(ree !a! *an)
$ro"le*s in !is area re*ain !o "e sol.e+, :or e5a*$le, !is s!#+) so1s !a! +es$i!e
si(ni%ican! a+.ances in *o"ile !ecnolo(), /"roa+"an+0 In!erne! is re2#ire+ %or an in+#s!r)
s#c as !o#ris* !o co*$e!e in!erna!ionall) an+ a lo! o% $ro(ress re*ains !o "e *a+e in !is
area, I! is also enco#ra(in( !o see !a! SMMEs see* !o "e a"le !o a$$ro$ria!e !e "ene%i!s o%
I'T, "#! i! is .er) 2#es!iona"le 1e!er !is concl#sion a$$lies !o !e en!ire $o$#la!ion o%
s*all !o#ris* en!er$rises an+ s!ar!3#$s, SMMEs so#l+ "e in%or*e+ !a! 1ile I'T can
a.e a si(ni%ican! i*$ac! on increase+ $ro%i!a"ili!), I'T in.es!*en! so#l+ "e .er)
%oc#sse+B %or e5a*$le, in !is $ilo! s!#+) #sa(e o% !e In!erne! !o i*$ro.e c#s!o*er
rela!ions in con&#nc!ion 1i! crea!i.e $ro+#c! o%%erin(s /c#s!o*isa!ion, $ro+#c!3ser.ice
"#n+lin(0 1as !e *os! e%%ec!i.e,
Te %in+in(s o% !is $ilo! s!#+) so#l+ no! "e (eneralise+, a! !is s!a(e, !o !e !o#ris*
in+#s!r), or !o o!er in+#s!ries, Te s!#+) ai*e+ !o !es! a E#ro$ean3"ase+ *e!o+olo() in a
+e.elo$in( co#n!r) an+ %oc#sse+ on a s*all $ar! o% !e !o#ris* .al#e cain, Te $ilo! s!#+)
1o#l+ a.e !o "e e5$an+e+ !o incl#+e *ore co*$onen!s o% !e .al#e cain in or+er !o
#n+ers!an+ *ore %#ll) 1a! in+#s!r) s$eci%ic an+ en.iron*en!al %ac!ors 1ill "e *os!
"ene%icial a! a cer!ain s!a(e in i!s e.ol#!ion, E2#all), as is a*$l) +e*ons!ra!e+ in o#r
E#ro$ean s!#+ies, sec!or +i%%erences are i*$or!an! in #n+ers!an+in( !e $o!en!ial e%%ec!s an+
"ene%i!s o% I'T #sa(e, Inno.a!ion $olicies an+ in+#s!r) s!ra!e(ies 1ic *o"ilise scarce
reso#rces !o s!i*#la!e I'T #sa(e 1ill "e *os! e%%ec!i.e i% !e) !a>e !ese %ac!ors in!o
acco#n!, Te E-S *e!o+olo() *a) con!ri"#!e !o !is,
Te res#l!s o% !is $ilo! s!#+) 1ill "e +isse*ina!e+ !o >e) $la)ers in So#! A%rica,
es$eciall) $olic)3*a>ers an+ !e s*all "#siness +e.elo$*en! a(encies, Da!a 1ill "e sare+
in or+er !o +ee$en !e #n+ers!an+in( in !o#ris* SMMEs, $ar!ic#larl) !e in%or*al an+
e*er(in( sec!or, Te o$$or!#ni!ies 1i!in So#! A%rica an+ So#!ern A%rica !o e5$an+ !e
s!#+) !o %#ll3scale across o!er $ar!s o% !e !o#ris* .al#e cain an+ in!o o!er sec!ors nee+
!o "e in.es!i(a!e+, ;e %oresee con!in#e+ colla"ora!ion 1i! s!#+ies in o!er co#n!ries !o
"enc*ar> So#! A%rican in+#s!ries an+ sec!ors,
Te a#!ors (ra!e%#ll) ac>no1le+(e !e .al#a"le con!ri"#!ions o% An!on) 'oo$er,
Ta*i N+laEi, L#ce!! Ra*o>(o$a, Sannon Sass an+ Jona!an Miller,
2. /eferences
?1@ ',M, Ro(erson, To#ris* SMMEs in So#! A%rica6 A 'ase %or Se$ara!e Polic) De.elo$*en!F TIPS
;or>in( Pa$er ;P232449, IS-N 13K1KKJ23293C,
?2@ E, Or#(er3'loe!e, P,E, Esselaar, A,=, Ja*es, J, Miller an+ =, Si"!or$e, :inal Sec!oral Re$or!6 '#l!#ral
To#ris* Sec!or /I'T Di%%#sion an+ A$$lica!ions0, J#ne 2442, De$ar!*en! o% Tra+e an+ In+#s!r) Polic)
S#$$or! Pro(ra**e, So#! A%rica
?3@ P, Veroes!, R, Ha1>ins, P, Desr#elle e! al,, Elec!ronic -#siness Ne!1or>s6 An assess*en! o% !e
+)na*ics o% "#siness3!o3"#siness elec!ronic "#siness in ele.en OE'D co#n!ries6 A S#**ar) Re$or! o% !e e3
-#siness I*$ac!s Pro&ec! /E-IS0, Se.ille6 IPTS, 2443, /also a.aila"le on3line6
!!$6HH111,&rc,esHo*eH$#"lica!ionsH$#"lica!ions,!*l0
?4@ P, Veroes!, ', H#.eneers an+ R, Ha1>ins, E3"#siness an+ en!er$riseGs $er%or*ances, Pa$er %or !e
e'allen(es e32444 con%erence s$onsore+ ") !e E#ro$ean 'o**ission, Vienna 2732K Oc!o"er 2444
/!!$6HH111,ecallen(es,or(H2444H0, Preli*inar) %in+in(s $resen!e+ a! !e OE'D<s ;or>in( Par!) on !e
In%or*a!ion Econo*), Paris 93C Ma) 2443, Main %in+in(s +isc#sse+ a! an OE'D ;or>so$ on 3 Dece*"er
2443,
?9@ P, Veroes! e! al, I'T, Inno.a!ion an+ Econo*ic =ro1! in Transi!ion Econo*ies6 A M#l!i3'o#n!r)
S!#+) o% Polan+, R#ssia an+ !e -al!ic co#n!ries, S#"*i!!e+ !o In%oDe. on C Jan#ar) 244C,