IT Support for Business Processes in SMEs

Paul Cragg and Annette Mills University of Canterbury,Christchurch, New Zealand

Presented by: Tapas K.Mahala 311sm1011

Abstract
Purpose This study aims to focus on how well IT is supporting

business processes in small- and medium-sized enterprises(SMEs). Methodology The study collected data using a questionnaire. Structured interviews were conducted with managers in 66 SMEs. Findings The data indicated the importance of each process and how well IT supported each process. The following two core business processes were identied as strategically most important: deliver products and services, and manage customer service. IT support varied considerably for different processes, indicating that some rms have much higher IT support for business processes than others. Research limitationsAll the rms were SMEs in one part of one country(Milan, Northern Italy). Practical implications The study indicates that the business process view provides a useful lens for studying IT support. There seems to be much potential for SMEs to improve their IT support for some business processes. Originality The focus on IT support for business processes is

Purpose
Author have tried to answer some questions like: Is IT support is essential for SMEs? What are the effects of IT(if implemented), on different business processes of these firms? To find the gaps in the IT support in different business processes. Compare the business processes and their efficiency of IT supported and non IT supported firms. Importance of IT in business processes especially for SMEs. Which are the business processes, needs more IT support and which are not.

Review of literature
The review of literature mainly covers the fields like:
The different business processes in SMEs The importance of IT in different business

processes What are the affects of IT on these business processes over time.
- And different researchers, of related field have

different findings and suggestion for related problems. - But here in this paper, the researcher has found

Cont..
Here a framework(proposed by APQC- American

Productivity and Quality Center), also called as process classification framework(PCF) is used to understand the different business processes. It consists 12 business processes. The first five are referred to as operating processes and the Other seven as management and support services.

Business processes
operating processes:

- develop vision and strategy - design & develop products &

services

- market & sell those products &

services - deliver products & services - manage customer services Management & support processes: - Manage HR - MIS - Manage financial resources - Manage property - Manage environmental health & safety

Methodology
Data were collected using a structured

questionnaire & face-to-face interviews with managers of 66 SMEs. the sample was: 30 % micro companies 53 % small firms and 17% medium-size
- A Five-point Likert scale were used.
- Calculations have been done by using:

Mean method Standard deviation method

 Two sets of data were collected:

- one for the importance of each business process and - another for IT support (and these data are collected both in the industry & firm levels,both) - Industry level data helped to give a relation between IT support & Process importance. - Firm level data helped to develop a tool to analyze IT gap at the firm level.
After defining the process importance and the IT

support (mean of both), the IT gap is being calculated. IT gap = (process importance IT support)
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This IT gap value shows the relation between IT

Further scope for research

This study only suggested that, there is a need or

scope of improvement in the field of IT implementation in different business processes.

Further research can give us, How much IT/IS

can be implemented for efficient outcome for any particular firm.

Limitations of the study

This study was concentrated on a particular area.

A different sample could provide different data, hence the data should not be interpreted as norms for SMEs.
Different methods of data collection may have

given different data. (Here only interview and questionnaire).

The research was based on the APQCs
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business process model, it may be biased towards manufacturing firms.

Conclusion
This study examined IT support in SMEs, with a

particular focus on how well IT supported their business processes.

The study indicated that many business

processes could be better supported by IT, with the typical firm under-supporting 50% of their major business processes.

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References
American Productivity and Quality Center (2006), Process Classication Framework, APQC,Houston, TX, p. 16, available at: www.apqc.org (accessed August 2006). Bergeron, F., Raymond, L. and Rivard, S. (2004), Ideal patterns of strategic alignment and business performance, Information & Management, November, pp. 1003-20. Bharadwaj, P.N. and Soni, R.G. (2007), E-commerce usage and perception of e-commerce issues among small rms: results and implications from an empirical study, Journal of Small Business Management, Vol. 45 No. 4, pp. 501-21.Biazzo, S. and Bernardi, G. (2003), Organisational selfassessment options: a classication and a conceptual map for SMEs,The International Journal of Quality &Reliability Management,Vol. 20 Nos 8/9, pp. 881-900. Brown, D.H. and Lockett, N. (2004), Potential of critical e-applications for engaging SMEs in e-business: a provider perspective, European Journal of Information Systems, Vol. 13 No. 1, pp. 21-34. Chan, Y.E., Huff, S.L., Barclay, D.W. and Copeland, D.G. (1997), Business strategic orientation, information systems strategic orientation and strategic alignment, Information Systems Research, Vol. 8 No. 2, pp. 125-50. Cragg, P., King, M. and Hussin, H. (2002), IT alignment and rm performance in small manufacturing rms, Journal of Strategic Information Systems, Vol. 11, pp. 109-32. Daniel, E. (2003), An exploration of the inside-out model: e-commerce integration in UK SMEs,Journal of Small Business and Enterprise Development, Vol. 10 No. 3, pp. 233-49. Davenport, T.H. (2005), The coming commoditization of processes, Harvard Business Review,June, pp. 101-8. Deros, B.M., Yusof, S.M. and Salleh, A.M. (2006), A benchmarking implementation framework for automotive manufacturing SMEs, Benchmarking: An International Journal, Vol. 13No. 4, pp. 396-430. Dibrell, C., Davis, P.S. and Craig, J. (2008), Fueling innovation through information technology in SMEs, Journal of Small Business Management, Vol. 46 No. 2, pp. 203-18. Egan, T., Clancy, S. and OToole, T. (2003), The integration of e-commerce tools into the business process of SMEs, Irish Journal of Management, Vol. 24 No. 1, pp. 139-53. 12 Galbraith, J.R. and Kazanjian, R.K. (1986), Strategy Implementation: Structure, Systems and Processes, West Publishing, St Paul, MN.

 Thanks to the researcher- for the

contribution Thanks to the panel Thanks to the audience

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THANK YOU

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