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John McCarthy

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It is a means of developing the strategic aims of small firms utilizing ICT ... begin to disintegrate, as the consequence of the emergence of networks. ... – PowerPoint PPT presentation

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Title: John McCarthy


1
SME Growth and The E-business Development
Platform
  • John McCarthy
  • Director LeadSure
  • j.mccarthy_at_LeadSure.co.uk

2
What is the E-business Development Platform?
  • It is a means of developing the strategic aims of
    small firms utilizing ICT
  • This could be market reach, penetration or
    consolidation
  • It is the results of 5 years of case study based
    research in the UK and Europe.

3
Internet Revolution
  • The widespread deployment of the infrastructure
    to access the Internet is known as the dawn of
    the digital age
  • This led to the birth of the digital economy

4
Academic background
  • Virtualisation relates to the phenomenon in which
    transaction processes are conducted
    electronically while products remain
    predominantly physical.
  • Molecularisation refers to the phenomenon that
    the economy is breaking up into very small units.
    Large companies the potential to enable business
    processes, products and services through the
    Internet to others with whom it was not possible
    or practical to do so previously
  • Disintermediation in which traditional
    intermediary businesses are circumvented and some
    traditional industries begin to disintegrate, as
    the consequence of the emergence of networks.

5
Internet Revolution
  • Tapscott and many others feel that SME's are best
    suited to the new economy
  • They suggest that SME's have distinct advantages
    over larger organisations
  • How can this be true?

6
Large Firms
  • More complex internal structure
  • Slower to react
  • Legacy IT systems
  • Employ IT staff, which need training and are
    expensive
  • Attempt to influence the environment they exist in

7
Small Firms
  • Much quicker to react to changing environment
  • Often have a much simpler infrastructure
  • Do not have (m)any IT staff

8
Small Firms in practice
  • Less resources
  • Divergent aims for being in business
  • Poor knowledge of ICT and Internet business
    development
  • The ability to react quickly to change is a
    potential not always realized

9
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10
EBDP - Internet States
1. Access Some people or everyone (in the organization) has access to the Internet, usually just for e-mail. A very simple Web site may be maintained.
2. Publish Static" multi-page Web site for information purposes only
3. Transact. Web site supports one or two-way transactions with the end user, but does not support fully integrated processing of transactions.
4. Integrate internally Use of e-business to transform internal organization and processes, radically reducing costs and optimizing the business
5. Integrate externally Use of e-business to create a seamless, transparent process across the entire value chain, from customer through intermediary through all supplier tiers.
6. Adapt dynamically Use of Internet technologies as the foundation for operating in a digital, virtual community. For example, fully e-integrated institutions can seamlessly in-source or out-source processing functions as demanded by market conditions and changing company structures.
11
EBDP Relationship Strategies
  • Initial development placed the EBDP in the
    customer supply chain
  • This did not facilitate the learning and
    development dialogues needed
  • A key area of focus is the use of the PCT
    analytical framework
  • This identifies frozen attitudes and learning
    hurdles of the owner managers

12
Trusted Agents
13
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14
Summary
  • Using an EBDP an organisation can leapfrog the
    technology growth paths of larger organisations
  • Their flexibility enables them to adapt more
    quickly to environmental changes, enabling them
    to take advantage of new opportunities
  • They can seamlessly outsource business processes
    without a major impact on there internal
    structure
  • Enabling them to focus on their core competences
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