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ICT and SME: role, needs and purchasing process

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ICT Contents' Coordinator of SMEs Observatory. ASAM Universit Cattolica of Milano (Italy) ... Map of ICT spending. Retail. Distribution. Food. Transportation ... – PowerPoint PPT presentation

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Title: ICT and SME: role, needs and purchasing process


1
ICT and SMErole, needs and purchasing process
  • LUIGI GEPPERT
  • ICT Contents Coordinator of SMEs Observatory
  • ASAM Università Cattolica of Milano (Italy)

2
Agenda
  • Presentation of the SMEs Observatory
  • Preliminary results
  • Preliminary conclusions

3
General Purposes of the Observatory
  • Check the state of the art of ICT for SMEs after
    the networked economy hype
  • Capturing the ICT vision of entrepreneurs
  • Economics Costs/Investments and return
  • Tangibles and Intangibles
  • Finding other possible ways of ICT to enable
    business value
  • Decisional process
  • Role of Intangibles human resource value,
    intellectual capital, internal and external
    knowledge
  • Assessing the market Offering suitability ( ICT
    vendors proposal and scenario)
  • The ICT purchasing process
  • Identifying the effectiveness of control
    leverages enabled by ICT
  • Searching for new possible future trends

4
Objectives of research
  • What about the state of the art of ICT in SMEs ?
    Where, what, how is used in SMEs ?
  • Which is the budget for ICT (costs-investments
    trade-off)?
  • Which needs for entrepreneurs ? Which decisional
    process to define these needs? Which selection
    criteria and costs allocation of ICT?
  • How ICT solutions providers respond to these
    needs?
  • Which trends and cycles for the future ?

5
Methodology of research
  • The methodology is based on 2 phases
  • Phase 1 General Survey on a selected sample of
    enterprises trough a defined questionnaire for
    the board and for the CIO ( extracted from a
    DunB database)
  • STARTING DATE JUN 2002 ENDING DATE DEC 2002
  • Fase 2 In depth Analysis on a selected number
    of enterprises in order to identify success cases
    and best practices through detailed interviews
    and focussed researches
  • STARTING DATE JAN 2003 ENDING DATE DEC 2003

6
Phase 1 General Survey (Operative steps)
  • Literature analysis
  • Definition of research hypothesis
  • Identification of target sample
  • Questionnaire definition
  • Questionnaire delivery ( direct interview, mail,
    e-mail, etc.)
  • Collection and normalization of data
  • Preliminary analysis
  • Interpretation and formalization of General
    Survey results

7
The research sample composition
8
Redemption
9
The preliminary outcomes of the Board vision (as
of 29.11.2002)
  • still on progress

10
Key-Issues set 1
  • OBJECTIVES
  • Which needs?
  • Which decisional process to define them?
  • WHAT WE ASKED THEM
  • Which drivers of the adoption of ICT systems?
  • Which benefits achieved?
  • Which the level of your satisfaction so far?

11
Drivers ?(the mental model of the entrepreneur)
YES 55 NO 41 NA 4
YES 80 NO 16 NA 4
YES 82 NO 14 NA 4
Increasing productivity
YES 84 NO 12 NA 4
Deciding better
YES 22 NO 75 NA 3
Improving results
Assessing human resources
Deciding in advance
TANGIBLE
INTANGIBLE
Customer Satisfaction
ICT SMEs
Reducing costs
Understanding results
Improving the internal climate
Time to market
YES 73 NO 24 NA 3
Improving quality
Improving relationships with suppliers
YES 57 NO 41 NA 2
YES 86 NO 10 NA 4
YES 76 NO 20 NA 4
YES 71 NO 24 NA 5
YES 75 NO 22 NA 3
YES 35 NO 61 NA 4
12
Benefits ?(the mental model of the entrepreneur)
YES 47 NO 41 NA 12
YES 78 NO 18 NA 4
YES 80 NO 16 NA 4
Increasing productivity
Deciding better
YES 78 NO 14 NA 8
YES 18 NO 63 NA 19
Improving results
Assessing human resources
Deciding in advance
TANGIBLE
INTANGIBLE
Customer Satisfaction
Reducing costs
ICT SMEs
Understanding results
Improving the internal climate
Time to market
Improving quality
YES 57 NO 37 NA 6
Improving relationships with suppliers
YES 49 NO 41 NA 10
YES 82 NO 14 NA 4
YES 75 NO 20 NA 5
YES 73 NO 20 NA 7
YES 63 NO 31 NA 6
YES 24 NO 55 NA 21
13
Gap drivers-benefits achieved
YES -8 NO 0 NA 8
YES -2 NO 2 NA 0
YES -2 NO 2 NA 0
Increasing productivity
Deciding better
YES -6 NO 2 NA 4
YES -4 NO -12 NA 16
Improving results
Assessing human resources
Deciding in advance
TANGIBLE
INTANGIBLE
Customer Satisfaction
Reducing costs
ICT SMEs
Understanding results
Improving the internal climate
Time to market
Improving quality
YES -16 NO 13 NA 3
Improving relationships with suppliers
YES -8 NO 0 NA.8
YES -4 NO 4 NA 0
YES -1 NO 0 NA 1
YES al -12 NO 9 NA3
YES 2 NO -4 NA 2
YES -11 NO -6 NA 17
14
Gap drivers-benefits achieved(relevant elements)
YES-8 NO 0 NA 8
YES -2 NO 2 NA 0
YES -2 NO 2 NA 0
Increasing productivity
Deciding better
YES -6 NO 2 NA 4
YES -4 NO -12 NA 16
Improving results
Assessing human resources
Deciding in advance
TANGIBLE
INTANGIBLE
Customer Satisfaction
Reducing costs
ICT SMEs
Understanding results
Improving the internal climate
Time to market
Improving quality
YES -16 NO 13 NA3
Improving relationships with suppliers
YES -8 NO 0 NA 8
YES -4 NO 4 NA 0
YES -1 NO 0 NA 1
YES -12 NO 9 NA 3
YES 2 NO -4 NA 2
YES -11 NO -6 NA 17
15
Level of satisfaction
16
Key-Issues set 2
  • OBJECTIVES
  • Which selection criteria and costs allocation ?
  • Which budget (costs-investments trade-off)?
  • WHAT WE ASKED THEM
  • Who decide what to purchase?
  • Who decide how much to spend?
  • How much is your companys ICT spending ?

17
Who decide what to purchase
18
Who decide how much to spend
19
ICT spending 2002
Digital infrastructure
Map of ICT spending
NP
GE
9
3
8
1
6
4
7
2
5
8
Technological Services
5
5
6
Mngm Consulting
4
9
2
2
3
4
7
1
7
9
LEGENDA
1
3
8
6
5
2
5
  • Retail
  • Distribution
  • Food
  • Transportation devices
  • Chemical
  • Metal
  • Manufacturing
  • Mechanics
  • Textile
  • NP new ICT project
  • GE managing existing project

4
1
3
6
7
GE
NP
8
9
Application Solutions
20
Key-Issues set 3.1
  • OBJECTIVES
  • Which trends and cycles for the future ?
  • WHAT WE ASKED THEM
  • If you are unsatisfied what do you think to do to
    increase you satisfaction ?
  • How much do you think to spend in 2003 ?

21
What doing to increase satisfaction
22
ICT spending 2003
Digital infrastructure
Map of ICT spending
9
NP
3
1
GE
8
6
4
5
7
9
2
8
Technological Services
Mngm Consulting
3
4
5
3
6
9
LEGENDA
7
1
4
5
1
2
7
2
6
6
2
  • Retail
  • Distribution
  • Food
  • Transportation devices
  • Chemical
  • Metal
  • Manufacturing
  • Mechanics
  • Textile
  • NP new ICT project
  • GE managing existing project

4
3
1
5
8
7
8
GE
NP
9
Application Solutions
23
2002-2003 comparison
Digital infrastructure
2002
2003
9
NP
3
1
GE
8
9
3
8
1
6
4
6
4
5
7
7
9
2
2
5
8
Technological Services
8
Mngm Consulting
5
6
4
9
3
2
2
3
4
7
4
5
3
6
9
LEGENDA
1
7
9
7
1
4
5
1
3
8
1
2
7
6
2
5
6
6
2
  • Retail
  • Distribution
  • Food
  • Transportation devices
  • Chemical
  • Metal
  • Manufacturing
  • Mechanics
  • Textile
  • NP new ICT project
  • GE managing existing project

2
5
4
4
1
3
3
6
1
5
7
8
7
8
GE
NP
8
9
9
Application Solutions
24
Key-Issues set 3.2
  • OBJECTIVES
  • Which is the ICT budget for application solutions
    ( costs/investments trade-off)
  • Which future trends ?
  • WHAT WE ASKED THEM
  • Application solutions costs and investments in
    2002
  • Application solutions costs and investments in
    2003

25
Application solutions(costs/investments 2002)
26
Application solutions(costs/investments 2003)
high
ERP
New Projects ( investments)
CRM
Local ERP
E-Commerce
Marketplace
BSC-DSS
KM
Low
Low
High
Existing Projects (costs)
27
2002-2003 Comparison
2002
high
2003
New Projects ( investments)
Low
Low
High
Existing Projects (costs)
28
Preliminary conclusions
  • Not only efficiency ( cost reduction), attention
    paid to effectiveness too
  • ICT as a strategic leverage
  • Intangibles ( value of resources, quality)
  • Improving external relationships through Web
    technologies and models ( CRM, marketplaces) not
    only to do ( process) but also to know
  • Difficulty to bring forth change management
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