issues here: on the one hand the SMEs need to monitor the kind of technologies that their clients are using and try to make sure that they are on a par in order to serve them. On the other hand the SMEs don’t need to change every time there is a change in technology; this depends on the focus area of the SMEs.
This latter situation is described in the focus-dominance model of Levy, Powell and Yetton (2001:135) (shown in Figure 2 in Section 3.7.1). The focus-dominance model is based on the dimensions of strategic focus (cost reduction versus value added) and customer dominance (few versus many customers). The model has four domains: coordination, efficiency, collaboration and innovation, which create competitive scenarios. Which domain the business falls into will determine the rate at which the business needs to change its technology. If an SME is doing business in the innovation and collaboration domain, it might require constant change of technology, while an SME that functions in the coordination and efficiency space is only required to change after a long time.
This stumbling block touches on all three categories of barriers and diffusion agents. The ICT strategy of the SME needs to take into consideration that technology changes at a rapid rate, the different technologies need to be monitored as they evolve into the future, and the staff need to be excited enough to have an interest in the changes as they happen.
3.6.5 Geographical factors
ICT makes it easier to reach remote or rural areas. However, there are other factors to be considered, such as the “FedEx effect” which affects deliveries: for instance, rural areas might not have proper address systems, or there might be no roads. South Africa faces the problem of underdeveloped rural areas and well-developed urban areas. Most rural
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