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Customer dominance

Low

Word processing

Word processing

Accounting

Accounting

Customer databases

Electronic business

Coordination

Efficiency

Innovation

Collaboration

High

Word processing Accounting

Word processing Accounting MRP EDI

Cost saving

Value adding

Strategic focus Figure 2: The focus-dominance model (Levy, Powell & Yetton, 2001:136)

The small business would need to identify the quadrant into which it falls in the above focus-dominance model, by determining whether its strategic focus is cost saving or value adding, and then determining whether the customer dominance is high or low. For example, if the majority of the clients of the SME (high customer dominance) use a specific technology, then it will influence the ICT adoption. Once the strategic positioning is done then the focus will be on getting the right tools and technology to achieve the strategy.

3.8.2 Alignment of business strategy with ICT strategy

Aligning the ICT strategy with the business strategy will ensure that ICT is used to deliver on the SME’s objectives. The ICT strategy design should be based upon the business strategy, as the SME should not be driven by technology needs but by business needs. Earlier research on this topic was focused more on the technology perspective and the management and organisation of technology perspectives, overlooking the small firm’s perspective, but now the focus is moving towards the relationship between SMEs and ICT from the small firm’s point of view. Authors have begun to

MIT 840

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