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SME e-readiness in Malaysia: Implications for Planning and Implementation - page 10 / 44

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trading partners to engage in electronic interactions and transactions (Barua, Whinston and

Yin 2000a; 2000b). Successful e-readiness practice requires readiness on the part of all

players in the value chain, and companies that adopted e-commerce or e-business must invest

in increasing their trading partners’ readiness (Barua, Whinston and Yin 2000a; 2000b).

E-commerce application includes the use of many different types of online facilities to do

business: order registration, electronic advertising, electronic billing system, electronic

marketing, online delivery status and tracking and customer services support. E-business

applications also include the use of many different types of online facilities to communicate

and coordinate: production planning, JIT management, scheduling, outsourcing and other

business operation process.

The next section will discuss the various factors that drive e-readiness.

Infrastructure and Technology

Internet is a collection of client/server computers and infrastructure that spans the earth. E-

commerce and e-business simply cannot function without adequate telecommunications

network and Internet infrastructure. Only users or enterprises who are able to access these

networks, though proprietary or shared access devices or terminal/kiosks, are able to

participate in e-commerce or e-business, and the larger number of users with network access,

the greater the potential benefits of e-commerce and e-business.

There are six components to support e-business readiness as suggested by Jutla, Bodorik and

Dhaliwal (2002) which are:

1.

knowledge and innovation process-based economy;

10

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