Target entire industries that are most likely to benefit immediately from ICT

Targeting entire supply chains will allow the efforts to be more focused, specific and concrete. In terms of ICT adoption by SMEs, India is still at the beginning stages of the S-shaped technology diffusion curve. In order to induce mass adoption of ICT and be on the steeper slope of the S-curve, government efforts should target SMEs characterized as innovators and early adopters. Beyond being risk takers, these SMEs should be firms that have the most contact with foreign suppliers and clients, which usually are the tourism/ hospitality and export industries. Effective usage of ICT requires both parties to have compatible technology, and since their suppliers/clients most likely have already adopted ICT,SMEs can reap the benefits of ICT very quickly. Targeting supply chains and specific industries quickly increases the rate of adoption, which increases the total number of SMEs that use ICT. This will increase the overall awareness of the benefits of ICT and encourage adoption by other industries.

ICT adoption in tourism industries usually involves using advanced communication technologies such as email and the Internet. Having an online presence creates an important new marketing channel for the SMEs. The tourism board can play the role of creating a portal that leads to individual websites in order to help increase site traffic. It can also establish an e-commerce platform that SMEs can sign up for without having to adopt it themselves.

ICT adoption in export industries often involves encouraging ICT adoption over an entire supply chain. Firms are more likely to adopt ICT if their peers, suppliers, and clients are adopting ICT as well. This can help increase the competitiveness of the industry as a whole.

ICT adoption can also involve building an industry or export portal. For example, Taiwan’s Council of Agriculture1 launched several websites to provide another marketing channel for Taiwan’s agriculture producers. The government portal itself received over 1,343,236 visits between January 2005 and mid-August 2005. AgExporter Web is a B2B website that connects importers to Taiwanese producers. Similarly, the Korean government created the Korean Marketplace Website2 to showcase products of Korean SMEs to global buyers. Local SMEs can easily connect to the global network by posting offers to buy or sell products. The site currently hosts over 20,000 homepages of SMEs and e-catalogues of over 120,000 products.

http://eng.coa.gov.tw/ visited on 13th June 2011
http://www.gobizkorea.com/ visited on 13th June 2011

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