Like any firm, an SME decides which type of ICT products to adopt based on the concrete benefits they can bring to its core business, the ICT capacity of its employees, and the financial resources available. Most people are familiar with basic ICT such as fixed phone lines, mobile phones, fax, computers, and basic document processing software – like Microsoft Office. Advanced communication technology, however, is more complex.
Advanced communication technology relies primarily on the Internet and the intranet, which allow people within the firm to share files with each other over the same network. Having Internet connectivity enables firms to do faster research, set up websites, conduct e-commerce, and set up video conferences. One of the most revolutionizing developments in advanced communication technology is Voice over Internet Protocol (VoIP).VoIP includes all types of voice communication transmitted through the Internet, whether it is between computer and computer or in hybrid form between computer and regular phone. It competes directly with traditional fixed line and mobile phone operators. Users only pay for their dial-up, broadband, or wireless Internet connection.
Most complex of all is advanced IT. It is often very expensive, sophisticated and takes more time to implement by a firm. SMEs can sign up for one or all available services. In order to reduce costs, some firms opt to outsource this component or use an application service provider (ASP) that provides functional software capabilities over the Internet. Figure 3 lists the major types of products.
| Enterprise Resource Planning (ERP)
ERP offers a single repository for information on all business functions – human resources, manufacturing, inventory, marketing, sales, accounting, and tax. It allows all levels of a business to obtain real-time management information for their area of responsibility. |
Customer Relationship Management (CRM)
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| Supply Chain Management (SCM)
SCM software helps streamline the procurement of raw materials and delivering of finished products. It helps to decrease error rates, delays, and to increase efficiency. E-Procurement is often a part of SCM. |
| Enterprise Application Integration (EAI)
EAI integrates different types of ERP and other software systems through a common problem in order to synchronize the processing, storing, and transmitting of information. |
| Rapid Prototyping and Manufacturing (RPM)
Over the next 20 years, RPM will have a profound effect upon the global manufacturing technology. RPM can reduce the new product design phase from 90 days to just three days. It is still an infant industry based upon newly invented technologies, but it is apparent that |
| Knowledge Management (KM)
KM systems help a firm to better organize and share the knowledge of its employees. They help the firm take better advantage of its human resources. |