Impact of Information Technology on Small-Scale Firms in the United Kingdom - Research Proposal Example

Instructor Name: Student Name: Student ID: Course Code & Name: Date of Submission: IMPACT OF INFORMATION TECHNOLOGY ON SMALL–SCALE FIRMS IN UNITED KINGDOM Rationale and Research questions Due to the recent pace of globalization of the world’s economy, emergence of information, rapid growth of internet and communication network, growth diversity of transactions of business and increase in competition, companies are shifting the mode they communicate with modern methods that sharpen the performance of their businesses. The use of internet is attracting the foundation for new business process, models, and new ways of distributing knowledge (Laudon and Laudon, 2000). In this regard, Dave (2000) says that small-scale firms also use the networking and internet to carry out more of their work digitally. Reliable linking of factories departments, offices and sales cut their way through and around the world because of technology. The convergence of information and communication technology is a key trend that influences both the contemporary and even the future industries and markets. Many small-scale firms such as shops and institutions are expanding their services by the use of internet to customers, suppliers, and even other organizations outside the circles of the firm to allow for instant and prompt response to the demands of the customers by the firm (James, 2004). Consequently, communication and technology is in the verge of effecting changes in organizations that make forms to become more independent and rely on their own more than the past when they used to depend largely on learning, knowledge, wit and even personal decision making of individual employees. In addition to operations, customer services, products and even distributions, marketing strategies are still heavily dependent on the use of communication and information technology (Stacey, 2001). Small and medium enterprises produce goods and services, assist in the creation of jobs, improve living standards of those associated with them, reduce dependency on government, facilitation of ethnic minorities, spur economic growth that is less expensive and more efficient than the massive capital influx, highly specialized personnel, and advanced technology that is a prerequisite for developing business (Audretsch et El, 2012). This paper would therefore investigate the impact of technology on small-scale firms in United Kingdom. It will endeavor to establish the extent to which communication and technology has managed to change business processes for applications and specific, management of businesses efficiently, reduction of crime frequency, improvement of security of information systems of the organization, creation of jobs, among others within united Kingdom. This was because there existed no evidence of empirical research work that had targeted small-scale firms despite their contributions of up to 90% to the economy of UK (Government of Niger, 2010). To attain these objectives, the research will ask the following questions: 1. What is your understanding of the term IT? 2. How often does the government require the firm update their systems? 3. What are the effects of ICT investment profitability of the organization? 4. What are the challenges the organization is facing in implementing ICT? The major objective of this research work therefore, will be to produce a non-subjective analysis of the current usage of ICT in small-scales and thereafter make suggestion based on this analysis a set of priorities that they can adopt to improve their services. Other than this the research will also seek to suggest effective methods of promoting innovations in small-scale businesses; suggest a practical system for providing institutional support for encouraging innovations and lastly to suggest a system for providing special assistance for technical innovators. LITERATURE REVIEW The concept of information technology Lucas and Jack (2004) defines information and technology as a technology, which involve the development, maintenance, and the use of computer software, system, and networks for the processing and distribution of data. Many people confuse information technology with information and communication technology. To some extent, the two are similar only that information and technology is more concerned with communication technology. Though they are somewhat related, information and communication technology refers to technologies that enable access to information through primarily telecommunication and it focuses mostly on communication technology including the usage of internet, cell phones, wireless networks, and other channels of communication. Information is generally a generic term that describes a range of technologies for gathering, storing, retrieving, processing, analyzing and transmission of information (David, 2002). Laudon and Laudon (2000) says that information technology is a field that is concerned with the use of technology in managing and processing information. In other words, it is a computer-based tools used to capture, store, protect, process, retrieve, and transmit information. In the past few decades, information technology has presented the modern society with several modern capabilities of communications. Today, many people including organizations can communicate to each other in real time using Voice over Internet Protocol (VOIP), video conferencing, and even by exploring instant messaging. Social websites such as Twitter and Face-book among others allow networking of its subscribers worldwide enabling them to keep in touch and communicate to each other frequently. In fact, the modern knowledge and application of information and technology have created what many refer to use global village, in that people can now days communicate to each other as if they were neighboring each other (Charlse, 2001). Positive impacts of Information Technology There has been very high correlation between the ability to use information technology and the capability to implement the strategies of corporate and attain their goals. Businesses have invested heavily in information system to achieve their goals and objectives (Dave, 2000). The first input of information technology to business is improving on their operational excellence. They do this by firstly improving the efficiency to attain higher profits. Information technology is a key factor in achieving efficiency and productivity of organizations. For example, there are systems such as Walmart’s RetailLink system that provides a linkage of suppliers to stores enabling a superior replenishment system for stocks (Dave, 2000). Information and technology also aids development of new products, services, and business models in organization. Business models normally describe how company produces, sells, and delivers products or services to their clients. Information and technology plays a central role in enabling firms to attain this objective. A good example of this is the development of new products by Apple Company such as iPods, iPad, iTunes among others (Egbule, and Okobia, 2007). James (2004) argues that information technology also strengthens the intimacy between the company and its customers and suppliers. Serving of customers well leads to customers coming back for the same services. Similarly, a strong intimacy with suppliers of the company can also prompt them to provide vital inputs, which may end up in lowering overhead costs. Information technology also allow for an improved decision making process. Managers can use information technology to forecasts on the future and make informed decisions. This is because bag guesses can easily lead to under or overproduction of goods and services, misallocation of the scarce resources and poor response times. However with the help of information and technology that can accurately and precise make reliable forecasts, small-scale firms can easily avoid such unfortunate happenings (Salami, and Usma, 2008). Information technology can also provide a platform for a business organization in terms of competitive advantage. This can be so when a business can for example embrace the use of information technology and deliver better performance to its clients. The application of Information technology can also reduce the cost of production that would probably reflect on the prices of its products and services. The provision of superior services and products at lower cost than its competitors could obviously put the firm a notch higher in the industry. Firms can enhance this by responding to the needs of their suppliers and more importantly customers promptly (Sinkovics, and Ghauri, 2009). Application of modern technology can also enable the firm to adopt in the industry and survive. It is important to recognize the fact that information and technology is a necessity in businesses. In this case, the government regulation can sometimes demand change of technology systems in use with specific ones. Therefore, if some businesses are no up to date with technology, they may end up closing their operations (Government of Niger, 2010). Network offers a very important avenue for individual SMEs to address their problems as well as to improve their competitive positions. Evidence from both developed and developing countries shows that networking is more probably when enterprises operate in proximity and share business interests such as markets for products, infrastructural needs or challenging external competition. Within these groups of organization, firm joint initiatives are stronger because of the mass criticism that interested parties pose, which are more cost effective due to shared fixed costs and easy coordination with proximity that ultimately foster mutual knowledge and trust (Working Group, 2007-2012). Challenges that small-scale firms face in implementing IT Despite the above roles that information and technology plays in achievement of organizational strategic objectives, Small-scale businesses have been facing most formidable problems in accessing technology and maintaining competiveness (International Air Transport Association, 2011). The reasons for this inability by small-scale firms to identify their technological needs are poorly financial situations and low level of research and development. Other than this, they also have a poor adaptability to the changing technological trends and they have a great desire in avoiding risks (Working Group, 2007-2012). Due to weak financial muscles of these firms, they are unable to hire technically trained human resource personnel. Other than lack of technically trained personnel, most of small-scale organizations lack proper managerial skills. They also put much stress on the quantity that they can produce and ignore the most important part of productions costs. And as if that is not enough, these firms are also isolated from technology hubs (David, 2002). This research would therefore determine the impact of information technology on these small-scale businesses with a view of identifying their technological needs. RESEARCH METHODOLOGY Introduction This chapter outlines the plan to use in collecting, organize and analyze data from the field with a view of obtaining the exact information that the research needs with sufficient precision. It further lays out the most appropriate procedure and methods that the paper will use in carrying out this exercise. Research design The study will employ the use of survey to help in identifying the state of application of technology that small-scale firms apply and concurrently advice on the best mix that they can apply. In using this, it will adopt the use of descriptive research. Scholars normally use descriptive research to ascertain and to be able to describe the relevant aspects of the variables in the situation. It is a study that is concerned with finding out who, what, which, and how of a phenomena (Cooper & Schindler, 2008). In this case, the research should be able to describe copiously the impact of information technology on small-scale businesses in UK. Population The target population is a population that a sampler targets in research, wishes to draw statistical conclusions, and it contains all the sampling units (Cooper & Schindler, 2008). The population under this study comprises of all small-scale firms in UK. Sampling Due to the large population size, the research will narrow down to a manageable sample size. The researcher will randomly send electronic mails to the registered small-scale firms in UK. In this particular case, the research will only target ICT senior staffs since they are the people who structure and approve for implementation the most suitable strategies that the firm should adopt (Robert, 2004). Research instruments The study will make use of mail questionnaire. Mail questionnaires are appropriate for this kind of study since it will allow for the coverage of wide geographical area. The researcher will mail the questionnaires to the respondents, who can then complete them at their own convenience. To reduce the risk of high non-response rate of these questionnaires, the researcher will make a follow up letter requesting the respondents to fill and return the questionnaire. The questionnaire will also be as brief and concise as possible. In order to reduce non-response, the researcher will make follow up calls to ensure that the respondents fill and hand over the questionnaires (Kanuk & Bereson 2005). Data analysis The researcher will input data, clean, validate, edit, code and then summarize it using descriptive statistics and the frequency percentages. The research will make use of SPSS 20.0 statistical software for the analysis of the collected data because of the ease, speed, accuracy and sophisticated statistical capabilities of manipulating data using the software (Cooper & Schindler, 2008). This will provide key characteristics of small-scale business including the specific information technology, challenges that these firms experience by using these strategies and the viable solutions to the challenges that the respondents will highlight. The researcher will do this by the use of arithmetic means and modes to identify the factors with the highest weights. For the qualitative data, the researcher will employ the use of content analysis to determine the presence of key words or context within the texts (Kanuk & Bereson 2005). Ethical issues The researcher will observe all ethical norms that govern research process. The study will assure respondents of confidentiality and privacy of any information that will provide for the study. The questionnaire will have an introductory statement disclosing the identity of the researcher and the true purpose of the study. This statement will also inform the respondents not to write their names and know that they have a right to participate or refuse to participate in the study at will. The participating small-scale firms will also have the right to withdraw from the study at will. The questionnaire will also be as simple as possible. REFERENCES Brain, K. and Stacey, C. S. (2001). Using Information Technology. A practical Introduction to computers and communication. Mc Graw-Hill Companies Inc, New York, USA. Charlse, W. (2001). Global Business. 2nd Ed; McGraw Hill Companies. New York. Cooper, D. R., & Schindler, P. S. (1998). Business research methods. Boston, Mass: Irwin/McGraw-Hill. Dave, C. (2000). Internet Marketing strategy. Implementation and practices. pearson Education Limited, England. David, M. (2002). Management Information System. 2nd Ed. McGrow Hill companies Inc. USA. Egbule, J. and Okobia, D. (2007). Research methods in Education for Colleges and Universities. Agbor. Kmensuo Education Publishers. James, A. (2004). Management Information System: Managing Information technology in the Business enterprises. 6th Ed. McGraw Hill Companies. Inc. New York, USA. Kanuk. A., & Bereson. J. (2005). Qualitative evaluation and research methods. Newbury Park, Calif. [u.a.: Sage Publ. Laudon, K., and Laudon, J. (2000). Management Information Systems; Organization and Technology in the Networked enterprise. 6th Ed. Prentice-Hall, Inc. USA. Lucas, H. and Jack, B. (2004). “The role of Information Technology design”. Journal of management Information system 10. Salami, A. and Usma, O. (2008). The socio-economic impacts of global system for mobile communication (GSM.) a University student, Journal of Economic Theory 2(2). Sinkovics, R. R., & Ghauri, P. N. (2009). New challenges to international marketing. Bingley, U.K: Emerald/Jai Press. International Air Transport Association . (2011). Vision 2050. Montreal — Geneva Government of Niger. (2010). The impact of Technology on small Industry. Niger. Retrieved on 4th March, 2014 from http://www.nigerstate.gov.ng/articles/the-impact-of-technology-on-small-scale-industry.html Working Group (2007-2012). Science & Technology for small and Medium Scale. Retrieved on 3rd march, 2014 from http://www.dst.gov.in/about_us/11th-plan/rep-subsme.pdf Read More