Implementation of Information and Communication Technology in SMEs - Assignment Example

Today’s world is the world of information and information needs to be accurate and have easy access to provide quality of services. The Qatar Development Bank developed an online toolkit contains information, business forms, tools and their trainings to facilitate the SMEs. The document provides Gap analysis by comparing the current scenario and services provided by the QDB with the objectives of Supreme Council of Information and Communication Technology (ictQATAR) and best practices available locally or internationally to facilitate the SMEs through application of Information and Communication Technology. However, the document does not deal with the solution of the gaps that are identified in the document. Keywords: GAP Analysis, Small and Medium Enterprises, SMEs Toolkit, QDB SMEs Toolkit, Toolkits Improvements, E-Commerce, Web Presence. Introduction Today, each and every decision from starting a new business to deciding future or improving an existing business is based on availability, accuracy and quality of information. Keeping in view an importance of information the Qatar Development Bank (QDB) developed a toolkit to facilitate the entrepreneurs for starting a new business or to improve an existing business. QDB is a Government entity having responsibility of supporting and developing local Small and Medium Enterprises (SME’s) in Qatar. QDB designed and developed SMEs toolkit that is an online counseling service to serve the desires and requirements of Qatari private sector. It is particularly intended to assist an entrepreneur for establishing a new successful small or medium enterprise. It provides an entrepreneur online guidance and information regarding step-by-step business planning, requirements for opening a particular business and checklists. Currently, the QDB toolkit provides information of ten (10) business categories that includes Accounting and Finance, Business Planning, Human Resources, International Business, Legal and Insurance, Marketing and Sales, Operations, Technologies, Woman-Owned Businesses and Market Overview. Particularly, the purpose of producing this document is to provide information regarding the existing services currently provided by QDB for the SMEs through the toolkit, The objectives of Supreme Council of Information and Communication Technology (ictQATAT) for development of the toolkit, the facilities that are being provided to the entrepreneurs, suggestions for improvement through a thorough GAP analysis along with prevailing best practices for such toolkits. The document compares the performance and usage of the currently designed and developed QDB toolkit and desired future state of the QDB toolkit provided by the ictQATAR in order to recognize diversity that require to be considered and addressed. The document is not intended to provide solution and not how to achieve the target future state, as it is solution independent, however, it is deliberated to be a declaration of the difference between two states. The gap analysis can be applied to any type of business, service providers, organizations, and there are numerous categories of gap analysis as well. However, this document presents the gap analysis that inspects the management and technology concepts of services and how these services can be changed to meet the objectives of the ictQATAR. “The service quality analysis is more concerned with the apparent quality of service, and yet the service delivery analysis focuses on the difference between standards for service and the actual service deliver. All types of gap analysis explore different aspects of the same problem” (Lacoma, 2009). As this document deals gap analysis of Information and Communication Technology, the Rouse in 2011 explains that in information technology, gap analysis is an assessment tool to help identify differences between information systems or applications. Initially, the document discusses all the audiences or stakeholders for whom this document has been prepared, and then scope of the document, the gap analysis which includes the strategic objectives provided by ictQATAR and Gap area, current and future state, description of Gap, benefits, rationale with data analysis and conclusion. Stakeholders Typical stakeholders for a Gap Analysis document include the Project Sponsor which in this case is Supreme Council of Information and Communication Technology (ictQATAR), the Business Subject Matter Experts of the QDB that would review the document and validate whether captured information and Gap Analysis is accurate according to the Policy and Strategy of the QDB, the Project Manager can use the information of the document and develop a project mandate on the basis of this document, the Business Analysts can utilize the document and consider it a baseline for gathering requirements and feasibility study, the other relevant officers, project and IT staff can use the document to get help for understanding the project. Scope of the Document Keeping in view one of the aims and objectives of the QDB for developing the toolkit that is to develop an advance Information and Communication Technology (ICT) sector itself in terms of expanding the local market (SME private sector) and enhancing the provision of quality services, the QDB facilitates the entrepreneurs for provision of information regarding ten (10) business categories by QDB toolkit as mentioned in the above section of this document. The scope of this document is to review the ten (10) business categories in terms of provision of these services through ICT by enabling the e-Commerce, web presence and cloud services, finding the gaps between current ICT facilities for provision of these services and the described by ictQATAR (e-Commerce, Web Presence and Cloud Services) of the QDB. The document also presents the existing processes and procedures for starting a new business, setting up a company, facilities for the existing businesses, and the guidelines or best practices for developing and providing services of the SME toolkit by use of ICT including e-Commerce, Web presence and cloud services. The document provides a review of local existing SMEs facilitators include CAN-Qatar, Silatech, Social Development Center (SDC) and Intilaaqa Qatar. The aim and objectives of these facilitators are similar to the QDB toolkit It is pertinent to mention here that the document does not contain the required timeframe, costs, plans, risks and implications of requirements or solution to achieve the aims and objectives of the QDB. Identification of Strategic Objective The mission of Supreme Council of Information and Communication Technology ictQATAR Industry Development Division is to develop and grow a sustainable and innovative ICT sector which can deliver the aspirations of the national policy for Information and Communication Technology (ICT). From one angle, ictQATAR Industry Development Division aims at advancing the Qatari business society in terms of ICT adoption. From the other angle, it aims at advancing the ICT sector itself in terms of enlarging the market and enhancing the quality of service. To fulfill these objectives there is a need to develop ICT Toolkits and Guidelines, that can be used and adopt in the businesses to help them advancing their business and overcome some of their day-to-day operations challenges. The ictQATAR has clear objectives regarding the toolkit that include enhancing literacy of ICT in small or medium-sized business sectors, promoting ICT for SMEs and start-ups, supporting growth and expansion of Qatar’s ICT sector, accelerating towards knowledge based economy through ICT. The strategic objectives include increasing the usage of e-commerce among SMEs, and increasing SMEs engagement with ICT businesses, solutions and professionals. Existing QDB services Currently, according to the QDB the toolkit is a “One-stop shop” that is developed to make available an online resource center through web based interactive portal for empowering SMEs in Qatar by providing valuable advices and business tips. The tool acts as a business consultant and the entrepreneurs are being facilitated on each and every aspect of starting and operating SMEs that also includes multimedia presentations from the QDB. Furthermore, there are a number of tools and software available on the portal include Business Plan Maker, Website Builder, legal updates, business opportunities, information and articles on the ten (10) topics as mentioned above. Information on Available Topics Currently, the information on the ten (10) major topics along with their sub-topics is available on the QDB toolkit or web portal. As the scope of this document revolves around Information and Communication Technology, therefore, the upcoming paragraph briefly explains the other topics and the main focus would be on the Information Technology. Accounting and Finance The accounting and finance is a major topic and there are eight sub-topics that includes Bookkeeping and Cash Flow Management provides guidance and information on increasing the company’s income, cash flow, availability of seven (7) business forms and two (2) tools, the discount cash flow and the financial model along with their online trainings. The second (2nd) sub-topic is budgeting and forecasting provides information on standards for controlling and evaluating performance through five (5) provided tools. The third (3rd) sub-topic is credit and collection deals with best practices for effective collections, billing and credit rating. The other sub-topics include Financial Literacy, Financial Management and Reporting, Finding Financing, Payroll, and the Taxes. In all these sub-topics, the QDB toolkit facilitates the entrepreneurs by providing relevant information, International standards, best practices and tools along with their trainings of sub-topics. The small or medium sized businesses can get benefit by utilizing the provided information regarding the Accounting and Finance. Business Planning There are total six (6) sub-topics of the Business Planning, the major topic. The first sub-topic is Business Plan that provides information on assessing strengths and weaknesses while starting businesses, and setting up the goals and objectives of the businesses along with four (4) tools and their trainings. The 2nd topic is Buying a Business provides fundamental information for buying an already developed business along with three (3) tools for assessing the existing business and calculating the investment. The other sub-topics include family businesses, franchises, incorporation and starting up a new business. These topics provide information regarding opportunities for establishing new small or medium businesses, franchises, agencies, companies and business structures in Qatar. The standards, guidelines and best practices for establishing and choosing the business are provided in this section of the QDB toolkit. Human Resources In the Human Resources section of the QDB toolkit, the first topic is compensation and benefits that provides policies regarding salary and benefits of the employees. The second topic is compliance and polices deal with general polices and the effect of their compliance in an organization. The employee management deals with the information of routine functions of the employee in an organization includes setting goals and targets for employees, performance appraisals, holding formal meetings and outsourcing human resources. The topic recruiting and hiring includes job description, compliance of labor law and hiring in Qatar. The other topics include termination, pay roll, employee insurance, contractors, consultants, and temporary workers. Technology The main focus of this document is the technology that has eleven (11) sub-topics. The first sub-topic is e-Commerce provides basic information or keywords of that are frequently used in e-Commerce. The toolkit provides information and guidelines on how to sell the products or services online, what are the procedures of selling online and what things get confidence of the customer. The following spreadsheet shows the evaluation and comparison of the company’s website with its competitor’s website. Figure 1.0 Spreadsheet for Evaluation of Website In total there are three (3) tools available in the e-Commerce section of the toolkit, these include E-mail Marketing ROI Calculator, ShopFactory e-Trader and Website Conversion Rate Calculator. The e-mail marketing tool facilitates the users to calculate cost of item, revenue, profit, loss etc. The ShopFactory e-Trader is software used to develop an e-commerce enabled website through an easy interface, the training is also available in this software. The following screenshot shows the interface of the said software. Figure 2.0 ShopFactory e-Trader Software The website conversion rate calculator informs the users regarding sales per visitor, total sales, conversion rates and their graphical representation through graphs. Furthermore, it provides guidance on how your website can improve the sales. The third sub-topic is Email and messaging deals with internet usage policy that specifies the rules and regulations for usage of internet, e-mail policy, spamming rules, e-mail marketing and the usage of messages for marketing purpose. The fourth sub-topic is E-mail and Web Marketing that specifies the common misconceptions regarding the internet and website. There are two (2) additional tools that include developing marketing plan for your website and pay-per-click advertising ROI calculator. The hardware sub-topic of the technology provides basic information regarding computer hardware, software and communication tools. The technology section of the toolkit provides information regarding IT project management, project charter for IT projects, computer networking, maintenance and support task sheets for computers, how to create an effective small or medium sized business website and hosting a website. Best Practices for enabling ICT Many organizations have focused on their survival rather than improving their functions and practices. Best practices are developed after years of management and critical thinking of what works and what does not work in IT Project Management and ICT service delivery. Many authors have provided guidelines on methodology of adopting ICT in SMEs and some have shared their diverse experiences after developing and adopting interactive web portal, e-Commerce, e-Procurement etc. Some of the guidelines and experiences of the different authors are given below. It is important to categorize the SMEs, as SME is a huge sector, therefore, it won’t be easy to implement ICT in SMEs simultaneously or as a whole. Initially, single category of SMEs may be selected and the selection of the category for application of ICT may be decided after proper evaluation of SME against a well defined criteria. A foremost role in the implementation of ICT in SMEs is the comprehensive information of the particular marketplace and its tendency, pattern and trends, an excellent awareness of client’s requirements by small or medium business owner. In order to get this information a frequent interaction with customers and owners of SMEs is required as well as a well-built commitment to the essential business-model or business processes changes. The other way is to conduct a study to get the above mentioned before application of ICT. Initially, pilot software or ICT applications may be designed and developed for the use of SMEs sector. It has been observed that the initial success of a pilot application always gave noteworthy momentum to design, develop, deploy and roll-out of the larger scale ICT application. This would also encourage investing small or low budget in implementing ICT in SMEs. The low investment has further a number of benefits include the application of ICT is not hindered by cost parameters and if not worked in either case would not loss as much. Furthermore, it has been observed that the successful pilot software applications have features of simplicity, usability, and easy to memorize. The ICT applications should be simple but intelligent enough to use rather than enforcing it to use. It has been observed that in many cases the success in implementation of ICT applications in SMEs was facilitated by the business culture that is to exchange the information and cooperation between diverse firms. Therefore, it is necessary to facilitate the SMEs to interact with each other; it would help in application of ICT. Finally, it is highly recommended and has been found in utmost every best practice that the human resources are extremely imperative and critical for ICT implementation in SMEs. The successful implementation of Information and Communication Technology in SMEs highly requires a number of technical employees, who have policy level vision of ICT and share their diverse experiences of implementing Information Technology. It also requires officers of business management, who share the vision of business growth on the basis of higher productivity and enhanced competitiveness. The aspect of human resource is probably the only most significant component for successful implementation of ICT in SMEs. GAP Area The following table shows the gap areas, the benefits of closing or removing these gaps and how they support to achieve the objectives of the ictQATAR. Implementing ICT in SMEs as per objectives of the ictQATAR may require a number of years and a complete paradigm shift. These gaps are identified keeping in view the guidelines or services that have been provided to the SMEs internationally (Ramaswamy, 2007; Khan, 2008; European Commission, 2012). GAP Area Description Benefits Evaluating Excel sheet A tool provided by the QDB toolkit for evaluating a website is not an automated system, therefore might not be as useful. An automated tool having standards and guidelines for evaluating a website may be developed and made available for the users instead. Evaluation of a website brings to into notice that what weaknesses and strengths a website contains. ShopFactory e-Trador The main strength of the QDB toolkit is the ShopFactory e-Trader, easy to use software for designing and developing websites. The tool could be enhanced by applying standards of developing websites having symmetry for e-Commerce so that the users/customers could access and use these websites easily. The symmetry of the SMEs websites can attract customers by easily accessing the required information. The tool facilitates the SMEs to have their e-Commerce enabled websites. Provision of Technical Resources The technical human resources are critical and expensive as well, for implementation of ICT in SMEs. Therefore, a pool of technical resources may be available at the QDB for facilitation in ICT sector of the entrepreneurs/SMEs (Khan, 2008). This activity would enhance the SMEs confidence for implementing ICT, as if they got any problem in ICT services, they can contact get help of these resources. Hardware Provision of hardware to the SMEs by implementation of Infrastructure as a Service (IaaS) that is a least expensive solution as compared to provide hardware to each SME (Ramaswamy, 2007). The SMEs only need to procure limited hardware just for utilizing the services of infrastructure that would be provided by the QDB. Computer Network The computer networking is a basic requirement for enabling ICT in any organization; therefore, the pool of human resources that would be available at the QDB will facilitate the SMEs to deploy LAN in their organizations, companies, businesses. The computer networking would enable the organization to electronically communicate internally, externally (QDB etc.) with internal and external software applications. Common Office Applications Common office applications for similar SMEs may be designed and developed that include document management, e-mail and other office suites. This could be implemented by keeping in view Software as a Service (Saas) (Khan, 2008). This activity facilitates the SMEs for implementing, using and promoting ICT applications. ERP Implementation A comprehensive Enterprise Resource Planning (ERP) solution may be developed to fulfill the requirement of each business. The ERP may also be utilized at the QDB itself and customized version of ERP may be made available for the SMEs. Usually, the modules of ERP include Finance & Accounting, Customer Relationship Management, Human Resources Management, Payroll, Inventory & Procurement, Sales and Project Management. The QDB has only developed small tools for these subject areas; however, the ERP is a complete solution that could be provided to SMEs to make them ICT enabled. This could be implemented by keeping in view Software as a Service (Saas) (Khan, 2008). The ERP integrates all business functions of the SMEs, provides real time data, ability to check what is going on in SMEs, easy to deal with high volume of businesses processes. Once the ERP has been implemented in SMEs, the major part of the objectives of the ictQATAR i-e enabling and promoting ICT in SMEs. It also leads to become an aspiration of the national policy for Information and Communication Technology (ICT). IT Project Management Tools Project Management tools like tracking the progress of the IT project, standards for execution and implementations of IT projects, sharing project’s progress with clients securely, assign Tasks to particular people, complete with due dates and content links. The similar work has been done by the CNA-Qatar, PBworks. A snapshot of the CAN-Qatar is given below (figure 3.0). The IT Project Management Tools not only help the IT Service Providers SMEs, but it could also be utilized by Nationwide to facilitates and support ICT in Qatar. E-Procurement SMEs may have the facility of Electronic Procurement (e-Procurement) software/tool that enables the SMEs to provide service, items, and work through the internet. The e-procurement enables the SMEs for selling and purchasing equipments, items services from SMEs to SMEs, SMEs to consumers or customers, SMEs to Government of Qatar.  The e-procurement leads and enhances confidence of other companies to implement such systems to become potential competitors. Hence, it would become necessary for all companies to implement such systems nationwide. Data Center The data center is the core requirement where all the applications would be implemented to provide ICT enabled services to the SMEs. It would be benefited to the SMEs by showing whole picture of trends and patterns in the SMEs. One Window Operation Once the above facilities have been provided to the SMEs, these would lead to implement the concept of One-Window-Operation. The SMEs may be offered a pre-integrated suite of hardware (Infrastructure as a Service), computer network, software (SaaS) and services (Information Technology as a Service). One-Window-Operation would enable all the business processes in the QDB for the SMEs from registering their businesses to the core functionality of these SMEs. Ultimately, the ictQATAR would achieve all their objectives by implementing this concept. Figure 3.0. CNA-Qatar – Pbworks, 2011 Conclusion Implementation of Information and Communication Technology in SMEs is not an easy process; it would take a lot of years to enable automation in SMEs. It is very enchanting that the Qatar Development Bank have started work for promoting and implementing ICT for facilitation of SMEs. The development of interactive portal and the QDB toolkit is the initial step to promote ICT in SMEs and there is also need to amend the policy for SMEs for enforcing ICT. However, the objectives of ictQATAR are to facilitate SMEs through promotion of IT and IT enabled processes that would ultimately support the Government of Qatar to advancing the ICT sector itself in terms of enlarging the market and enhancing the quality of service. The Gap Analysis showed that there is a major difference between the services currently provided by the QDB through web portal and the toolkit, and the objectives of the ictQATAR. Internationally, the SMEs are being supported by implementation of ICT through provision of services like Infrastructure as a Service, Software as a Service and IT-as-a-Service. These services include hardware along with computer networking; software applications like Enterprise Resource Planning, common office applications, tools/software for development of e-Commerce enabled websites, IT Project Management tools and, the major and critical facility is to provide technical resources to the SMEs for implementation of ICT. These services would ultimately lead to the concept of One-Window-Operation that is currently the highest level of the ICT and also support the Government to enhance ICT nationwide. The ictQatar is highly recommended to adopt these services in order to achieve their objectives by keeping in view the best practices provided in this document. Reference List Lacoma, T., 2009. The Advantages of Gap Analysis in the Business. Available at: [Accessed 25 July 2012] Rouse, M., 2011. Gap Analysis. Available at: < http://searchcio-midmarket.techtarget.com/definition/gap-analysis> [Accessed 25 July 2012] Qatar Development Bank, 2012. SME Toolkit – Qatar. Available at: [Accesses 26 July 2012] CNA Qatar, 2011. Entrepreneurship Center at CNA-Q. Available at:  [Accessed 27 July 2012] European Commission, 2012. Small and Medium Sized Enterprises. Available at: [Accessed 29 July 2012] Ramaswamy, V., 2007. IT-as-a-Service for Small and Medium Businesses. TATA Consultancy Services, United States Khan, F., 2008. A Study on Software-as-a-Service for Small and Medium Businesses. TATA Consultancy Services, United States Intilaaqah, 2009. Launch Your Ambition. Available at: [Accessed 28 July 2012]  Read More