CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND TO THE STUDY

Businesses are looking to new technologies to meet their unique business requirements andposition themselves to take advantage of global changes in business activities. Businesses bothlarge and small need information to succeed in today’s rapid changing environment, they need tobe able to process data and use information effectively when conducting their day-to-day operations. The growth of the Internet has opened up a vast arena, providing more opportunities for businesses, particularly small to medium-sized enterprises (SMEs) to sell their products and services to a global audience than they would have been able to afford to reach using the traditional methods.

A search of literature reveals that many changes in organization today have been technology driven Clarke (2001) notes that information technology (IT) is really changing the whole natureof business transaction between consumers and suppliers of goods and services. Pigneur (1996)points out that companies especially SMEs are confronted with a number of changes that requireinnovative answers. These challenges include the emergence of a competitive global economy;the trend towards an information based economy, and the shift from mass production to a customer-driven economy. He adds that to compete in today’s global information-based andcustomer-driven economy, SMEs must be efficient, innovative and competitive: able to respondjust in time, focus on quality, and implement mass-customization. He suggests that in order to dothis today, they must also be able to leverage the new information and communication= technologies (ICTs) to fit better in their environment, establish more co-operative inter-organizational relationships and compete on the international markets (Pigneur, 2006).

1. 1. This material content is developed to serve as a GUIDE for students to conduct academic research work
2. 2. As a source for additional understanding of the subject.
3. 3. As a source for ideas for your own research work (if properly referenced).
4. 4. For PROPER paraphrasing (see your university definition of plagiarism and acceptable paraphrase)
5. 5. Direct citing (if referenced properly)
Thank you so much for your respect to the authors copyright.