The role of cloud computing in addressing small, medium enterprise challenges in South Africa

This thesis was motivated by Roberts (2010) who found that 63% of SMEs in South Africa do not make it past second year of operation. To expand further on this problem, we reviewed literature to understand key business challenges experienced by SMEs in South Africa which contribute to this high failure rate. The challenges include red tape, labour legislation, lack of skills, lack of innovation, impact of crime, and lack of funds. The research project aimed to answer a key question: “How can information technology, in the form of Cloud Computing be used to address the challenges faced by small and medium businesses in South Africa?” To answer this question, data was collected from 265 SME companies and quantitatively analysed. It is important to note that the profile of SMEs targeted in this study are those that employed fewer than 200 employees, with a turnover of not less than 26 million rand per annum, and registered with South African Revenue Services (SARS) and also with the Companies and Intellectual Property Commission (CIPC) of South Africa. Over 60% of the firms that responded to the survey were in business for more than 10 years which means we are mainly dealing with data from businesses that have past the survivalist stage and are matured businesses. These are businesses that can share their experiences and challenges they faced throughout their journey. The profile of SMEs in this study should not be confused with that of Very Small Medium Enterprise Businesses. The questionnaire was designed to address four themes being the Demographic profile, SME Business Environment, Threat of Survival, and lastly Technology Adoption. Key finding in this research is that 60% of the panellists stated that red tape is the overriding challenge that small businesses contend with. 67% of the panellists confirmed that they have not invested in their businesses in the past year; and 53% stated that they have not applied for finance from the bank for fear of being rejected. Only 30% of the SME market were found to use enterprise resource planning (ERP) and 62% do not have their own IT department. Of great concern is that 65% of the panellists have experienced server down time at least once in the past year. Inability to predict the rising IT costs in a firm has been cited as the main concern when running IT on premise. The cost predictability finding was also discovered to be a benefit enjoyed by the SMEs who use Cloud Computing. The conclusion is that there is a relationship between Cloud Computing, Small and Medium Enterprise businesses and the challenges they face in their business environment. To address the identified business challenges, technology adoption studies by Gumbi & Mnkandla (2015), Carcary, Doherty & Conway (2014), Lacovou et al (1995), Mohlomeane & Ruxwana (2014), Kshetri (2010), BMI Research (2018), Conway & Curry (2012), Li, Zhao & Yu (2015), Wernefeldt (1985), Schindehuitte & Morris (2001), Tornatzy & Flesher (1991) were reviewed. From these publications, the Technology, Organisational and Environmental (TOE) was found to be relevant and of interest for use in answering the main research question. This study developed the Cloud Adoption Framework which is the anchor of all SME challenges. Key study contribution is that the TOE model, which is predominantly used to understand the determinants of technology adoption like various industry applications, infrastructure innovations etc., are now used to address specific challenges that have contributed in the high failure rate of SME business. This is the first-time TOE model has been used to align with key SME challenges that contribute to firms’ failure. Specific technology across Software, Infrastructure and Platform services models are recommended for use by SMEs to ensure challenges are mitigated and improve the chances of survival for SMEs operating in South Africa. By following the recommended Cloud Adoption Framework, SMEs should be able to navigate the complexities brought about by the tough operating environment and also the technologies available to address those challenges. All six challenges have solutions in Cloud Computing and SMEs are educated on these solutions and also how to access these on a pay as you use model of consumption.Business ManagementD.B.L

Addressing the Impact of Fourth Industrial Revolution on South African Manufacturing Small and Medium Enterprises (SMEs)

The fourth industrial revolution (4IR) may fundamentally alter, not only the way people work but also, how Small and Medium (SME) manufacturing businesses operate. In the manufacturing sector, the 4IR may change the design; manufacturing; operations; services, products, and production systems; connectivity; and the interaction among parts, machines, and people. While the 4IR technologies may have many benefits, owing to innovation and technological progress, the manufacturing SMEs require their challenges to be addressed before they may benefit from 4IR technologies. To the best of the knowledge of the researchers, there is no conceptual 4IR manufacturing framework, specifically for a developing economy, which is necessary for addressing these challenges and the opportunities promised by the new industry. This research, therefore, intends to fill this gap by developing a conceptual 4IR framework to assist South African manufacturing SMEs in addressing some of these challenges. Following a comprehensive literature review, components of the 4IR and challenges in the manufacturing industry are elucidated, aimed at defining a set of qualitative propositions as our instrument to develop a conceptual framework for embedding 4IR technologies and opportunities in the manufacturing industry. Further aspects of the framework enable businesses to gain a competitive advantage and sustainable business performance. Future work in this area will validate the framework among stakeholders in the manufacturing industry within the context of a developing economy.Graduate School of Business Leadershi

Determinants influencing adoption of cloud computing by small medium enterprises in South Africa

Submitted in partial fulfillment of the requirements for the degree of Master of Commerce in Information Systems (Coursework) at the School of Economic and Business Sciences, University of the Witwatersrand, June 2017Small Medium Enterprises (SMEs) are now recognized as the driving force behind most thriving economies. This is mainly attributed to the role they play in most economies in reducing unemployment and their contribution towards Gross Domestic Product. This means that SMEs should have the right resources to enable them to enhance performance. Choosing the right technology to support their businesses is one of the important decisions that SMEs should make. Understanding the benefits and challenges of different technologies is often a problem for most SMEs. One of the new technologies that has gained prominence in recent years is cloud computing. Even though the value associated with this technology has been widely researched especially for large enterprises, the rate at which SMEs adopt cloud computing still remains low. The purpose of this research sought to explore and describe the determinants influencing the adoption of cloud computing by SMEs in South Africa. The study used Technology Organization Environment (TOE) framework as the theoretical lens in understanding the adoption of Could Computing phenomenon. Further, this qualitative exploratory and descriptive study used semi-structured interviews to collect data from five SMEs based in Johannesburg, Gauteng Province, operating in different industries and belonging to the National Small Business Chamber. The main factors that were identified as playing an important role in the adoption of cloud computing by SMEs are, relative advantage, complexity, compatibility, awareness, trialability, culture, top management support, size, regulation and trade partner relationship. It is worth noting that there was not enough evidence that competitive pressure played a significant role in SME cloud adoption.XL201

A cloud adoption framework for South African SMEs

Small to Medium Enterprises (SMEs) have been touted as key enablers to the economic development of most countries. Despite growing evidence that most SMEs fail within their initial years, ICTs have been found to add substantial value in facilitating their success. However, in most developing countries, ICT adoption by SMEs has been plagued with a plethora of challenges ranging from poor electricity supply, high ICT costs, lack of ICT expertise to lack of government support. While this might seem problematic for SMEs, the adoption and the use of cloud services mitigates some of these challenges. The problem, however, is that a limited amount of literature has provided guidance with regard to how the cloud adoption process should be carried out by SMEs. The objective of this research, was therefore, to address this by developing a framework that can be used by SMEs to guide them through the cloud adoption process. To this end, thirteen (13) semi-structured interviews were conducted across nine (9) SMEs in the Eastern Cape. The resultant interview transcripts were analysed using an established thematic approach; the result of which allowed for the development of a rich interpretive narrative about SME cloud adoption. Combined with theory from extant literature, this culminated in the development of a framework for cloud services adoption for SMEs in the Eastern Cape

Signification framework of a business intelligence tool for SME business decision-making

Abstract : Business Intelligence (BI) tools are being adopted more frequently, especially in large organisations that have the resources to deploy it. BI tools are allowing businesses to optimise their decision-making process and sustain competitive advantage. There is, however, limited published research into how BI tools are being used by small and medium enterprises (SMEs), as well as limited research in terms of the affordable features from IBM Cognos that support SMEs’ decision-making needs. Application of the key features of BI tools are helping organisations to take decisions to ensure their sustainable growth and competitive advantage. BI is also vast and complex hence it requires skilled human resources, and it makes the development and maintenance of BI highly expensive for SMEs. The main motivation of the research has been associated with the fact that finding a BI tool that is cost efficient for SMEs can be important for the success of the business and to cater effectively to their decision-making needs. Objective The study’s purpose was to determine which of the fundamental features of IBM Cognos are affordable features for addressing the business needs of SMEs. The objective was to analyse the significance of BI tools in the SMEs by identifying affordable and suitable features from IBM Cognos based on SMEs’ needs and business functions using a signification framework. Method A quantitative research method has been used in which primary method of data collection has been adopted. With respect to this, data collection instrument chosen for the research is in the form of a questionnaire online survey which was sent to the respondents through survey monkey. The sample size for this research was 200 research participants, and amongst these total 200 research participants, 80 participants were BI Consultants from consultancy firms and with the composition of their own consultancy firm’s clients, the other participants were 60 iv SME BI developers and 60 SME managers. For the purpose of data analysis, this research has used SPSS software and Microsoft Excel and analysed the results by using demographic and frequency analysis. Results The findings of this research have revealed that BI is a broad field and can be used as a tool for solving various issues faced by the SMEs. BI tool is able to solve issues through their features. All the questions asked from the respondents were associated with the features of BI and how they are effective for decisionmaking in SMEs. The features of IBM Cognos are cost effective but not necessarily affordable in the context of SME business needs. Affordability was identified as the mediating variable in this study. Conclusion The research has concluded that the SMEs established in South Africa should adopt the IBM Cognos tool for supporting their decision-making process and needs. The implementation of low cost and affordable features is important for SMEs but it requires a specialised IT employee for managing and running the tool. This tool would help the SMEs in articulating solutions based on the issues as well as making operational decisions that would improve the growth and profitability of the business. Overall, it has been indicated from the study that IBM is an important tool for the SMEs in that, it aids in gathering relevant data and further interpreting the data for making effective decisions.M.Com. (Business Management

Small-to-Medium-Size Enterprise Managers’ Experiences With Cloud Computing

Historically, managers of small- and medium-sized enterprises (SMEs) have had concerns regarding cloud computing and cybersecurity. Their resistance to using cloud computing has influenced their ability to do business effectively and to compete with businesses that use cloud computing. The purposes of this descriptive phenomenological study were to explore the lived experiences and perceptions of SME managers that might influence their decisions to adopt cloud computing. Watson’s concept of resistance to change and Davis, Bagozzi, and Warhaw’s technology acceptance model were the conceptual frameworks that guided this qualitative study. Data collection consisted of conducting 16 semi-structured interviews with open-ended questions with SME managers. Data were coded and compared to identify emerging themes among responses. The findings showed positive cloud-based experiences, such as availability of training, flexibility, efficiency, cost-effectiveness, ease of use, and assurance data security. The findings indicated some negative experiences with cloud-based applications, such as fear of cybercrime, expensive licenses, software complexity, and concern for data security. The results of the study may lead to positive social change by providing a better understanding of the perceptions and experiences that influence SME managers’ decisions regarding the adoption of cloud-based computing technology. Such understanding could be used to provide resources to allay the fears of SMEs and encourage them to be more willing to consider cloud computing

Cybersecurity Issues and Practices in Cloud Context: A comparison amongst Micro, Small and Medium Enterprises

The advancement and the proliferation of information systems among enterprises have given rise to cybersecurity. Cybersecurity practices provide a set of techniques and procedures to protect the systems, networks, programs and data from attack, damage, or unauthorised access (ACSC 2020). Such cybersecurity practices vary and are applied differently to different types of enterprises. The purpose of this research is to compare the critical cybersecurity threats and practices in the cloud context among micro, small, and medium enterprises. By conducting a survey among 289 micro, small and medium-sized enterprises in Australia, this study highlights the significant differences in their cloud security practices. It also concludes that future studies that focus on cybersecurity issues and practices in the context of cloud computing should pay attention to these differences

Systematic Analysis of Enterprise Perception towards Cloud Adoption in the African States: The Nigerian Perspective

The desirous benefits of cloud computing such as high return on investment through efficient resource management, high application throughput and on-demand capabilities have resulted in the unprecedented global acceptance of the computing paradigm. However, research on cloud adoption indicates that fewer organisations in the African states are adopting cloud services. Thus, the purview of the paper is to examine the factors responsible for the poor adoption of cloud computing in most African enterprises using Nigeria as a case study. The study focus on the perception of IT and non-IT employees towards cloud computing. Moreover, the paper reviews the literature on cloud adoption in organisations and from scholars to identify the motivating factors of cloud computing. A proposed 3AI model was conceptualised for analysing the processes involved in adopting cloud services. Research finding identifies employee misconception of job loss, cyber threat, privacy issue and data theft as strong delimitative factors

A Conceptual Overview Of The Impact Of Covid-19 On E-Commerce Among Small And Medium Enterprises In South Africa

SMEs are fundamental participants in a global landscape, especially in emerging economies like South Africa. During the Covid-19 pandemic, SMEs had to move their business online, due to lockdown regulations and fear of contracting the deadly virus. The sudden need to utilize e-commerce amongst SMEs became a major challenge, since many SMEs grappled with one or more of the four elements to complete e-commerce transactions, namely, access to reliable broadband, e-shop of products and services, digital payment, and logistics to the consumer. Thus, this conceptual paper attempts to understand the impact of the above elements of an e-commerce transaction on e-commerce growth among SMEs in South Africa. Following an in-depth literature review, eight (8) research propositions were developed pustulating relationships between the four elements of an e-commerce transaction and e-commerce growth