Tried a graphic representation of ICT adoption by SMEs in Latin America and the Caribbean. The original graph with the four stages of ICT adoption was developed by Vadim Kotelnikov in a report on Small and Medium Enteprises and ICT, for UNDP in 2007. My take is that SMEs in Latin America are lagging European SMEs in the adoption of ICT solutions and services. Notwithstanding price differentials, they are on par in communications (mobile communications) and are almost on par in broadband access. SMEs in the Caribbean still lag in communications infrastructure. Offer of ICT services and solutions in Latin America and the Caribbean is still low, but could change in the future also thanks to the increase in cloud computing services with their lower pricing models.
The increase of affordable services in the cloud will definitely allow SMEs to overcome some of the barriers. But cost is not the biggest barrier that stands in the way of massive adoption of the Advanced IT solutions by SMEs. It requires some profound cultural changes in my opinion, for example in relation to innovation.
Do you agree and if so, how to bring about that change?
Posted by: Olaf | Dec 20, 2010 at 14:33
Thanks Olaf, I fully agree with you. I think that a lot depends on drivers of adoption:
- For mass-market solutions increasing use of ICT by the population will ultimately favor greater accessibility of the technology also by small businesses. The solutions will be generic (email, Office programs, promotional channels, etc.) and simple to use and with lower costs.
For more complex solutions (ERP, SCM, and the remaining soup of abbreviations) the adoption process will be more tortuous. Notwithstanding the fact that the have to be kept as simple and accessible as possible, there will be drivers like pioneer firms, suppliers or customers, government programs and platforms (think of procurement platforms or tax filing systems), or sector-related initiatives (like the ones promoted by the ICT4BUS Program).
Probably other drivers or solutions can be added here. In both cases, a lot of work needs to be put into sensibilization, training and assistance to the small businesses. And a very clear and financially sound value proposition has to be conveyed too by the IT provider. Otherwise it is worthless.
Posted by: Antonio Ca' Zorzi | Dec 20, 2010 at 18:47
Interesante el punto de vista que nos dejas por aqui, se nota que sabes de lo que hablas y sabes como explicarlo.
Posted by: Mujer | Oct 22, 2011 at 16:26