ABSTRACT

 

The purpose of this thesis is to describe the general characteristics of (SME) Small and Medium Scale Enterprises and explore the effects of (ICT) Information Communication Technology on (SME) Small and medium scale enterprise productivity in Nigeria.

 

 

A survey research approach of the data collection was adopted to 80 respondents. Based on the sample results obtained is indicated that SMEs in Nigeria improves its processes and products with the use of Information Communication Technology and also most Small and Medium Scale Enterprises in Nigeria were operated by men within the age range of 34-40 year old and as well mostly had the least educational qualification of B.Sc.

 

Furthermore, Information Communication Technology enhances the production process in organizations as a monitoring technology which decreases cost, increase organizational capabilities and also assists to shape inter-organizational coordination. Hence, based on the research overviewed it is noted that Stakeholders in the Small and Medium Scale Enterprise industry agree that the introduction of Information Communication Technology in its operations changes its processes and productivity which in turn boost profitability. In the same vein, the use of Information Communication Technology by Small and Medium Scale Enterprise opens up new opportunities, reduces inventories with the use of Information Communication Technology as well as makes their services more tradable.

CHAPTER 1

 

INTRODUCTION

 

 

Today we live in an information society in which more people must manage more information, which in turn requires more technological support, which both demands and creates more information. Electronic technology and information are mutually reinforcing phenomena, and one of the key aspects of living in the information society is the growing level of interactions we have with this complex and increasingly electronic environment. The general consequence is that we deal with large volumes of information, new forms and aggregations of information, and new tools for working with information Marchionini, 1997. These new tools we use to manage information at corporate, governmental and societal level are tools we must learn to use, pay for, and maintain. The primary tool of the information society is the computer. Microprocessors are used to improve the performance of other technologies, and computers are increasingly used to control and integrate other kinds of information technology (e.g. TV, radio, telephones).

 

 

Current literatures have it that ongoing advances in information systems and communication technologies allow organizations to achieve greater levels of productivity, efficiency and service delivery Brown, 2000; Dawes et al, 1997; Drucker, 1995; Tapscott and Caston, 1993. For example, one electronic mail message replaces the dictation of a memo which is then typed, copied and distributed. Electronic workflow processing allows operational reports to be stored and forwarded to appropriate units for follow-up without a host of manual intervening steps.

 

 

One other thing that is crucial as far as ICTs are concerned is that, because of technological and communication innovations, geographic boundaries that once defined citizens, client and customer service jurisdiction no longer apply. The move toward e-commerce, e-banking and e-governance provides an excellent example of how organizations are no longer restricted to, a contained geographic boundary. In this 21st century, organizations all over the world have come to realize that only those that overhaul the whole of their administrative systems and operations are likely to survive and prosper.

Due to the pressures of competition and the need to maintain a high level of efficiency and productivity organizations have been forced to catch on to the technological craze. Thus in order to place themselves in a favorable position to meet the growing expectations of their customers, and become organizations or co-operations to be reckoned with, more organizations are making use of it to smoothen and speed up the process of administration. They have not only started ensuring that their PC per capita use is one for every staff, but have also started brining PC’s together to form local and wide area networks.

 

 

Many organizations use computer systems to run their inventory, control accounting, manage human resources, etc. Businesses are no longer relying on trails of paper work to conduct every day transactions. With an installed modern computer interconnectivity backbone, establishments can keep in touch, synchronize and co-ordinate activities with the utmost ease.

 

 

Managers now realize that information technology can be used as an engine to speed up processes, eliminate or reduce paperwork, increase the quality of output and service delivery, decrease storage costs, and enhance information sharing and communication. They also realize that they have to achieve not only management / staff wide computer literacy, i.e. knowing how to locate, analyze, store and use information. All staff in modern organizations needs to be able to search and gather data from different sources, analyze them, select the relevant ones and organize them in such a manner as to allow them make decisions based on the information.

 

 

These being the case how are Nigerian Small and Medium Scale Enterprises (SMEs) faring in joining the information technology bandwagon? What are the SMEs doing to increase their productivity and efficiency through the use of IT? What constraints or challenges are organizations facing in overhauling their management? In what ways exactly is ICT infrastructure enhancing efficiency in the Nigerian SMEs? These and related questions structure the argument of this study.