The IT Innovation Gap in SMEsRobert B MellorBSc, MBA, .ppt

The IT Innovation Gap in SMEsRobert B. MellorBSc, MBA, PhD, DSc Faculty of Computing, Information Systems Mathematics Encouraging innovation is important Most SMEs do not have formal IP/IPR (patents etc) and may not be creative, so growth is powered by small innovations – especially in IT. Rogers versus Moore Rogers (Diffusion of innovators. Free Press, 1962) says innovations diffuse in a population with the help of Change Agents. Moore (Inside the tornado. Harper Business, 1995) points to the Innovation Chasm in product acceptance. The DoI Bass Curve These 2 theories are a useful jumping-off point, but: We are dealing here with IT-innovation systems (not consumables/consumer packaged goods) and Not with a homogenous population (DoI assumes people and ideas can interact in a random Brownian manner, but inside companies free space is lacking due to e.g. departmental barriers). 2 sets of research data Survey of how survivors (successes) adopt use IT Survey of success and failure of innovations in the use of Internet 1. Survey of how survivors (successes) adopt use IT 2006 400 SMEs from SE England Telephone survey plus 50 interviews Samples from; transport, food aerospace Included IT Internet branch as “control” 1. Survey of how survivors (successes) adopt use IT Transport: Mandatory compliance with haulage legislation (mileage etc) and tracking of goods, palettes, etc. Food: Mandatory compliance with food legislation e.g. tracking of ingredients (fuzzy). Aerospace: Obligatory documentation e.g. maintenance manuals etc. IT Internet: “Control” where IT is part of the “core competencies” gives a convenient baseline 2. Survey of success and failure of innovations in the use of Internet 1997-2003 40 SMEs in the EU Concentrated on 3 case companies having complete data sets (in-depth study) Cases from; education, personal services tourism Included 3 “control” case studies IT is important for SMEs 85% say “had good value” ~80% have their own web site