The use of information systems modelling to identify and evaluate e-business strategies for small and medium enterprises (SMES)

This paper seeks to illustrate the difficulties faced by SMEs in identifying a suitable process to develop an E-Business strategy. An evaluation of the present literature on E-Business is conducted. While it is possible to identify numerous options for E-Business,(and indeed build a compelling case for its adoption), the principle strategies offered are for the execution of an already chosen business model, not for the choice of the components to build an E-Business model. The motives for use of E-Business by SMEs are considered, and a model to meet their needs in developing an E-Business strategy is adapted from the world of information systems. The model was utilised working with a SME and its effectiveness analysed. The models utility was tested principally on an Extranet as a model for E-Business development. Both the models utility in its use of techniques such as 'value chain analysis' and 'critical success factors' was considered in its evaluation of the impact that an Extranet would have on the organisation. It was possible to conclude that Extranets will be both a threat and an opportunity to organisations, and the issue of trust is the key determinant. The models failings (or some of its component parts) were firstly its inability to deal fully with a 'knowledge based' organisation, and secondly its inability to represent the importance of the human inter-relationships to the business concerned.