The Role of IT Innovations in SME Development: Bright Case Study

This essay, submitted for a BBA course at the University of Dhaka, explores the crucial role of information technology (IT) innovations in the development of small and medium enterprises (SMEs). It begins by defining IT and SMEs, emphasizing the importance of IT in modern business practices, including data processing, marketing, and customer service. The essay highlights how IT enables better decision-making, improved customer support, and enhanced resource utilization. A significant portion of the essay is dedicated to a case study of Marks & Spencer's Integrated Customer Ordering Service (ICOS), detailing its implementation, functionalities, and impact on the company's operations. The analysis covers how ICOS improved order management, inventory control, and customer service. The essay concludes by summarizing the benefits of IT innovations for SMEs, underscoring their significance for long-term corporate success.

The role of information technology (IT) innovations in the
development of small and medium enterprises (SMEs): The case of
Bright
An Essay
submitted in partial fulfillment
of the course requirements for the BBA course of
THM 311: Hospitality Management Information System
Submitted to
Dr. Muhammad Shoeb-Ur-Rahman
(Course Instructor of THM 311)
Submitted by
Xxxxx Xxxxx
Student Id: XXXXXX
Section:
Department of Tourism and Hospitality Management
University of Dhaka
01 May 2022
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The role of information technology (IT) innovations in the development of small
and medium enterprises (SMEs): The case of XXX
by
Xxxxx Xxxxxx
Abstract
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Table of Contents
Introduction......................................................................................................................................4
Defining Information Technology...................................................................................................5
Defining SMEs................................................................................................................................5
Importance of Information Technology to SMEs............................................................................5
The following key business practices, among others, rely heavily on data processing:.................6
Businesses that have adopted the innovation paradigm exhibit the following characteristics:.......6
Radical business changes have resulted from information technology innovation:........................6
The role of IT innovations in SME..................................................................................................7
Case Study in Information Systems:................................................................................................8
Marks & Spencer's Integrated Customer Ordering Service.........................................................8
Conclusion.....................................................................................................................................13
Reference.......................................................................................................................................14
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Introduction
SMEs have become universally regarded as one of the most effective methods for decreasing
poverty and providing for all around the world. Prasanna, et al. (2019) stated that technology is
becoming a more important driver of main contributions for SMEs. The bulk of SMEs relies on
traditional technologies. Firms compete in this marketplace; SMEs must keep a close eye on
technological advancements.
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Defining Information Technology
In the context of information technology (IT), it is basically the application of computers,
memory archives, network connectivity, as well as other hardware, systems, and processes
of creation, processing, storing, and sharing of all kinds of digitized data using computer-based
tools. Information technology (IT) is sometimes utilized in the arena of business activity, as
contrasted to the personal or entertainment use of technological devices. According to Lucas,
(2017) networking, as well as telecommunications systems, are both incorporated into the
application of information technology in the workplace.
Defining SMEs
Generally speaking, a small to medium-sized enterprise (SME) is described as a corporation with
sales, capital, or workers that fall within a particular threshold. Microenterprise definitions differ
from nation to nation as well as, in certain cases, from sector to sector.
Regrettably, no commonly agreed definition of a small firm exists. Each federal govt has the
authority to define what constitutes a "business" and also to impose unique restrictions on
specific firms. As per Acs & Preston, (2019), in the European Union (EU), a small and medium-
sized enterprise (SME) is classified as a corporation with less than 250 employees; however, in
the United States, an SME may contain up to 1,200 employees.
A research conducted by Todd & Javalgi, (2017) stated that small firms in India must invest
between INR 1 crore and INR 10 crores, while their turnover must be between Rs.5 crore and
Rupees 50 crores. Medium Enterprises must invest between INR 10 crores and INR 50 crores,
while their sales must be between Rs.50 crores and Rupees 100 crores.
Importance of Information Technology to SMEs
Data is thought to be the driving force behind the globe's economies. It may be an absurd
statement to affirm that a few firm, large or small, would be able to exist without the assistance
of big data as well as the conversion of that data into valuable information. Chinomona, (2016)
stated that IT enables the creation, processing, assessment, interchange, protection, and security
of data at all stages of the data lifecycle.
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Small and medium enterprises' competitiveness is influenced by technology in a variety of ways,
covering product and production processes, management techniques, firm structure, and training
of employees. According to Dibrell, et al. (2018), such benefits include improved productivity,
improved managerial effectiveness, and enhance business performance, to name a few.
The following key business practices, among others, rely heavily on
data processing:
According to Schubert, & Leimstoll (2017), all of the following areas must be addressed:
 products creation and design,
 selling and invoicing,
 accountancy and taxes,
 client engagement and retention,
 promotion as well as market analysis,
 human resources as well as compensation, and legal requirements.
Businesses that have adopted the innovation paradigm exhibit the
following characteristics:
 Organizations have more exact company planning, more effective marketing, and higher
worldwide sales.
 They have such a better-organized management system in place.
 They use real-time analytics to keep an eye on everything.
 They offer immediate assistance to customers.
Radical business changes have resulted from information technology
innovation:
 As per Acs & Preston, (2019), Digital marketing trumps high-cost newspapers,
television, and media advertising; online purchases is more effective than purchasing; and
internet marketing surpasses high-cost journal, television, and media advertising.
 Clubbing is inefficient compared to social networking.
 Conventional telephony is less effective than VOIP communications.
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 In terms of effectiveness, cloud computing surpasses a personal computer network.
The role of IT innovations in SME
Without the aid of information technologies, long-term corporate success is hard to imagine. The
technological development of this era has benefitted businesses in 5 areas:
1. Information technologies have provided businesses with the ability to solve complex
problems.
According to Widya-Hasuti, et al. (2018), additional memory, better technology, sharper visual
displays, with smarter programs (mind mapping tools like X Mind, collaboration tools like
Kanban, organizers the same as Microsoft Outlook, etc) have made investigating data, evaluating
it, and planning scalability smoother. There are numerous tools available to address complex
situations.
2. Information technology allows companies to make better decisions.
Didonet, et al. (2016) stated that thorough market analysis is a significant part of solid business
decisions. It can be done by using video conferencing to engage teams, evaluating public
comments on social platforms and industry publications, and collecting customer feedback
through online surveys. There are also technologies like Microsoft CRM Dynamics and Web
Analytics.
3. Advancements through information tech have benefited marketing.
As a means of identifying targeted customers, assessing their needs, and developing a
promotional approach that will convince individuals to purchase, digital marketing techniques
such as search engine optimization (SEO), pay-per-click advertising (PPC), as well as Facebook
ads are extremely efficient than conventional advertising. As per Bagheri, et al. (2019), it's hard
to tell how many people saw advertising in the newspapers without conducting a survey. In most
cases, it is trivial to determine how many people viewed an online advertisement and then
reacted to it.
4. Customer support has improved as a result of information technology.
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Customers can access assistance by phone, emails, online platforms, presentations, and other
methods. According to Prange & Pinho, (2017), customer service management solutions also aid
firms in gaining a better knowledge of their customers' behavior.
5. Information technology advancements have improved resource utilization.
Employees may access business applications from any device, anywhere else in the world,
thanks to cloud-based solutions.
Case Study in Information Systems:
Marks & Spencer's Integrated Customer Ordering Service
Marks & Spencer is now a renowned retailer in the UK, selling stylish and comfortable, high-
quality, yet reasonably priced clothing and home items, and also slightly elevated food. They are
indeed a globally recognized brand, not just in the UK They currently operate over 600 outlets in
the UK and are constantly expanding their global footprint. Michael Marks founded the business
in 1884 with a stand-in Newcastle Kirkgate Market. In 1901, the company opened its first
licensed store along Derby Street near Manchester. By 1924, the company had expanded and
shifted its head offices from Manchester to London. The application of advanced policies, as
well as the continuous offering of services and values, improved Marks and Spencer's growth. In
1998, became the first merchant to earn a £1 billion profit. M&S has been guided by principles
of Quality, Price, Service, Innovations, and Trust. Here is why it's become quite successful, well-
known, and popular with the public (Mellahi, et al. 2020).
The Information Infrastructure is Likely: Integrated Customer Ordering Service (ICOS):
ICOS is an acronym for Integrated Product Registration Service. The Integrated Customer
Ordering Service (ICOS) was in critical need of a data system, whereas M&S was experiencing
significant order generating backlogs and a growing number of complaints. The brand has made
significant efforts to remain competitive and was unsuccessful to resolve this issue. The
imperative of the situation was to develop customer support ordering intelligence data system
capable of effectively and reliably resolving these issues, which were impeding the operation of
a remarkable retail firm.
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Retail is a cutthroat industry, and businesses are continually upgrading current information
systems to stay up with evolving service demands. Marks and spencer began implementing a
speed information system into its ordering process, which distinguished it from competitive
brands. On April 19, 2005, M&s and Amazon Services Europe signed a partnership. As part of
negotiations, Amazon Services Europe will manage and offer a synchronized information
management system to the Marks and spencer website, telephone online ordering, as well as in
online booking. ICOS was launched in 2006 and is based upon Microsoft Windows NT Servers
and Oracle 10g database systems (Mellahi, et al. 2020).
In M&S, this is referred to as Rumba Server, and it encompasses a range of pieces of information
that run on DOS. Such technology enables easy accessibility to data as well as information from
across the company's retail stores. This system is efficient at handling orders as well as vendors,
coordinating information throughout the company, and controlling the availability of arriving as
well as departing products using a common database that addresses all of the above-mentioned
issues.
Not only did the process management optimization team develop this application, but it was also
implemented in all stores that enable in-store ordering. This information technology has to
respond adequately such as interconnecting all stores to a single database to enable the sharing of
all products plus management information. It was challenging to integrate thousands of inventory
items and order web pages, in shops, and offices. This system application has to be structured in
such a manner that data is conveniently obtainable through these channels and may be accessed
from any location through the organizational intranet. The system handled order entry,
transaction processing, order dispatching, order location, inventory control, and purchase pricing.
As a consequence, M&S was prepared to operate
Integrated Customer Ordering Services: How They Work and What They Offer
M&S employees utilize an information management program called ICOS to perform a wide
range of in-store functions. This database includes data on a wide variety of subjects, including
food, clothes, and household items. Each Mark and spencer product is identified by a unique
code called a UPC number, that is used to make purchases. This technique is used when a client
requires a specific product, including television, but the product may be unavailable, requires
special requirements to be fulfilled, but is not promoted in the retail outlet.
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Order Entry:
Every user or worker does have a unique Number or activation code in addition to a password,
which makes this control strategy secure and prevents unauthorized access. An employee
assigned to follow instructions enters his Login details to obtain data or place orders. Whenever a
client demands a good or service, the operator enters the order details, and also the client is
presented with the complete information, such as product details, availability, and costs. There's
also a toolbar that provides the agent with different options for saving customer data such as their
name as well as address. Additionally, one such toolbar includes information about billing as
well as lead times for all merchandise.
Additionally, the system recommends that the delivery deadline be extended. As the operator
enters the consumer's name and contacts information, a customer description is created and saved
inside the client's profile. The next step is to complete compensation. Once the client's
information has been preserved, the toolbar includes a payment method. When that alternative is
considered, a menu of transaction modes, including cash, visa card, credit card, and check, pops
up. The agent consults with the consumer as well as selects the option specified by the client.
After entering all these details and receiving payment, the client receives a printed invoice
containing goods as well as billing transaction details.
Order Enquiry:
In the long term, if a client wishes to ask some questions about a fact necessary, he or she needs
to provide all the executives with their unique code. After typing the code into the inquiry
alternative on the taskbar icon, the comprehensive pieces of information are retrieved. The above
data includes details on the status of a shipment or an order, and also status notes entered by the
manufacturing process. This data can be transmitted in greater detail to the client. Unless
necessary, the client may be provided with a receipt for the sales invoice. Order Upgrading or
Editing:
This toolbar feature enables an operator to add or delete goods from a purchase using the order
management system. This feature may also be used to update customer information, including an
address, shipment date, as well as prospective payments. When a modification or revision is
required, the agent simply enters the client id into the system, and hence the order's details are
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shown on the computer screen. A particular order may be terminated depending on the
circumstances. For instance, a particular product may be a customized manufacturing order that
has already begun production.
Order Display Availability:
Even when an agent inside one store wants to know whether items are available or showcased in
another Marks and spencer location, he or she might simply use the toolbar to conduct a display
or keep updating the search. This is feasible because, even though previously stated, all stores are
interconnected and each retail outlet has the permission of the products of all other retail
locations. ICOS enables M&S employees to provide consumers with straightforward information
as well as to process orders quickly, saving both the staff members and the client time.
Additionally, it contributes significantly to customer retention.
A Critical Evaluation:
Businesses have benefited from ICOS. It supplanted the previous method of placing an order
throughout units via fax or mobile, which was considered necessary manual data entry. The prior
procedure was inefficient and prone to error. The latest ordering structure was applied as just a
cost-effective way to provide superior customer service, handle a greater volume of customers,
respond more rapidly to customer queries, process orders extra quickly, as well as, most
importantly, gain competitive advantages. To ensure the delivery of high-quality services, Marks
and spencer implemented an Effective Customer Ordering Process that facilitated information
flow throughout the organization. M&S understood its competitive advantage and developed a
unique approach to remain in the business market. Their sales, as well as advancement efforts,
have consistently outperformed those of their competitors. Customers appreciate the speed with
which their orders are processed, regardless of if they are scooped up in-store or delivered
directly. M& weighed in with the importance of resource optimization and acquiring a
competitive edge. Everyone benefitted greatly from the application of ICOS, from the business
to the worker to the client. out of all M&S stores and corporate headquarters.
Since the information was shared across all Marks and spencer units, the task could be done
safely and efficiently. M&S's attention has moved to data analysis and innovation in prep work
for growth, which has been made possible by its information management, which has liberated
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them from the vast bulk of annoyances. They nowadays can look further towards tactfully
growing their business.
The investments were quite profitable, as they resulted in increased manufacturing and cost
savings. ICOS has established itself as a data system which has catapulted the company to new
peaks as well as resulted in a qualitative revolution. The investment led to a significant revenue
generated by the advanced technologies, and a shift in how the company worked and tried to
approach problems (Mellahi, et al. 2020).
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