Information Systems in Small and Medium Enterprise of Wood Products Manufacturing
The Role of Information Systems in Small and Medium Enterprise of Wood Products Manufacturing
A Report Submitted in Partial Fulfillment of the Requirements for the Degree of Bachelor of Science in Wood Products Processing
In
The Faculty of Forestry
Abstract
In a modern economy, the key influence to the competitiveness of small and medium sized enterprises (SME) is their ability to utilize information systems (IS). The characteristic of SMEs vary, but in Canada, SMEs are organizations that have less than 250 employees and with annual revenues under 5 million (Canadian Industry Statistics, 2011). However, in recent years, the growth of SMEs in Canada has decreased and a large percentage of companies are reporting lost profits. The following paper aims to introduce the integration of IS into SME of the wood products manufacturing industry sector. It will further elaborate on the benefits of IS and the drivers and barriers for the adoption of IS implementation. Although some SME’s try to adopt IS to support their business many lack the financial resource to make a drastic investment. Therefore, this paper will introduce a method of developing an IS system that fully supports business operations with low investment cost. There are many benefits when IS are developed internally, but the value from this resource requires planning and management. These benefits include low initial investment capital and an information system that is specifically tailored to support SMEs business activities. Hence, this thesis will provide a guideline based on existing literature.
Table of Contents Abstract i Acknowledgement ii Table of Figures 1 Introduction 1 SME in the Wood Products Manufacturing Sector 1 Types of Information Systems 4 Adoption of Information Systems within SMEs 5 Drivers and Barriers to Information Systems 6 Owners and Managers 7 Employees 7 Finance 7 Suppliers and Customers 7 Competitors 8 External Development of IS 8
A Report Submitted in Partial Fulfillment of the Requirements for the Degree of Bachelor of Science in Wood Products Processing
In
The Faculty of Forestry
Abstract
In a modern economy, the key influence to the competitiveness of small and medium sized enterprises (SME) is their ability to utilize information systems (IS). The characteristic of SMEs vary, but in Canada, SMEs are organizations that have less than 250 employees and with annual revenues under 5 million (Canadian Industry Statistics, 2011). However, in recent years, the growth of SMEs in Canada has decreased and a large percentage of companies are reporting lost profits. The following paper aims to introduce the integration of IS into SME of the wood products manufacturing industry sector. It will further elaborate on the benefits of IS and the drivers and barriers for the adoption of IS implementation. Although some SME’s try to adopt IS to support their business many lack the financial resource to make a drastic investment. Therefore, this paper will introduce a method of developing an IS system that fully supports business operations with low investment cost. There are many benefits when IS are developed internally, but the value from this resource requires planning and management. These benefits include low initial investment capital and an information system that is specifically tailored to support SMEs business activities. Hence, this thesis will provide a guideline based on existing literature.
Table of Contents Abstract i Acknowledgement ii Table of Figures 1 Introduction 1 SME in the Wood Products Manufacturing Sector 1 Types of Information Systems 4 Adoption of Information Systems within SMEs 5 Drivers and Barriers to Information Systems 6 Owners and Managers 7 Employees 7 Finance 7 Suppliers and Customers 7 Competitors 8 External Development of IS 8