Integration of ICT with low cost automation for upgrading SMEs in Bangladesh

Abstract

The technology gap is the difference between nations and communities in their abilities to access, diffuse and use scientific and technical knowledge. It is one of the main causes of the rapidly expanding socio-economic gap between rich and poor nations, constitutes a major challenge for developing countries in their efforts to achieve the targeted development goals.

Assessment and integration of appropriate technology is the key factor to achieve a development goal. Information and Communication Technology (ICT) is the World’s fastest growing economic activity; the sector has turned the globe into an increasingly interconnected network of individuals, firms, governments communicating and interacting with each other through a variety of channels and providing economic opportunities transcending borders, languages and cultures. Small and medium-sized enterprises (SMEs) in Bangladesh have introduced ICT in their business in a very limited manner. Presently ICT is used by SMEs in a standalone and unplanned manner, which means SMEs are using Information Technology (IT) or its services not using the ICT. SMEs has to include ICT in daily business operation management to modernize the operation management and upgrade the overall SME environment in this competitive world. SMEs act as the most cost-effective and worthwhile means of providing employment and injecting dynamism into industrial growth, both for poverty alleviation and contributing to GDP. This study modernizes industrial value chains using ICT and help small businesses better connect to larger enterprises and become fully integrated, offering them a better position in the globalized business environments, as a supporting role for government initiatives to develop this sector.

Integration of ICT emphasize to interact electronically and seamlessly, avoiding or significantly reducing paper-based, manual data processing in SMEs. The study has resulted a simplified business processes, common data communication standards, better return on ICT investments, and efficiency gains. ICT has opened new channels for service delivery in the areas of goods and services, manufacturing industries competence, competitiveness, processes and jobs over the world. This study has been conducted to analyze various issues, prospects and challenges of upgrading this particular sector using ICT and finds the ways out to address the challenges with the help of ICT.