ABSTRACT

This chapter has outlined a framework for analysing an online SME based on the concepts of virtual organization and global information technology management. The S-M-A-L-L framework describes five dimensions of the business that may be transformed with the strategic application of information technology. These are the size of resources, market coverage, activities and processes, linkages and locational scope. Effective extension of the SME's environment along these dimensions should increase its access to resources and opportunities and enhance its ability to compete in the global market. The transforming factors are the firm's chosen business model, the technological infrastructure and the virtual infrastructure management strategy. Also corporate vision of the future, top management commitment, nature of business, and level of adoption of expertise with IT are relevant to the virtual infrastructure management approach to the global strategy of online SMEs. Once the small business has performed an extensive review of its current and extended global environment it can then develop a strategy for website development and engage a consultant where necessary for effective implementation. Following the stages suggested for consultant engagement does not guarantee success but will at least provide a structure enabling the SME to negotiate more effectively and a contract with specified deliverables. It has been our experience that even with this, however, the SME is still easy prey for the consultancy market.