Business value of strategic information systems of small and medium enterprises (SMEs) within Westlands division of Nairobi

Abstract

Information systems have been praised to be the most important ingredient of competitiveness and success in the modern knowledge economy. This study aimed at investigating the business value of Strategic Information Systems within SMEs in Westlands Division of Nairobi. Strategic Information Systems are viewed as very valuable tools for enhancing effectiveness and attractiveness of any business organization that has embraced ICT technology it its operations and planning. SMEs play a vital role in development of the Kenyan economy. However, despite the fact that successful businesses use strategic information systems for effective competitiveness, little has been done to establish the real business value that these information systems can add to most businesses and SMEs in particular. Building on sparse literature regarding the business value of strategic information systems, the researcher embarked on a survey whose data was used to assess the business value that SMEs enjoy by adopting strategic information systems.

The research adopted a cross sectional study targeting SMEs in the Westlands Division of Nairobi. Stratified and simple random sampling techniques facilitated the choice of 105 SMEs from whom data was collected using self administered. Data was analyzed and presented using descriptive statistics, tables, graphs and pie charts, by the use of Statistical Package for Social Sciences (SPSS) version 12. The study found out that most SMEs are started and operated by largely youthful persons aged between 18-40 years who have formal education of up to at least secondary school level. The research also discovered that the most outstanding benefits SMEs enjoy by investing in strategic information systems include; improved communication and flow of information within the business, improved accuracy, reliability and easier access to information and customer satisfaction and loyalty. In conclusion, the findings of the study highlight the importance of strategic information systems to SMEs. It further proposes that for SMEs to fully enjoy the business value of strategic information systems they need to set up an IS strategy for the business, align the business strategy with the IS strategy and identify IS roles needed to make the adoption process successful.