The impact of mobile technologies on the business models of small and medium enterprises in Pietermaritzburg

Abstract

The use of mobile technologies has permeated the business arena rapidly over the last decade. Research has been conducted to understand the nature of these mobile technologies and their adoption into business. With the ever growing importance of Small and Medium Enterprises (SMEs) in countries such as South Africa, there is need to better understand the impact of mobile technologies on SMEs. The objective of this study is to assess the impact of mobile technologies on the business models of SMEs. A theoretical definition of a business model is used to understand the impact of mobile technologies on the customer value proposition, the profit formula, key resources and the value chain of SMEs. The study takes into account some of the challenges that SMEs face, namely limited resources, low levels of productivity and small management teams. SMEs registered with the Pietermaritzburg Chamber of Business (PCB) are used as a sample to assess the impact of mobile technologies. The results show that mobile technologies have a significant impact on the profit formula and certain aspects of key resources. Specifically, mobile technologies are used to firstly cut costs and then to enhance the utilisation of assets, improve knowledge management while ensuring adequate governance structures. The outcome of this study can be used by SMEs to plan for the adoption of mobile technologies and measure their impact on the business. Mobile technology companies can consider the development of mobile technologies tailored for the SME environment.