The European e-Business Report The European e ... - empirica

The European E-Business Report 2005
in cooperation with the Society of British Aerospace Companies. 83 The Practical Electronic Business
Leadership (PeBL) Programme has been set up to help executives achieve measurable outcomes
from their e-business strategy. 84 Such programmes help SMEs to benefit from the use of electronic
business through giving them access to competent advice and assistance.
Integration. Companies integrated with their suppliers and customers benefit from improved process
efficiencies. By integrating and automating inter-firm processes such as logistics or product
development companies benefit from improved information flow and process quality.
Collaboration. SMEs investing in technologies facilitating inter-firm collaboration will be preferred by
larger firms in the value chain. Though large firms do not offer SMEs considerable support while
implementing ICT solutions, they require them to implement certain technologies and practices as a
condition for cooperation. SMEs investing in collaborative technologies will have an advantage over
other firms.
Integration increases interdependence. Industry integration is well on the way in the aeronautics
sector, but investments in ICT applications facilitating inter-firm collaboration are a necessary condition
to achieve it. For example, the representatives of Aerostar and Mecahers explicitly said that the main
reason why their firms decided to implement ICT solutions were the requirements of their customers.
Since creating electronic links with selected customers increases companies’ vulnerability and the risk
of opportunistic behaviour, this issue is particularly important for SMEs.
ICT requirements will increase. Diffusion rates of most ICT applications have not yet reached
saturation level. In line with the progressing integration of the industry value chain, predominantly
small enterprises will have to adopt a number of complex tools. Thus, further progress of e-business
will require more technological competencies and e-skills. This, in turn, will create additional barriers
for companies doing business in the aeronautics industry. Taking into account that, today, 22% of
firms in the sector see the complexity of ICT systems as an important barrier to e-business
development, the problem of the availability of qualified workforce will become vital to the
competitiveness and innovativeness of SMEs. Today, however, SMEs are already facing difficulties in
attracting and keeping skilled personnel.
ICT increases production costs: As indicated by companies’ representatives, a priority of numerous
SMEs in some markets is to offer an attractively priced quality product. It is of secondary importance
by what processes this is achieved. Investments in ICT solutions increase the production cost and
may, thus, have an adverse effect on companies’ competitiveness.
83
84
UKCeB (2005). UK Council for Electronic Business. http://www.ukceb.org.uk/ (June 2005).
Cf. http://www.accenture.com/xdoc/uk/locations/uk/insights/industry/aerospace.pdf
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