Advances in technology nowadays has brought a lot of progress primarily to small and medium entrepreneurs in Malaysia. It has changed (SMEs) traditional (the use of internet, web site, and other entrepreneurs in order to go forward and to improve its own products). Besides, people or entrepreneurs trying to master information technology so as not to lag behind in the use of sophisticated technology revolution.
CONTENTS
2.1 The Importance of Information Communication and Technology in Business
The simplest definition of communication is “a process of sending and receiving a message between two parties”.
Actually communication is the process of transferring information and understanding from one people or more people.
In the most clear from communication means interaction between two parties.
- In its broadest sense, communication is the process of acting on information.
(Someone does or says something, and others think or do something in response to the action or the words as they understand them. Communication is not unique human, researches study communication in other species, as well as between species. For example, you communicate with your pet dog if the dog sits in response to your spoken command, or if you respond to your dog’s begging gaze by giving him a treat.)
- communication is about making sense.
(We make sense out of what we experience when we begin to interpret what we see, hear, touch, smell, and taste with sensations, feelings, thoughts, and words. Identifying patterns and structure in what we experience is the key to making sense out of what happens to us. Besides that, communication is about sharing sense.)
- We share what we experience by expressing to other and to ourselves what we experience.
(We typically use words to express our thoughts, but we also use music, art, clothing, and a host of other means to convey what we are thinking and feelings, and our emotions too.)
- communication is about creating a meaning.
(It’s more appropriate to say that meaning is created through communication rather than sent or transmitted. To say that we send our transmit messages is to imply that what we send is what is received.)
- communication is about verbal and non-verbal messages.
(We communicate by using symbols, words, sounds, gestures, or visual images that represent thought, concept, objects, or experience. The words on this page are symbols that peoples use to define meaning that makes sense to you. Not all symbol are verbal because some symbol are non-verbal too.)
2.2 Utilization Level of Information Communication and Technology in Malaysia by SMEs
In the early stages
-->The government gave less sensitive to small entrepreneurs and they give more focused in multinational business.
-->The low level of ICT use in attributable to the constraints of ICT use faced by most SMEs.
(These constraints include lack of required skills and knowledge to make ICT adoption a success, reluctance to adopt advanced ICT due to employee’s limited ICT knowledge and skills, lack of skilled labor to enable the SMEs to further adopt advanced ICT.)
In modern times
--> the use of Information Communication and Technology progressively increasing and thriving SMEs can compete with each other.
--> The government has made many changes in the field of Information Communication and Technology
(provide cost in the short term for the small entrepreneurs to facilitate management and promote small and medium business products and services to run their business.)
The entrepreneurs can promote your product and service to sell goods to the customer by using technology as a medium for doing business online using technology. Small and medium industry entrepreneurs can use applications such as blogger, facebook, whatsapp and others to promote the goods.
--> ICT industry will focus on the development of digital content and under sub-item media
-->ICT services including software solution that has the potential to generate wealth and increase the participation of local companies.
(Industrial growth ICT will boost demand for digital infrastructure that is the foundation to the country competitiveness.) -->The accessibility and affordability of a subscription is critical to increasing economic growth and sosio-economic gap through the provision of digital opportunities to the less fortunate.
SMEs will be encouraged to used ICT applications to improve productivity.
-->Increased used of ICT in SMEs can improve efficiency and reduce dependence on unskilled foreign workers.
-->This step can help SMEs to move towards activity high added value and increase market potential.
2.3 Challenges / Barriers of Information Communication and Technology Encountered by SMEs in Malaysia
-->Most of the literatures have discussed similar problems facing SMEs, namely financing, human resources, information technology, managerial inefficiency, bureaucracy, market accessibility and competition, among others.
-->These challenges can be summarized as follows limited capacity for technology management and knowledge acquisition, low productivity and quality output, shortage of skills for the new business environment, limited access to finance and capital, and the infancy of venture funds in initial or mezzanine financing.
• High levels of bureaucracy in government agencies hindering efficient business development.
• Difficulties in obtain funds from financial institution as well as from the government.
• High levels of international competition due to globalization including competition from AFTA member countries from MNCs or rapidly developing new competitors (e.g. enterprises from China and India) limited access to better ICT.
• Conducted the survey and listed few SMI challenges to produce locally and market globally as follows intensified global competition, price competition with other producers, such as Indonesia, China, Thailand, and India, ability to meet the challenges of market liberalization and globalization, non-compliant products to ISO quality standard, expensive infrastructure, and motivation to seek latest information and update the knowledge.
• The present study summarized challenges in Malaysian SMI as follows lack of a comprehensive framework in terms of policies towards SMI development, agencies use inconsistent definitions to categories SMI at the operational level, there are too many agencies, or channels, for SMI without effective coordination.
• Lack of transformation and monitoring SMI progress from micro to large-scale business, difficulties in accessing loans and other forms of financial assistance, underutilization of technical assistance, advisory services and other incentives made available by the government and non-government organizations.
• Time consuming to investigate new systems, limited knowledge on capabilities of the current systems, lack of information on potential markets and customers, and global competition.
2.4 Factors Driving the use of Information Communication and Technology
• ICT applications are important to every business as the entrepreneurs provide various benefits across a wide range of intra and inter firm business processes as well as transactions.
• ICT and the internet could well assist in reducing transaction costs and increasing the speed and reliability of transaction. The use of the internet for e-commerce can also provide benefits in terms of reducing inefficiencies resulting from lack of coordination between partners.
• Factors that hinder ICT adoption such as, lack of financial resources, and manpower.
• Internal factors include knowledge about ICT, past experience, belief in the benefits of ICT adoption and use and size of the firm.
• External factors include telecommunications infrastructure and competition.
• Availability of resources and government policies which could affect the use of ICT may also differ across cultures.
CONCLUSION
• The utilization of information communication and technology by entrepreneurs of Small and Medium Industry in Malaysia have more function and advantage.
• As a conclusion, using ICT in work remains to completed concerning insight into the usage. The more SME use more advanced technologies such as PCs, internet, phone and others to give some information about industrial or economic Malaysia.
• The necessary training and awareness is effort to grow up their business. In Malaysia, most of these enterprise make regular use of telecommunication service such as fixed line telephone and fax, and are increasingly using mobile communication, but sometime they use of computer system in their business skills.
• This is because with use diversify of communication and technology can improve their business whether a small or medium industry.
In the early stages
-->The government gave less sensitive to small entrepreneurs and they give more focused in multinational business.
-->The low level of ICT use in attributable to the constraints of ICT use faced by most SMEs.
(These constraints include lack of required skills and knowledge to make ICT adoption a success, reluctance to adopt advanced ICT due to employee’s limited ICT knowledge and skills, lack of skilled labor to enable the SMEs to further adopt advanced ICT.)
In modern times
--> the use of Information Communication and Technology progressively increasing and thriving SMEs can compete with each other.
--> The government has made many changes in the field of Information Communication and Technology
(provide cost in the short term for the small entrepreneurs to facilitate management and promote small and medium business products and services to run their business.)
The entrepreneurs can promote your product and service to sell goods to the customer by using technology as a medium for doing business online using technology. Small and medium industry entrepreneurs can use applications such as blogger, facebook, whatsapp and others to promote the goods.
--> ICT industry will focus on the development of digital content and under sub-item media
-->ICT services including software solution that has the potential to generate wealth and increase the participation of local companies.
(Industrial growth ICT will boost demand for digital infrastructure that is the foundation to the country competitiveness.) -->The accessibility and affordability of a subscription is critical to increasing economic growth and sosio-economic gap through the provision of digital opportunities to the less fortunate.
SMEs will be encouraged to used ICT applications to improve productivity.
-->Increased used of ICT in SMEs can improve efficiency and reduce dependence on unskilled foreign workers.
-->This step can help SMEs to move towards activity high added value and increase market potential.
- Its show ICT uses the internet as platform to deliver information about SME to do business.
- It makes things easier to collect information about opportunity, strength, weakness, and threat for SME in business.
- The potential market value make SMEs can growth faster same as multinational.
2.3 Challenges / Barriers of Information Communication and Technology Encountered by SMEs in Malaysia
-->Most of the literatures have discussed similar problems facing SMEs, namely financing, human resources, information technology, managerial inefficiency, bureaucracy, market accessibility and competition, among others.
-->These challenges can be summarized as follows limited capacity for technology management and knowledge acquisition, low productivity and quality output, shortage of skills for the new business environment, limited access to finance and capital, and the infancy of venture funds in initial or mezzanine financing.
• High levels of bureaucracy in government agencies hindering efficient business development.
• Difficulties in obtain funds from financial institution as well as from the government.
• High levels of international competition due to globalization including competition from AFTA member countries from MNCs or rapidly developing new competitors (e.g. enterprises from China and India) limited access to better ICT.
• Conducted the survey and listed few SMI challenges to produce locally and market globally as follows intensified global competition, price competition with other producers, such as Indonesia, China, Thailand, and India, ability to meet the challenges of market liberalization and globalization, non-compliant products to ISO quality standard, expensive infrastructure, and motivation to seek latest information and update the knowledge.
• The present study summarized challenges in Malaysian SMI as follows lack of a comprehensive framework in terms of policies towards SMI development, agencies use inconsistent definitions to categories SMI at the operational level, there are too many agencies, or channels, for SMI without effective coordination.
• Lack of transformation and monitoring SMI progress from micro to large-scale business, difficulties in accessing loans and other forms of financial assistance, underutilization of technical assistance, advisory services and other incentives made available by the government and non-government organizations.
• Time consuming to investigate new systems, limited knowledge on capabilities of the current systems, lack of information on potential markets and customers, and global competition.
2.4 Factors Driving the use of Information Communication and Technology
• ICT applications are important to every business as the entrepreneurs provide various benefits across a wide range of intra and inter firm business processes as well as transactions.
• ICT and the internet could well assist in reducing transaction costs and increasing the speed and reliability of transaction. The use of the internet for e-commerce can also provide benefits in terms of reducing inefficiencies resulting from lack of coordination between partners.
• Factors that hinder ICT adoption such as, lack of financial resources, and manpower.
• Internal factors include knowledge about ICT, past experience, belief in the benefits of ICT adoption and use and size of the firm.
• External factors include telecommunications infrastructure and competition.
• Availability of resources and government policies which could affect the use of ICT may also differ across cultures.
CONCLUSION
• The utilization of information communication and technology by entrepreneurs of Small and Medium Industry in Malaysia have more function and advantage.
• As a conclusion, using ICT in work remains to completed concerning insight into the usage. The more SME use more advanced technologies such as PCs, internet, phone and others to give some information about industrial or economic Malaysia.
• The necessary training and awareness is effort to grow up their business. In Malaysia, most of these enterprise make regular use of telecommunication service such as fixed line telephone and fax, and are increasingly using mobile communication, but sometime they use of computer system in their business skills.
• This is because with use diversify of communication and technology can improve their business whether a small or medium industry.
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