Organisation E-Readiness and Implementation Strategy for E-Commerce Adoption in Ohmsrazor Nigeria Ltd

ABSTRACT

Organisations recognise the advantages of e-commerce adoption. But the increased failure rate in e-commerce adoption in developing countries SMEs (Small Medium Enterprises) is a constant problem which has led to efforts to investigate the cause. Evidence from various researches indicates that organisations in developing countries tend not to assess the e- readiness level of the organisation before attempting to adopt e-commerce. Also less attention is given to developing a strategy for e-commerce implementation which contributes to the failure rate. Most researches on developing countries are more interested in the e-readiness level of the external environment of the country. Issues such as the government readiness and public e-commerce policies and infrastructures tend to get more attention.

This project conducted an e-readiness assessment of the client organisation using qualitative and quantitative approaches. Critical literature review on success factors was discussed and questionnaires were used to collect information. The collected data was used to develop an e- readiness strategy for the organisation and recommendations for e-commerce implementation.

Findings from the research indicate that the management factor is the least e-ready and various aspects of other factors needs improvements. Also e-readiness assessment is important for organisation willing to adopt e-commerce and a strategy is necessary to successful adopt and implement the technology.

CHAPTER 1:

INTRODUCTION

1.1 OVERVIEW

The search for a more suitable and effective way to be a step ahead in the business world has necessitated various organisations to make efforts to adopt e-commerce. This has served has an increase advantage to be above competition and at the same time reduce cost and increase profit (Hong and Zhu, 2006). The e-commerce environment has not only opened a new market channel for organisations to help promote and sell their products but also create an avenue to interact with their customers including a better customer support. Although organisations are able to recognise the unlimited advantage this form of business has introduced, many have faced different obstacles in adopting and implementing e-commerce. This has made it necessary for organisations willing to adopt e-commerce especially in developing counties to determine the right conditions to adopt e-commerce and to understand the necessary factors needed for the process.

The success or failure of e-commerce adoption in an organisation is fundamentally inclined to the organisation e-readiness (Molla and Linker, 2005a). That is the degree or extent the organisation is able to adopt electronic services (e-commerce). There are various advancing literature and research on e-commerce adoption and implementation, most are focused on either adopting a specific technology such has a specific e-commerce application while others are focused on the factors affecting the organisation externally such has the environmental constraints, government policy etc. (Ruikar et al,2006). This research is mainly focused on the key organisational components such as critical factors required within an organisation for successful ecommerce adoption and implementation.

This field is very different compared to the traditional ways of conducting business. This makes it crucial and important for managers to plan e-commerce adoption and implementation properly (Daniel and Grimshaw, 2002). And a step towards achieving this is by making an e-readiness assessment of the organisation. The assessment is used to evaluate the business to develop a strategy for e-commerce adoption.

1.2 CLIENT OVERVIEW (SPONSOR BACKGROUND)

Ohmsrazor limited is a popular construction materials sales and distribution company. It has its headquarters located in Lagos Nigeria and has over 10 branches in other states across the country. It is one of the fast growing businesses with several achievement and ambition for the future. The company is a sales organisation that specialises in selling of construction products and materials used in the day to day activities of construction sites. These products include concrete re-enforcement materials, power tools and accessories.

Though a family owned business that initially started with 30 employees, it has grown to a point that has many of the benefit of larger distributors. The company is expanding and because of the high rate of competition and innovation among companies, the company has decided to incorporate an e-commerce system to help the organisation to achieve a competitive advantage and to get a globalised edge. In other to do so, the organisation has to understand how to overcome organisation e-readiness and identify the relevant factors that may affect e-commerce adoption in the organisation.

1.2.1 CLIENT REQUIREMENTS

The list below shows the requirements specified by the client organisation Ohmsrazor Nigeria Limited. It was used to determine the focus of the research content.

 To clearly identify factors responsible for e-commerce adoption in the organisation

 To recommend a strategy to improve the organisation E-readiness

 To produce a concise report that clearly shows how to implement electronic mode of business (E commerce).

1.2.2 CLIENT DELIVERABLE

 A concise report that includes a strategy on how to improve e-readiness of Ohmsrazor Nigeria Limited.

 A set of recommendations for Ohmsrazor Nigeria Limited to ensure successful e- commerce implementation

1.2.3 STATEMENT OF PROBLEMS

This are some key questions that ere attempted to be answered form conducting the study.

 What is the current state of e-readiness in Ohmsrazor Nigeria Limited

 What requirements are necessary for adopting e-commerce into Ohmsrazor Nigeria Limited

 How can e-commerce be successfully implemented into Ohmsrazor Nigeria Limited

1.3 PROJECT AIMS AND OBJECTIVES

AIM: The aim of the research is to develop a strategy and provide recommendations for improving e-readiness of organisations in developing countries. This is done by carrying out initial analysis of an organisation in Nigeria. Ohmsrazor Nigeria Limited is used as a case study and the analysis from the company is focused on the critical factors for a successful e- commerce adoption and implementation.

OBJECTIVES

1. To analyse the current processes in the organisation in terms of resources and technology that is been used currently and propose necessary recommendations to adopt e-commerce into the system.

2. Through communication with the organisation and using available research methodologies, appropriate data and information will be collected towards the research.

3. To include an in-depth literature review on existing literature relating to e-readiness and e-commerce adoption in organisations.

4. To include in the dissertation a critical review addressing the success factors that ensures successful e-commerce implementation.

5. To include a report on analysis of the research data and propose a strategy on how to improve e-readiness of the organisation.

6. To provide a set of recommendations such as necessary skills, personnel for e- commerce implementation.

7. To produce recommendation for future conduct of the organisation.

8. To critically evaluate the project.

9. To produce a dissertation including the appropriate literature, findings, analysis and recommendation involved in the research.

1.4 PROJECT CONSTRAINTS

 That the proposed strategy must be implementable with respect to the organisation.

 Only one contact Person is available from the organisation.

 Contact with the organisation is limited to phone calls and e-mails

 Lack of proximity has the organisation is located in Nigeria and the correspondent is located in United Kingdom.

1.5 SCOPE OF RESEARCH

This research is focused on assessing the e-readiness level for e-commerce adoption in Ohmsrazor Nigeria Limited. Success factors necessary for e-readiness will be critically reviewed and used to identify areas or aspects that need improvements to achieve e-readiness. These aspects will then be used to develop an e-readiness strategy for e-commerce adoption and recommendations will be provided for effective e-commerce implementation.

1.6 SIGNIFICANCE OF STUDY

This study is invaluable because it is not only a solution to improve e-readiness of the client organisation. But the strategy and recommendations developed can also be used to improve the e-readiness level of other organisations in developing countries.

1.7 DISSERTATION STRUCTURE

This dissertation is structured in a way that will enhance flow and clarity of the reader. This section gives a breakdown on the structure of discussions in each chapter of the project.

Chapter 1: Meaning this chapter. It involves an overview of the whole project and sponsor organisation. The chapter explain the client requirements and deliverables intended for the project. Also the aims and objectives expected were listed with constraints faced during the project and the scope of the project.

Chapter 2: This chapter contains a critical evaluation of relevant academic journals required to achieve the project objectives and clients requirements.

Chapter 3: This chapter is used to explain how the research was conducted and the method used in executing the project.