International Workshop
"ADVANCED IT SOLUTIONS AND COMPETITIVENESS OF SMES IN CEE"

within the broader framework of 6th International Economic Forum

5-6 October 2006 Lviv, Ukraine

The workshop clearly demonstrated the dynamic nature of SMEs environment in CEE region, especially in the area of IT developments. Despite a much-mentioned lack of understanding of the strategic advantage of using IT solutions, many companies are actually implementing them and many solutions are actually being developed for local markets. Several examples of IT systems produced in the region were demonstrated or mentioned in the presentations. Successful deployment stories in SMEs are appearing too. With the statistics presented during the workshop, demonstrating high increase in the ICT adoption in the region and huge gaps in actual IT adoption (e.g. with low level of e-reporting), one could foresee major developments in both enterprise internal IT capacity developments as well as growth in web application targeted at external constituencies.

However, severe obstacles towards IT tools' ad solutions' adoption were mentioned and supported with the case studies and anecdotic evidences:

• Lack of vision at the top management and skilled managers at the lower levels of organizational hierarchies.
• Often damaged comfort zone of employees during IT tools implementation.
• Low level of strategic decision-making in IT acquisition. IT tools are often acquired as infrastructure or something nice to have as opposed to the response to the real business need.
• High costs of many IT solutions, especially those developed abroad, and cases when the lack of skilled workforce and not costs are actual problems.
• IT systems considered as intrusion and extension of state taxation system by SMEs.
• Extreme rates of growth where businesses are growing quickly with the organizational maturity lacking behind.
• Destroyed and neglected system of technology transfer from Universities, research institutes and SMEs in the region.

Interestingly enough, the workshop has also showcased that SMEs in CEE are not innovation-averse or slow adopters. They are willing and keen to try new solutions, even the most advanced ones (using GPRS, PDAs, etc.), and are openly voicing their needs for solutions or readily serve as testing ground for totally new solutions (examples being Lvivkholod or Enzym). What is needed is the right approach from providers that takes into consideration employees' level of knowledge and readiness for adoption. Training, learning activities and other forms of education are important at every step of the IT systems life cycle – from initial approach, to sales and actual deployment. Provision of consulting services is becoming critical factor in the projects' success.

It is particularly needed in the area of collaborative enterprises, networks of companies and virtual collaboration within clusters, supply chains etc. The workshop left an impression that SMEs in the region are struggling to keep up with the planning, installation or upgrade of internal IT infrastructure that leaves no time to look at other external possibilities, such as collaboration within networks of enterprises. It was also evident from the workshop that results of many research projects, especially ones concerning advanced forms of enterprise networking, clustering and new forms of industrial collaboration and production are unknown to [often leading] companies. More efforts should be invested into promotion and communication of such initiatives in the region.