Mapping IT and Management Challenges in Small and Micro-Businesses: A Path to Digital Maturity in Manufacturing

Small and micro-businesses often struggle with poor data accuracy due to a lack of dedicated labor force for non-core business functions. The required efforts and costs associated with improving data accuracy, such as setting up and operating an adequate inventory management system, are unpredictable for these businesses. Despite the data-intensive nature of operating specialized software like MES and WMS, the decision to invest in excessive data manipulation can be challenging for micro-entities, even with the potential benefits. This study aims to empirically determine the challenges, risks, and other non-financial decision factors micro-enterprises face when establishing effective data management and utilization practices. A data model was developed based on interviews with 17 small business manufacturers and service companies to support the essential data entry requirements of micro-businesses. The findings support the concept of a SAAS (Software as a Service) product tailored to the needs of these businesses. Furthermore, this research highlights the under-researched areas of logistics processes and data management in small businesses.