Abstract
M.Com. (Computer Auditing)
The fast pace of changing technology has created a volatility within the business ecosystem. In South Africa, the permeation of technology is evidenced in various sectors, departments and entities such as tax, education, home affairs, traffic, electricity, and banking. Some transactions, systems, and business processes that formerly required human intervention are now being automated.
Owing to challenges caused by technological disruptions that expose them to a variety of risks, companies in various sectors find themselves playing catch-up to changes in order to stay afloat and be competitive. This creates an opportunity for consulting firms, especially in information technology (IT), as companies need their services to supplement their in-house competency. Benefiting most from this are the small IT consulting firms, as they tap into areas which the big consulting enterprises do not cover. But these small and medium-sized enterprises (SMEs) are themselves not immune to risks and challenges. Their success therefore, is not only based on how they capitalise on the opportunities created by disruptions, but also on how well they manage risk. However, it is not clear how the SMEs in Gauteng, South Africa’s economic engine, manage technological disruption risks, as not much research has been conducted in this area.
This exploratory study is conducted to gain in-depth understanding on how SMEs manage IT risks. A case study research design was followed, using qualitative methods. Purposive sampling was used to select the SMEs that formed part of the study, with semi-structured interviews being the method used for collecting data. Data were analysed through thematic analysis techniques.
The findings of the study reveal that the disruptions deeply affect the business landscape between the SMEs and their service consumers. Due to disruptions, consumers now command more influence in their business space, which presents a challenge for SMEs not to be outpaced by these developments, which culminate in a variety of risks relating to factors such as their business models, operations and human capital. Their business models are rendered less effective, there is demand for rapid delivery of solutions, and high employee turnover is experienced. In managing risks, the SMEs do not limit their risk management strategies only to...