Abstract:

Information system provides unique growth opportunities and competitiveness for small medium and micro enterprises (SMMEs) in a challenging and dynamic environment. As such, development of effective information systems (IS) given the limited resources is very important for these businesses. Despite their positive impact in organizations information system development (ISD), the contribution of system development methodologies (SDM) in SMMEs system development endeavors is said to be minimal for various reasons. By employing the survey method, this paper investigated the use and effectiveness of SDM in SMMEs. The results showed that a substantial number of SMMEs, specially those which develop software in-house have been using SDM in their system development and are convincingly satisfied with the contribution of SDM. Unlike previous research, SMMEs were found to be aware of the benefits of
SDM, and are quite positive about the opportunities provided by using SDM. The number of employees working as system developers and SMME methods of procurement, but not business size, were influencing factors for SDM use. Skill, cost, attitude of managers and developers were among the challenges in application of SDM. The paper defines SMME in the South African context and reviews recent findings in the application of SDM in SMMEs.