The context for this research is the transformation process of small and medium-sized enterprises from traditional businesses toward e-businesses and the accompanying development of the knowledge and competence among employees. SMEs constitute a great part of the Swedish industry and economy. This and the fact that they have special prerequisites concerning human and technology resources makes SMEs an interesting research focus when looking at the transformation process toward e-business. The aim of this research is to investigate SMEs with the purpose of designing, implementing, and evaluating information technology-supported activities that will allow SMEs to approach e-business. This article presents results from parts of an ongoing study, that involves seven SMEs. This study will be conducted in two main phases: first, informative and preparatory activities and second, business transformation and competence development activities. The underlying prerequisites for SMEs as well as the research approach are described. A working model is presented that illustrates stages of maturity for taking an enterprise toward e-business. The last sections present the research design, that is, planning, actions, observations, and reflections of the study up until now.