03 Feb 2009
Too often, small and medium-sized enterprises (SMEs) do not take responsibility for educating themselves sufficiently about technology, instead putting their trust in technology vendors or channel partners whose interests are not always aligned with the SME’s.
SMEs should act more like large businesses by managing their IT investments and IT use proactively. Think - and measure - before you jump in.
Specifically, SMEs should:
Mine SME peers for knowledge and experiences.
First and foremost, arm yourself with knowledge. Finding and talking to others of your ilk is easy through online communities. There are communities designed specifically for small businesses, mid-sized businesses and startups; the full spectrum of technology domains;and very specific vertical industries. Moreover, some technology vendors sponsor communities specifically for SMEs. These communities embody a great deal of experiential knowledge that can be used by SME decision-makers, not only for IT, but for general business knowledge.
Find the time to perform due diligence and metrics.
Customer references are there for the asking from technology vendors and channel partners (if they are not forthcoming, you are working with the wrong vendor or channel partner). Before making a final technology decision, ask for five customer references, of a size and sector similar to your own. No IT implementation or usage expectation is perfect cut through references’ glowing reports, and pin them down on something that did not turn out as anticipated. Moreover, just as you do with your business plan, write down your expectations and goals. This will make it easier for vendors and channel partners to deliver to your needs, and will give you a sense of whether and how fast your IT investments pay off.
Look for vendors that offer more value than just their products.
Technology vendors have accumulated a wealth of business knowledge around their products, knowledge that savvy SMEs should look for and can tap for nothing. After all, technology vendors claim they want customers to be their partners. That means they should be able to provide SMEs with knowledge and content concerning best practices, business processes, business metrics, and integration. For example, have you ever wondered how to shorten your sales cycle, given your regional business conditions? Ask a customer relationship management vendor.
Look for solution providers that can act as your vendor management office.
IT licences, contracts, payment terms, usage parameters and maintenance agreements have become more, not less, complex. In particular, maintenance and upgrades are the most costly long-term factors. Channel solution providers should be able to provide you with total cost of ownership metrics and proactively manage vendor relationship complexity for you.
Do not be taken in by the SaaS siren song.
Software-as-a-service (SaaS) vendors will be the first to tell you that SaaS solutions are less expensive than on-premises implementations. While this might sometimes be the case, it is not always true. One of the hidden costs in any IT decision and implementation is integration - the uniqueness of the solution for your business and IT environment and integration can sometimes be harder and more costly with certain SaaS products. Look for vendors and channel partners that have built-in integration ease via a proven service-oriented architecture.
Visit http://www.forrester.com/computinguk for several complimentary reports made available to Computing readers by Forrester Research.
Dear Editor,
Now that the recession is properly upon us, it's crucial that businesses spend every penny of IT investment on products that deliver real business value and absolutely fit their requirements. Keeping the cash flowing will keep businesses afloat and investing in software that facilitates electronic payments and direct debits should be at the top of every business' shopping list. These will prove essential in managing supplier payments and customer collections - but only if they are secure and robust.
While this is not a time for slap-dash spending, it is also not a time to cut corners. Control over payments and collections is paramount and a Bacs approved system is essential. There is never any point in spending money on a system that doesn't work. To do this now could be fatal to business.
Electronic financial packages provide solutions that allow same-day payments, reduce transaction costs and decrease data errors. Business owners can relax, knowing that monthly payments will be automatically collected by Direct Debit (DD) on a date agreed at the outset of negotiations. From the start of contract, the business owner is in control of collecting payments, eliminating the need for endless cheque chasing.
Astonishing numbers of business owners are still entrenched in archaic processes that stall business and add to the already bleak international picture of a recession.
Yours sincerely,
Adrian Stafford-Jones
Managing Director
Albany Software
Tel: +44 (0)1420 547620 Fax: +44 (0)1420 547621
Post: Albany House Albany Software Ltd, Albany House, Omega Park, Alton, Hampshire, GU34 2QE
Web Site: http://www.albany.co.uk
Posted by: Adrian Stafford-Jones 04 Feb 2009
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