Systems strategy
The third part of our SME focus brings you the results of the recent Computing web seminar on IT in small businesses
Software applications once considered accessible only by firms with thousands of users, multimillion-pound budgets and large, dedicated IT departments are becoming more suitable, affordable and relevant for smaller and growing organisations.
A recent Computing web seminar, in association with Oracle, looked at the role played by IT systems in helping small and medium-sized enterprises (SMEs) to develop.
Here we present our expert panel’s answers to the top questions from delegates.
The panel members were:
Tim Payne, vice president of technology marketing for Europe at Oracle;
James Burckhardt, Computing’s head of research;
Niels Montanana, technology director at specialist business the Practical Law Company.
Using bespoke systems in an SME can represent a business risk, as there is always a reluctance to support these once developed. How can we minimise these risks?
TP: Try to use off-the-shelf packages in such an environment wherever possible and most suitable. We have seen from research that this is not always possible, but if you can use industry-standard or modular components or open standards, over time your risk can be minimised.
NM: The key to any bespoke systems development is trying to find the right pre-written components to use. There are few bespoke systems that require rewriting from the ground up for a specific business, and it is essential to look around to see what is available from existing vendors and integrators that may have done similar implementations for other companies in the past.
JB: In areas such as ecommerce, the value of bespoke systems is clear. They can add real value and benefit, and many ecommerce models are unique. But it is worth learning from other businesses that may have done similar things, and addressed similar risks to your own.
At what stage should you move from using vendors to tackle specific projects, to expanding your own team to gain the experience needed for those projects?
NM: IT these days requires a large number of different skills in different areas to ensure that everything works in harmony. You have to ask some very clear questions of the company to determine where you want to invest your money.
In some instances, trying to find the right people to maintain systems could take you on a lengthy recruitment process to hire somebody who may not be suitable long-term, and who may have required a significant training investment by the company.
You need to identify your core skills as a company and then look at how you can service them while minimising your exposure. The reverse is also true: you may have the skills in-house and decide you want an external provider. You need to make sure you do not de-skill and de-motivate your staff in the process.
TP: It depends on the size of the company and the market sector you are in. If IT is a major business differentiator for you, maybe you will want to keep that whole process in-house.
As for things such as accounting, finance and email, people are comfortable with outsourcing these to an external provider, as there is little value to the business in keeping them in-house.
What strategy would you recommend for using open source software?
TP: If you are comfortable deploying Linux in your business, that is great. Linux is one of the key platforms for Oracle, and we believe open source has a major role to play with a number of our customers. We have been strong proponents of the open source community for some time and we contribute code to the open source community.
NM: Look carefully at what you are trying to achieve. What are your real business challenges? If there is an open source application that meets your needs, then go for it.
Also, look at options available for the core infrastructure of your business IT. Look at everything that is available and consider if you are best served by an all open-source environment, or a mixture of open and closed source and building an application on top of that.
FURTHER READING