It seems that More and more large companies not only in the IT sector but across the board are focusing their resources on the small business sector. This does not come as a surprise as small business really means big business if you can attract enough of it.

The following article appeared in the Business Day recently highlighting the economic importance of a strong small business sector in South Africa:

THE focus on small and medium enterprises (SME's) by information technology (IT) vendors is reaching massive proportions.


An SME objective has become part of the agenda of most of the major brands, reflecting the strong role technology will play in the small business of tomorrow.

It is a challenge for any SME to figure out how to align technology to the business and enjoy obvious benefits.

SMEs are becoming a life force in most economies. According to a report by China’s State Development and Planning Commission on SMEs, China’s SMEs hire 75% of the country’s workforce and contribute more than 50% to gross national product (GDP).

These companies are rapidly transforming themselves from a labour-intensive model to one of automation, using IT to improve productivity and lower costs.

According to South Africa Alive with Possibility, we have about 2,3-million SMEs responsible for employing 30% of the population and contributing about 50% of the country’s GDP.

Most of these will, at some stage, consider the role IT will play in not only improving business efficiencies, but providing that elusive competitive edge.

The first step towards an IT and business-centric structure for SMEs is engaging with a technology integrator. According to www.technologyevaluation.com, SMEs typically prefer to work with local integrators specialising in their vertical industry or geographical region. It results in relationships that are strong and based on value and expertise. The businesses gain access to analysis and reporting tools, enabling them to make better decisions.

Touted as one of this year’s IT growth areas, global spending on performance management, says AMR Research, will increase with total budgets approaching $23bn.

Local research house BMI TechKnowledge concurs, stating that the growth for IT will come from providing services. It says service accounted for 40,9% of IT revenue in 2004. This reflects a maturing IT industry — as software and hardware become commoditised, the only way vendors can differentiate themselves is through service offerings.

AMR Research says the performance-management spending will come from investment in business intelligence, dashboards and scorecards. But, simply investing in a performance-management solution is not enough. To provide a tool that measures a firm’s performance, develops employees and aligns the workforce to corporate goals, there are two critical success factors: customisation and consultation.

The search for off-the-shelf solutions to meet performance management needs has increased. This is not only relevant to performance-measurement software, but software purchases overall. The promise of delivering a solution perfect for your needs has never materialised and, as a result, we see more firms selecting an off-the-shelf product.

This does not, unfortunately, mean instant success. About 60% of new technology deployments fail because of poor planning and implementation.

SMEs require more than just a box of software; they need effective consultation and need to receive value beyond the technology that will be implemented.

The integrator needs to ensure that the implementation is successful and according to requirements and process needs.

INet-Bridge

By Business Day, 19 June 2006