Leveraging Technology
Investing in new technology by itself is not likely to achieve the intended competitive edge unless that technology can be aligned to meet your goals for growth. Rather than buy equipment simply because it is new, or introduce technological applications only because they are now possible, consider how such new technology fits your business goals:
What value is added? – Introducing new technology should improve the value of the end product for your customer or client. Would they value being able to send orders faster or without traveling? Can technology make the product faster, cheaper, stronger, or longer-lasting?
Are the advantages relevant? – Review your market research about your products and services. Are the features that technology offers actually improvements that your customers would want? What evidence do you have that the value-added is relevant to your target market? Be sure to survey your market before spending money on automation.
What is the cost-benefit ratio? – Investments in new technology are unwise if the benefits offered are small compared with the costs of re-tooling current processes, installing new equipment, training everyone on how to use it and paying service contracts to keep it operation. Remember to include all of these hidden costs when considering a change-over to new systems. And calculate the life-expectancy of the new equipment, since it will probably need replacement within four to five years.
In most cases, the leverage that new technologies offer is most likely to occur when the technologies extend the small business owner’s ability to access new sales, not simply cut costs.
Exploring E-commerce opportunities
As technological innovations continue to advance, the possibilities expand for small business owners seeking to leverage advantages. But the tremendous capital costs associated with automation and the cutting-edge technical expertise needed to keep pace with new developments can be dizzying. Not surprisingly, many owners feel insecure about investing in expensive technical solutions – yet worry about being left behind if they don’t. So concentrate on moving forward but don’t push the envelope too far outside your comfort zone. Remember: technology is simply a tool.
If you are ready to venture onto the Information Highway, enhance your chances of surviving when you go digital by learning from IBM’s consultants. Here’s their wisdom gained from helping create over 18,000 E-commerce operations in the past few years.
Seek technical expertise
– E-commerce is as much about business vision as technology. The most successful e-businesses are partnerships between business owners and information technology experts. Companies that make e-business central to their business do much better in the long run than those that make it an afterthought or treat it as a peripheral.
Link to your strategic plan – For most organisations, the key to a successful e-business transition is making their e-business priorities the same as their other business priorities. This makes e-business an investment instead of a bet.
