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Helen Beckett examines how SMEs respond to emerging
technologies in our third report on exclusive research into how
small and medium-sized enterprises view and use
technology
Small and medium-sized businesses can be slow off the blocks when
it comes to implementing IT but, once their enthusiasm is kindled,
they often prove to be the most adept and agile exponents of new
ideas. Certainly their appetite for information is voracious, with
62% of respondents to the Computer Weekly/BT SMEAudit deeming this
to be a priority.
Commentators agree that the increasingly wired fabric of society
and business has quickened SMEs' interest in what technology can
do. David Bunting, treasurer of the Communications Management
Association, says, "The principle of internet access is almost
taken for granted."
The value of broadband in speeding up internet access was widely
acknowledged by the respondents to the SME Audit: 62% said it was a
primary reason for adoption, compared with 26% who saw it as an
enabler of teleworking and flexible working. Only 8% and 4%
respectively see the main advantage of broadband as providing a
gateway to managed services or enabling a faster web site.
The Federation of Small Businesses acknowledges that the internet
has ushered in a new era for SMEs. Stephen Alambritis, head of
parliamentary affairs for the federation, says, "We estimate that
80% of all businesses have everything they need to operate within a
50 mile radius. But the internet has meant the death of distance
and SMEs can now reach out to the wider world."
This access has brought fresh technology challenges. "Companies are
falling foul of the technologies that are required to join
business-to-business exchanges," he says. "Increasing numbers of
purchasing departments are using these exchanges and SMEs need to
be up to speed on Bacs [for bank transfers] and electronic
invoicing in order to tender and compete in these exchanges."
Bunting believes that internet access is just the start. He sees
SMEs embracing much more exciting opportunities. "SMEs are starting
to look at second-generation issues, such as using intranets and
extranets proactively to hook up with customers and suppliers.
Providing privileged access is the next big growth area, and while
it is still a bit unusual, it is by no means a show-stopper."
Coupled with the pervasive use of the internet is the arrival of
personal digital assistants and laptops at a price that does not
exclude SMEs. The growth of wireless communication could make a big
difference to smaller businesses, says Bunting. "Suddenly people
are not tied to a physical location. Broadband over mobile is as
important as broadband over fixed access for the small business.
Their office is wherever they are. The ability to pop into a cafe
and download a presentation, file or customer document can be
invaluable."
Voice and data convergence, too, is becoming a more common feature
of the SME landscape. Alexander Linden, emerging markets analyst at
Gartner, says 30% of all business network installations host voice
over internet protocol, and the Computer Weekly/BT SMEAudit
revealed that 10% of the sample have deployed integrated voice and
data technology. This brings it close to 15% adoption, at which
point a technology is no longer "emergent", says Linden.
Although it is usual for large enterprises to be early adopters of
emerging technologies because they have the resources to
investigate and execute, "For every technology that exists in a
large enterprise, there is an argument for its adoption in the
medium-sized business," says Linden.
Other voice and data technologies are becoming mainstream,
including computer telephony integration (CTI), unified messaging
and caller ID, all of which bring productivity benefits, he says.
Being confident of achieving a business return on a technology that
claims to offer cost savings is a key factor in whether SMEs follow
through on their initial interest to implementation.
It is hardly surprising that SMEs prefer their kit to be tried and
tested before they take the plunge. One technology they seem to be
unconvinced about is free, or open source-based software. Half of
the respondents said they had investigated using open source
versions rather than sticking to Microsoft, of the remainder, 19%
said they were planning to look at open source next year.
Eddie Bleasdale, managing director of Netproject, applauds the
independent thinking of those that have considered the open source
option. "A lot of IT managers got where they are today by simply
buying Microsoft and deploying it," he says. "These people are
dependent on their suppliers to tell them what to do."
He says IT managers or company directors with no knowledge of
computing architectures are more likely to be led by suppliers
which have an interest in selling Microsoft products. That will
have a major effect on SMEs. "A lot of people are sick to death of
changing their desktop every two years because Microsoft wants to
upgrade. They cannot cope with that rate of change."
Bleasdale's view is not shared by analyst Andreas Bitterer,
vice-president of Meta Group. He says although open source is seen
as being inexpensive, the cost of the platform and operating system
represent about 15% of the total cost of ownership. "Often Linux is
used for internal development and testing but when it comes to
running a mission-critical application on a supported platform,
people are likely to turn to suppliers that can offer that support.
If it is Linux, who do you call?" he asks.
While SMEs appear eager for information about emerging
technologies, naming it as their top priority, there is no evidence
that this interest is being converted into implementation. "When it
comes to implementing anything, this section of the market is
slow," says Bitterer. But UK SMEs have the edge over their
continental peers because the first version of any software is
invariably produced in English.
Click here for more SME features >>
Click here for Part One of the SME supplement
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