Big strategy for small business

Small businesses are constantly being told by Government and the IT industry how much they have to gain by getting into e-business. But do they?

The hype goes like this: if a small business has harnessed internet technologies beyond email (creating online business processes or connecting to customers or business partners) competitive advantages and cost savings are sure to follow.

If only it was that simple. E-business may help a small business realise business goals faster and more efficiently and this may help the bottom line and create competitive advantage. However, e-business applications applied in isolation from a central business strategy are next to useless, expensive and over-hyped.

Put another way, e-business is not a magic bullet for a small business wanting to turn its books around - but an overall strategy that includes e-business may be.

E-business has potential - but where does a small business start? Well, not with software - buying e-business applications is a decision best made down the track. Instead, small businesses should start with a free resource - their own business knowledge.

While bigger companies employ IT consultants to help them nut out an e-business strategy, small businesses are generally aware of where processes can be streamlined through e-business. A few hours of brainstorming, team meetings and note-taking can produce a strategy that would take larger businesses months.

Once a small business knows what it wants from e-business, then a specialist can propose a strategy that will meet goals. The trick is in knowing where to direct the solution provider.

So what kind of e-business works for a small business and how can you bring it in on a budget?

For some, the creation of a website that delivers customers or business partners secure access to tailored information or enables them to manipulate their own account information online goes a long way towards cutting down on call centre costs and increasing customer satisfaction - just think of online banking or ticketing sites.

For others, e-business takes the form of online, automated supply chain and procurement processes between the business and its suppliers. Double-ups are eliminated, orders are tracked, warehousing becomes streamlined and bulk ordering is helped. Large business partners and customers may also choose to deal more exclusively with a small business when an online business process channel is available.

Some small businesses automate a workforce through e-business, so information is sent or received in real time using wireless technologies and an IP network. Telephony advances that allow call centre operators to remotely access "screen pops" can also be considered e-business because remote access occurs over a secure IP connection.

Though e-business applications often scale to meet small business needs, e-business remains big business for the IT industry and investment can be long-term and expensive. Those on small budgets are therefore advised to move carefully.

E-business on a budget

Step one: Work out whether there is a business case for e-business. Where will online processes deliver internal efficiencies and/or better customer satisfaction?

If you can't find a business case, look at what similar businesses are doing and consider whether their use of e-business would work for you. If not, an e-business investment may not generate enough return for your business at this time.

Step two: Seek a vendor partner that is forward-thinking, that takes the time to see how your business works, and that looks at how e-business will work across your whole business. Any e-business specialist worth its salt will also take a hard look at the existing and possible network and online connections available to your small business and think forward.

Step three: With the help of an IT partner, decide what e-business applications and models best meet the business advantages identified in step one. Consider your computer network, mobile devices, servers and other equipment like telephony infrastructure and your internet connections. Get an idea of what you want to do, what needs to change and how much you will have to spend.

Step four: The cost of these changes has to be weighed up against the business benefit e-business will deliver. If the benefits are negligible or will take too long to realise, consider waiting and reviewing the situation every six months. Alternatively, you might break an overall e-business strategy into pieces and implement these incrementally.

Step five: If you are confident in the technologies, your IT partners and the return on investment within an acceptable timeframe, go ahead with e-business as you can afford it.