SALM TEAM 
There’s no doubt about it: IT has become an integral part of business, and the most successful businesses over the long run are the ones that make the right decisions about what IT systems to deploy and how to use them. This is true for companies of all sizes, but particularly for SMEs. IT offers them a way to punch above their weight, to compete successfully in a tough marketplace and grow.
The path to realising business value from IT is not straightforward. Many large corporates complain that they don’t really find immediate value from the big investments they make in IT. The conclusion: decisions about IT must be taken strategically, with a medium to long-term business objective in mind.
This dynamic is particularly relevant to entrepreneurs, who typically lack a specialised IT capability to help them make informed IT decisions. Nor can they afford to make costly mistakes. How then to get the balance right?
One thing I have noticed is that entrepreneurs often tend to rely on a “friend who knows about IT” to assist with decision making. But it’s very important that they do not relinquish their role as the primary decision-maker when it comes to IT: technology is strategic and decisions about it must be treated appropriately.
Entrepreneurs need to have a very clear idea of where growth will come from, and where IT will contribute to business objectives and grow value. Surprisingly, many businesses, even large and successful ones, lack these vital insights. Once the entrepreneur understands where the business is going and what its value proposition is, making the decision about where to spend money on IT becomes easier.
Even the biggest corporates can’t just buy every shiny new piece of technology they desire. Similarly, an SME must have a clear hierarchy of needs and set its IT spend accordingly.
Joys of the subscription model
There’s another development that is highly advantageous to SMEs—the emergence and growth of the “as-a-service” model thanks to the huge investment in the cloud. Software as a service (SaaS) is the obvious one, but the model has expanded dramatically—hardware, PABX and more can also be purchased as services. Corporates are adopting the as-a-service model wholesale, and SMEs should give it serious consideration.
There are a number of advantages, not the least being that the SME incurs no upfront capital costs, it simply has to pay the monthly subscription. This is highly advantageous financially, and it also protects against the real challenge of obsolescence—the cloud provider takes on the responsibility for keeping the product offering current, and for providing support, another source of risk and expense an SME can ill afford.
The risk of making a wrong decision is also greatly mitigated. If it turns out the product or service is not delivering the expected business value, the subscription can simply be stopped.
Access to the latest technology at minimal risk via a subscription model—what’s not to like?
Where to start?
While there is no one-size-fits-all approach, it’s possible to identify certain basics that should be at the top of the SME’s IT list for consideration.
1. Connectivity.
At the risk of stating the obvious, if the SME’s connectivity is unstable, then everything else is in jeopardy. In particular, the as-a-service model requires stable, broadband connectivity to function, as do electronic payment systems. Choosing the right connectivity provider and type is the vital first decision on which everything else depends.
2. Accounting.
Accounting is essential for any business, not least because cash flow planning is so important, along with paying the taxman. Credible, accurate books also make it easier for an SME to access finance—inability to obtain capital is routinely said to be one of the reasons for an SME’s failure to expand. When choosing the right accounting tool, care must be taken to choose one that is right for the business and most appropriate for it.
3. Customer relationship management (CRM).
It’s a truism that a business’s customers are its most important stakeholders, so having a way to keep track of them and, most importantly, engage with them is vital. For as-a-service models, CRM is a way to collect data that will help the business understand its customers better, retain them more successfully—and get a bigger share of their spend. Having a sharper picture of one’s client is as important as growing the base.
Other areas to consider would include cybersecurity which, too, can be purchased as a service.
Entrepreneurs have a multitude of roles to play, especially at the beginning of their business journey—it seems like there just isn’t time for everything. Nevertheless, they cannot skimp on positioning their business for growth. Accessing the right technology is a way to do the impossible.
Or, to put it another way, possible begins here.
By Randall Abrahams
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