Using Technology for Competitive Advantage Today, virtually everyone recognizes that technology has revolutionized the way we do business. The impact of technology can be felt in the way industries look and act, oftenbreaking down long-established boundaries between industries to create new, more fluid business models. Small, growing businesses havethe same access to technology and can acquire just as much information as their larger counterparts. Today a small, entrepreneurial business can do business on the Internet alongside a behemoth like Walmart and look just as big, and just as professional. Still, if you ask the averagesmall business owner if he's using technology in his business, he may point to the PC in the corner of the office and say "yes”. The reality is, however, that although 75 percent of small business owners claim to use computers in their businesses, most are still using them as expensive typewriters and calculators. Many business owners claim to havewebsites but, for the most part, they are void of compelling content and are used only to present static information.
When you ask these same business owners what their competitive advantage is, they typically reply with such phrases as “niche market," “customer relationships”, and “unique products”. Rarely do you hear about a business owner who is using technology to propel the business ahead of its competitors. Why is that? The answer lies in the fact that most small business owners still see computer technology as an efficiency tool instead of as an investment in the future success of their businesses, and that's a critical mistake.
Studies have shown that the No. 1 reason for business failure is poor management. And technology strategy is most certainly a management issue. Technology has changed the fundamental ways in which business should be conducted. We now expect business transactions to have an immediacy they never had before both in the ability to send and receive information and the ability to access information. We now expect a higher standard of appearance because of the availability of desktop publishing, and we expect to be able to conduct business from anywhere in the world.
Technology is no longer an optional expense for small businesses; it has become a strategic investment that helps entrepreneurs run their businesses smarter and leaner. It is a baseline asset that you invest in just as you invest in equipment and employees. Therefore, it is important that your technology investment supports your business goals. Technology only has value when it is connected to a defined business objective.
Before investing in technology, you need to reach a critical decision point about your business model, so you can decide which business systems are necessary to support that model. Knowing how technology can affect your business model and market reach should be a part of that initial decision making process.
While a web site is a given in today’s tech-driven environment consider using technology:
·To market business aggressively ·To support brand building ·To facilitate and speed product development ·To gather marketing and competitive research ·To speed organizational processes ·To speed operational processes ·To manage information ·To manage customer relationships ·To build a network of strategic partners
