President John F. Kennedy, when seeking to explain how general economic well-being benefits everyone, said, “A rising tide lifts all boats” — the small fishing launch as well as the Kennedy family yacht.
Nowhere is that more true than in the field of business technology. The quantum leap in speed, power and affordability of computer and other technology capacity has done more to even the playing field between large corporations and smaller companies than any other single factor in the past 30 years. This translates into tremendous competitive advantages for small businesses who know how to use technology well.
Small mail order businesses can now immediately access past buying records of customers who call in orders, determine the availability of products, make the charges, and initiate the packing and shipping — all at minimal expense and with a minimum of training. Small manufacturers and distributors can give overseas distributors access to computer networks that allow viewing of backlogs, inventories and other essential information.
As a matter of fact, technological advances are so taken for granted that customers have come to expect the speed and efficiency of service technology offers, and they gravitate toward the small business offering better service.
Hewlett-Packard has researched some of the most outstanding ways small businesses are benefiting from judicious use of technology. Technological investments for small businesses should be able to show an impact in one of the four following broad categories:
Automating business functions. The beauty of computers for many small businesses is simply in the ability to automate a host of repetitive tasks, from writing form letters to billing customers to updating budgets. Data is managed easily, and can be re-used or changed slightly, saving on labor costs.
Improving productivity. Newer software is allowing small businesses to produce tax returns, maintain contact lists and develop professional presentations much more quickly than ever before. Less and less specialized knowledge and expertise are required to perform more and more tasks, and the increased data storage capacity afforded by CD-ROMs provides even more flexibility.
Enhancing communication and mobility. Cellular telephones and e-mail are making it easier than ever for everyone in a business to stay in contact, regardless of location. Business partners in New York, Buenos Aires and Istanbul can collaborate virtually on projects, without buying a single plane ticket or renting one hotel room. Enhanced communication allows for flexible schedules and work arrangements, including having home-based employees.
Improving marketing effectiveness. Small companies can now maintain direct mail databases, and entrepreneurs can avail themselves of the rapidly expanding number of online computer services, such as America Online and various Internet Service Providers, for direct marketing to targeted interest groups.
