IT trends affecting small businesses

Katherine Bennett, Director and General Manager, Medium Business Dell UK explains how SMBs are investing in IT to achieve business growth

Research shows that in order to increase productivity and drive business growth, small and medium businesses (SMBs) are increasingly investing in IT. The recent Technology Trends survey, conducted by Dell and the Institute of Directors (IoD) revealed that 85% of respondents who sought growth for their business cited technology as a key driver.

New technologies such as mobile broadband, often provide solutions to business concerns such as staff retention, reduction of overheads, improving productivity and legislation compliance. It increasingly appears that SMBs lead the way in rapid adoption of new technologies and many have already invested in areas such as mobility, data security and business continuity in order to retain their competitive edge.

Investments in these technologies are set to continue unabated but the drivers for investment may vary from business to business.

Increasing adoption of notebooks

According to analyst firm IDC, notebook shipments in EMEA grew 27.5% year on year from 2005 to 2006. As notebook computers become smaller, lighter, and more powerful, with an impressive number of features at affordable prices, it is not surprising that an increasing number of small businesses are choosing to invest in notebooks.

This increase in notebook adoption is also indicative of another growth area for SMBs: mobile working.

Increase in mobile and flexible working

There are a number of business benefits an organisation can gain from investing in mobility. The improved work-life balance provided by flexible working can help with staff retention. The possibility of working from home, also allows businesses to base their employment decisions on skill rather than location. Productivity can be increased by ensuring employees are connected to email and data servers on the move. Businesses can operate for longer hours, across different time zones and queries can be dealt with by remote-workers. Also, employees can spend more time with customers and clients and less time visiting the office or travelling.

The Dell/IoD Technology Trends survey shows that the use of wireless technology has grown 20% since 2004, when 57% of survey respondents used wireless technology in their business, compared to 77% in 2006.

Technologies such as 3G-enabled notebooks are reducing barriers to adoption and providing more options for businesses to find solutions that meet their specific requirements, allowing for continued growth in this area.

Data security and business continuity planning

With an increasing number of businesses adopting mobile and flexible working, wireless connectivity is commonplace within business. Despite the advantages of wireless technology, security concerns can often be the main reason businesses have not fully embraced it, with 68% of respondents in the Dell/IoD Technology Trends survey admitting to being concerned about data security.

By utilising protocols such as authentication and encryption, in combination with security measures for wired networks, such as patch management and firewalls, organisations can enjoy the benefits of wireless working without exposing their business to unnecessary security threats.

However, data security extends beyond just network security. Losing vital information such as accounts payable, accounts receivable or inventory management can be a devastating blow to a small business.

In order to safeguard against natural, competitive and unplanned threats, we can expect to see increased investment in business continuity planning, including back up and recovery solutions, as well as the implementation of archiving policies to prioritise business-critical data.

Compliance

Many of the recent business continuity planning concerns have arisen from legislation requirements. Small businesses with less than $250M in revenue expect their IT budgets to grow by a robust 12.4% in 2007, according to a recent AMR Research study on IT spending in Europe. Security and compliance-related initiatives represent at least 17% of IT budgets, according to the AMR Research survey.

Understanding and complying with a growing matrix of laws and regulations can be a challenging and expensive task. However, the non-financial cost of non-compliance can be high too. Businesses across all sectors can risk litigation and criminal penalties if they do not comply with data protection and regulatory legislation.

Nonetheless, compliance represents a business opportunity, rather than a threat. By complying with legislation, companies can improve security and the efficiency of back-up, as well as reduce unplanned downtime which can have a positive effect on business efficiency, productivity and customer service.

Web 2.0

Online identities are becoming increasingly common, both for individuals and for companies. Having a presence on the internet, beyond the basic website offering, is a great way to raise brand awareness and customer loyalty and these tools can be especially useful for small businesses which may not yet have large marketing budgets.

If the current popularity of blogs, podcasts and social networking sites are anything to go by, the next few years should see an explosion in the number of businesses choosing to tap into the audiences these tools attract.

Environmental awareness

Energy efficiency and carbon neutrality have been a hot topic for all businesses in 2006.

With energy costs making up the lion’s share of a company’s operating costs, and technology making up the largest proportion within those energy costs, energy efficiency initiatives can significantly impact a small business’ overheads.

The next couple of years should see the introduction of an increasing number of energy efficient and carbon neutral business machines, be they notebooks, desktops, workstations or servers.