Big Data. Big Decisions
InformationWeek
Special Coverage Series


Top 10 Misconceptions About SMB Technology Needs

Growing companies face constant pressure to do more with less and to improve IT capabilities to keep pace with competitors. With every dollar crucial, IT and business decision makers can't afford any of these missteps.

BrianBurch
Brian Burch, HP
Small and midsized businesses (SMBs) are in the spotlight as the US pulls out of its recent economic turmoil. Although they are small in size, they are large in number: roughly 75 percent of all businesses in North America are SMBs. In 2010, they comprise a total addressable technology market of $55B in the U.S., making them a key component of the U.S. economy.

Traditional SMBs as well as "accidental entrepreneurs" (laid-off workers who started their own company during the recession) all feel the need to "do more with less employees", but surviving in the technology age and global marketplace can be overwhelming, and keeping up to date with latest technologies cost prohibitive. While many SMBs have in-house IT staff, IT decision making too often falls to senior managers or owners, who may have little experience or knowledge about IT.

It's no wonder that many decision makers feel that IT is too complicated and that they cannot manage the necessary changes to remain competitive. As a result, SMB decision makers inadvertently develop misconceptions about their technology needs. The most common misconceptions include:

1. "I Don't Need An IT Strategy."

SMBs clearly have growth potential (some of the largest businesses in the world began in a garage with one or two people), but few have a strategic IT plan. This is usually due to a lack of understanding of why an IT plan, even for a "one man show" is important. For most SMBs, IT infrastructures are built on an "as needed" or fragmentary approach, only investing as projects occur and with little consideration for how the investment will support the company's overall IT strategy.

A well developed and executed IT plan will ensure the right technology is implemented, improving customer satisfaction results and meeting company needs. Without an explicit plan, technologies are introduced into the company without focus and can diminish employee productivity and customer service.

Recent results of a 2009 Microsoft study showed that 55 percent of SMBs consider IT a critical component of their business. Of these, 60 percent saw revenue growth over the past 12 months. Among SMBs that stated that IT was not important, fewer than 29 percent saw an increase in revenue. Developing an IT strategy is a means to achieving long-term success. If you haven't defined your goals, it will be difficult to reach them.

2. "I Can't Afford IT Expertise."

The most obvious contrast between SMBs and larger organizations is that many of the former do not have dedicated in-house IT departments to ensure that the right technology choices are being made. The above-mentioned Microsoft study cites an interesting statistic from AMI Partners: only about one-third of small businesses have dedicated IT staff, while the rest rely upon retailers, manufacturers and local IT partners. The person or people who are forced to handle IT decisions, in turn, are inundated with information about technology issues in addition to running the company. As a result, information falls through the cracks and costly mistakes can occur.

Smart SMB decision makers stay informed and turn to local IT solution providers for help. These companies have technical knowledge and broad expertise and can help find the best solutions to fit a company's needs and budget. Unfortunately, it often takes a security breach or other business-crippling event for SMBs to realize that IT expertise is just as valuable as a good lawyer or accountant. Many SMBs believe they can't afford IT expertise, but the truth is, they can't afford not to have it.

 1 | 234  | Next Page »


Related Reading


More Insights




Currently we allow the following HTML tags in comments:

Single tags

These tags can be used alone and don't need an ending tag.

<br> Defines a single line break

<hr> Defines a horizontal line

Matching tags

These require an ending tag - e.g. <i>italic text</i>

<a> Defines an anchor

<b> Defines bold text

<big> Defines big text

<blockquote> Defines a long quotation

<caption> Defines a table caption

<cite> Defines a citation

<code> Defines computer code text

<em> Defines emphasized text

<fieldset> Defines a border around elements in a form

<h1> This is heading 1

<h2> This is heading 2

<h3> This is heading 3

<h4> This is heading 4

<h5> This is heading 5

<h6> This is heading 6

<i> Defines italic text

<p> Defines a paragraph

<pre> Defines preformatted text

<q> Defines a short quotation

<samp> Defines sample computer code text

<small> Defines small text

<span> Defines a section in a document

<s> Defines strikethrough text

<strike> Defines strikethrough text

<strong> Defines strong text

<sub> Defines subscripted text

<sup> Defines superscripted text

<u> Defines underlined text

BYTE encourages readers to engage in spirited, healthy debate, including taking us to task. However, BYTE moderates all comments posted to our site, and reserves the right to modify or remove any content that it determines to be derogatory, offensive, inflammatory, vulgar, irrelevant/off-topic, racist or obvious marketing/SPAM. BYTE further reserves the right to disable the profile of any commenter participating in said activities.

Disqus Tips To upload an avatar photo, first complete your Disqus profile. | View the list of supported HTML tags you can use to style comments. | Please read our commenting policy.

Follow InformationWeek

By The Numbers

What Are Your Primary Concerns About Using Big Data Software?

Base: 417 respondents at organizations using or planning to deploy data analytics, BI or statistical analysis software
Data: InformationWeek 2013 Analytics, Business Intelligence and Information Management Survey of 541 business technology professionals, October 2012

What Do You Think?

What's your attitude about SQL analysis on top of Hadoop?
We want fast, standard SQL analysis capabilities on Hadoop ASAP
Hadoop is for unstructured data; SQL is for relational databases
We'll give SQL on Hadoop a try, but relational DBs will remain the mainstay
Given strong SQL support on Hadoop, we'd nix the data warehouse
We're not interested in Hadoop
No opinion



Related Content

From Our Sponsor

Five Big Data Challenges and How to Overcome Them with Visual Analytics

Five Big Data Challenges and How to Overcome Them with Visual Analytics

Business leaders often need a visual snapshot of data to quickly grasp and use it. This paper identifies five challenges in presenting data and how visual analytics can resolve them. Solutions are suggested to overcome the challenges of: speed, data clarity, data quality, displaying meaningful results, and dealing with outliers.

Game-Changing Analytics: How IT Executives Can Use Analytics to Create Innovation and Business Success

Game-Changing Analytics: How IT Executives Can Use Analytics to Create Innovation and Business Success

Today's competitive advantage requires a deeper understanding of your business, your market and your customers. As an IT executive, you can drive that knowledge transformation. In this white paper, learn how to make decisions as a strategic business leader and three steps to begin an analytics initiative within your enterprise.

Data Visualization Techniques: From Basics to Big Data with SAS Visual Analytics

Data Visualization Techniques: From Basics to Big Data with SAS Visual Analytics

High-performance data visualization turns sophisticated analyses into meaningful graphics, leading to faster and smarter decision making. In this white paper, learn how visual analytics can transform big data, with additional features such as real-time functionality, mobile compatibility, robust applications for technical groups and accessibility for nontechnical users.

Big Data: Lessons from the Leaders

Big Data: Lessons from the Leaders

Financial performance, competitive advantage, operational efficiency, strategic decision making - every business goal can extract value from big data, and the time for doubt or inaction has long passed. In this Economist Intelligence Unit report, in-depth interviews with data pioneers reveal the link between the effective use of big data and the bottom line among other results.

Decision-Driven Data Management: A Strategy for Better Decisions with Better Data

Decision-Driven Data Management: A Strategy for Better Decisions with Better Data

Which came first, the data or the decision? This white paper makes the case for having a decision in mind, then tailoring big data's volume, variety and velocity to achieve business results such as overcoming customer dissatisfaction or creating well-informed strategies in real time.

Informationweek Reports

Research: The Big Data Management Challenge

Research: The Big Data Management Challenge

The challenge of big data is real, but most organizations don't differentiate 'big data' from traditional data, and nearly 90% of respondents to our survey use conventional databases as the primary means of handling data. We'll help you understand what constitutes big data (it's not just size) and the numerous management challenges it poses.