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How to Move from Buying Technology to Buying Services if you are an Australian SME
Longhaus, May 2009, Pages: 12
In October 2008 Longhaus conducted an interim small-scale study into the ICT practices of Australia’s SME market across 35 organisationsi. The initial results provided directional evidence of the core challenges faced by ICT vendors and suppliers attempting to access the SME market. A key observation was the lack of adoption by SMEs of ICT services specifically designed for this market. Instead, a consumer product-oriented mindset combined with the continued lack of formal ICT planning and budgeting suggests that many SMEs are simply unaware of the key decision points required to develop an ICT strategy. Yet the value of an established ICT strategic plan for the SME is the same as for large enterprise and represents a key part of the business strategy that should be developed and retained. Fortunately the scale of the ICT portfolio for SMEs means that an initial ICT strategy can begin with a simple assessment no more onerous than a meeting with the technology equivalent of a financial advisor or accountant.
ICT as a service delivery enabler has risen to meet the demands of the Small-to-Medium Enterprise (SME) business owner while at the same time becoming infinitely more affordable. However the SME ICT market in Australia can be summed up in four words: no plan, no budget. Instead, SMEs continue to take a DIY approach to technology, but with new as-a-service and zero up-front offerings emerging, Australia’s typical SME now stands at a cross-road of technology maturity. There has never been a better time for smaller firms to reinvest in technology for the future with Government tax incentives for capital investment at an all time high. For the next round of spending that is occurring by SME business owners the means to truly improve productivity and business growth through ICT cost savings is simple: less technology, more expertise. To achieve this transition SMEs must first make five key choices which will identify the appropriate partnership type with a matching service provider to secure the much needed ICT expertise within their business. SMEs should not be afraid to start again with technology. A “big reset” approach will go a long way to creating a long-term and stable ICT foundation.
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