NFIB

The Age of Technology
04/ 15/ 2002

As the Millennium year gets underway, business owners are thinking about how to gear up their companies for tech gear to become even more elaborate and fast-paced. With technical advances taking place on an ever-escalating basis, there is a widespread fear of being left behind. Simultaneously, there are the ominous rumblings of companies where e-trade is a losing proposition and other sobering reports. In today's Workshop, Edith Helmich discusses how to effectively incorporate technology into your business while keeping with the changing times.

Companies must not only choose wisely on how to spend their money, but also determine how much of their capital should go into which, if any, of the emerging technologies. Decisions must be based on where improvements are most needed and whether the company is adequately prepared to enter some of the new technology areas.

Computerized company business records -- employee files, inventories, financial records, and customer data -- are fundamental technology for companies of any size today. Whether these data are kept on floppy disks for a single computer or coordinated for intra-company networking by office staff, the ease, accuracy and efficiency of keeping computerized records is more than sufficient reason to invest in the necessary equipment to implement an up-to-date record system. Although that could mean acquiring the initial computer equipment, most businesses are apt to be in the market for hardware updates or supplemental software programs.

Company websites for the internet are increasingly popular for businesses of all sizes. The cost of designing and establishing a website is a manageable expense for most businesses. The question, however, is the use that the website will serve. A site might be used for public relations, advertising, or direct sales. Each of these objectives have different implications for the business in terms of impact and cost.

Public Relations Websites are designed to improve the image or reputation of the business. New businesses or new products need exposure to develop name/brand recognition prior to a strong marketing campaign. Positioning the site so that search engines associate the business with other well-known and reputable business leaders is very important. Piggy-back associations to increase traffic on the site are useful. A site visitor count is the preferred evaluation tool, and the site requires little or no monitoring.

Advertising Websites are aimed at attracting new business. The company listing may be part of a collective regional or specialized-category website in an attempt to attract the attention of potential new customers. The focus is on contact information, location maps, and current offers designed to lure customers to the place of business. Some sites also offer e-mail communication, in which case the site must be serviced daily to insure prompt responses. Evaluation consists of aggregating data on increased sales that can be attributed to the website advertisement.

E-commerce (Direct Sale) Websites offer customers the opportunity to buy online. Expert assistance in setting up the site is essential. An effective sales site offers credit card charge options with security provisions. (Mail-in payment provisions expand the offering to a mail order business enterprise.) Extensive graphic representations of the items for sale are necessary. The ease of shopping electronically is very important for the customer. Companies must have adequate inventory to promptly fill orders, adequate staff to service the site and ship orders, and sufficient funds to set up these processes before making the online offer. Those who do not face dismal results. Although a good website design can be expensive, an amateurish site will probably be a total waste of money.

Technology can help to deliver your company's future success or wash away an ill-planned investment. Not all technological investments even when smart will enhance the bottom line. The goal is to keep up without overextending your business resources.

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