04/ 02/ 2007
by Shannon McRae
Using technology to look--and function--like your large competitors
Good things come in small packages--including talent. That's why huge brands like Yahoo and Warner Bros. rely on an 18-person creative development firm in Kutztown, Pa., for their Web-development and design needs.
"I guarantee you that we're perceived as bigger by most of our clients initially--because of our professionalism, use of technology and the way we do business," says James Sposto, who started Sposto Interactive (www.sposto.com) with his wife, Caroline, 11 years ago. "By the time they realize we're not as big as they thought, it doesn't matter."
"Technology helps small firms compete in many ways, especially when it comes to winning customers," says Bruce Phillips, senior fellow at the NFIB Research Foundation. "Using a nationwide or region-wide marketing approach can drive potential customers to your Web site and hopefully make you competitive in more markets."
As pervasive as it has become in the business world, technology takes the credit for helping many smaller firms function like their large competitors. Big corporations are less likely to shun smaller vendors today, as long as those independent businesses have the capabilities--most likely the technology--to deliver. The technology Sposto employees have created helps them be "as valuable to our clients as a large firm," James says.
The company's extranet is one of the most visible ways it uses technology to enhance its customers' experience. "We rarely see our clients in person, other than a trip to visit them maybe once a year," James says. Instead, much of the back-and-forth with clients is done on Sposto's extranet, which employees designed from scratch. Clients log in to the professional-looking extranet to view design concepts, monitor budgets and contracts, and share ideas with larger groups. The tool is a selling point as well. "We use the same technology when we're presenting proposals so potential clients see how easy it is to work with us."
You don't have to be as technically proficient as Sposto's employees to implement helpful technology in your business. There are off-the-shelf applications that can help employees in any industry work smarter. You just have to understand the value--and be willing to invest.
"We had to expand our budget when developing the extranet," James says. "You have to account for the time of people who were working on it instead of on paying jobs. But like any other internal investment, if it helps you work more efficiently and serve your clients better, it will pay off."
Technical Advantage
Follow these smart tips for using technology to gain ground against big and small competitors:
- Set great expectations. Don't let your company's size limit you. While you probably can't afford the systems used by global corporations, many off-the-shelf products can be customized to help your employees get more done in less time.
- Spend wisely. You have to spend money to make money. Don't avoid investing in tools that will help you attract new business. At the same time, you don't need every bell and whistle out there.
- Consider your staff. James Sposto battles employee pushback by making sure all upgrades are worth it. "When you're reviewing technology you're about to implement, ask yourself, 'Is it insanely useful?'" Make sure the technology is helpful enough that it's worth employees' time to learn how to use it. "If it's not, it's not a justifiable expense," he says.
- Stay human. People still count. Technology should enhance--never replace--customer service. "We're always cognizant not to let technology replace the human touch," Sposto says. "We only use technology if it produces an advantage for the customer."
