SME Technology Summit final

Slide 1: 

Tim Pethick nudie Founder Entrepreneur-at-Large and Expert Presenter on Kochie’s Business Builders SME Technology Summit December 2009 What is technology and how can I leverage it? A Context

My role this morning - Technology : 

My role this morning - Technology FROM THE PERSPECTIVE OF A SMALL BUSINESS OWNER Provide some context Clear up some confusion Provide some definitions Debunk some myths Highlight some opportunities Provide some tips and shortcuts

Small Business & Technology : 

Small Business & Technology Typically: CONFUSING OR EVEN BEWILDERING Web 2.0 The Cloud SEO/SEM Neural Networks Crowdsourcing VOIP Virtualisation blogs

Small Business & Technology : 

Small Business & Technology Typically: TOO HARD; TOO EXPENSIVE

Small Business & Technology : 

Small Business & Technology Typically: DON’T UNDERSTAND; NO DEDICATED IT RESOURCE

As a result..... : 

As a result..... SME’s are underutilising and under-investing in technology Viewing technology as a cost rather than an investment

What the stats are telling us.. : 

What the stats are telling us.. 9 in 10 SME’s don’t measure the benefits of IT or have a required return on investment The average investment in IT for SME’s is around 6% of capital employed vs. 14% for large businesses Only 38% saw IT investment as a “priority” despite 78% recognising technology could improve efficiency and 31% believing it could cut costs Why weren’t more investing in IT? Cost/Lack of Funds (42%) Underutilisation of existing technology (35%) Lack of Computing Skills (24%)

What the stats are telling us.. : 

What the stats are telling us.. Those who took the leap saw business benefits: 92% claimed an increase in efficiency 82% said it helped achieve their business goals 73% said it reduced costs 64% found it helped their business increase revenue 62% said it increased their geographic reach CPA Information Technology: Its impact on Small Business 2007

More sobering stats.... : 

More sobering stats.... In 2009 ONLY 58% of small businesses in Australia have a website There are more than 1,000,000 small businesses in Australia yet fewer than 50,000 (5%) have used search engine marketing or search engine optimisation 2009 Sensis Small Business Technology Index

The conclusion : 

The conclusion OPPORTUNITY There is a huge opportunity for Small Businesses in Australia to use technology: Improve overall business performance Increase revenue Connect with customers in a new way

What is technology? : 

What is technology? COMPUTERS, COMMUNICATION, NETWORKS, APPLICATIONS, PERIPHERALS (DEVICES) The Web Online marketing Web 2.0 YouTube Blogs Cloud Computing/ SaaS/Web Apps Back Up/ Data Recovery Virtualisation Crowd Sourcing Social Networking VOIP Mobility Industry/Business Specific ‘Smart’ Applications

The Web : 

The Web

These days a website is mandatory : 

These days a website is mandatory

Websites – Which Sell : 

Websites – Which Sell

Web Sales : 

Web Sales

Website - Tips : 

Website - Tips

A Word Press Site : 

A Word Press Site

A YouTube Website : 

A YouTube Website

Online Marketing : 

Online Marketing Less than 58% of small businesses have a website 75% of people haven’t used the yellow pages in the last 12 months 80% of people use the web to research purchase decisions’ There are more than 1 million small businesses in OZ; less than 50,000 have used search marketing Fish where the fish are Get online!

SEM Ad Programmes : 

SEM Ad Programmes

A tale of two campaigns.... : 

A tale of two campaigns.... Direct Mail (Snail Mail) Google Ad Words

A tale of two campaigns.... : 

A tale of two campaigns.... Direct Mail (Snail Mail) Design and Artwork Determining Target Sourcing and renting list Engaging Distribution House Printing Distribution TOTAL MAILED 4,750 TOTAL COST $9,860 COST PER UNIT $2.07 ‘DEAD’ LETTERS 283 (6%) RESPONSE 2 CPR $4,930 REVENUE $290 LOSS $9,570 Google Ad Words Determine Key Words Determining Budget Set up Campaign TOTAL CLICKS 1,735 TOTAL COST $1,300 COST PER CLICK $0.75 RESPONSE 82 CPR $15.85 REVENUE $11,890 PROFIT $10,590

Not Just Advertising... : 

Not Just Advertising...

Web 2.0 – The Interactive Web : 

Web 2.0 – The Interactive Web

YouTube Channel : 

YouTube Channel

Video - Tip : 

Video - Tip

Blogs : 

Blogs

Tall Tim’s Blog : 

Tall Tim’s Blog

Cloud Computing : 

Cloud Computing SaaS Web Apps

SaaS : 

SaaS

Web Apps - Collaboration : 

Web Apps - Collaboration Project Management Knowledge Sharing - Wikis Meetings Calendars CRMs

Web Apps - Collaboration : 

Web Apps - Collaboration

Disaster! : 

Disaster!

Online Back up and Recovery : 

Online Back up and Recovery

Virtualisation : 

Virtualisation

Remote Use of Resources : 

Remote Use of Resources

Crowd Sourcing : 

Crowd Sourcing The Power of the Crowd Infinite, inexpensive, skilled resource for SMEs

Crowds : 

Crowds

Crowds : 

Crowds

Crowds : 

Crowds

Crowds : 

Crowds

Crowds : 

Crowds

A crowd sourced ad campaign : 

A crowd sourced ad campaign Unilever drops agency of 16 years in favour of the crowd

Social Networking : 

Social Networking

Social Networking : 

Social Networking

Does it live up to the hype for SMEs? : 

Does it live up to the hype for SMEs? Social Media is....well, “Social” Gary Vaynerchuk – Sommelier/Wine Business morphed into ‘social marketing guru’ Thos that seemingly can make it work in business are well known, well established brands May not be the best place to build a brand

Dell Campaign : 

Dell Campaign $3m sales from twitter over 12 months vs. $16bn a quarter 628,000 followers = $4.77 per follower ‘Hard’ ROI vs. ‘Soft” ROI

Greater ‘hard’ ROI from cost savings : 

Greater ‘hard’ ROI from cost savings A Better Customer Experience A Cisco study in 2004 found that 43% of visits to online support forum are in lieu of opening up a support case through standard methods. Cost per interaction in customer support averages $12 via the contact centre versus $0.25 via self-service options. (Forrester, 2006) Jupiter Research (now Forrester) reported in 2006 that customers report good experiences in forums more than twice as often as they do via calls or mail. Ebay found in 2006 that participants in online communities spend 54% more than non-community users.

Use of Social Networks : 

Use of Social Networks Not as useful as an ad solution However, great to: Engage and inform customers Interact with them Provide more effective customer service Monitor the conversation about your business or brand

Use social media to monitor and converse : 

Use social media to monitor and converse

Monitoring : 

Monitoring

Conversation : 

Conversation

VOIP : 

VOIP Virtual PBX Number Portability Inexpensive Calls Employee Flexibility Better Customer Service

Mobility : 

Mobility Apps Streamline Logistics “Always On” comms Customer Service

Mobility Revenue Generation : 

Mobility Revenue Generation Pizza Hut iPhone app generates $1m of sales in 3 months Hard to find SMEs who have yet jumped in

Industry Specific ‘Smart’ Applications : 

Industry Specific ‘Smart’ Applications Designed to address specific industry or business issues Demand Forecasting – nudie’s nightmare

Conclusion : 

Conclusion Technological change is accelerating Rather than a threat it provides a rich opportunity for SMEs prepared to engage Increased revenue; decreased costs; greater efficiency; much, much better customer engagement Access to a larger market It is not as costly or as daunting as many fear Take the plunge: Get into it!

Resources: : 

Resources: Web Apps http://www.cogniview.com/convert-pdf-to-excel/post/the-freelancers-toolset-100-web-apps-for-everything-you-will-possibly-need/ www.webex.com www.gotomymeeting.com Web 2.0 www.wordpress.org Boone Oakley on YouTube www.pitchengine.com www.blogspot.com www.saasu.com www.livevault.com.au www.gotomypc.com Crowdsourcing www.guru.com www.elance.com www.crowdspring.com www.99designs.com www.conceptfeedback.com www.ideabounty.com