SMEs want it easy

Mobile devices need to be easy to use, and not cheap, according to a survey of 1 000 small business owners in SA.

The report, Mobility 2009, comprises research among 1 000 consumers, 1 000 SMEs and 240 large enterprises in SA. The study is being conducted in four phases, with the first three looking at the use of mobile technologies by SMEs, corporations, and consumers, and the final phase exploring the mobile Internet.

Findings from the enterprise project will be released at the end of September, and the consumer findings at the end of October. The research project is being conducted by World Wide Worx and backed by First National Bank (FNB) and Research In Motion (RIM), the company behind the BlackBerry handset.

One of the initial outcomes is that cellphones, smartphones and other mobile devices do not have to be cheap, as long as they are easy to use, are of high quality, and are dependable.

“The findings of this survey demonstrate clearly that small business owners attach a high value to the benefits of staying in touch with clients and colleagues at all times, wherever they are,” says Deon Liebenberg, regional director for sub-Sahara Africa at RIM.

“Dependable, easy-to-use and high-quality mobile solutions pay for themselves quickly by enabling small businesses to be more responsive, efficient and productive, and allowing them to do more with fewer resources,” Liebenberg adds.

SME owners and decision-makers consider a range of other factors before price enters the picture for purchase decisions. For no less than 80% of the businesses surveyed, 'ease of use' was an important criterion, while 79% rated 'quality' as important. 'Maintenance' and 'reliability' were a little further behind, with 74% and 72% of respondents respectively rating these as important.

Only then, in fifth place, came 'price', with 64% of respondents rating it as important. At 52%, the least important criterion for SMEs was 'company procurement policy' - largely because most SMEs don't have a formal policy.

“Whether you are designing a phone or a cellphone banking service, ease of use and consumer education are critical for users,” says Len Pienaar, CEO of FNB's Mobile and Transact Solutions.

“These findings explain why many seemingly valuable and useful technologies, tools and applications are not embraced by SMEs,” says Arthur Goldstuck, MD of World Wide Worx.

He points out that, while marketing campaigns for cellphones in SA have traditionally relied heavily on the power of brands, the survey shows that brand loyalty is no longer a factor in the mobile market. Only 55% of respondents rated 'brand loyalty' as important, which in itself would be significant, but becomes largely irrelevant in contrast to other factors.

“This suggests that the mobile arena is about to undergo fundamental changes in market structure and dynamics,” says Goldstuck.

The mobile handsets market in sub-Saharan Africa is expected to continue to achieve high growth, long after the number of mobile subscriptions has started to decline. This will be true particularly for the low-end devices segment, although rising migration to middle and high-tier devices by both existing and new subscribers, due to price declines, will also support market expansion.

New analysis from Frost & Sullivan finds more than 139 million handsets were shipped to sub-Saharan Africa in 2007, and this is expected to reach 400 million by 2014.

“High growth in the new subscriber base is currently spurring demand for mobile handsets,” says Frost & Sullivan ICT industry analyst Spiwe Chireka. “Growth in the low-end devices sector is increasing the availability of relatively affordable handsets.”

Mobile subscription growth in sub-Saharan Africa is higher than the global average. Several handset vendors have made a concerted effort to expand their low-end device offerings to more effectively penetrate the region.

However, mobile network capabilities in the region still lag far behind that of devices. As a result, users in the region are deprived of a complete experience, despite significant improvements in the devices to support various applications, notes the research company.

Additionally, most devices are designed to better support data and broadband applications, and the high cost of these services limits the uptake of the devices designed for this purpose. Therefore, low-end devices remain the key driver of growth in this region.