While most small and medium enterprises (SMEs) are now connected to the Internet, they are not harnessing the true benefits of this powerful business tool.
When examining the business processes of SMEs, it becomes apparent they are possibly unaware of the benefits and transacting abilities of Internet technology. By not fully utilising the Internet to conduct e-commerce, SMEs are simply communicating via the Internet.
What needs to happen is a growing awareness of the Internet`s business advantages, emphasising the abilities of Internet technology. It has become imperative for ISPs to translate the benefits of utilising the Internet as a business tool into tangibly quantifiable benefits for the SME owner. Illustrating how efficiencies can be improved and cost savings realised are the key issues facing local ISPs.
So said Carine Conradie, Marketing Manager of premier Internet service provider (ISP), DataPro. "Many smaller companies just don`t have the resources - or knowledge of the Internet - to implement i-commerce (Internet commerce) plans and to establish the required infrastructure.
"ISPs, however, have to add value to their customers` businesses by advising them how to go about harnessing i-commerce."
Limited budgets and knowledge are the main stumbling stones on the SME`s road to improved productivity. Smaller companies cannot really afford to hire experienced IT managers and so they really just stick to using e-mail and keeping their network running smoothly. Although some SMEs have realised the value of Internet banking and are cutting costs by using the Internet to pay creditors and salaries, the majority are not using the tool to streamline their business processes.
"We are focusing quite heavily on defining ways the Internet can boost productivity and efficiencies, not only for SMEs but also for our emerging corporate customers. Indeed, we have a new business strategy to partner with our clients in an endeavour to cut their transaction costs and to highlight ways in which they can boost productivity. Although a large percentage still only use the Internet to send and receive e-mails and to bank, there is, certainly from what we can detect, a grassroots interest in how to take this further."
A recent South African Internet study - which was started in June 2002 - researched a total of 2 000 companies in order to come up with its findings. Interestingly enough, when the companies where asked how reliant their businesses were on the Internet, the majority (57%) said they were less than 10% dependent on the Internet.
"The report," said Conradie, "suggests that there is a rift between small and large companies when it comes to harnessing the Internet. However, despite the findings of the report, I believe this apparent rift will be reduced over the next few years. Right now smaller companies are hamstrung by cost and lack of capital, but once some start seeing the benefits of investing further in the Internet, others will follow suit."
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