Free Essay

How Can Small and Medium- Sized Companies Benefit from the Use of Business Technology Software?

In:

Submitted By donbaul
Words 1637
Pages 7
How can small and medium- sized companies benefit from the use of business technology software?
The purpose for the majority of the small and medium-sized companies is to improve their sales or growth. Nowadays, the online sales and the electronic data analysis represent a crucial phase to achieve this. Since a considerable number of years now, the use of software in the decision making by the large companies has been a regular practice. The competition this business faces is fearful, and the decisions are in some cases critical. On the other hand this scenario does not always apply for the small and medium ones. There are three main reasons for this.
First, their sales are not as considerable as they can be for the large business. This means they do not confront the same decision-making pressure as the large ones do. Furthermore the potential negative consequences from bad decisions do not impact as hard as it does in large business.
Second, the characteristics inherent to this type of business such as the attraction of customers according the location and design of the facility, or the extensive display of goods to facilitate the selection of them (1) generates often a switch of consumers. Ergo, purchases from another business due to attractive circumstances, for instance provisional especial price in a product or service are common situation. As a result the potential “single-time custo{NOTE:no se si es correcto poner esto entre comillas}mers” can provoke a significant variability of consumers.
Third, the early development of the company itself can be a family whom traditions and habits can influence the decisions. In this instance the hierarchical position plays a central roll in the decision making process. In several occasions this decisions are made experience-based and what is more risky, ignoring the market trends. Moreover in other cases, there is not a specific department or person in charge of neither the decisions nor the direction the company must go.
The loose of one client, although is not the ideal scenario, cannot compromise most of the profits in the company. Nevertheless this altogether can produce a company with a limited customer portfolio despite the large variability of them.
The implementation of new technologies allows companies to significantly increase their ability to achieve favorable positions in both domestic and international markets. However these tools must not represent an excessive expense. Especially in developing countries such as Mexico, the deficiencies of governmental programs to support these businesses, and the capital are limited. Hence this obliges the companies to pursuit low cost tools in order to manage their requirements. In contrast the continuous use of technologies to enhance productivity by the large companies or franchises, has putted progressively pressure in this challenging situation.
“Business intelligence (BI) is an umbrella term that refers to a variety of software applications used to analyze an organization’s raw data.” (Şerbănescu 2011). In addition “the technologies for this support depend on a complex and powerful entity known as warehouse data”. (Stefan 2009) The purpose in this systems type was determined by “the requests of dynamic multidimensional systems able to support the intelligence decisional processes and having predictable abilities.” (Stefan 2009)
There are four core issues in the companies in order to make decisions, data mining, referred to sifting through very large amounts of data for useful information (2) analytical processing, querying and reporting.
To accomplish the activities aforementioned companies must be able to manage data warehouse. Stefan (2009) states that this data aims to support management decision making for business performance. Additionally to data-based decisions there are different options in the market for the small and medium business. And they are ranging from consulting services, sales strategy imitation from other businesses to specific software. However the consulting services present two main disadvantages.
The first one is the price, these services often are expensive and the small companies cannot always have enough money to pay it. Second, using this type of advisory generates certain grade of dependency to it and the company never gets to control and store the information in the warehouse. This represents a crucial phase due to the data warehouse “contains historical and current data with potential interest for managers inside the organization’. (Stefan 2009)
Consequently the option for this business in general can be the usage of software. Nevertheless, there are important issues before the implementation of this technology. Primarily the specificity of the company’s needs, in other words the business objectives. Secondly the trends in the market they are forming part of. This is most of the times the largest challenge for this business due to the economic or human resource limitation.
However this can be compensated when the software offers good features in example alerts capable to create indicators and delivers. Considering the lack of one manager in this business multiple organization options are required. Also integration with other common tools such as Microsoft excels or any other software to manage information is necessary. For the purpose of exemplification the Qlikview software was chosen for two reasons.
First its interface makes it extremely intuitive and easy-to-learn for any user. Second the usage is conditioned to the possibility of being installed not only in a laptop or personal computer. Qlikview is also available for other gadgets that permit the easy and dynamic performance of it. Furthermore the software allows several people work on a single project at the same time permitting flexibility in the use of the information.
These characteristics are adequate in developing countries in Latin America, in particular in the Mexican market. According to the national Institute of Statistics and Geography in Mexico, there are approximately 4 million 15,000 business units of which 99.8% are small-medium sized that generate 52% of the Gross Domestic Product (GDP) and 72% of employment in the country. (3)
Due to this distribution of the market it can be said that in Mexico exist an important proximity between the producers and the suppliers. Under this circumstance the Qlikview software presents the capability to consolidate the data coming from various sources. In this way the rapid an efficient adaptability of the potential changes of the market is guaranteed. Also the software possesses associative logic in other words same names are joined automatically but the designer has the liberty to remove or edit those joins.

Furthermore there has been an increase of internet users from 2008 with a 23.6% to 33.8% in 2010 and the amount continues increasing every year. However in the same period of time there has been only an increase of 5% of the users that made a transaction through the internet (3). There are three reasons that explain this.
First the uncertainty this type of situations produces among the population regarding submitting bank information online. Second the lack of reliable platforms to purchase products safely delivered. Third the inefficacy of the government to produce controls or law to penalize scams or robs. In order to obtain benefits out the software demographical analysis is the main issue. Using information concerning clients and sales data, price sensibility, preferences regarding the products represent in most cases the fundamental topic.
Finally as stated at the beginning, profitability is the main objective for the companies. The financial analysis plays a fundamental role in the activity progress. The analyses on departments, products, and locations, are possible with the Qlikview. The system not only permits to generate a report, but also to store historical information in order to evaluate and compare different periods of time. This is remarkably important for the small and medium sized companies due to the evaluation on specific products. Furthermore it is possible to determine the trend on the market based on these findings.
The permanent development of business technology can find a niche in the small medium business. Basically the amount of information they need to store and analyze is no case comparable with large ones. Nevertheless the complexities these programs are created with are suitable only for the large companies in the first place.

Conclusions
Nowadays one of the crucial phases in every single company is the decision process. To do so companies must consider the challenges of the globalized world. The small medium companies present specific characteristics that create a suitable environment to use new technologies. This must be evaluated according to the needs, objectives, and the financial resources. This scenario is especially present in developing countries, particularly in Latin America.
Small and medium sizes business must develop strategies to keep up with the continuous evolution of the market for low prices. However the business intelligence software does not necessity be deployed unfounded. The company must have, so to say numbers to find. In other words they need to make decisions based in data that position the company in a more competitive place in the market.
The advantages the software such as Qlikview offer are in direct contact with the companies requirements. It is easy and practical to use, the information can be shared and rapidly adaptable. In addition the current data not only support the current decisions. It also functions as a backup for further pronouncements.
The Mexican business market is a suitable example to demonstrate small and medium -sized companies whom interaction is narrowly. Due to this the characteristics this market has showed in the past years proves the availability for the use of BI such as Qlikview. Furthermore the national statistics demonstrate the arousal of the population towards technological progress. This represents a large niche for new technologies implementation. Although there are several changes that need to be completed first such as more support from the government toward this industry. The potential in the this country and its industry for the use and benefit of business technology software in undeniable.

Similar Documents

Premium Essay

Sap Software

...SAP software One of the big advantages of SAP software in general is that it is applicable to any business. For a small business, anywhere from 5-100 employees, the SAP software called Business One is best. There are numerous advantages, including saving money and being more efficient. Compared to other SAP software, it is more affordable and still works effectively. Smaller businesses would implement this software because it does not require a large IT staff to run it, and it takes 2-8 weeks to get it running. They can also run it off of the cloud, which gets rid of some of the hardware costs and space needed to use it. As for the benefits, Business One has many ERP features. It keeps track of all financial information and manages it for the small business. It cuts down on errors and it makes the entire financial process faster (Fertig, 2004). Overall, it allows businesses to make better, more informed decisions. Business One also helps keep track of inventory and production. This reduces costs and time by knowing exactly how much inventory is in the warehouse, and it gives the business more control in ordering and shipping products. When it comes to customers, Business One helps in multiple areas. Not only does it help with support after a sale has been made, Business One includes a Crystal Reports software which helps in gaining new customers. Businesses can analyze sales trends and opportunities, as well as asses the performance of individual departments with the software...

Words: 1407 - Pages: 6

Premium Essay

Saas Technology for Smes

...| SaaS Technology for SMEs | Kriti Soral | Table of Contents Introduction 2 Small and Medium sized Enterprises 2 SMEs in India 3 SMEs and ERP 3 Barriers to implementation of ERP systems in SME’s 4 Strategies used 5 Saas Technology 5 Advantages of SaaS for SMEs 6 SaaS Vendors 7 Case Studies 7 SAP for 10 Users Company- Heckler & Koch GB 7 SaaS ERP for Oxford Bookstore 9 References 10 Introduction Small and Medium sized Enterprises (SMEs) can mostly be considered as responsible for driving the competition prevailing in economic sectors. The definition and standards of a SME is different for different countries. These enterprises play an important role in setting the market trends and with this a need of using Enterprise Resources and Planning systems (ERP) for optimizing and automating their traditional business processes has aroused. But often ERP systems development, implementation and maintenance are very costly which makes it difficult for SMEs to use them. As a solution to these problems ERP system vendors now offer all the facilities of ERP system to the company without actually installing the hardware and software on the client side and this facility is referred to as Saas technology. This paper discusses SMEs of India, barriers of implementing ERP in SMEs, strategies used by ERP vendors and brief description of SaaS technology. Small and Medium sized Enterprises SME sector has been identified as an accelerator for economic growth...

Words: 4196 - Pages: 17

Premium Essay

Erp- Facts, Benefits and Critical Elements for a Successful Implementation in Small Manufacturing Company

...Resource Planning - Facts, Benefits and Critical Elements for a Successful Implementation in Small Manufacturing Company Azhanorhisam Che Din 1. Introduction Imagine a world without technology, and imagine a company without Enterprise Resources Planning (ERP). Perhaps we can still survive without technology, but without ERP, a company may fail to remain competitive as they fail to respond quickly to new practices and procedures. Indeed, a company who quest for competitive advantage in this era of intense competition where business entities compete for innovation, expanding customer’s expectation and internationalization of markets, a company regardless of their size must have a reliable ERP to support them. ERP has proven to be an effective tool for competitive advantage as ERP help to delivery products of the highest quality on time, as quickly as possible and at the best price. Davenport (1998, p.121) suggests that “ERP appear to be a dream comes true as these software promise the seamless integration of the information flowing through a company. Markus et al. (2000) defines ERP as commercial software package that enable the integration of transaction oriented data and business process throughout an organization. The purpose of this paper is to discuss facts about ERP, its benefits and the critical success factors in ERP implementation especially for small manufacturing companies, which is in this paper, will sometime refer to small and medium-sized enterprises (SMEs). The...

Words: 3119 - Pages: 13

Premium Essay

Customer

...where you work. Kudler’s management is interested in effectively integrating technology into its business operations. They have asked you to prepare a brief detailing how computer systems might be more effectively integrated to meet their business needs and improve their accounting operations. Identify Kudler’s key business and accounting information needs. Analyze the strengths and weaknesses of Kudler’s current computer system and technology use, including hardware and software. Explain what opportunities Kudler has in terms of technology and provide suggestions for improving Kudler’s ability to maximize these opportunities. Evaluate the threats that Kudler may encounter given their current systems and offer your suggestions, in terms of using technology. Use APA formatting where appropriate for references, citations, and title page. Operations Support Systems- ch1 The role of a business firm's operations support systems is to efficiently process business transactions, control industrial processes, support enterprise communications and collaboration, and update corporate databases Transaction processing systems are an important example of operations support systems that record and process data resulting from business transactions. They process transactions in two basic ways. Management information systems (MIS) provide information in the form of reports and displays to managers and many business professionals. The concept of data resources has been broadened by managers...

Words: 1025 - Pages: 5

Premium Essay

Tutorial 6

...ISYS104 Tutorial – week 6 Review Questions 1. What is IT infrastructure and what are its components? Define IT infrastructure from both a technology and a services perspective. • Technical perspective is defined as the shared technology resources that provide the platform for the firm’s specific information system applications. It consists of a set of physical devices and software applications that are required to operate the entire enterprise. • Service perspective is defined as providing the foundation for serving customers, working with vendors, and managing internal firm business processes. In this sense, IT infrastructure focuses on the services provided by all the hardware and software. IT infrastructure is a set of firm-wide services budgeted by management and comprising both human and technical capabilities. List and describe the components of IT infrastructure that firms need to manage. Students may wish to use Figure 5-10 to answer the question. IT infrastructure today is composed of seven major components. • Internet Platforms – Apache, Microsoft IIS, .NET, UNIX, Cisco, Java • Computer Hardware Platforms – Dell, IBM, Sun, HP, Apple, Linux machines • Operating Systems Platforms – Microsoft Windows, UNIX, Linux, Mac OS X • Enterprise Software Applications – (including middleware), SAP, Oracle, PeopleSoft, Microsoft, BEA • Networking/Telecommunications – Microsoft Windows Server, Linux, Novell, Cisco, Lucent...

Words: 3398 - Pages: 14

Premium Essay

Costing Method Papaer

...es Clara Muñoz Colomina. Complutense University of Madrid. Spain. cimunnoz@ccee.ucm.es Abstract. This research study is aimed, based on empirical evidence, at measuring the relationship between the use of the Accounting Information Systems (AIS) by the Small and Medium Sized Enterprises (SMEs) in Spain, and firms’ improved performance indicators and productivity. This empirical study is based on a survey carried out among small and medium-sized firms to ascertain the extent to which development and implementation of accounting information systems had taken place, and subsequently an analysis was made as to how much this introduction may impact on improvement in outcome indicators and productivity. As interesting results we have found that there is a positive relationship among the SMEs that use AIS for fiscal and bank management and better performance measures. This research provides value added in accounting literature given the scarcity of works dealing with the relationship between the application and use of AIS and performance and productivity indicators in SMEs in Spain. Keywords: Accounting Information Systems (AIS), Small and Medium-Sized Enterprises (SMEs), performance measures, productivity. 1 We would like to thank Professor Carlos Rivero, from the Statistics Department (UCM), for his valuable assessment. Also we would like to thank the anonymous reviewers of the journal for their contributions. DOI: 10.4192/1577-8517-v11_2 Submitted June...

Words: 5985 - Pages: 24

Premium Essay

Small Retail Food Case Study

...detail about the problem, who has it, how big it is, why is important, the pains the people have, and the gains they are trying to get. In small retail Food there are several problems. The main cause is an explosive growth of major chains which increase their power of decision over Marks (farmers, processors, manufacturers or wholesalers) and destroy local stores throught taking advantages of economies of scale and their magement of sales promotions based in strong discounts. One of the problems is that between 20 and 25% of sales in big chains stores is made with promotions, but in 6 out of 10 promotions the brands are the ones wihch resigned their profit margin. And this effort did not reach the consumer because the...

Words: 2290 - Pages: 10

Premium Essay

Cloud Computing

...EXECUTIVE SUMMARY Cloud computing is the latest evolution in computing. Computing resources are available when needed, and you pay for their use in much the same way as for household utilities. Just as water is piped to your home and you pay for as much or as little as you use, cloud computing resources are available whenever needed and charges are applied on how much you use them. With cloud services you can connect at home, work or on the go via a laptop, desktop, smartphone or other handheld devices. Widespread cloud computing is made possible by the Internet, and this is the most common way of accessing cloud resources. The basic cloud computing model is shown below. Servers, storage, applications, and services are accessed via a common network. They are shared between organizations, and accessed by users or applications. The users may be members of the organizations working on-premise, remote workers, customers, or members of the general public. Cloud computing has three service models. These are the basic kinds of service that cloud service providers provide. They are Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). [1] Infrastructure as a Service (IaaS) is a cloud model which allows organizations to outsource computing equipment and resources such as servers, storage, networking as well as services, such as load balancing and content delivery networks. The IaaS provider owns and maintains the equipment while the organization...

Words: 1585 - Pages: 7

Premium Essay

Erp Software Comparison

...is a tool used to integrate the data and processes of an organization into a single system using many components including hardware, software and a unified database. Many companies utilize ERP software to manage a suite of applications from cost, development, product planning, financial management, to manufacturing. The benefits of ERP systems are not without cost. There is initial implementation, software, hardware, data storage, training, maintenance and upgrade cost that maybe associated with any ERP System. Depending on the size of the company these cost can be in the thousands, to hundreds of thousands, to millions of dollars. For companies like Kennametal, to make significant changes to an ERP System once implemented, or to completely migrate to a different ERP System can multiply those cost. (Wisner, J., Tan, K., & Leong, G., 2012. p. 198). There are many ERP software solutions for major corporations that fit all budgets and offer a variety of features based on a firm’s needs. Three of those companies we will discuss in closer detail are Oracle, SAP, and Microsoft. Each of these companies offer the ability to configure their software to be tailored to an organizations specific demands; whether it be, choosing a type of inventory accounting or how the company choses to recognize its profits. In addition, each of these three companies offer functionality by providing the option to have ERP data housed on a server in a specified location or, an increasingly more popular...

Words: 1117 - Pages: 5

Premium Essay

Mba - Global Communications

...benchmarking, examine associated risks, provide an optimal solution and implementation plan, and evaluate the results. Situation Background (Step 1) Global Communications (Global), a telecommunications company, is faced with lack of consumer confidence and economic pressure. Senior management has developed an aggressive plan to hit the market with new services and an alliance with a satellite provider. They have also identified cost-cutting measures with hopes of increasing profits. In order for the plan to come to fruition, they will market on an international level with the goal of becoming a truly global resource. Subsequently, this development plan has created several challenges (UniversityElver, 2005). Issue Identification Several challenges or issues have been identified including—but not limited to—globalization and competition, building market share and alliances, reducing and relocating staff, outsourcing technical call centers to Ireland and India, and the lack of communication to Union and stakeholders. The lack of communication to Union and stakeholders regarding this initiative has damaged a strong relationship with Global and the Union. The Union is concerned that many employees will loose their job while Global is concerned with how to tell them. Many of these employees work in technical call centers that will be outsourced. However, this creative financial planning to outsource to facilities in Ireland and India will reduce unit costs...

Words: 5233 - Pages: 21

Premium Essay

Information System Dissertation

...Information Systems Dissertation The Impact of Cloud Computing on Small and Medium Sized Enterprises. Word Count: 12,497 Abstract In recent years a new computing paradigm has emerged: Cloud Computing. Whilst there seem to be an endless number of definitions for this new term, including one by the National Institute of Standards and Technology (NIST) that is nearly 800 words long, nobody seems to be able to settle on a true characterisation of the subject matter. In its simplest form cloud computing can be described as IT-as-a-service. Instead of building your own IT infrastructure to host databases or software, a third party hosts them on their own servers. Companies have access to their data and software over the internet (which in most diagrams is depicted as a cloud). However, is this new paradigm simply a new term for something we are already doing or is it truly going to change the future of IT as we know it? This dissertation investigates the phenomenon commonly known as cloud computing, focussing closely on its impact on small and medium sized enterprises (SME’s), and ultimately attempts to assess the future of cloud computing. The research throughout this paper is based solely on secondary research. No primary research into the topic area has been made. In order to gain a broad view and understanding of the topic various existing papers and studies, on the topic of cloud computing and technology adoption within SME’s, have been studied and critiqued. Table...

Words: 18031 - Pages: 73

Premium Essay

Management Information System

...INTRODUCTION. Adoption of emerging technologies prior to their proven value is both acceptable and normal in today’s globalized economy. In current global environment, organizations all around the world have to constantly facing challenges to hold the competitive advantage. Firms that refuse to change their approach face declining sales, obsolescence, and potential bankruptcy. The global world is characterized by more competition, diverse work force, continuously changing customers’ needs, and new technological changes, etc. The adoption of emerging technology in business is broadly studied but the resulting research has produced inconsistent results (Brandyberry, 2003). An organization is define as a group of persons that team up together to work to achieve the organization strategy. Organizational strategy can be defined as a plan for interacting with the competitive environments to achieve organizational goals. According to Charlesmore Partners International (2008), organizational strategy is a clear definition of how the organization needs to change – over time - in order to be able to deliver the strategy of the enterprise and an actionable plan of how to make the transformation. This requires both the thinking and analysis to compare current state to desired state and define the gap, and the execution capabilities to make the requisite changes happen. Other definition of organizational strategy is a plan for interacting with the competitive environments to achieve organizational...

Words: 11702 - Pages: 47

Premium Essay

Saad

...1 ITECH6210 IT Management How Organization save money through Cloud Computing How Organization save money through Cloud Computing By: Saad Abbasi Reg# 30105773 Contents Introduction………………………………………………………………………………………………………………………….2 What is Cloud Computing? 2 Definition of Cloud Computing: 2 Less initial investment……………………………………………………………………………………………… 3 Costs reduction…………………………………………………………………………………………………………………….3 Automatic Updates……………………………………………………………………………………………………3 Low labour costs: 3 Faster time to value: 3 Pay as you go model: 3-4 Easy Capital expenditures: 4 Lower real estate and energy expenditure: 4 Review of all workloads for best results: 4 References: 8 INTRODUCTION The use of internet and emerging business technologies is almost everyday part of every enterprise and organization nowadays. The effective use of mobile and wireless devices has made information available anywhere in the world at any time. Today a very large proportion of the population around the globe are accessing their mail online through webmail clients, writing collaborative documents using web browsers, uploading and sharing photos and albums using social networking websites, running applications and storing data in servers located in Internet and not in their own computers. Things have become so simple that a user can start to use a service that resides on a remote server just by entering into a webpage. Similarly, a user can use number of services through a...

Words: 2035 - Pages: 9

Premium Essay

Mis Project

...MANAGEMENT INFORMATION SYSTEM IMPLEMENTATION Abstract Table of Contents Page 1. Company Background 4 - 5 2. Business Problem Statement 5 - 6 A. Identification of Issues B. Desired State of Problem C. Obstacles 3. High-Level Solution 6 - 8 A. Introduction a. Solution Outline b. Summation 4. Implementation Benefits 8 - A. Management Information System (MIS) Presentation B. MIS Projections a. Database Management System (DBMS) b. Cloud Computing c. E-commerce and The Internet 5. Benefits/Technical Approach X XXX X XXX X 6. Business Process Changes X XXX X XXX X 7. Solutions X XXX X XXX X 8. Recommendations X XXX X XXX X 9. Implementation Plan X XXX X XXX X 10. Project Summary X XXX X XXX X Company Background The Knitter’s Lounge & Café (KL&C) is a modern approach to arts and crafts. It began as an innovative conceptual idea for a café style retail arts and crafts store in 2010 after the owner and Chief Executive Officer (CEO) visited a number of yarn shops and realized a need for a shop that bade more than the common knitting and crocheting supplies found in traditional arts and crafts establishments. The first store is located in Sandy Springs, a suburb of Atlanta, GA. Sandy Springs is an affluent community nestled along Cobb County with the Chattahoochee River to the south...

Words: 1770 - Pages: 8

Premium Essay

Businiss Plan

...Business plan of the SaaS Company Content 1. Introduction …………………..……………………………………………...... 1 2. Marketing Strategy ……...…..………………………………………………... 1 2.1 Background …….….….……..…………………………………………... 1 2.2 SWOT Analysis .……..………..…………………………………………. 2 2.2.1 Strengths ……………………………………………………….…. 2 2.2.2 Weakness ……………………………………………………….… 2 2.2.3 Opportunity ….…………………………………………………… 3 2.2.4 Threats ……….…………………………………………………… 3 2.3 S.T.P.---- Segmentation, Targeting, Positioning …..….….…………… 4 2.3.1 Segmentation ………..…………………………………………… 4 2.3.2 Targeting ……………….………………………………………… 4 2.3.3 Positioning …………..….…...…………………………………… 5 3. Implementation of the strategy for 4ps …..……..…………………………… 6 3.1 Product……………..…………………………………….………………. 6 3.1.1 Core product ……………….…………………………………… 6 3.1.2 Extended product ……….………………………………………. 7 3.1.3 Branding ……………….…………………………...……………. 7 3.2 Price …………………………………………………..…………………. 7 3.2.1 Payment method …………….…………………………………. 8 3.2.2 Price policy ………………….………………………………….. 8 3.2.2.1 Differential pricing ……………………………………. 8 3.2.2.2 Membership pricing policy …………………………… 8 3.3 Place …………………………………………………………………….. 8 3.3.1 Online channels ………………….……………………………... 9 3.3.2 Offline channels ………………………………………………... 9 3.3.3 Distribution channels ………….….……………………………. 9 3.4 Promotion ………………………………………………………………. 10 3.4.1 Online promotion ………………………………………………. 10 3.4.2 Offline...

Words: 2402 - Pages: 10