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New Technology & Small Business - opportunity/risks

Topic 5 · 4 responses · archived october 2000
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~terry seed
Beyond the *dreaded y2k problem,* the beginning of the new millennium poses many new opportunities and risks for small businesses -- much of it propelled by new and quickly evolving technologies. For instance, e-commerce presents new opportunities for delivery of services as well as new ways to build customer relationships. At the same time, getting set-up for e-commerce means learning new skills, thinking differently, which is often easier said than done for small organizations. Looking forward 3-5 years, what are the opportunities that new technology will offer small businesses? What are the threats if small companies adopts these new technologies and/or risks if they don't? * What new technologies are on the horizon that will be most important for small businesses? What older technologies/applications combined in new ways? For example, for years we have heard about the wonders of the Internet as a new way to transact business. But most small businesses are not there, yet. Is one of the key missing links the ease or lack of ease of setting up your database for your Web page, tied into your off-line computer? Is it just getting used to handling email? * Can technologies for larger businesses migrate down? Do they matter for smaller businesses? * Will the new tools continue to be driven by start-up/innovative small companies and other institutions? Or are companies like Microsoft & Intel controlling our future? * If you look at different sectors, do the answers change significantly? Consumer goods v services? Consumer business v business to business? * Does Microsoft pose a general threat to small businesses as it extends into having its fingers in more parts of the pie? i.e., financial transactions, real estate, etc. * Will new technologies be the critical factor in this time period or is it really a matter of new ways/methods of doing business in a digital, networked economy? [note/disclaimer: part of my interest in this topic/discussion is to help me sort out these issues for an article I am working on for a tech magazine targeted toward small business.] Michael Robin mailto://mrobin@well.com 4 new of
~terry #1
I don't have a thesis yet. And am very much interested in what others may be thinking on this subject. A couple of things.... there is lots of talk about the Net changing everything, including how we do business. But from what I can see a lot of small businesses are not there yet - on the net or even adopting some of the existing new technologies. If that is true, why? Is it because the technology really is not there yet for small businesses/organizations? The learning curve or even financial investment still too high? In the 3-5 year period, unless something amazing happens, like the Web/Mosaic, won't most of the changes be drive by either the refinement of existing tech - making it ready for 'prime-time' - or the combining of existing tech in new ways? Last but not least, regarding the impact of tech upon small businesses, small companies that do not have in-house tech support/MIS people, are there other important issues in addition to "The Net"? I hear that Accounting packages for smaller businesses do not really get it. Thoughts? Reactions? Comments?
~terry #2
From Brian Zisk, one of the most successful netpreneurs around: Thought I'd add a few comments, though if you'd like to follow up, drop me an email or give me a call, as I don't really participate in the Entrepreneurs conference on the well as I (and others) have been treated rudely by the host too many times (who has stated that the reason this conference is dead is because there are hardly any entrepreneurs on the well, hahaha). Too bad for the conference (and the people of the well), as it could've/should've been an awesome resource for all of us... It's hard to predict what new technologies will be most influential. However it's easy to predict that there will be companies in various industries whose rise will be based on the added power and efficiency brought to them by advances in software. In essence, the leaders in many industries, (such as trucking, manufacturing, distribution, and on and on) will be "software companies" (that is where their competitive advantages will lie), and they will beat out the other companies based on how they use computers to better manage their information (and thus money and product) flow. While the better access to information provided by the web will allow more and better transactions to take place (the essence of our http://www.transaction.net site, and the force which drives such net superstars as http://www.ebay.com ) the lack of critical mass and difficulty for companies to have the knowledge base which will currently allow them to implement profitable systems is what keeps most companies (especially non-computer related ones) from implementing successful web commerce systems. As time moves on, places such as Ebay and ViaWeb (now Yahoo Store) will show companies hat it may not be as difficult as they'd been lead to believe. Hopefully decisionmaking aids (as technology, such as reputation based filtering) will allow companies to make better/more profitable decisions/business practices in the future. On a small scale this is working now (ie. San FranZiskGo! http://www.transaction.net/sanfran/events/ helps people determine (using a reputation based filtering model)) which events to frequent on a nightly basis. In the future (it's already started), more complex models will be put into place, showing people choices based on algorithyms determined by your and other people's choices. These (however) will most probably not be widely implemented (nearly to the extent possible) over the next 3-5 years. As software companies saturate the expensive, high end, corporate market, in order to grab more custumers they will indeed migrate down to the smaller customers. Companies like Microsoft will indeed dictate a lot of solutions for larger clients, but it will continue to be the small companies which come out with the major innovations. My guess is that most innovations will need to run on the most popular hardware configurations, and thus imho most innovations we see coming along in the next bunch of years will be designed to run on the Intel platform. So they're a major force, and will not go away, evenif the whole computing world happened to turn open source, hurting Microsoft immensely. I do believe that if the whole world decided to go open source that Bill Gates would be smart enough to release all Microsoft soure code and turn into a customer support organization, but that's at least a few years down the road. ;-) I believe that new technologies will infiltrate all industries, and the most successful (in pretty much all industries) will be the ones which most resemble software companies. Microsoft does indeed pose a threat to small companies as they move into smaller niches. It's hard to compete with them, so what you have to do is maintain a niche which they can't touch you in, such as street credibility and soul. How companies learn to work with the new technologies will be just as important to a companies success as what those new technologies happen to be, and thus some companies will successfully addapt, and others will be left behind in the dust. And yes, the learning (and cost) curve behind new technologies are definitely what is keeping most businesses from addapting them. Most accounting packages for small businesses do not really get it. For instance, using Quickbooks (or Quicken), it's so difficult to make projections based on actual data (passed through various scenarios) that the best way seems to be to pull data out and manipulate it using Excel. So they may be adequate if you define a small business as one which is too small to need financial projections, but even a lemonade stand should be projecting what they need. Hope this rapidly written rant is helpful. Anyone with anymore questions, please don't hesitate to ask.
~KitchenManager #3
there are currently 2434 jobs listed at http://www.dice.com/ with the keyword "e-commerce"...
~sprin5 #4
B2B Moves In On Office Realty Market One of the last un-Webbed fields is commercial realty; in large part, it has depended on a kind of inside knowledge that brokers acquire from their daily participation in the business. Who's moving out, how much a parcel just went for on that block, and so forth. But even this Luddite bastion is falling as companies like CoStar, RealtyIQ, and TenantWise.com collect data on transactions and make it available, either to fee-paying subscribers or on a commission basis.
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