Small Business Technology Provides an Important Competitive Advantage
American Entrepreneurship Today
Advancing Entrepreneurship & Innovation across America
One can learn a lot about running a business operation when forced to face a crisis such as COVID-19. Small businesses were put to the test and most looked to technology for an answer.
The digitalization of America was already underway before the pandemic and it went into full throttle with the pandemic. Consumer purchasing patterns due to social distancing and lockdowns were dramatically impacted, while companies were forced to use remote workers.
The most visible use of technology in response to the crisis was the jump consumers made to e-commerce platforms. Online orders for everyday staples were safely delivered to customers. Takeout food orders and delivery services surged, helping restaurants replace revenue lost when indoor dining closed. Amazon reported how well their online small business merchants performed during the pandemic.
The pandemic enabled companies to learn the benefits of technology. Their positive experiences made them more open to new technology.
Slice is one example of new technology emerging from the pandemic. Its platform enables independently owned pizzerias to have a similar order and service technology to that used by franchisees who receive it from their franchisor.
Glyde is another example. Founded by NJIT students their technology enhances food order and delivery apps, providing restaurants with a tool to make their restaurant operations more efficient.?
In some industries tech tools are helping to level the playing field between small and larger businesses. In the past the latter had substantially more resources to tap into technology to spur business growth—serving as a barrier for small businesses with limited resources.
When a small business is considering using a new technology, it begins with a cost/benefit analysis. This analysis assists in determining if the purchase or expenditure can be justified. It weighs the cost against future revenues the tech will bring or the cost savings gained from added efficiencies.
Core Technologies for Startups and Small Businesses
There is a range of technologies that are now considered core infrastructure to begin business operations. Here is a list of business tools commonly used:
Since these technologies are fairly low in cost through monthly subscription payments, they should be considered to be part of each founders’ budget for their startup.
Tech Trend: Emergence of the Artificial Intelligence (AI)
Artificial intelligence technology is another digital tool being integrated into almost all industries—which small businesses can affordably access as does large corporations.?The new technology is empowering many small businesses to grow, but also puts pressure on them to use it or lose their competitive edge.
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Experts believe AI will have a pivotal role in technology for decades to come. Companies will feel the pressure to make technology investments to keep with the major changes now underway.
Technologies for Scaling a Small Business
There is a range of technology platforms helping a small business to scale. They focus on either the revenue side or the operations side including personnel.
Revenue boosting technologies address sales and marketing efforts. Examples focus on building customer relationships, customer satisfaction and customer experiences. Examples include:
Seamless.AI , an artificial intelligence-driven B2B sales platform that provides real time data of contacts to sales teams,
HubSpot , a marketing platform providing the tools for inbound marketing campaigns.
Technologies focusing on operations, the delivery of products and services, include personnel management, administrative tasks, customer service and operational efficiencies. Examples include:
GoCo.io, Inc. , a comprehensive human resources platform for managing personnel, and
monday.com , a workflow automation platform.
Those are just a few of a wide range of technology options now available to growing small and medium businesses. Each needs to be assessed for the return on investment it will bring.
Planning for Technology Purchases
Because of the digital acceleration that is now occurring across almost all business sectors, small business owners need to make the business decision to include in their operating plans the cost of purchasing or leasing technology.?
New technology is presenting them with great opportunities to meet their business goals to grow their businesses. But technology is upping the stakes to remain competitive and not be left behind.