Technology heralding the wave of next generation SMBs

SMBs still have to wrestle with many issues ranging from access to affordable funding, Government regulation etc, what is clear is that technology is today bringing the customer closer to the business and in many ways, leveling the playing field for SMBs

By Sai Pratyush

SMAC (social, mobile, analytics and cloud) is a new concept comprising four technologies that is currently dominating C-suite conversations across the globe. The combination of Social, Mobile, Analytics and Cloud allows businesses to improve operational efficiencies, decrease costs, analyze all the information at its disposal and connect better with its customers in a seamless manner. Data and information have always been there but businesses today have at their disposal tools and platforms to harness this structured or unstructured data and develop new strategies and business models.

Social media has provided businesses with new ways to connect and interact with customers, while mobile technologies have changed the way people communicate, shop and now work. Analytics allows businesses to understand how, where and when customers consume certain goods and services and lastly cloud computing provides a new way to access state-of-the-art technology and information which the business needs to quickly respond to changing market dynamics. While each of the four technologies can impact a business individually, their convergence is proving to be a disruptive force that is creating entirely new business models for especially the small and medium businesses (SMBs) across the globe. What’s becoming clear is that none of the four technologies can be an afterthought for SMBs because the synergy created by social, mobile, analytics and cloud working together is not only giving them the ability to compete with large enterprises but in some cases also giving them a distinct competitive advantage.

India is home to more than 51 million SMBs (according to a study by consulting firm Zinnov) and by adopting SMAC they can today take their businesses to scale newer heights. Social media/networking technologies have totally transformed the way in which people communicate and interact with each other and with businesses. Sharing content is no longer about writing letters, sending emails or placing advertising in print or online media outlets. It is now about posting content or feedback related to products or services consumed to a “wall” or website or blog site, and also tweeting, texting and instant messaging. Physical meeting and interaction is rapidly being replaced by virtual communication: Circles of friends, family or business colleagues, which in the past were kept separate, have been replaced with overlapping communities of personal and business friends and family. Social media offers SMBs an opportunity to connect and interact with their customers directly to promote their brand and drive interest in their business. Social media platforms are now becoming fundamentally essential for the success of a business given that research indicates that around 46% of web visitors look towards social media when making decisions and purchases.

Mobile technologies have totally transformed where and when Businesses communicate and interact with their customers, essentially eliminating space and time boundaries almost entirely. Customers can buy goods whenever they want and they no longer need walk into to a physical store or an office. What is also important is that mobile technologies have enabled employees of a business to collaborate with each other or their partners across geographies without the need to be physically present at the same time and place.

Analytics technologies have completely changed how businesses determine whom to connect with on what topics, which products customers buy or what drives their purchasing decisions. Analytics is enabling businesses to learn more about their customers and thereby build products and services as per their needs.

For SMBs, Cloud computing has proven to be a boon because it gives them access to state-of-the art computing infrastructure which till recently was accessible only to large enterprises. Cloud based computing infrastructure and applications give SMBs the ability to get their businesses running quickly and in a cost effective manner. Capital investment is a huge deterrent for SMBs and cloud based services can help them circumvent this very significant hurdle. The pay-as-per-use model allows SMBs to use the resources as per their needs and what’s equally important is that these Cloud-based resources are typically available to users in a matter of minutes. Businesses no longer need to worry about availability of these resources and security of data because the cloud providers ensure the same and thereby allowing the SMB to focus on their core competency or business.

It’s been rightly said that the sun is rising on India’s SMBs, with the sector contributing 15-16% to the country’s GDP and responsible for 43% of all exports. While it’s also true that SMBs still have to wrestle with many issues ranging from access to affordable funding, Government regulation etc, what is clear is that technology is today bringing the customer closer to the business and in many ways, leveling the playing field for SMBs.

The author is Additional Vice-President – Product Management, Managed Services, Enterprise – Tata Teleservices