In an earlier article discussing the the results of an ISME survey one finding identified that 40% of Irish SMEs were unhappy with the level of business generated by their website. The results released publicly did not give details of any reasons for this, state whether those surveyed were questioned further about this, or discuss the type of web applications being used by those surveyed. It does raise a question about the level of awareness about what could be expected from their investment in various web technologies. In order to help SMEs decide on the best course for using web technologies, this article discusses a number of factors that may be considered before deciding to adopt.

The decision to adopt any innovation is influenced by a number of factors. Some of these factors are general (they have been found to be of influence in many types of innovations), while others are specific to the context (for example, the company’s current situation & the innovation itself). For companies deciding on the use of new web technologies (for example, basic websites, e-marketing applications, e-commerce systems or new types of social media technologies) it can be difficult to decide how to assess their options. While every situation differs, a number of factors can be considered.

Benefits over your alternatives?

Firstly, what are the relative benefits of using the particular technology over any of the alternatives that are available? These benefits depend on the technology you are considering, but some examples are the direct financial or marketing benefits that choosing to use one technology over another will bring.

For example, when looking at ways to communicate a marketing message with existing customers, companies have a range of options. They can use RSS news feeds, email newsletters, or SMS (Text Messages to Mobile phones). The benefits of the approach selected should be considered relative to those given by the other options – in this example, how likely are the customers to carry out a particular action based on each type of communication? (something also related to the type of message being sent).

The Complexity of the Technology

The second factor is how technically difficult it is set up the technology, and what are the range of skills needed to use it effectively. Looking again at the survey results mentioned earlier, 36% of SMEs did not find it easy to update their website. In one way, this can be viewed as the user not having the skills to deal with something that they see as complex. In this example however, the provision of adequate training or the integration of a user-friendly Content Management System (CMS) are two ways in which this complexity can be overcome.

Not all companies have staff with the skills necessary to use certain technologies. This is something that should be identified and dealt with while making the decision to invest in a particular technology, rather than after the investment has been made. Doing so will help realise the full benefits of your investment.

The Web and Your Business

The decision to buy and use any new technology (web-based included) should consider how, and where, it fits into how your business operates. This may be to do with other technologies you already have in place, the type of business you operate in, or the people involved in your business. It is important to understand what it will (and will not) bring to your business, and the possible impacts of its use.

Two (very) simple examples of this relate to the type of business. A manufacturer of heavy machinery may find their opportunities limited with an e-commerce type site that relies on mail order. Similarly, a small corner shop wishing to communicate with their customer base through Text Messaging may also run into problems (at first, at least). What these illustrate is not that these businesses cannot use the web to their benefit, instead, they should choose an option that fits with the type of business they operate.

Other Considerations

There are a wide range of other factors to be considered in a decision to adopt a new technology. Many of these depend on the specific situation of the business, and the characteristics of the technology being considered. Some broad examples can be to do with competitive environment, the demands of the market, or regulation or other legal issues.

What this article has tried to show is that SMEs should consider issues other than, “everyone else has X….we should too”, when investing in web technologies or applications. Instead, making the most of your investment depends on a careful analysis of a range of factors.

About the author

David Kelly runs Ambient Age. He is completing a PhD in Business Information Systems, and has published papers on the adoption of new technologies. He can be contacted here.