Small business competitiveness is spurred on by increased access to high-speed connectivity and the widespread adoption of cellphones. These factors are stimulating entrepreneurial innovation by integrating Internet and cellular technologies into core business operations and creating new business models.
A decade ago, at the beginning of the South African e-business revolution, the debate was whether business should add 'clicks' to their 'mortar' or become a 'pure play' Internet business selling products online.
Back then there was a major constraint - limited access to cheap broadband connectivity. Coupled to this, cellphone adoption was only starting to gain momentum and phones had little of the functionality we see today.
Much has changed since then. More affordable high-speed fixed and wireless Internet is accessible via a computer or cellphone. This has led to a significant uptake of Internet services among small businesses. There has also been a phenomenal growth in cellphone usage among businesses and consumers, and SMS messaging is accepted as crucial to how a business communicates with staff, suppliers and customers.
The result has been the integration of the Internet and cellphones into the day-to-day operations of businesses and the development of new business models that use the Internet and cellphones as key sales, fulfilment or customer support channels.
Furthermore, it is recognised that doing business online makes good business sense. A City of Cape Town report on the economic impact of a municipal broadband network found that among companies, "there is almost universal support for affordable high-speed broadband access. Most firms expected that there would be cost savings and productivity gains with some expecting large cost savings and productivity gains."
Using new communication technologies
It is time for business owners and managers to realise how much they already rely on the Internet to do what they used to do offline and how ubiquitous the use of cellphones has become. If they take a good look at themselves they will realise they are quite far down the line in operating their business in a virtual sense. Besides Internet access and the use of e-mail, many businesses have their own Web site, purchase or sell online, or are using the Internet along with SMS messaging to improve operational efficiencies.
* Search engines on the Internet are used to access information and seek out new ideas and business opportunities.
* The Internet and mobile marketing campaigns are used to promote products and services to customers locally, nationally or even globally.
* The Internet offers a means to provide supplier and customer support via multiple communications channels, including: e-mail, instant messaging, SMS or VOIP.
* The Internet is used for making tax payments and for banking. The latter uses SMS to send one-time passwords to authenticate a user's identity.
* Staff are able to work from home using both the Internet and cellphone to stay connected.
* The Internet and mobile Internet expand business networks through social networking services.
New business models
SMS messaging is accepted as crucial to how a business communicates with staff, suppliers and customers.
Dr Pieter Streicher is MD of BulkSMS.com.
The ready availability of cellphones and affordable high-speed Internet has created opportunities for new business models among homegrown small businesses. Many have developed Internet-based business models that use SMS messaging as core to their business operations to gain time-based competitive advantage and improve productivity.
* Pangea, a business process outsourcing firm, provides English language training using VOIP to customers across the globe. The company uses SMS messaging to alert staff to updated teaching schedules.
* SafariNow built an online accommodation booking engine that allows international tourists to search and make a reservation with local accommodation establishments. The establishments then receive an SMS notifying them of a booking.
* Wavescape has an online real-time surf forecasting service for the South African coastline. Surfers on the go can also access this service via SMS and WAP.
* WebAfrica, an ISP fast capturing local market share, offers online sales and customer support for its range of domain hosting and connectivity services. It informs customers of server downtimes using SMS notifications.
In taking stock of how small businesses are using the Internet and cellphones to drive innovation, my aim has been to make small business owners and managers aware of the possibilities of these new technologies and to look for more online resources to support their business.
The trend is toward moving more and more business functions online and creating more transparent business processes using SMS messaging. I believe it is through the adoption of Internet and cellular technologies that emerging and existing entrepreneurial firms will become increasingly more competitive in the local and international markets.
* Dr Pieter Streicher is MD of BulkSMS.com.
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