Few small business CEOs, principals, owners and managers feel that they have their technology entirely under control. The convergence of IT, communications and business has created whole new sets of challenges for the small business technology function.
Some key areas the CEO needs to ensure the technology function addresses are:
- Security,
- Business continuity,
- Training & support,
- Internet & e-mail use, and
- Purchasing (products & services)
Overlaying all these areas are a variety of legal and regulatory issues that need to be addressed and obligations that need to be satisfied. More detail on each area follow:
Security
The Internet has created new opportunities for small business - and new threats. These threats break down into infection and intrusion. An infection is an attack where something like a virus enters your systems and causes abnormal behaviour. This behaviour ranges from pranks (such as random messages) to disasters (like loss of data).
Intrusions include hacking attacks that steal data, such as sensitive company information or security details, such as passwords.
Tips:
- Dealing with these threats mean implementing firewall, anti-virus and anti-spyware policies.
- It is also critical to ensure that all software is fully up-to-date.
Business continuity
Business continuity planning is as essential to small business as business insurance. Yet many small businesses take the "it won't happen to us" approach and have no plan to execute in the event of disruption or disaster.
Not only should the business have a plan, but the staff should be clear on their roles. A business continuity plan is built from "what if?" scenarios such as:
- What if a key employee is off sick or the receptionist is called away to an emergency?
- What if there is a fire or theft?
- What if there is a power cut?
Some technology specific "what if?" questions are:
- What if there is a power cut or the hardware fails?
- What if we lose data?
- What if we get a virus or are hacked?
In answering "what if?" questions, the small business must take a risk management approach that distils down to:
- How likely is an event to happen?
- How serious are the consequences?
The technology component of the plan will typically involve backup/restore procedures, power loss contingency, and support/maintenance arrangements.
Training & support
Technology is only as effective as the people using it. For this reason it is essential that staff using technology receive appropriate training and adequate levels of support.
Software companies make it look easy to produce complex reports in a word processor or forecasting models in a spreadsheet. However, if you require your employees to do this, it is not adequate to send them on a basic course. They would most certainly need to progress through to completing an advanced course.
Tips:
- A specialist freelance tutor may be brought in to tailor the training and charge only for the time taken.
- Most software companies provide support for their products in one form or another.
- There are help lines, help menus, support sections on websites and printed manuals (though gradually diminishing in size!).
- There are also online self-help, co-operative user groups.
Internet & e-mail use policy
From the legal firm that had a lewd e-mail propagated by its staff, to the consulting firm whose staff insulted the client via e-mail while working onsite, e-mail horror stories abound.
Inappropriate use of the Internet and e-mail has led to an increase in, among others, defamation and sexual harassment lawsuits. There is significant risk exposure for a company that does not have a clear Internet/e-mail use policy.
Tips:
- The policy should clearly outline acceptable/unacceptable use of electronic communications within the company and should form part of the employment contract.
- Ideally staff should have two e-mail accounts, one for business and one for personal.
- Personal use of the Internet should be dealt with in a similar way to personal use of the telephone.
Purchasing (products & services)
As most CEOs will recognise, the key to making value for money transactions is, at the very least, a rudimentary understanding of both the item being purchased and the state of the market. Final decisions on purchases tend to fall to the finance function.
Where the technology function is unable to properly articulate to the finance function the value or otherwise of a proposed purchase, overspend or underspend can occur. In the worst-case scenarios a business is left with a white elephant, ends up with inadequate technology, misses out on a value for money opportunity or is ripped off by IT consultants, technicians and web professionals.
Tip:
- The key is to have proposals (whether for products or services) reviewed by someone who is comfortable with both the business and technical perspectives.
With all these issues, plus the associated plethora of legal requirements and industry standards, a CEO could be forgiven for tearing out their hair in frustration or burying their head in the sand. An alternative solution would be a virtual professional, which gives small businesses affordable access to relevant ICT expertise.
Technology has become a critical part of many businesses. It has moved from being treated as a cost to the business, to being an essential operational asset/overhead and a necessary component in strategy discussions and decision-making.
While many small businesses cannot afford the ideal scenario of an Information & Communication Technology (ICT) director on the board, or a full-time specialist employee, there are still ways that businesses can effectively manage their technology issues.