Today's ever-changing business environment presents UK companies with great opportunities and many new challenges. Growing global competition means that businesses increasingly need to broaden their market reach in order to maintain a competitive edge.
Businesses are already rising to the challenge and changing the way they work - most notably through the use of technology. Over a million households took up broadband access last year, making teleworking possible for many for the fiirst time. And the introduction of terms such as "e-procurement" into everyday business speak is a re§ection of the fact that many companies are integrating technology into their business processes.
Technology really can transform the way we do business. It is no longer simply about adoption, having a website and using email - the rush to get online is over and businesses are now looking to make the most of new and emerging technologies. ICT (Information Communications Technology) belongs at the heart of business practices. And in the UK we are well placed to achieve this. A recent report from the Economist Intelligence Unit positioned UK businesses among the most "e-ready" in the world.
Of course for any company the business case for adopting new technology must be compelling enough to justify new investment. Technology should not be implemented for implementation's sake. As with any investment, the decision to employ e-business technologies should meet the requirements of its overall business strategy.
For some businesses the case for investment may simply be the immediate opportunity to save money through fixed cost broadband internet access as opposed to the variable costs of a dial-up connection. On a wider scale, investment may lead to better relationships with customers and suppliers, plus better customer service.
E-commerce technologies are opening up new opportunities right across the supply chain. Companies can benefit from better and faster access to information, less paperwork and greater efficiency in all their business processes. For example stock control orders can be made automatically, systems can monitor levels of ordering and purchasing, allowing businesses to be much more §exible. Businesses can keep in touch with clients and suppliers and give customers more choice in how they communicate.
Earlier this month I called on Printoff, a Lancashire based printing Þrm employing 50 people, to ofÞcially switch on their broadband connection. They explained to me how broadband would transform their business, allowing them, for example, to transmit artwork to and from customers and between their own sites in seconds. In the past, it took hours to transmit via ISDN - or they just had to send it by car. Broadband has removed past constraints on developing the business.
Similarly, Skin Culture, a London-based company selling do-it-yourself skin treatments, invested in e-business technologies to improve communications with its customers. It set up an interactive website, designed to engage its customers, giving them the opportunity to browse through Skin Culture's catalogue of products, identify their skin proÞle and buy items through a secure online ordering system. The company now conducts over 75% of its business through the website and has branched out into international markets - the technology allowed it to tap into the growing internet-savvy shopper group.
In short, e-business can enhance the productivity, competitiveness and cost-efficiency of any business, whatever its size. But the question for many smaller businesses is how they take that Þrst step. Integration of new technologies into existing business processes can seem a daunting task, but it does not need to be expensive or complicated. It could be as straightforward as ensuring one database of customer details is stored centrally on the business' system, rather than having two separate records for billing and delivery. When a customer's details change, only one entry then needs to be changed, saving time and money.
There are a number of support programmes available to businesses needing advice. There is a network already in place of several hundred UK Online for Business advisors, situated in Business Links and their equivalents across the country, who will work with companies on anything from building an effective website to getting the right purchasing software. UK Online for Business is also developing tools to help businesses take up and maximise the use of technology. The E-business Toolkit outlines e-business models and the Benchmarking Tool allows companies to measure their progress against similar companies. The planning tool, Be Online for Business, also offers practical and tailored advice on how to create and apply a realistic e-business strategy.
Many small and medium sized companies in the UK are already harnessing the beneÞts of new technologies. We are keen to reward that innovation. This year marks the Þfth annual E-commerce Awards, set up to celebrate organisations that are successfully using new technologies to improve their business. Since their inception, we have seen rapid growth in the number of entrants; in 1999, 236 companies applied to the scheme. This grew to a massive 1,683 entries in 2002. As the awards have evolved to respond to changing business needs and new technologies, so the quality of entries has improved.
Back in 1999 the awards were focused on the use of internet and electronic trading applications. The 2003 awards will focus on the key ICT issues affecting organisations today. Truly e-enabled companies are those that have integrated ICT throughout their business.
E-business offers real beneÞts to small companies - allowing better and faster communication, improving efÞciency and opening up new markets. With new technologies behind them, smaller businesses can succeed in an ever more competitive marketplace.
