1. Technology1 Copyright 1999 Prentice Hall Publishing Company Using Technology to Gain a Competitive Edge

3. Technology3 Copyright 1999 Prentice Hall Publishing Company Information Technology and Competitive Advantage l Information is becoming the competitive edge by which growing companies win or lose in the marketplace. l Technology itself is not that important to a company’s success, but how an entrepreneur finds creative, innovative ways to use that technology to serve customers better is!

5. Technology5 Copyright 1999 Prentice Hall Publishing Company Developing a Technology Plan l Decide what you want your company to be able to do for itself and for your customers. l Determine the technology and the equipment you will need to perform those tasks. l Conduct a technology audit.

6. Technology6 Copyright 1999 Prentice Hall Publishing Company Developing a Technology Plan l Match goals and resources. l Develop a technology budget. l Make the necessary purchases.

7. Technology7 Copyright 1999 Prentice Hall Publishing Company How to Computerize a Small Business Step 1. Develop a list of current activities. Step 2. Decide how much and which areas of the business to computerize. Step 3. Develop a computer budget. Step 4. Define the informational needs of the functions to be computerized first.

8. Technology8 Copyright 1999 Prentice Hall Publishing Company How to Computerize a Small Business Step 5. Shop for software packages that will perform the required functions. Step 6. Choose the hardware. Step 7. Integrate the system into the business.

9. Technology9 Copyright 1999 Prentice Hall Publishing Company Step 1: List Current Activities l Which activities should you consider computerizing? â Accounting, inventory control, training, customer contact, sales, presentations, training, etc. l Prioritize: â High - Those driving the decision to computerize. â Medium - desirable but not essential â Low - Nice to have but not essential.

10. Technology10 Copyright 1999 Prentice Hall Publishing Company Step 2: Decide Which Areas to Computerize l Do not choose a “problem area,” expecting the computer to fix it. l Start with a smooth, well-functioning system. l Review Step 1: â Which activities are critical to success now? In the future as the company grows? â Which will be critical to maintaining our competitive advantage? â Which will improve our customer service?

11. Technology11 Copyright 1999 Prentice Hall Publishing Company Step 3: Develop a Computer Budget l Budget must reflect not only the cost of the hardware and software but also the cost of training, support, and maintenance. l Consider the Total Cost of Ownership (TCO). â Study: In small companies, TCO of a $5,000 personal computer is actually between $15,000 and $20,000 per year!

12. Technology12 Copyright 1999 Prentice Hall Publishing Company Step 4: Define the Informational Needs of Each Function l How does information flow through each function to be computerized? Which employees receive and generate information? l Does the company need a network so that employees can share information easily? â Local Area Network (LAN) â Peer-to-peer LAN â Client/Server LAN

13. Technology13 Copyright 1999 Prentice Hall Publishing Company Step 5: Shop for Software to Perform the Required Functions l A computer without the proper software is like a car without an engine - useless! l Shop for the right software package before purchasing any hardware. l Software requirements determine hardware purchases.

14. Technology14 Copyright 1999 Prentice Hall Publishing Company Step 6: Choose the Hardware l Once you select the right software, then you should focus on finding the right hardware to run it smoothly. l Although price is an important issue, it should not be the driving factor. l Other considerations include: processing power, expandability, compatibility, and serviceability.

15. Technology15 Copyright 1999 Prentice Hall Publishing Company Step 7: Integrate the System into the Business l Converting from a manual system to a computerized takes time, hard work, and patience. l Don’t forget training! Untrained workers will not be able to get the most of a company’s computer investment. l Gradual phase-ins usually are more successful than overnight transitions.

16. Technology16 Copyright 1999 Prentice Hall Publishing Company Software Applications l Word processing l Accounting l Database management l Spreadsheets l Presentation graphics l Communications

17. Technology17 Copyright 1999 Prentice Hall Publishing Company Software Applications l World Wide Web browsers l World Wide Web page design

18. Technology18 Copyright 1999 Prentice Hall Publishing Company

19. Technology19 Software Applications l Project management l Software suites l Industry-specific software l World Wide Web browsers l World Wide Web page design

20. Technology20 Copyright 1999 Prentice Hall Publishing Company The Dark Side of Computers l Electronic disasters l Computer crime l Viruses

21. Technology21 Copyright 1999 Prentice Hall Publishing Company Ensuring Computer Security l Determine which data needs to be protected. l Decide how to secure the data. l Recognize that the weak link in the chain of computer security is people. l Encourage employees to maintain security standards on a daily basis.

22. Technology22 Copyright 1999 Prentice Hall Publishing Company Other Technology Choices l Printers â Injet â Monochrome laser â Color laser l Digital cameras l Personal digital assistants (PDAs) and pagers