Medium-sized businesses’ ability to deploy game-changing IT will help them withstand the recession, as delegates at Information Age’s IT for the M Business conference discovered. M Institute co-hosted the conference and listened in on the discussion.
Information Age's Pete Swabey reports that the current economic crisis will hit medium businesses the hardest. He came to this view listening to the proceedings at the recent IT for the M Business conference. Swabey says, "They have neither the agility of small businesses, which can change tack at the drop of a hat, nor the economies of scale of corporations, many of whom have the cash to sit tight and weather the storm."
As M Institute has often noted, medium businesses (unlike their smaller brethren) are prepared to invest in sophisticated IT, and have a real appreciation of what IT can do to enable the business to scale efficiently. But unlike large organisations, Swabey notes that "mid-sized business don’t have the luxury of getting it wrong or experimenting: IT projects need to be 100% tied to the achievement of business goals, with an intense focus on payback and benefits."
On the plus side, the IT departments of medium-sized businesses are used to doing a lot with a little. Their budgets are dwarfed by those of their corporate cousins, but the expectations for scale and quality of service they must meet, and regularly meet, are no different – in terms of streamlining global supply chains, enhancing customer acquisition and retention, locking down security and other key areas.
Hence Swabey's perception that there was a blend of trepidation and quiet confidence among delegates at the IT for the M Business conference, with the general view being that IT can help medium-sized organisations through the current downturn.
Do check out the article for yourself. In particular, note the comments from Natalie Ayres, chief operating officer of managed IT service provider Virtual IT, who keynoted at the event. “In a shrinking economy, growing the business while simultaneously cutting cost is challenging,” she explained. “Most businesses go into survival mode. But that is not a strategy that will see you outride the downturn.” Ayres is certain that one of the gravest dangers to medium businesses will be to over-react to the current situation.
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