Many Western Australian small businesses are failing to take full advantage of recent advances in information technology, particularly for online trading and new market access, according to the Small Business Development Corporation.
Many Western Australian small businesses are failing to take full advantage of recent advances in information technology, particularly for online trading and new market access, according to the Small Business Development Corporation.
SBDC acting managing director Stephen Moir said that, although the number of small businesses using IT was growing, there were still many who believed the technology was too expensive or too complex for small business applications.
Mr Moir told a recent Australian Institute of Management conference that innovation and the smart use of technology were the keys to alleviating many problems for small and medium-sized businesses, where costs must be kept to a minimum and skilled labour was difficult to source.
Mr Moir’s comments reinforce the findings of CPA Australia’s latest small business survey, which revealed that almost one in three small businesses are not getting the full value from their information technology investment.
The survey said that, while small business has embraced IT to increase efficiencies, including computerised bookkeeping, payroll and stock inventories, most are not using IT as a gateway to new business or as a tool to open up new markets.
“Having an effective online presence is incredibly important for having your products and services available to customers 24 hours a day, seven days a week,” Mr Moir said.
“A well presented, current and informative web site can also reduce the need for printed material, promotional brochures and order forms, therefore keeping printing costs down.”
In addition, online trading was a way for small businesses to reach new markets in Australia and overseas.
“I believe trading online is something more small businesses should consider. For example, in the US, 200 million internet users are expected to buy about $265 billion worth of products and services this year,” Mr Moir said.
Austrade e-business adviser Edwin Kuller said while small businesses were increasingly connecting to the internet, establishing websites and undertaking online processes, many were not aware of the potential opportunities that online tools could bring.
“The question is not so much whether SMEs are underutilising IT to access new markets, it is more that they are not fully aware of the opportunities that online tools such as websites, email, e-markets and blogs can offer,” he said.
“Those companies that are aware of the online potential do not know where to go to get the necessary IT knowledge. For example, many small companies are not sure how to find a web developer.”
Mr Kuller said an integrated online export strategy was one based on sound business planning and goal setting, combining online and offline tools to achieve export marketing goals.
Margaret River-based winery Moss Wood has extended its customer reach, particularly in times of challenging market conditions, through its online presence.
According to finance manager Michael Bowles, the winemaker’s website serves as both a marketing and an online sales tool, reaching customers from around Australia and overseas
Mr Bowles said sales through the website had increased between five per cent and 10 per cent each year since 2000, with most of the buyers located on the east coast of Australia and overseas, particularly in the UK, Singapore and Hong Kong.
“The website certainly makes for a good globalised presence,” he said.
“Most of the people who purchase wine through the site had visited us, and have then gone back overseas and brought the wine through the website.”
Mr Bowles said the two most important aspects of online selling were good marketing support, the incorporation of a mailing list, newsletters and other regular communications, and a reliable brand.
