Technology: The Backbone of Modern Small Businesses

Technology has become indispensable for small and medium-sized businesses (SMBs), acting as the backbone of their operations. The U.S. Chamber of Commerce underscores this dependence, revealing that 7 in 10 small business owners acknowledge their businesses would struggle to survive without technology platforms. Consequently, SMBs account for a significant portion of the U.S. economy's technology spending, even surpassing large enterprises in several categories.

Optimizing Tech Investments for Sustainable Growth

However, simply acquiring technology isn't enough. SMBs need to optimize their tech investments to get the most out of them and ensure sustainable growth. Over- or underinvesting can lead to wasted resources and missed opportunities. This necessitates a strategic approach to technology adoption, allowing SMBs to maintain a competitive edge through improved efficiency, productivity, and security.

Rightsizing Tech Investments: Three Strategies

Here are three ways SMBs can rightsize their tech investments to optimize performance and secure sustainable growth:

1. Outsourcing IT Management: Leveraging Managed Service Providers

With limited personnel, SMBs often face challenges in managing their IT infrastructure. This can lead to security vulnerabilities and inefficiencies, even when non-IT staff attempt to bridge the gap. However, extensive internal IT teams aren't the only option. Outsourcing IT management to a trusted partner, like a Managed Service Provider (MSP), can free up internal resources, allowing teams to focus on core business activities.

MSPs offer a wide range of services, from IT staff augmentation and network management to cloud support and security. This enables businesses to access advanced technologies without significant in-house investments. MSPs provide customizable services, catering to the SMB's budget and specific needs, resulting in predictable IT costs and subscription-based pricing. Additionally, decision-makers can regularly adjust the scope of services as required.

As Ramana Reddy Depa, CDW's global head of strategy for managed services, emphasizes, "Regardless of how an organization decides to work with MSPs, these partnerships are a valuable opportunity to accelerate outcomes, navigate disruption and plan for the future."

2. Embracing Scalable Software Solutions

Investing in business technology solutions that are only suitable for a specific stage of business growth is costly and inefficient. SMBs are better off investing in technology that can adapt and scale as they grow. This means choosing software that can adjust to fluctuating workloads, user demands, and new functionality without requiring a complete overhaul. This is especially important during peak seasons, like the holidays, when many small businesses rely heavily on sales.

Christa Pitts, co-CEO and cofounder of The Lumistella Company, highlights the importance of scalable software solutions in her Harvard Business Review article. She states, "In my experience as an executive of a seasonal business, I’ve seen that number rise to 90% of annual revenue. Business sprints along at a frantic pace, with a need for ‘all hands on deck.’ But then, as the season draws to a close, business slows to a crawl and receivables dry up."

IT leaders should identify business processes that would benefit most from scalable software solutions, such as CRM, ERP, or project management. They should then research their options, focusing on software with modular capabilities. A trial-based integration approach ensures compatibility with the organization's existing IT system, helping teams avoid software replacements, manage renewals, and improve uptime and productivity.

3. Seeking Expert Guidance from Technology Partners

While SMBs understand the need to leverage technology for competitiveness, they often struggle to implement new technologies effectively. Recent research at the Georgia Institute of Technology reveals that "small businesses often lack the resources and knowledge required to incorporate … beneficial technology." This is where working with technology experts, such as CDW, can make a significant difference.

CDW's team of experts provides holistic counsel and support, offering more than just traditional managed IT services. They help IT leaders gain complete observability into the IT ecosystem, identifying potential vulnerabilities, improving data management, and maximizing resource allocation according to a long-term plan. This expertise can provide SMBs with an enhanced customer experience that they might not otherwise be able to afford.

Andy Kleinheinz, principal technical architect at CDW, explains, "Simply put, we work with you to eliminate business challenges on any time line, every step of the way. With our industry-leading partnerships, we’re not hamstrung on one solution or vendor — we listen to you, then bring in the proper resources."

The Power of Cloud Computing for SMBs

Cloud computing is a powerful and flexible platform that can help small enterprises streamline operations, enhance productivity, and scale efficiently. It eliminates the need for significant upfront costs associated with traditional IT infrastructure.

Key Cloud Solutions for SMB Growth

Here are some cloud solutions that can empower small businesses to thrive in a dynamic market:

• Zakeke: This leading cloud-based visual commerce platform enables e-commerce stores to offer customizable products with real-time 3D and AR technology. Zakeke's affordability makes it accessible to businesses of all sizes. Its features include:

  • Virtual Try-On: Customers can virtually try products on using their mobile phones through augmented reality.
  • 3D Product Configurator: Businesses can create configurable made-to-order products in 3D, allowing customers to choose parts, materials, colors, and add text and images.

• Printix by Tungsten Automation: This cutting-edge cloud-based print management solution simplifies and secures printing processes for businesses of all sizes. It eliminates the need for on-premise print servers, streamlining print management and enhancing security through seamless integration with cloud services like Microsoft 365.

• UNEOS: This advanced cloud storage solution provides scalable, secure, and cost-effective cloud storage for small businesses. It offers block and object storage, enabling businesses to efficiently manage and protect their data while remaining flexible as they grow. UNEOS empowers small businesses by providing enterprise-level cloud solutions at a fraction of the cost, disrupting traditional on-premises storage models.

• Microsoft Intune: This unified endpoint management solution allows businesses to manage devices, including mobiles, laptops, and tablets, enforcing security policies, managing app access, protecting sensitive data, and simplifying device provisioning, configuration, and troubleshooting for tech teams.

• Rippling: This comprehensive workforce management platform integrates HR, finance, and more into a single system, streamlining operations and improving efficiency. By consolidating employee data across 600+ apps, Rippling automates critical tasks like payroll, labor compliance, and more, allowing small business owners to focus on growth. It also empowers businesses to manage a global workforce, setting up new hires with everything they need regardless of location. Rippling's streamlined payroll solution ensures accuracy and speed, processing payroll for everyone in their local currency in just 90 seconds with 100% error-free precision.

• BrightHR: This award-winning HR and health & safety software provider offers a cloud-based system for managing documents, digitalizing records, and staying compliant with employment law and work health & safety obligations. It provides real-time updates and allows businesses to access features and software packages from both desktops and mobile devices.

• Akamai Connected Cloud: This platform combines core cloud computing and edge computing with industry-leading security on a global network. Akamai Connected Cloud empowers businesses to build, deliver, and secure ultra-low latency applications on distributed and multi-cloud architectures. It enables faster development, release, and scaling with infrastructure as a service, virtual machines, and tools for every workload.

Conclusion: Embracing Technology for Small Business Success

By embracing the power of modern technologies, small businesses can gain a competitive advantage and drive growth. From communication tools to cloud-based solutions and AI-powered applications, there is a wide range of options available to help small businesses streamline their operations, enhance productivity, and reach their full potential. As technology continues to evolve, staying informed about the latest trends and tools will be critical for small businesses to thrive in the years to come.