Software Licensing & Master Service Agreements : Chicago Software Licensing Lawyer & Attorney : Sam Conforti Law Firm : Master Service Agreements, Negotiations, Outsourcing : Cook County, Illinois

In order for SMB’s to compete with their larger counter-parts, they need to increase their operational efficiency.  CISCO interviewed Laurie McCabe, vice president of small and medium-sized business (SMB) insights and solutions for research firm AMI-Partners, and came up with some suggestions to enhance SMB’s ability to compete using network technology.  Here is what they’ve come up with:

1.     Give employees access to information:  SMB’s need to react quickly.  Slow and unsecured networks erode competitive advantage.

2.     Mobile employees need access anytime and anywhere: Virtual Private Networks (“VPN’s”) and wireless networks allow mobile employees to stay connected to the network.

3.     Develop business processes with partners:  Operational efficiency is enhanced when you can meet your partner’s requirements.

4.     Collaborate, Collaborate, And Collaborate:  With partners, employees, suppliers, and customers.  Use integrated voice, video, data, wireless, and other technologies.

5.     Your phone system should go where you go:  Missed calls mean missed opportunities.  Solutions exist making one phone call ring multiple devices.

6.     Modernize customer communication:  Link your IP communication system to a Customer Relationship Management (“CRM”) solution.  Before your employee answers the phone a pop-up appears on their screen with customer information including recent orders and returns.

7.     Travel time kills operational efficiency:  Use video conferencing whenever possible to reduce travel to offsite meetings and training sessions.

8.     Outsource IT tasks to a Managed Service Provider:  Employee’s time is better spent on supporting the enterprise’s core competencies rather than on managing network security.

9.     Employee retention is key:  Frustrated employees affect customer’s confidence in the enterprise.  Burned out employees leave and time & money is spent rehiring.  A reliable network alleviates this frustration.

10.  Develop a long-term technology plan:  Eliminate disruptions from replacements of massive obsolete hardware by devising a mapping of solutions to objectives.

To read the full details see Ten Tips for Increasing Operational Efficiency.

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This post is aimed specifically at the SMB enterprise and those consulting such enterprises. Recently in a post to this blog on February 3, 2008, I posted an article detailing a checklist for those enterprises that have already faced the questions on whether to outsource or not entitled Checklist Before Outsourcing Your IT.  That article has attracted a large number of readers.  In the article that follows I hope to aid those SMB’s that are still grappling with the decision on whether such a move is in their best interest.  In my research I have found an article written by Rojo Sunsen entitled 10 Ways Outsourcing Can Help Grow Your Business.  Sunsen succinctly defines outsourcing and then follows this definition with a rather direct and to the point list on the benefits to the enterprise.  I have paraphrased Sunsen’s list below; however I highly recommend the complete article in order to gain the fuller picture and what such a move can do to grow your business.

1. Employee training is reduced and allows such time to be directed to the company’s core competencies.

2. Capital outlays for equipment and software are reduced and can be placed into more revenue generating endeavors.

3. Save on the expenditure of employee recruitment to fill positions for intra-company administrative functions.

4. Hand-in hand with point #3 above is the time that is saved performing certain administrative tasks that are ancillary to the enterprises core functions.

5. Yet another savings to points #3 and #4 above are the employee benefits costs that are no longer required such as “taxes, medical, vacation time, holidays, worker’s comp., unemployment costs, etc.”

6. Office space opens up which could be better used performing the tasks required on the revenue side of the business; or alternatively, space could be sublet or a company’s leasing requirements can be reduced.

7. Order processing and delivery of products or services can be enhanced thus creating better customer satisfaction which can result in future return business.

8. More emphasis can be placed on increasing market share with the abovementioned improvements and savings.

9. In line with point #8 above is the ability to accept larger orders or take on more orders due to the economies of scale which should come about due to the outsourcing.

10. Lastly, your outsourcer can become a valuable ally in your marketing efforts and provide an additional outlet and/or network of customers.

Implicit in the above savings tips is the ability to redirect funds usually budgeted for the administrative side of the business and put these monies to better use on the revenue generating side of the P&L.

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