How can small and medium- sized companies benefit from the use of business technology software?
The purpose for the majority of the small and medium-sized companies is to improve their sales or growth. Nowadays, the online sales and the electronic data analysis represent a crucial phase to achieve this. Since a considerable number of years now, the use of software in the decision making by the large companies has been a regular practice. The competition this business faces is fearful, and the decisions are in some cases critical. On the other hand this scenario does not always apply for the small and medium ones. There are three main reasons for this.
First, their sales are not as ...view middle of the document...
The loose of one client, although is not the ideal scenario, cannot compromise most of the profits in the company. Nevertheless this altogether can produce a company with a limited customer portfolio despite the large variability of them.
The implementation of new technologies allows companies to significantly increase their ability to achieve favorable positions in both domestic and international markets. However these tools must not represent an excessive expense. Especially in developing countries such as Mexico, the deficiencies of governmental programs to support these businesses, and the capital are limited. Hence this obliges the companies to pursuit low cost tools in order to manage their requirements. In contrast the continuous use of technologies to enhance productivity by the large companies or franchises, has putted progressively pressure in this challenging situation.
“Business intelligence (BI) is an umbrella term that refers to a variety of software applications used to analyze an organization’s raw data.” (Şerbănescu 2011). In addition “the technologies for this support depend on a complex and powerful entity known as warehouse data”. (Stefan 2009) The purpose in this systems type was determined by “the requests of dynamic multidimensional systems able to support the intelligence decisional processes and having predictable abilities.” (Stefan 2009)
There are four core issues in the companies in order to make decisions, data mining, referred to sifting through very large amounts of data for useful information (2) analytical processing, querying and reporting.
To accomplish the activities aforementioned companies must be able to manage data warehouse. Stefan (2009) states that this data aims to support management decision making for business performance. Additionally to data-based decisions there are different options in the market for the small and medium business. And they are ranging from consulting services, sales strategy imitation from other businesses to specific software. However the consulting services present two main disadvantages.
The first one is the price, these services often are expensive and the small companies cannot always have enough money to pay it. Second, using this type of advisory generates certain grade of dependency to it and the company never gets to control and store the information in the warehouse. This represents a crucial phase due to the data warehouse “contains historical and current data with potential interest for managers inside the organization’. (Stefan 2009)
Consequently the option for this business in general can be the usage of software. Nevertheless, there are important issues before the implementation of this technology. Primarily the specificity of the company’s needs, in other words the business objectives. Secondly the trends in the market they are forming part of. This is most of the times the largest challenge for this business due to the economic or human resource...