| South African SMBs: Technologically savvy and mature Johannesburg , 08 March 2007 - South African small to medium organisations view technology as a tool which can improve company performance or reduce the costs of doing business. This is chief among the findings of recent research commissioned by Cisco and conducted by Coleman Parkes Research Limited among 100 SMBs across a variety of vertical markets including manufacturing, business services, retail and wholesale, utilities and travel and transport. According to Nicole Anderson, SMB area sales manager at Cisco South Africa, the SMB is often regarded as the engine room for the creation of employment in this country. “However, while there are far more businesses which fall into this category than there are large businesses, not a great deal is known about the perceptions of the SMB towards technology. This research provides a glimpse into how these businesses seek to use technology, and is a valuable guide for companies seeking to meet their needs,” she says. Notably, Anderson says respondent SMBs are concerned about competition and believe technology can help create competitive advantage. “Staying ahead of competitors is a key concern for any business; in this market segment, research has highlighted that South African SMBs are looking to technology as a pillar which can support efforts at differentiation.” More than half (55%) of the companies surveyed rated competition as their top business challenge while (67 per cent) expressed the desire to exploit technology to stay ahead of their competitors. Notably, the top three ‘must have technologies are fast internet access/broadband (74%), storage/back-up (73%) and secure networking (72%). Anderson adds that SMBs are also adopting technology to improve productivity and business performance. “Nearly all the companies [94%] mentioned at least one remote access technology as a must have; the top two reasons for doing so are to increase staff productivity [87%] and to increase responsiveness to customers [84%],” she says. Anderson notes that the research findings indicate that the South African SMB is market being more mature than those in other parts of Africa and is similar to the picture seen in Western European economies. The vast majority (87%) are concerned about keeping up with the pace of change in technological areas, face difficulty in retaining IT staff (44%) and see finance and meeting legislation and regulation (46%) as key challenges. In terms of resourcing, just 12% make use of a managed services provider while 48% have in-house IT staff; the balance use external consultants. Milo Schacher, Senior Director Commercial Business, Global Emerging Markets, Cisco says: "It is clear that within Africa there is a huge appetite for technology and recognition of the business benefits it brings. SMBs within this region are rapidly adopting new technology and are increasingly well placed in the global economy. Responding to the technological requirements of this large and diverse market is an ongoing focus for Cisco and we are continually striving to deliver affordable and intuitive solutions specific to their individual needs." About Cisco Cisco, (NASDAQ: CSCO), is the worldwide leader in networking that transforms how people connect, communicate and collaborate. Information about Cisco can be found at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com. |