Only 16 percent of British small business managers think that the Internet has increased their operational efficiency, while nearly half think that it has made running their businesses more complex.
The survey of 422 SMEs, conducted by Cranfield, showed that despite a high level of SMEs embracing the Internet for their business (97 percent have email, 94 percent have broadband, and 84 percent have a website), 60 percent do not feel that the Internet has increased their operational efficiency.
The Internet makes SME lives more difficult," said Cranfield's Prof Burke, who with Dr Hussels, conducted the research. "Only 16 percent of UK SMEs feel the Internet has increased operational efficiency, which is a fairly startling discovery." Indeed, 46 percent feel the Internet has raised the complexity of running their business, with over 62 percent saying the Internet has increased competition from foreign markets - although this has another side, 56 percent of respondents said that the Internet had enabled them to sell their products abroad.
One in three SMEs strongly feel the Internet has made it harder to protect confidential company data, while 48 percent believed the Internet caused employees to waste time, thanks to distractions like social networking, personal web surfing etc.
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That is an interesting survey and I feel it is very valid in its findings. The Internet is becoming more of a commodity rather than a competitive advantage for companies. Maybe these business managers are expecting the Internet to keep them competitive, which is leading them to think the Internet is holding them back. However, if they thought of the Internet as a commodity they might see more of its benefits.
Sometimes the Internet does cause inefficiency. For instance, the use of e-mail may actually cause more time than just calling someone. Another example is the search for alternatives for the existing products. If you are using products that are non-critical in both finanical and technical spec, does it worth the time to look for something that is slightly different? Do companies account for the time their employees spent on these activities?
On the other hand, Internet can be very helpful. I guess it depends on the user to determine what is inefficient use for the Internet.
Yes, the people factor again. It is all about people not the technology.
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