Worms and Trojans and Snorts—Oh My! Perspectives on Dell’s 1-5-10 Security Discussion

digital securityLast week, I had the opportunity to join Dell’s 1-5-10 security panel discussion. This was the first in a series of small group events hosted by Dell to consider security trends and implications over the next one, five and ten years. Session attendees included Dell security experts, customers, partners, press and analysts. We discussed what small and medium businesses (SMBs) should be thinking about as they prepare for the future, and what vendors need to do to help them more easily secure their businesses.

Verna Grace Chao, director, Dell global security solutions, kicked off the session by asking us for our favorite security terms. The sheer magnitude of cyber-security issues and risks quickly bubbled up as people reeled off terms such as honeypot, snort, worms, hijack, Trojan, trampoline, phishing and ransomwear and more. I couldn’t help but think how difficult it is for business decision-makers to understand what all these terms mean, let alone stay ahead of threats and safeguard corporate information.

Of course, this challenge is even more daunting for small and medium businesses (SMBs) that lack internal expertise in this area. SMB Group research indicates that on average, only 19% of businesses with less than 100 employees have full-time, dedicated IT staff, and 27% have “no IT support” at all. Meanwhile, although 86% of medium businesses have dedicated IT staff, these resources are likely to be IT generalists, not security experts. As Michael Gray, Director, Thrive Networks, an IT solutions provider owned by Staples said, “there aren’t chief security officers in SMB.” So, despite mounting security risks and their increased reliance on the Internet and technology to run their businesses, many SMBs are under-prepared to deal with today’s threats, let alone those that the Internet of things (IoT) will usher in tomorrow.

Security Steps To Take Today

stepsFor many SMBs, the first step is to become more security aware. The Internet, mobile, cloud, social and other technologies provide many great business benefits. But they also open the door to more vulnerabilities. Too often, digital convenience trumps security, and SMBs choose not to see themselves as potential cyber-targets. Even worse, ITIC survey data shows 35% of firms don’t know if or when BYOD mobile devices have been hacked! Obviously, if you don’t know you have a problem, you can’t fix it.

According to ITIC, hacking is the #1 type of breach, representing more than 25% of all breaches recorded in 2013. Sub-contractor (14%), mobile (13%), insider malfeasance (12%) and employee error (9%) followed. In all, these breached exposed a whopping 91,978,932 records.

Without strong security measures in place, many SMBs are easy targets for hackers. And, because SMBs are often digitally connected to larger business partners, they are increasingly attractive targets. Hackers can potentially not only gain entrée to the SMB’s data, but also gain access to data of the SMB’s bigger partners.

Panelists agreed that if you haven’t yet done so, now is the time to conduct a security audit to determine what potential vulnerabilities pose the biggest financial and brand threats to the business. A solid plan incorporates both measures to prevent breaches from occurring in the first place, and those to detect, prevent and respond to incidents when they do occur.

Business owners and stakeholders need to take a more active role in this process, as Brett Hansen, executive director, Dell Client Solutions Software, explained. The security discussion needs to move from being a tech-only discussion to one where business stakeholders help identify, quantify and prioritize critical business vulnerabilities.

Since SMBs often lack the internal resources required to plan and implement the right level of security, they are increasingly turning to managed service providers (MSPs) for security expertise. A good MSP can help you get a better handle on what vulnerabilities could trigger disruptions, what the impact would be on the business, and develop a risk management plan that aligns with your business requirements and budgets. MSPs can help make security a solvable challenge instead of mind-boggling, unsolvable one. While you can’t eliminate every risk, you can close off the biggest vulnerabilities for your business—and gain peace of mind. Some of the basic measures to take include data encryption; data containerization for BYOD devices (meaning that personal and corporate data are securely separated); and securing the perimeter from unauthorized access.

Looking Ahead

telescopeTrends such as wearables, smart homes and smart cars are exciting and offer many benefits to businesses. But, they will also unleash new security vulnerabilities, especially as more devices and information become interconnected. Jon Ramsey, Dell fellow and CTO, Dell SecureWorks, commented that as cyber and physical domains continue to merge, the risk equation also changes substantially, and will require an expansion of single sign-on to help safeguard all aspects of our digital lives. Participants agreed that these trends will require a shift in the security mindset. Some of the changes forecast include that security solutions will:

  • Move beyond protecting data where it resides, to protecting data dynamically, wherever it goes.
  • Proactively account for the “human factor.” As security issues increase and become more diverse and complex, they need to become more contextual to make it easier for us humans to do the right thing. Biometrics, from eyeball to touch to even genome identification were mentioned as possibilities in this area. As Patrick Sweeneyexecutive director, Dell SonicWALL mentioned, security solutions should act more like more like an airbag than a seatbelt.
  • Become more adaptive, with capabilities to generate new defenses proactively as new threats emerge. According to Ramsey, “Every threat starts out as an unknown threat, we need to expose it and make it known to defend against it.” Risk analysis risk analysis engines will need to look further beyond individual events to act more proactively to accomplish this.              

Perspective

The good news is that in the future, security solutions are likely to be more adaptive, less dependent on humans to make them work, and more capable of proactively eliminating threats. However, far too many SMBs are falling short even when it comes to many security basics—such as encryption, containerization and perimeter security—leaving them far too susceptible to negative business consequences.

Cyber-security threats may seem endless, insurmountable and even unlikely to many SMB decision-makers. But this session underscored that while we can never eliminate all possible breaches, SMBs should be seeking out the solutions and expertise they need now to get the basics in place for today and to help them prepare for tomorrow.

How The Cloud Can Help SMBs: A Conversation

Screen Shot 2014-06-30 at 12.27.13 PMLast week, I had the opportunity to be a panelist on IBM’s first virtual influencer event on Spreecast, (a great new platform that connects you with people through video conversation) about how the cloud can help small and medium businesses (SMBs) to build their businesses from the ground up, compete more effectively with big businesses, and grow.

Paul Gillin, veteran tech journalist and social media expert at Profitecture (@pgillin) moderated the panel, which included me, IBM General Manager, IBM Midmarket John Mason (@jcmason), and Subbu Balakrishnan, CTO and co-Founder of Good.co (@backslash0), a career platform built on SoftLayer that helps people find best-fit workplaces and jobs. 15-20 other SMB thought leaders also joined us via Spreecast’s chat function.

You can watch and listen here for the full conversation, but here are a few of the key perspectives I took away from this lively and interesting discussion:

  • All panelists agreed that the momentum for SMB adoption of cloud services is rising rapidly. SMBs increasingly see that by using cloud solutions, they can focus more of their resources and money on their core business, and leapfrog slower-moving competitors.
  • With the help of SoftLayer, Good.com went from idea to over 100,000 users in a year and a half using a credit card to pay for cloud infrastructure. According to Subbu, this is something the 15-20 employee company would not have been able to accomplish if they had to build out their own cloud infrastructure.
  • Many startups are forgoing on premises software entirely, opting to do as much as possible in the cloud. The cloud removes technology and capital barriers to get up and running. They can skip a whole generation of software to get their companies off the ground more quickly. The cloud is quickly becoming the preferred way for startups to go.
  • Once you’re up and running, the cloud gives you a flexible infrastructure to scale and grow the business.
  • The rate and pace of technology change continues to increase. The cloud not only provides SMBs with the benefits of infrastructure scale, but with access to the increasingly specialized technology skills and expertise that are necessary today.
  • There is no one-size-fits-all when it comes to the cloud. Public, private, hybrid, shared, or dedicated—each company will have different requirements for different solutions.
  • Business partners play a critical role in helping many SMBs take full advantage of cloud services by fully understanding the SMB’s business requirements. Skilled and trusted partners can translate SMB business requirements into the best-fit cloud solution so the SMB doesn’t have to parse through all of the cloud variants on their own.

Nine Signs Michael Dell Will Be the Comeback Kid

14111426889_67f83375a7_zA couple of weeks ago, I had the opportunity to go to Dell’s annual analyst conference (DAAC), an event I’ve attended for many years. The big difference this year, of course, is that this is the first DAAC since Michael Dell took his now 30-year old company private several months ago.

As a longtime Dell watcher, I’ve been tracking Dell’s journey from hardware vendor to become an end-to-end IT solutions and services provider (see my 2011, 2012 and 2013 perspectives). The event persuaded me that Dell is well on its way to accomplishing its mission to reinvent itself and offer customers a differentiated, more cost-effective and easier-to-use IT experience.

Why? Because Michael Dell has not only unchained his company from Wall Street’s myopic quarterly demands, but because he is also building a powerful value proposition for customers that puts Dell on a solid comeback trail. Key evidence for Dell being on the right track include:

1. Customers increasingly view Dell as a key partner. Dell’s mission to engage in deeper conversations with customers of all sizes is paying off. At DAAC, customers used superlatives to describe how Dell is delivering more complete solutions, higher value, lower costs, and a better customer experience. For instance, Ted Colbert, Boeing CIO, discussed how the Dell relationship has expanded from day-to-day operations to some of the most strategic initiatives. He also described working with Dell as “purposeful,” in contrast to a more scatter shot approach of “just throwing hardware at us like some other vendors.” Exasol CEO Aaron Auld talked about how Dell “provided them with the support they needed to win new business and grow,” and Jenkon Director of Information Systems, Steve Shinsel described Dell’s end-to-end solutions support as “phenomenal.” Yes, I know vendors handpick customers to attend these events, but in addition to the unprecedented level of enthusiasm I heard from these customers, Dell’s aggregate NPS (Net Promoter Score) of 52 and 90% customer retention are best in class.

2. Business is growing. Since going private, Dell says it has added 18,000 new customers to its ranks and is seeing steady growth in it’s software and services businesses, among others. In fact, the company’s PC business has enjoyed five consecutive quarters of market share growth. I think customers were naturally anxious as they waited to see how things would play out, but are now giving Dell a vote of confidence with their wallets. Furthermore, the company appears to be headed toward profitable growth, according to CFO Tom Sweet, who told us the company paid down $1 billion of debt in the first quarter of this year. Dell’s goal is to get back to “investment grade” status within the next four years.

 Screen Shot 2014-06-09 at 4.54.52 PM3. Entrepreneurial DNA runs deep and can now fully surface. Check out Michael Dell’s twitter handle! He knows what it takes to build a company from scratch, and being self-employed suits him. Freed up from Wall Street constraints, Dell can again operate in both a more strategic and agile fashion, and infuse employees with the entrepreneurial spirit as well. Dell’s high-level strategy remains the same to bring complete IT solutions to customers, be accessible and listen to what customer want. But the company can now more easily place some new bets to fulfill this mission. For example, Dell is investing to become a value-added cloud broker, positioning itself as an advisor to customers, rather than an OEM. In a very cloudy world, Dell’s Switzerland approach should be attractive to many customers. Furthermore, Dell has upped itsR&D spending from 1.6% of revenue to 2.1%. Last but not least, its hard to think of a more socially savvy tech CEOlistening ears are on!


14296498661_36be143384_z4. Execs and employees are all in.
 Other than customers, employees are any company’s best advocates. But, when there’s a lot of uncertainty in corporations, employees usually look for the nearest exit. But Dell is an exception. Despite a long, drawn out, uncertain and contentious (aka Carl Icahn) privatization process, Dell retained many of its top execs, such as Karen Quintos Senior VP and CMO; Jeff Clark Vice Chairman, Operations and President, Client Solutions; and Tom Sweet, Senior VP and CFO. Dell also attracted the fresh talent required for its transformation, including Andi Karaboutis, CIO; John Swainson, President, Software; Suresh C. Vaswani, President, Services. Renewed energy, excitement and loyalty were palpable in my conversations with employees too: when I asked how and why they stayed the course, they said they believed in Michael Dell’s vision—and several told me they bleed “Dell blue.”

5. Investment in a collaborative partnering model. Dell’s direct connection to customers provides Dell with many advantages, and will continue to be a key route to market for the company. But, Dell is investing in the channel to ensure it can sell to and service customers in today’s increasingly omni-channel world.  Dell has bridged what has sometimes been a gap in trust between it and the channel with a more collaborative partnering model. Dell is integrating regional channel and direct sales structures, paying Dell sales more for sales via the channel, and linking up regionally and locally with partners to pursue joint opportunities. Dell’s expanded portfolio also provides more partners with more headroom to grow with Dell. The results? Channel sales grew faster than direct sales in last quarter, and attach rates for channel sales are now within 3 to 4 points of the attach rates with Dell direct sales.

dell legacy of good6. Ethics, sustainability and diversity. In May, Dell was recognized as a 2014 World’s Most Ethical Company by the Ethisphere Institute, an independent center of research promoting best practices in corporate ethics and governance. Quoting the Institute, the EI award is given to companies “that continue to raise the bar on ethical leadership and corporate behavior.” Dell has also been recognized as a leader in environmental sustainability for many years, and recently upped its commitment when it announced its 2020 Legacy of Good Plan. Among the 21 corporate responsibility goals outlined in the plan, Dell has set 12 goals specific to environmental sustainability. Building on existing initiatives, these 12 environmental goals focus on three areas: reducing the environmental impact of company operations, driving social and environmental responsibility in the industry and supply chain, and promoting technology’s role in addressing environmental challenges. Finally, Dell’s executive team and workforce are diverse. Dell has also stepped up to help women entrepreneurs via Dell Women’s Entrepreneur Network (DWEN). Recent research from The Intelligence Group’s Cassandra Report indicates that among millennials, 59% say that a company’s ethics and practices are important factors in deciding what brands to buy. Pretty powerful stuff—and very tough to fake.

14113197698_5fef929bdb_z7. Stringing pearls instead of looking for one big rock. Dell has been investing strategically to acquire the IP and expertise it needs to package software and services in a more digestible way. While the theme at last year’s DAAC centered on the 12 acquisition Dell made, this year, the vendor spent more time discussing progress to integrate them and bring more complete solution value to customers. For instance, John Swainson discussed how, in the mobile management area, Dell combined Wsye, KACE and other assets for a single enterprise mobile management (EMM) solution to manage PCs, Macs and mobile devices. The vendor is looking to doing something similar in the cloud, giving customers a way to manage public, private, multi-cloud environments with open, scalable solutions. More recently, Dell acquired StatSoft, and intends to leverage this to reduce entry costs and barriers for customers in the analytics area. Just as important, Swainson emphasized that Dell will follow “the 80/20 rule,” to keep its software solutions as simple as possible to acquire and use.

14113201388_6075815e58_z8. The PC isn’t dead! There’s no question that the traditional PC market is declining, but Jeff Clarke took the stage to the tune of “we are not dead yet” from Monty Python’s movie Spamalot to deliver his “Top 10 reasons the PC is (not) dead” message. Good news for Dell, as PCs are the entry point for 70% of new customers. Of course, Dell also offers a growing array of other client devices—from Wyse thin clients to Chromebooks to tablets and laptops.

9. SMB growth and focus. Good segue from #8, as Dell’s fastest growing client business is the SMB market, which grew 28% in the last quarter. In my opinion, the “personal” in PC translates into Dell’s capability to expand SMB business into other solution areas. Furthermore, in an age of technology consumerization, consumer, prosumer and small business are inextricably linked. PCs provide Dell with a launch pad to expand SMB business into other areas. Dell’s direct model, which enables Dell to reach deep into SMBs, its continued focus on listening to customers, its new, collaborative partnering model and vision to sell more value at lower cost, should help keep Dell on this SMB growth trajectory.

In a nutshell, this isn’t your father’s Dell—or Wall Street’s Dell. It is Michael Dell’s Dell now, and it’s starting to benefit not only from being a private company, but also from the fact that as a private entity, it can more fully capitalize on the equally advantageous qualities summarized above.

 

SAP’s Big Bet on SMBs—With a Fast Growth, Millenial Twist

sapEarlier this week, I had the opportunity to meet with Kevin Gilroy, SAP’s Senior VP and GM for Global Small and Midsize Enterprise Segment & Indirect Channels to hear about SAP’s plans to go big in the small and medium business market, which SAP refers to as small and medium enterprises (SMEs). In a nutshell, the vendor is dramatically ramping up market, channel and solution initiatives to boost its profile and market share in SME.

These initiatives come with an interesting twist. Much of what SAP intends to do in the SME space will focus on recruiting partners—from both developer and VAR ranks—who can provide start-up millennial businesses with next generation solutions to help them grow at lightening speed.

The company claims that it is coming at this from a position of strength, with 80% of its 253,000 customers coming from the  SME ranks. But, SAP’s defines SMEs, as companies with revenues under $1 billion, which skews larger than how most vendors and analysts define it. So what shape will SAP’s new SME initiatives take?

Sharpening the SME Lens

telescopeTo put things in context, SAP’s courtship of SME isn’t new. As I discussed in Top SMB Takeaways: SAP Sapphire 2013, SAP has been sharpening its SME lens for a while. Last year, the vendor announced several new programs to bring the benefits of HANA’s data-crunching power to SMEs,  provide customers with the choice of running its solutions in public, private or hybrid cloud environments, and to make its solutions easier to buy and use.

As I noted in that post, SAP was focusing these initiatives not at the SME masses, but on high-growth SMEs, which SMB Group call Progressive SMBs. Progressive SMBs are growth driven, and more likely to invest in and use technology to gain market and competitive advantage than other SMBs. Our data shows that Progressive SMBs are also much more likely to anticipate revenue gains than peers whose tech investments are flat or declining.

Now, SAP is further sharpening the lens to zero in on millennials that are starting, running and making decisions in SME companies. According to Gilroy, millenials have a different view on technology than older counterparts. They are more comfortable with technology, and more likely to view it as a growth engine, instead of as a cost-cutter.

With a broad portfolio of cloud, mobile, analytics, ecommerce, talent management and ERP solutions, SAP offers many entry points for  these SMEs. The vendor has made some key acquisitions, including Ariba for ecommerce, and Success Factors for talent management, that broaden its footprint in the born on the cloud solution space. SAP has also introduced cloud-based options for many of its traditional on-premises solutions, such as SAP Business One. SMEs often prefer cloud solutions because they can usually be deployed faster, with less technical expertise and without big upfront capital expenditures, paving they way for SAP and its partners to expand their addressable market.

Furthermore, SAP is infusing HANA into its SME offerings, announcing general availability of the 9.0 version of the SAP® Business One application, version for SAP HANA. This is the first business management solution for SMEs running on SAP’s in-memory HANA computing platform. It enables SMEs to analyze structured and unstructured information within seconds instead of days, and use predictive analytics to gain new insights into data and optimize business decision-making.

Powering Up Partner Programs

1-hands-holding-jigsawSAP is powering up partner recruitment to fuel SME expansion. The vendor recruited 500 partners in 2013, growing the partner base to more than 11,500 worldwide, with about 1,000 in the U.S. Gilroy indicated that SAP is planning for double-digit channel growth, but will take a selective recruiting tack. In addition to looking for partners with a next-generation development vision, such as Liquid Analytics, SAP wants partners that are ready to scale their businesses to keep pace with SAP’s double-digit growth in SME.

The vendor has introduced and refreshed several programs to help partners go to market more effectively, including:

  • SAP Marketing University, a free, foundational marketing program to empower partners with the marketing skills they need to grow their businesses. SAP indicates the program has already led to over $1 billion in lead generation activities. Once partners have gone through the program, SAP provides them with the same marketing assets that are available to its internal marketing and sales teams.
  • Partner involvement in SAP’s Run Like Never Before ad campaign, launched in October of 2013. To data, more than 200 partners have taken executed campaigns as part of this program, which is 100% MDF reimbursable.
  • New “buy now, pay later” SME financing options that give SMEs zero-percent financing for up to 24 months for the purchase of any SAP product on the reseller price list.

Perspective

We’ve all seen how quickly innovative, fast-growth SMEs can become marquee brands, from tech sector stars such as LinkedIn to consumer brands such as Green Mountain coffee . SAP sees this too—and that technology is putting the creation-destruction cycle for businesses in hyper-drive.

So SAP’s big bet on becoming the leading IT solutions provider for these high-growth SMEs makes sense. As important, SAP is making an authentic effort to consumerize the SAP experience by reducing friction in choosing, buying and using SAP solutions.

But in this noisy SME space, crowded with competitors coveting the same high-growth SMEs, SAP still needs to do more to dispel the long-standing myth that SAP is only a big business brand. Although SAP solutions may be a good fit for high-growth SMEs, the vendor isn’t a household name with them or the millenials that its is seeking out.

SAP will also need to be cautious not to overplay the millennial hand. While millenials are likely to be more digitally savvy than older generations, the U.S. Small Business Administration says that self-employment among younger age groups has actually been dropping. From 2005 to 2010, self-employment among indi­viduals age 25 and under decreased 19 percent, compared to a 7 percent drop in the overall population. In reality, self-employment rates increase with age. For example, they were 2 percent for those 25 and under and 23 percent for those 65 and over in 2010. Simply stated, while millenials may prove to apply technology in business in more innovative ways, they are a relatively small part of the entrepreneurial population.

However, SAP is moving in the right direction. As it increases its investment to understand and engage with SMEs, SAP can continue to fine-tune its SMB story, and widen the circle of high-growth SMEs that will hear it and relate to it.

Cloud Is The New Normal for SMBs—But Integration Isn’t

SMB Group recently wrapped up our “2014 Small and Medium Business Routes to Market Study,” in which we looked how U.S. SMB technology adoption and the buying cycle in ten key solution areas, as shown below.

Business Application Solutions

IT Infrastructure Solutions

·   ERP, Financial and Accounting

·  Security

·   Collaboration

·  Data Backup

·   Marketing Automation

·  Online Storage and Sharing (new addition for 2014)

·   Contact and Customer Management

·  Server Virtualization

·   Workforce Management (new addition for 2014)

·  Desktop Virtualization

·   Business Intelligence and Analytics

·  Integration (new addition for 2014)

Cloud Adoption is Soaring

The most dramatic finding is that 92% of SMBs are now using at least one cloud business solution, and 87% already use at least one cloud infrastructure solution. (Figure 1).

Figure 1: SMB Cloud Adoption

cloud adopt

Furthermore, when compared with our 2012 Small and Medium Business Routes to Market Study, we see  cloud adoption increasing in every solution area. For example, since 2012, SMB cloud adoption is up 10% for collaboration, 5% for business analytics and 2% for accounting and ERP. The same types of gains hold true for infrastructure  applications. In addition, we see that as SMBs shift to the cloud, purchase channels are also changing to favor direct purchase from software or a software-as-a-service/cloud vendors  and to managed service providers (MSPs).

Integration Remains Problematic

However, while the cloud has made it much easier for SMBs to access and use new applications, it has yet to do much to help SMBs integrate them. Although 63% of SMBs have at least partially integrated some applications, 79% still rely on manual Excel file uploads or custom code for integration, instead of using modern integration solutions or pre-integrated solutions (Figure 2).

Figure 2: SMB Integration Methods

integration

Integration is essential to helping SMBs reap the full business process value of new applications—and of course to gaining a more unified, consistent view of the business. But as this research signals, vendors need to do a lot more both to educate SMBs about the value of application integration, and to make their integration solutions easier to use and more affordable.

For more information

SMB Group’s 2014 Small and Medium Business Routes to Market Study assesses the entire SMB technology solution purchase cycle, including needs identification, information sources, advice sources, key selection and short-list criteria, and purchase channels. Fielded in February 2014, the study is based on the results of a 700-respondent web-based survey of SMB technology solution decision makers and influencers, and segmented into eight employee-size segments and 18 vertical industries.

Please contact Lisa Lincoln at (508) 734-5658 or lisa.lincoln70@smb-gr.com for more information about the study, including a Table of Contents.

 

 

Discussing SMB Tech Trends: Part 4, The Affordable Care Act Puts Workforce Management in the SMB Spotlight

Recently, I was a guest on Act Local Marketing for Small Businesswith host Kalynn Amadio. Each week, Kalynn shares information and actionable tips to help inspire and motivate small and medium businesses (SMBs) reach their business goals.  On this episode, Kalynn and I discussed  SMB Group’s 2014 Top Ten SMB Technology Trends and what they mean to the marketing and running of your business. The last of a four-part series, this post summarizes our discussion of “The Affordable Care Act Puts Workforce Management in the SMB Spotlight.”

acaKalynn: You know, there are ten different SMB technology trends.  We’re not going to have time to go through all ten things, but there is one more that I do want to talk about.

 Even though we talk about small business and marketing and how to grow business on this show, I think we would be remiss if we didn’t discuss your prediction regarding the Affordable Care Act or ACA. I know it’s at the forefront of my mind, it’s in the media constantly, and it’s a real issue for people right now. 

Laurie: Absolutely. Our prediction is really that the Affordable Care Act puts workforce management front and center for SMBs. 

Many SMBs have already automated and integrated things like sales and marketing and customer facing kinds of solutions, because they see this as key to business growth.

But many have put workforce management solutions on the back-burner.  They think of that as a cost area so they often limp along with a bunch of disconnected things and manual tracking to take care of things like payroll and time and attendance, scheduling and benefits. 

Kalynn, as you said, the Affordable Care Act has made everybody kind of sit up and pay attention.  We’ve gotten a little bit of a reprise because they’ve delayed the mandate for the companies with more than 50 full-time employees until next January to provide health insurance. It was supposed to kick in this January. 

But, now everybody is realizing because a lot of, unfortunately, very negative publicity and all these issues that this is very complicated and it’s a situation that’s in flux. 

SMBs are worried, and rightly so, about uncertainty, costs and regulatory risks. They are starting to realize that need to be able to more easily do things like calculating employee eligibility for benefits, choosing the right plans, managing compliance and keeping costs under control. 

So, for purely practical reasons, SMBs that haven’t paid much attention to automating in the workforce management are going to start to do so to gear up for 2015.

Kalynn: Yes, and it could take longer than they thought the whole thing did turn out to be more complicated than we were led to believe.  So, it’s probably a good idea to take this year and make sure you have in place whatever you need to have in place to make your life easier and so that you’re ready January 1st of 2015 to go live, you’ve got everything handled, you know what’s going on, and everything is taken care of from a legal stand point.  

telescopeLaurie:It’s really about having the visibility into what’s going on in the workforce. Now there are a lot of cloud-based workforce management services for SMBs. With many of them, you can usually just get the modules you need. So maybe you just need payroll and time and attendance, right, but you can add other modules like benefits as you need them and they all integrate automatically. 

Automating and integrating this gives you better visibility into things like hours worked, overtime, and all the things that you need to know about to make good choices, not only for ACA, but for other workforce management decisions.

Kalynn: Right, because any of those kinds of solutions you’re going to have reporting modules that will let you look at all of your data so that you can make the best choices, and so document it all.

Laurie:It’s like in your own personal life you want to kind of evaluate the risks and benefits of different healthcare options, right.  Well, think of how complicated that is to do that just for your own family. It’s not easy information to sift through.  Well, now think about if you have to make that choice for your workforce.

You want the ability to do what if scenario kind of thing. What if I use this plan?  What will it cost?  What are the downsides? What are the upsides?  In some cases –not that I’m advocating this– some businesses want to know if they should be cutting down workers to part-time. 

So, you want to be able to play with all that.  It’s very difficult to do that if you have any more than just a handful of employees without having some kind of workforce management solution to do it with.

Kalynn: It goes back to something that you had talked about at the very beginning of the interview. If you don’t have metrics that you can run reports with then you don’t really know what the health and well-being of your business is and what decisions you should be making.  That’s just the bottom line. 

Laurie:  Yes, and again you want to have flexibility. Think about it; right now the economy is in a lot better shape than it was a few years ago, so your decisions today might be a lot different from they would have been four years ago. 

And, you know what, in a couple of years hopefully the economy will continue to improve.  We may have a very tight labor market if that happens and companies may go back to providing richer benefits packages.  So, it’s all about being able to adjust and adapt to kind of get ahead. 

Kalynn: Right; you want to have all your options available so that you can look and scoot them around on the table and see what happens and make some good decisions.

You can listen to the complete podcast discussion here.

Discussing SMB Tech Trends: Part 2, Mobile Applications and Management

Recently, I was a guest on Act Local Marketing for Small Business with host Kalynn Amadio. Each week, Kalynn shares information and actionable tips to help inspire and motivate small and medium businesses (SMBs) reach their business goals.  On this episode, Kalynn and I discussed SMB Group’s 2014 Top Ten SMB Technology Trends and what they mean to the marketing and running of your business. The second of a four-part series, this post summarizes our discussion of “Mobile Management Becomes a Priority as SMB Mobile App Use Soars.”

free multiple mobile devicesKalynn:Welcome back to Act Local Marketing for Small Business, Laurie. The next trend I’d like to discuss is mobile and mobile management and mobile app usage in the SMB market.

Laurie:Well, what we’ve seen with mobile is really fascinating.  I’ve never seen adoption in a technology area occur at such a fast and furious pace. It’s been just unbelievable since the iPhone was launched.

The iPhone changed everything because it personalized the devices, and spawned this whole app ecosystem, and it just made these phones that we all now carry around become critical in our personal lives and in our businesses. 

As a matter of fact, 67% of SMBs now view mobile solutions and services as critical to their businesses. That’s kind of unbelievable considering just a few years ago you probably had a dumb phone and you might have relied on it but nothing like we rely on our phones now. 

Kalynn: So what kind of mobile apps are SMBs using?

Laurie: Basic collaboration appscalendars, emails, messaging and contactsare already mainstream. About 83% of SMBs use them. 

Slide1SMBs are also adopting mobile apps for very business-specific functions. So, for things like order entry or inventory lookup, or to log time and attendance or enter payroll. Mobile is becoming part and parcel of how we conduct business.

Almost half of SMBs also either have or are planning to build a mobile-friendly website to engage customers using mobile devices. Sometimes you don’t even have to build it. If you have a WordPress site it’s automatically mobile friendly. 

Kalynn: Right, many themes now are mobile-enabled, and adjust depending on the size of the screen. 

Laurie: If you’re not doing this, you need to. It’s so frustrating to go to a site and have to keep adjusting the screen to read the text because it’s not mobile-friendly.

Some SMBs are also starting to deploy specific mobile apps to engage with their customers and prospects for appointment scheduling and payments, and things like that.

Kalynn: Do they develop their own proprietary mobile apps?

Laurie:Not necessarily. For instance, restaurants may use something like OpenTable. My hair salon uses a mobile app that lets me book and confirm and all that kind of stuff on my mobile device.

Some SMBs are also developing their own mobile apps or paying third parties to develop tailored apps for them.  Most of the backend applications that SMBs use have mobile app extensions, which are often available on Apple and Android app stores. If the right mobile app is available and can snap into your existing app, that can do the trick.

Kalynn: There’s absolutely no need to do customized right off the bat because so many apps are already out there that you can be a part of.

Don’t forget that in terms of making sure you’re getting found online, because  I’m always thinking in terms of SEO or Search Engine Optimization, a lot of these review sites like Yelp have mobile apps. People will go on them to check reviews about your business, more often than not from a mobile device. I’m not sure I remember the exact statistic but it was something 68% of people have their mobile phone within arm’s reach at all times. 

Laurie:It may be even higher. Also I think we’ve already passed the point where more searches are done on a mobile device than on a laptop or traditional PC or MAC.

Slide1So this makes mobile management critical because it’s a given that our reliance and use of mobile apps will continue to rise. SMBs must keep pace with the mobile explosion. You need to be able to manage not only the mobile devices in your company but also internal applications that your employees are using. 

With any mobile applications, security, management and provisioning are very important. If you’re not yet doing anything, in this area, the time has certainly come.

Kalynn: Right, you have to because employees are using so many devices and apps. Bring Your Own Device (BYOD)  means that companies are less apt to supply people with devices. Everyone has a favorite and they have to all work together.  You really have to think about mobile policies and procedures  for mobile devices and various apps.

Laurie:Yes, fortunately there are a lot of vendors that have mobile management solutions now geared towards SMBs from vendors like AirWatch or MobileIron. And from vendors that you might already be doing business with like Dell or HP or IBM. A lot of them are cloud-based, so that makes them easier to deploy and use.  

Kalynn: Right, and I’m sure there are tons of consultants that work with these solutions and can help you figure it out too.

In the third of this four-part series, I’ll recap Kalynn’s and my conversation about “SMBs View Payment Systems in a New Light.” You can listen to the complete podcast here.

 

 

                       

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