Zoho: What You Need To Know

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Top Takeaways: 2017 Salesforce Analyst Summit

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SMB Group’s 2017 Top 10 SMB Technology Trends

2017-top-10-image2017 has the potential to bring unprecedented changes to the technology landscape for SMBs. In most years, the top tech trends tend to develop in an evolutionary way, but this year we also will see some more dramatic shifts that SMBs need to put on their radar. Areas such as cloud and mobile continue to evolve in important ways, and they are also paving the way for newer trends in areas including artificial intelligence (AI) and machine learning, integration and the Internet of Things (IoT) to take hold among SMBs.

Although we can’t cover all of them in our Top 10 list, here are the headlines for SMB Group’s 2017 Top 10 SMB Tech Trends  that we think hold the most promise for SMBs in 2017. Click here for the full report.

  1.  The Cloud Continues to Power SMB Digital Transformation.
  2.  Industrial Internet of Things (IoT) moves from hype to reality for early adopter  SMBs.
  3.  The Rise of Smart Apps for SMBs.
  4.  Focused, Tailored CRM Solutions Take Hold With SMBs.
  5.  SMBs Get Connected With New Collaboration Tools.
  6.  SMBs Modernize On-premises IT with Hyper-converged Infrastructure.
  7.  Application Integration Gets Easier for Small Businesses.
  8.  SMB Mobile Momentum Continues, But Mobile Management Lags.
  9.  Online Financing Options for Small Businesses Multiply.
  10.  Proactive SMBs Turn to MSSPs and Cyber Insurance to Face Security  Challenges. 

Please contact Lisa Lincoln, Director of Client Services at lisa.lincoln70@smb-gr.com or 508-734-5658  to learn about licensing options.

Kronos: Workforce Ready Mission for SMBs

Smaller businesses are usually preoccupied with what it takes to grow the business and keep the lights on—getting customers in the door, generating more revenue and maintaining profitability (Figure 1). Business growth and profitability are still extremely important priorities as companies grow, but other challenges arise. Workforce-related issues, such as improving employee productivity, meeting compliance regulations, and making it easier for employees to collaborate start to become more important. However, as business gets more complicated, spreadsheets, point solutions and workarounds that got the job done when the business was smaller are no longer up to the tasks of recruiting, hiring, managing and retaining the people the business needs to grow.

Figure 1: Top Business Challenges for Small and Medium Businesses

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In 2012, Kronos, a long-time leader in enterprise workforce and human capital management with its Workforce Central solution, acquired SaaShr, which it rebranded as Workforce Ready. Workforce Ready provides a cloud-based, integrated workforce management solution designed specifically for SMBs (Figure 2), enabling Kronos to broaden its market reach. At KronosWorks 2016, held in Orlando in November, Kronos provided us with an update on how Workforce Ready has evolved and where it’s headed.

Figure 2: Kronos Workforce Ready Platform

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Integrated Workforce and Human Capital Management for SMBs

Kronos has continued to add new functionality to Workforce Ready since the SaaShr acquisition. In its most recent refresh, Kronos has taken a page from the consumer apps world, streamlining Workforce Ready navigation with simplicity and visual navigation to make it easier to use. The latest version includes “hot action bars,” to ensure workflow paths are consistent across Workforce Ready modules, and more intuitive for users. And, the vendor has upgraded dashboards and personalization features so users can do things more quickly through action buttons and icons instead of via pop-up menus.

Kronos has also enhanced employee self-service in areas inclduding employee on boarding, benefits management and performance management; and added the capability to mass populate Affordable Care Act (ACA) and 1095-C forms.

Supporting Workforce Ready’s commitment to help companies manage hourly wage earners, Kronos has also updated timekeeping and scheduling features, such as alerts that notify managers of employees’ scheduling preference changes.

Pricing starts at $23 per employee per month for all Workforce Ready modules, and at $5 per employee per month for Human Resources as a standalone module. Kronos also charges a fixed implementation fee, based on the number of employees and the number of modules the customer purchases.

Workforce Ready Customer Growth

At KronosWorks, Kronos reported that about 1 million users now use the Workforce Ready platform, and that it wins against the competition in more than 50% of the deals in which it is considered. In addition, Workforce Ready has:

  • Grown it’s customer base 45% over the past twelve months.
  • Enjoyed a 48% increase in customers selecting full-suite adoption (including recruiting and on boarding, performance and compensation management, benefits administration, time and attendance, and payroll).
  • Increased international customer adoption 110% in the last year (Kronos currently sells Workforce Ready in Australia, Canada, parts of continental Europe, Mexico, the U.K., and New Zealand, in addition to the U.S.
  • Achieved a 93% customer retention rate.

Drivers for Integrated Workforce Management

SMBs are turning to Workforce Ready when they reach a point where trying to consolidate and reconcile data from spreadsheets, point solutions and manual systems doesn’t work anymore. The manual effort required with this approach becomes too tedious and time-consuming, and redundant data entry results in too many errors. As important, siloed employee information makes it difficult for decision-makers to see what’s going on in the workforce, and take proactive measures to improve key performance metrics, such as reducing labor costs, improving employee productivity, increasing compliance, or reducing IT overhead.

For example, SMB Group research shows that SMBs using Workforce Ready were able to reduce the time it took to compile management reports 50%-80%; decrease time to perform HR administrative tasks 25%-35%; and improve employee engagement 30%-50% (Figure 3).

Figure 3: Improving Employee Productivity

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Go-to-Market Channels

Kronos sells Workforce Ready through two different channel models. For businesses with fewer than 100 employees, Kronos continues to sell Workforce Ready through the reseller model that SaaShr had established prior to the acquisition. These partners, typically local payroll service bureaus, buy the solution from Kronos at wholesale pricing, add their own services and branding, and then sell it to their customers. Since the acquisition, Kronos has roughly doubled the number of partners for this market.

Meanwhile, Kronos’ direct inside sales team sells to larger organizations with more than 100 employees.

Summary and Perspective

Workforce Ready is now a $100 million a year business for Kronos, and the vendor believes that it has plenty of headroom to grow. SMB Group agrees. Fast growth start-ups will opt for an integrated approach out of the gate, and established SMBs will need to take a more integrated approach to HR to attract, retain and efficiently manage the talent they will need to compete and grow.

To that end, Kronos is investing both to improve the solution and expand sales channels. The vendor recently conducted a survey, which revealed that 75% of firms with 100-2500 employee firms only look at two or fewer vendors when considering workforce management and/or payroll solutions. Kronos will, of course, need to increase market awareness for Workforce Ready to get into consideration in more deals. Once it’s in those deals, Kronos believes that it has the right value proposition—e.g. an integrated workforce management and HCM solution—to continue to win a majority of those deals and grow.

In addition, Kronos has focused heavily on the value that Workforce Ready provides for managing hourly workers. These workers comprise the majority of the U.S. labor market (Figure 4), and Kronos has been able to differentiate in the HCM space with this focus, as most companies rely on a mix of hourly, salaried and 1099 independent contractors. However, Kronos will need to broaden its positioning to highlight how it can help SMBs to more effectively manage workers of all stripes in order to compete more effectively against HCM vendors, especially for business among fast-growth, start-up companies that tend to have a higher percentage of salaried workers.

Figure 4: U.S. Hourly vs. Salaried Workers

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Kronos’ pricing is competitive, and less expensive than vendors such as Ceridian and Workday, which should also help its cause. But, as Kronos readily acknowledges, building market awareness for Workforce Ready, and educating SMBs on the benefits of an integrated approach are probably the biggest hurdles it faces to achieving its goal.

And, although Kronos has done a good job in growing its private label reseller program for the sub-100 employee business market, the HR software vendor list is growing quickly. Many startups, such as Namely, Cezanne, Justworks and others have entered the fray in the last couple of years. Kronos will need to double down on usability to stay ahead of startups moving in on the low-end.

Note: Kronos is an SMB Group client, and paid my travel expenses to KronosWorks.

SMB Adoption of Unified Communication and Collaboration (UCC) On the Rise

—by Sanjeev Aggarwal and Laurie McCabe

Today’s small businesses need the right mix of collaboration tools to create a productive work environment. SMBs looking for new collaboration solutions that will help them work smarter, and achieve top business goals of attracting new customers, growing revenue and improving customer experience. Flexible solutions that connect employees with each other and with customers and partners from any location, device or network will play a big part in achieving these goals.

But as SMBs increase their reliance on collaboration tools, managing and integrating multiple solutionsincluding email, instant messaging, voice, click-to-dial, presence, videoconferencing, and morecan become difficult. As a result, more SMBs are considering unified communications and collaboration (UCC) solutions to aggregate and integrate these functions and bring some order to collaboration chaos.

Mainstream VoIP Adoption Lays the Foundation for UCC

SMB adoption of voice over IP (VoIP) solutions is already well underway. According to SMB Group’s recently completed 2016 Small and Medium Business Communication, Collaboration and Mobility Study, 53% of small businesses (companies with less than 100 employees) and 68% of medium businesses (companies with 100 to 1,000 employees) are currently using VoIP. In addition, 16% and 10%, respectively, plan to implement VoIP within the  next 12 months.

Figure 1: SMB VoIP and UCC Adoption

b2-picture1-768x383Source: 2016 SMB Communication, Collaboration and Mobile Study

With a VoIP foundation in place, more SMBs are considering deploying UCC solutions. Currently, just 12% of small businesses (companies with less than 100 employees) and 28% of medium businesses (companies with 100 to 1,000 employees) use UCC solutions. But, over the next 12 months, 17% of small and 35% of medium businesses say they plan to deploy a UCC solution, potentially doubling year-over-year penetration.

SMBs Are Split on UCC Implementation Preferences

Our study shows differences in SMBs’ UCC implementation preferences. While small businesses tend to gravitate to cloud-based solutions, medium businesses are more likely to choose on-premises deployments. In addition, 14% of small and 20% of medium businesses favor a hybrid UCC approach.
Figure 2: SMB UCC Implementation Methods

b2-picture2-768x320Source: 2016 SMB Communication, Collaboration and Mobile Study

Drivers for UCC Adoption

As shown on Figure 3, SMBs are turning to UCC to:

  • Improve employee productivity from any location, device or network
  • Standardize communication and collaboration tools
  • Increase security
  • Easier to use, monitor and manage
  • Better integration between communication solutions and business applications
  • Lower telecommunication costs
  • Create a more professional image with customers, suppliers and partners

Figure 3: Top Reasons to use UCC

b2-picture3-768x340Source: 2016 SMB Communication, Collaboration and Mobile Study

UCC Solution Purchase Channels

32% of the small businesses and 23% of medium businesses have purchased or plan to buy their UCC solution from their traditional phone carrier (Figure 4). A greater percentage 28% of medium businesses have purchased these solutions from an Online UCC service provider vs. 24% of small businesses. Small businesses prefer to buy from channels they have an existing relationship with. Medium business that have some more IT resources prefer to buy from newer online channels or VARs (if their requirements are more complex).

Figure 4: UCC Solution Purchase Channels

b2-picture4-768x354Source: 2016 SMB Communication, Collaboration and Mobile Study

Most Important UCC Features

SMB survey respondents ranked the UCC features that are most important to them (Figure 5), with the following coming out on top:

  • Better security and compliance capabilities
  • Lower cost
  • Easier for end-users to use
  • Easier to integrate with other business applications
  • Easier and flexible to deploy, manage and extend
  • Better voice and video quality and reliability

Figure 5: SMB Rank Importance of UCC Features

b2-picture5-768x378Source: 2016 SMB Communication, Collaboration and Mobile Study

Summary and Perspective

The market opportunity for UCC in the U.S. SMB segment is around $4.5B. Adoption among both small business and medium business segments should be continue to rise, as more employees work away from their companies’ main offices. Traveling employees, telecommuters and employees in remote offices represent different types of mobile workers and cloud-based UCC solutions can help keep them connected—both among themselves and with their customers—in a more streamlined and manageable way.

Integrated UCC solutions that also connect easily with key business applications can further fuel adoption. And, UCC solutions can help SMBs gain more control, and as a result—security—when compared to a hodge-podge of disjointed point solutions.

Especially in the resource-constrained small business segment, cloud-based options, which offload deployment and management headaches, and offer more affordable subscription pricing, will continue to help facilitate UCC adoption among SMBs.

However, the concept of UCC as an integrated set of systems and applications is still confusing and complex for SMBs who have yet to adopt these solutions. UCC vendors and their channel partners need to help SMBs better understand benefits and evaluate the best-fit alternatives to best capitalize on the growing interest in UCC.

For a complete table of contents and ordering information for SMB Group’s 2016 Communication, Collaboration and Mobility Study, click here.

Act Local to Grow Global: Part 1, Entrepreneurs’ Organization

world-549425_640How can quality localization help small and medium businesses (SMBs) enter, sustain and grow their businesses internationally? I’ve been interviewing customers for this four-part blog series, sponsored by SDL, to learn more about how SMBs are using localization to improve customer experience and grow their businesses.

In each interview, we discuss the role that international markets play in these businesses’ growth strategies, and how they are using centralized language localization services help them improve engagement, sales and retention in overseas markets.

In this first interview, “Entrepreneurs’ Organization: Using Localization to Grow International Membership,” I talk with Taylor Collision, Marketing Manager at the Entrepreneurs’ Organization (EO), a global, non-profit membership organization designed exclusively to engage leading entrepreneurs helping them learn and grow. We learn why international growth is critical to their business, and discuss how EO is using localization to help expand membership in key international markets.

Where is SMB Collaboration Headed?

—by Sanjeev Aggarwal and Laurie McCabe

 In today’s digital age, location no longer needs to be a barrier between co-workers. Whether the other person is sitting next to you or on the other side of the world, collaboration solution—such as email, audio and video conferencing, cloud-based file sharing and stream based messaging—make it easier for people to communicate and get their jobs done.

However, the business and technology landscape is always changing. Solutions that may have worked fine in the past may not be the best fit for new requirements. As shown on Figure 1, 34% of SMBs agree that they “spend too much time going back and forth” between solutions, and 42% say employees use collaboration tools without IT approval/support.

Since collaboration solutions are key to improving employee productivity and customer satisfaction, business decision-makers need to periodically reassess their collaboration needs and how they’re filling them to make sure they have the right mix of solutions.

Figure 1: SMB Views On Collaboration Solutions

chart1Source: 2016 SMB Communications, Collaboration and Mobile Study

SMB Group’s 2016 SMB Communication, Collaboration and Mobility Study shows that small and medium businesses are expanding their use of collaboration solutions (Figure 2). While use of more established collaboration solutions, such as file-sharing and instant messaging is pervasive, SMBs are also adding newer solutions, such as video conferencing and stream-based collaboration. This highlights the fact that businesses are looking to create a more social collaborative environment. Interestingly, however, SMBs are not displacing older solutions with newer ones, but instead expanding the types of tools they use to better meet evolving collaboration needs.

Figure 2: SMB Collaboration Solutions Use and Plans

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Source: SMB Group 2016 SMB Unified Communications, Collaboration and Mobile Study

Brands SMBs Use For Collaboration

The good news is that SMBs have a multitude of choices when it comes to collaboration solutions, and the cloud has made them easier and more affordable to access and use. The bad news is that it’s often hard to figure out which ones are the right fit. In fact, 41% of SMBs in our survey say that “figuring out which solutions can best help my business” is one of their top 3 technology challenges.

In our study, we asked business decision-makers what brands they’ve selected in the solution categories used by them. Here’s how the rankings stack up for a few of them.

Email:

Microsoft Office 365 tops the rankings, followed by Microsoft Exchange. Google for Business came in third as the top email solution provider chosen by SMB owners. Microsoft’s two solutions now own more than 50% of the U.S. SMB market, Google is losing momentum and now has about a quarter of Microsoft’s adoption.

File Sharing & Data Storage

DropBox is the top file sharing service used by small businesses (companies with 1-99 employees), followed by Google Drive and then Microsoft OneDrive.

Figure 3: Small business file sharing and storage solutions 

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Source: SMB Group 2016 SMB Unified Communications, Collaboration and Mobile Study

Among medium businesses(companies with 100 – 1,000 employees), Microsoft OneDrive is the top solution, followed by Dropbox, on-premises solutions and Citrix ShareFile.

Figure 4: Medium Business File Sharing and Storage Solutions

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Source: SMB Group 2016 SMB Unified Communications, Collaboration and Mobile Study

Video Conferencing

SMBs are most likely to se Citrix GoToMeeting for video conferencing. Microsoft Skype for Business is number two, Cisco WebEx number third and Google Hangout has the number four spot.

Stream Based Messaging

Although relatively new to the market, SMB adoption of stream based messaging is gaining momentum. SalesForce Chatter and IBM Connections, which were among the first to offer these solutions, lead in adoption, followed by Citrix Podio, Slack and Flow.

Figure 5: Small business stream-based messaging solutions

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Source: SMB Group 2016 SMB Unified Communications, Collaboration and Mobile Study

 

 

Figure 6: Medium business stream-based messaging solutions

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Source: SMB Group 2016 SMB Unified Communications, Collaboration and Mobile Study

 Perspective

As the pace of business accelerates, we all have to operate in and connect with more people and business networks, and connect to and collaborate with people in different locations, in different ways and on different devices. The right collaboration tools can help people more easily share and manage information, get their jobs done and make better business decisions.

With so much of our business work being done today within digital environments, creating an effective digital workplace that empowers people to work more efficiently and effectively should be a top priority.

SMBs that start by reassessing their collaboration requirements and employee preferences will find it easier to sort through the proliferation of available collaboration solutions, and make the necessary adjustments to ensure they have the right tools in their collaboration toolkits.

For a complete table of contents and ordering information for SMB Group’s 2016 Communication, Collaboration and Mobility Study, click here.

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