The Business Case for BT Convergence

The structured approach of Business Technology Management (BTM) is a proven methodology that seeks to unify business and technology decision-making at every level within a company.

Originally conceived to address the needs of large enterprises, there are now very apparent benefits for both small and medium sized businesses. Let's consider the growing body of evidence that supports that business case.

Put simply, BTM is applied to ensure that a company's business strategy can be realized by the technology it deploys. This approach is used by business leaders to align, synchronize and even converge technology and business management for the purpose of ensuring better execution, risk control and profitability.

The Path of Total Convergence
Clearly, these are the type of guiding principles that should transcend all businesses, regardless of their size. Let's explore the meaning of those three states of progression.

Alignment is defined as a state where technology supports, enables, and does not constrain the company's current and evolving business strategies. It means that the IT function is in-tune with the business thinking about competition, emerging threats and opportunities.

Synchronization implies that business technology (BT) not only enables execution of current business strategy, it also anticipates and helps to shape future business models and strategy. In this state, BT leadership, thinking, and investments may be ahead of business needs.

The state of Convergence includes both alignment and synchronization, with technology and business leadership willing and able to operate simultaneously in both spaces. Essentially, the disciplines have merged in both the strategic and tactical senses. A single leadership team working together to orchestrate one intertwined agenda.

A Business Impact Case Study
Does this seem like an academic exercise? Consider the following facts, and then you decide.

According to the BTM Institute, in research covering 50 industries, companies with a more converged business technology management exhibited superior revenue growth and net margins relative to their peer group:

• 12% average annual revenue growth vs. 4% for their industry groups.
• 36% average annual earnings per share growth vs. 7% for their industry groups.
  

Not only did these companies grow at a faster pace than their peers, but they also exhibited consistently greater returns than those of their competitors:

• 6% higher EBITD margins than those delivered by their industry groups.
• 4% average higher return on equity, 8% average higher return on assets and 14% higher return on investments.
  

Therefore, perhaps the most important question is not whether you should strive for BT convergence, but how will you be able to compete with those companies that have already evolved to that state? It's something to think about, as you consider your next steps.

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Four High-Tech Steps SMBs Should Consider Now

The fiscal fourth quarter has just started. But now is the time for small businesses owners and mid-size business managers to start looking ahead to 2009.

"Cost cutting" is a popular topic during today's uncertain economic times. You can hide in fear and close your wallet. Or you can take these four steps to gain more predictable operating costs -- while driving your business forward.

1. Move to a managed services contract: If you're using an IT consulting firm or solutions provider to maintain your network and PC infrastructure, ask them about so-called "managed services." Many consulting firms now offer flat monthly fees to maintain, protect and optimize business desktops, servers, network infrastructure and applications.

This flat-rate approach will eliminate those "surprise" emergency IT repairs that can throw off your company's monthly budget or hinder cash flow.

If you're not familiar with the managed services, here are some key questions you should ask as you seek information about the industry.

2. Rethink business travel: Notice I'm not suggesting that you eliminate business travel. Face-to-face engagements are still important when meeting new clientele or pitching new business.

But for established business relationships, consider transitioning your face-to-face meetings to the virtual world -- especially if you need to communicate on a global scale. Convene online meetings using WebEx, unified communications and other tools that drive rich discussions. Make sure your business's web site includes a simple instruction page to help all of your employees -- and your customers -- get started with these collaboration tools.

And lead by example: Your top executives should be hosting the collaborative gatherings from time to time.

3. Find Your TelePresence: Conventional wisdom says TelePresence -- a rich, comprehensive video conferencing technology -- is too expensive for small businesses. But that's a misnomer.

For about the price of a one-week business trip, it's now possible to deploy a personal TelePresence system in a central office or a branch office. (In fact, the concept of Personal TelePresence dates back to at least 1994.) Each time a TelePresence system eliminates a business trip, you're essentially pay your company a dividend or freeing up cash for marketing, sales, research and development -- or other revenue-lifting activities.

4. Head for Home: If you still offer company cars to some employees, it might be wiser to invest those corporate dollars in your employees' home offices. Your company will spend less dollars on rising energy costs; employees will eliminate commute times and related expenses; and at home TelePresence and collaboration tools will make staff members far more productive.

I'm not suggesting that you eliminate company cars for your road warriors, top revenue producers and field service experts. But take a look at the numbers -- and ask your employees -- to see if they'd prefer to reduce their travel expenses in return for at-home TelePresence.

Some pundits think that at-home TelePresence won't gain momentum until 2010 or so. I disagree. I think leading-edge users are already making the move. I'll be looking for an in-home TelePresence system myself in the first half of 2009.

You have nearly 10 months of operating expenses to review from 2008. Take a close look to determine how your company is spending its travel dollars. Then, shift a portion of those dollars to collaborative tools.

Your company will gain improved productivity -- while earning a financial dividend -- every month in 2009.

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Globalization and the Small Business Teleworker

The trend of globalization, and the need to connect remote employees, now touches nearly every segment of American business -- regardless of organization size or industry. Here’s a case in point.

Founded in January 2001, Illinois-based Kirix began as a data analysis specialist for the recovery audit industry. They've done a lot of data analysis and software development work in that time and have had a particular specialty in identifying duplicate payments and other overpayment errors in large corporate accounting systems.

More recently, by generalizing their tool set and incorporating Web connectivity into their software, they apply that analytical firepower to all kinds of data -- regardless of where it is located -- even data that's on the Web.

The Borderless Communication Challenge
Benjamin Williams, one of the company founders, had been planning to relocate to Germany. As a valuable asset to their corporation, Kirix wanted to retain his services, but wasn't sure how the international transition might work -- particularly with the potential latency of connecting a Voice over IP (VoIP) phone halfway around the world.

Kirix turned to Geckotech to provide a fully hosted communication solution to enable their corporation to utilize Ben's services overseas, without compromising the quality of their voice and data network.

In this scenario, one feature has proven to be very beneficial -- four-digit extension dialing. This enables simple "internal" calls by dialing the last four digits of a direct-dial number -- even if that employee works in a different country, in another continent.

Unified Communications for the Teleworker
By using Geckotech's outsourced IP phone system, Kirix has been able to retain a key employee while conducting business overseas. The corporation's staff has been pleasantly surprised by the actual quality and reliability of their voice and data network.

"Four-digit dialing to my co-workers from Germany is obviously tremendous, but the quality of service is unbelievable," marvels Mr. Williams. "All that was required was a DSL broadband connection and my Cisco phone and I was making perfectly clear calls to my U.S. office as if I was in the next room over."

As more companies entertain the idea of employing the best talent that's available globally, the demand for the out-tasking of multinational IT and networking services will escalate. It's efficient, it's effective and infinitely more flexible to adapt to the changing communication and collaboration needs of a geographically diverse organization.

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