Computer Applications

FACTORS TO WEIGH WHEN CONSIDERING NEW COMPUTER APPLICATIONS

Many small business owners have embraced computers as tools in doing business—and have done so early enough so that at present, in many places, hardware and applications both are becoming old. Amanda Kooser, writing in Entrepreneur, summed up the situation as follows: "A recent report by the Business Performance Management Forum took a look at this neglected issue [obsolete programs]. They surveyed a cross section of businesses and found more than 70 percent of respondents were convinced there were redundant, deficient or obsolete applications being maintained and supported on their networks. Forty percent estimated unwanted programs consumed more than 10 percent of their IT budgets. That can add up to a lot of unnecessary costs." IT in this context stands for Information Technology. Kooser recommends that companies conduct disciplined IT audits followed by systematic culling of old technology and its replacement with more modern software.

Another view is taken by Joe Tedesco, writing in Database. Tedesco's title signals the strategy: "Out With The Old? Not So Fast." Tedesco asks: "Is it time, simply, to buy new stuff? Again?" He goes on to spell out the downside: "Investing anew in software is not an especially appealing option, for a variety of reasons. How can [companies] leverage proven tools for new challenges such as increased functionality, heightened security and better data and subject-matter management? More and more companies are finding new value in the software already in use in their organizations."

These two views—replace the old or rationalize the old—have a counterpart in movements to centralize systems that have grown up throughout the company without coordination (on the one hand) and creating order by networking or rearranging existing systems to fit a more orderly situation easier for computer staffs to oversee and to maintain (on the other).

These kinds of arguments, common in the trade press, may signal that computer use is beginning to mature in organizations and that, at least in the immediate future, much more attention will be paid to cost-effective management of existing resources and cautious acquisition of the new.

Despite conflicting views, peer pressure and anxiety often influence buyers, not least small business buyers. In an article for Fortune, Joel Dreyfuss wrote as follows: "If you don't have the latest and (always) greatest software and hardware on your business computers, your vendors and employees can make you feel that you're just one step away from quill pens and parchment. The truth is that most small businesses, and consumers for that matter, get cajoled into upgrades that give them more headaches than benefits."

Dreyfuss suggested that small business owners have employees figure out the cost of installation, debugging, and training associated with new computer equipment before consenting to a purchase. He also mentioned that Usenet discussion groups and technical bulletin boards on the Internet can provide valuable analysis of new products. "Seeing the comments about installation problems, upgrade issues, and reported incompatibilities with other products can cool the ardor of any technology fanatic," he noted.

Another factor for small business owners to keep in mind is that a variety of computer applications are available online over the Internet. A number of companies have established small business portals on the Internet to give companies access to software and services—such as payroll processing, legal services, online banking, or assistance in building a Web site for E-commerce. In addition, application service providers (ASPs) offer companies the opportunity to test and use software over the Internet without having to purchase it. These options may eventually reduce the cost and improve the accessibility of computer applications for small businesses.

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