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How small and medium businesses buy high-tech

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Small and medium enterprises are seen as a gold mine for technology vendors, but there is a secret to how they buy high-tech, writes ARTHUR GOLDSTUCK.

There are more than 650 000 small and medium enterprises (SMEs) in South Africa, making the sector a major target market for vendors of almost any type of product aimed at other businesses. High-tech products, solutions and services rank high among these, with SMEs seen as a gold mine for those who can crack the code of how to sell to them.

The problem is that there isn’t really a code, but one very simple secret: SMEs will only buy high-tech solutions when they’ve become a “no-brainer”.

That attitude goes hand in hand with what is to some an unpalatable reality about SMEs: they are notoriously slow at adopting new technologies.

However, that does not mean there is no hope in selling to them. 

SME Survey 2018, a research project conducted by World Wide Worx in partnership with Intuit QuickBooks, showed there is one clear exception: the Internet of Things (IoT). Interviews with 1400 SMEs revealed that 83% of decision-makers expect to be using IoT in their business within five years.

The reason for this enthusiasm? Many of them have been using IoT all along, in particular with fleet- and vehicle-tracking systems, and asset management. The SIM cards hidden in vehicles to allow them to be tracked are in fact part of IoT. They act as sensors that report vehicle positions to base stations, and that information can be aggregated and supplied to live mapping services. In fact, it is just that technology that makes Google Maps so effective for navigation.

However, when it comes to more futuristic technologies, SME enthusiasm vanishes. The next highest-ranked high-tech options were artificial intelligence and Big Data, but they are expected to be adopted by only 29% and 27% of SMEs respectively.  Just 21% of SMEs expect to use 3D printing, while crowdsourcing drops to 16% of respondents. 

Right at the bottom of the list came Bitcoin, the technology underlying Bitcoin, at 9%, and Virtual Reality, at a mere 8%.

The reason is simple: Blockchain is so new, its value proposition remains a mystery to SMEs. Not only that, but it is strongly linked in the public mind with Bitcoin. The massive fluctuations in the value of the cryptocurrency makes it too volatile and risky for the cautious SME decision-maker.

While virtual reality doesn’t suffer the same bad press, it is still regarded as a toy, and falls far short of the no-brainer status SMEs require of technology.

Even the technologies that fare a little better, like artificial intelligence, are still far off the mark for SMEs. Because they require large amounts of data, which are typically generated by large customer bases, they tend to make sense only to large organisations. Further, it requires a new way of thinking, and adoption requires a mindset change, something that is not even on the radar for most SMEs.

The annual SME Survey has shown again and again over the years that decision-makers are generally only willing to embrace a new technology if there is a clear business case.  So, for example, when the massive technology shift from dial-up to ADSL happened between 2003 and 2009, it was not because SMEs were attracted by higher speeds. Rather, it was a combination of speed, cost-effectiveness, efficiency and the ability to connect multiple users to the same connection, at a lower price. In short, it was a no-brainer.

Now, we are witnessing the beginning of the decline of ADSL, for the very same reason. High-tech history is repeating itself as ADSL is replaced by fibre to the home or office. 

ADSL usage peaked at 73% of SMEs in 2009 and remained at this high until 2015, when fibre arrived. SME Survey 2018 indicates that ADSL usage has now dropped to 59% among SMEs, while fibre has increased to 25% – meaning adoption of fibre is taking place even more rapidly than ADSL did 15 years ago.

This is partly due to the rapid rise in availability of fibre across urban areas, coupled with the falling price of the technology. In conjunction with this, the increasing uptake and use of bandwidth-intensive technologies by SMEs has resulted in a perfect storm that is driving a need for technology replacement. In other words, it’s a no-brainer.

When SMEs see such a clear value proposition, they are ready to embrace it rapidly. On the other hand, when it has to be explained or demystified – as originally occurred with the concept of cloud computing – they tend to stay clear of it for far longer. However, the fibre value proposition is so obvious, that SMEs are clear about how it will improve their business, and so adoption is taking off.

A key benefit SMEs obtain from switching to fibre is that it enables SMEs to operate online without the performance and quality constraints they faced before. This means that their communications are significantly improved for  solutions like video-conferencing and social media. It also gives them more confidence in transacting online, thanks to the quality and speed of the connectivity.

Those selling gadgets and other high-tech will probably take courage from one particularly startling finding in SME Survey 2018: that 70% of SMEs are ready to embrace new technologies.

However, it is clear that, while the willingness is there, they will only embrace something new if it makes sense for their business. In other words, just because SMEs say they are ready to embrace new technology, it doesn’t mean that they will buy just any new technology.

  • Arthur Goldstuck is founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Twitter on @art2gee and on YouTube

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How we use phones to avoid human contact

A recent study by Kaspersky Lab has found that 75% of people pick up their connected device to avoid conversing with another human being.

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Connected devices are becoming essential to keeping people in contact with each other, but for many they are also a much-needed comfort blanket in a variety of social situations when they do not want to interact with others. A recent survey from Kaspersky Lab has confirmed this trend in behaviour after three-quarters of people (75%) admitted they use a device to pretend to be busy when they don’t want to talk to someone else, showing the importance of keeping connected devices protected under all circumstances. 

Imagine you’ve arrived at a bar and you’re waiting for your date. The bar is busy, and people are chatting all around you. What do you do now? Strike up a conversation with someone you don’t know? Grab your phone from your pocket or handbag until your date arrives to keep yourself busy? Why talk to humans or even make eye-contact with someone else when you can stare at your connected device instead?

The truth is, our use of devices is making it much easier to avoid small talk or even be polite to those around us, and new Kaspersky Lab research has found that 72% of people use one when they do not know what to do in a social situation. They are also the ‘go-to’ distraction for people even when they aren’t trying to look busy or avoid someone’s eye. 46% of people admit to using a device just to kill time every day and 44% use it as a daily distraction.

In addition to just being a distraction, devices are also a lifeline to those who would rather not talk directly to another person in day-to-day situations, to complete essential tasks. In fact, nearly a third (31%) of people would prefer to carry out tasks such as ordering a taxi or finding directions to where they need to go via a website and an app, because they find it an easier experience than speaking with another person.

Whether they are helping us avoid direct contact or filling a void in our daily lives, our constant reliance on devices has become a cause for panic when they become unusable. A third (34%) of people worry that they will not be able to entertain themselves if they cannot access a connected device. 12% are even concerned that they won’t be able to pretend to be busy if their device is out of action.

Dmitry Aleshin, VP for Product Marketing, Kaspersky Lab said, “The reliance on connected devices is impacting us in more ways than we could have ever expected. There is no doubt that being connected gives us the freedom to make modern life easier, but devices are also vital to help people get through different and difficult social situations. No matter what your ‘connection crutch’ is, it is essential to make sure your device is online and available when you need it most.”

To ensure your device lifeline is always there and in top health – no matter what the reason or situation – Kaspersky Security Cloud keeps your connection safe and secure:

·         I want to use my device while waiting for a friend – is it secure to access the bar’s Wi-Fi?

With Kaspersky Security Cloud, devices are protected against network threats, even if the user needs to use insecure public Wi-Fi hotspots. This is done through transferring data via an encrypted channel to ensure personal data safety, so users’ devices are protected on any connection.

·         Oh no! I’m bored but my phone’s battery is getting low – what am I going to do?

Users can track their battery level thanks to a countdown of how many minutes are left until their device shuts down in the Kaspersky Security Cloud interface. There is also a wide-range of portable power supplies available to keep device batteries charged while on-the-go.

·         I’ve lost my phone! How will I keep myself entertained now?

Should the unthinkable happen and you lose or have your phone stolen, Kaspersky Security Cloud can track and protect your device from data breaches, for complete peace of mind. Remote lock and locate features ensure your device remains secure until you are reunited.

 

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Five key biometric facts

Due to their uniqueness, fingerprints are being used more and more to quickly identify and ensure the security of customers. CLAUDE LANGLEY, Regional Sales Manager, for Africa at HID Global Biometrics, outlines five facts about the technology.

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How many times in a day are you expected to identify yourself? From when you arrive at work you are required to sign in, visiting your bank, receiving healthcare services… The list is endless. When a system knows who you are, you are able to do any number common, everyday activities. Your identity is unique and precious. It is also easily stolen and the target of many hackers across the globe. Technology is constantly evolving alongside the criminal element, always looking for ways to protect data and identity. One such solution happens to be biometrics and it is rapidly gaining traction in our increasingly complex modern world.

Reliable, secure and fundamentally YOU, unique biometric traits such as fingerprints are being used by banks, enterprises and consumers to verify identity. Biometric solutions offer significant identity protection because they use unique biological details to ensure an account is only accessed by the account holder, a door only opened by the owner. Here are five things that are little known about this technology…

  • The uncut identity. Your fingerprint is unique to you. Nobody can use a copy of it to impersonate you. Good technology is capable of scanning down into the layers of the fingertip to differentiate unique elements of a person’s fingerprint, this data is then encrypted and used as a key to unlocking whichever physical or virtual door that the biometric system protects.
  • The living proof. No, there is nothing to the stories of fingerprints being used without their owner’s knowledge or permission. Biometric solutions can use specific variables to determine if the finger used to access the system is that of a present, living person.  A copy or a fake cannot be used to access a cutting-edge biometric solution.
  • Easy and convenient. Queues and documents and paperwork may well be a thing of the past should biometrics take a firmer grip of government and banking systems. The process of registering is easy, and access to identity documents and records is yours alone.
  • Security blanket. A thousand passwords and a hundred post-it notes stuck on walls and drawers.  An excel file with a list of sites and applications and their corresponding passwords, all a thing of the past.  Nobody needs to remember their password with biometrics, they only need to show up.
  • Anywhere is cool. Schools, airports, networks, offices, homes, toilets, banks, libraries, governments, border controls, immigration services, call centres, hospitals and even clubs and pubs – knowing “who” matters and biometrics can quickly and conveniently confirm your identity where needed.

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