Channel crossing

Think small to bag the next major market.

Many IT vendors are finally beginning to recognise the untapped potential of the SME and consumer markets, and that the only real way to achieve significant penetration is to use the channel.

At the same time, it was revealing to find that the results of recent surveys strongly suggest that SMEs and their staff also need the channel's services. But I still feel there is something missing.

British Gas and Time's survey found that small businesses spend two months a year on administration. The report, based on a survey of 456 SMEs, found that more than 20 per cent of their time can be wasted on such activities.

The survey also suggested that 75 per cent of employees work more than the standard 35-hour week, and 33 per cent work more than 61 hours.

The survey implies that the use of technology could have a major impact on improving business practices. It can play a significant role within the SME market and assist them in achieving their full potential by retaining their focus and efforts on the business, not its administration, and improve the working lives of many people.

According to a recent Mori survey, a third of UK employees would be willing to contribute to an employer-subsidised home PC programme, and would prefer this to health club membership as a benefit.

Meanwhile, a report by PeoplePC suggested that almost half of the 80 million workers in the UK, France and Germany have no access to computers or the internet.

All in all, it is difficult to dispute that there is a major market ready to be cracked, although it is still waiting for a catalyst. Despite price reductions and wider availability and acceptance, the explosion of take-up has yet to happen. This could be due to a lack of appreciation in terms of business benefits, or a lack of finance.

The employer-subsidised PC is not a new concept, but remains a rare practice, possibly because there are insufficient incentives for many businesses to even consider it as a standard benefit for employees.

Support from central government, in the form of tax changes on IT purchases, and its acceptance that IT and communications will play an increasing role in the future of businesses, consumers and ultimately the economy, have not been enough.

Paradoxically, the Government is committed to making technology available to the unemployed and re-skilling them, while those in work are not being given the same privileges.

Perhaps it is now time to expand these efforts towards employees by introducing similar tax positions for employer-subsidised hardware and software training. After all, training would be significantly more valuable to people with the technology at their fingertips.

Also, this could drive the take-up of technology among small businesses by helping existing and prospective staff to understand the benefits it can provide.