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Role of IT in Small Business Success - Case Study Example

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The paper "Role of IT in Small Business Success" proffered issues pertinent to the small business’ remarkable experience using IT as a tool to financial success. The small business owner started her company as a small operation and reached the stipulated $4 million dollars per year growth rate…
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Role of IT in Small Business Success
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Information technologies contributed to the business success of Sew What? Inc. through allowing customers from various locations, both locally and abroad, to view the products and services that they offer. By ensuring that their Web site is effectively designed, customers get to review all kinds of color swatches; guides them to calculate measurements for their respective projects; differentiates one kind of curtain from another; providing instructional advice on the care and use of drapery materials; among others (Case Facts, 41). Duckett came to realize that information technology is relevant in terms of enabling small businesses to provide products and services in a more sophisticated and highly structured fashion that enabled them to reach a wide range of clientele and create high-quality products and services. The amount and value of work are thereby maximized by using only a small amount of manpower and internal resources.

If I were a management consultant to Sew What? Inc., one would advise Megan Duckett to continue upgrading various applications that could be offered by developments in information technology. For instance, she is already reflecting on instituting a bar code system to track the manufacturing process at their company’s warehouse. After this, Duckett can use information technology to the management in the business’ supply chain in terms of providing a direct link with her regular suppliers of raw materials to identify the inventory levels and reorder points. By doing so, her company need not order raw materials that are not fast-moving and suppliers, on the other hand, could anticipate demand for fast-moving items and schedule deliveries at the soonest possible time. Further, their database should contain prospective projects from current clients to enable them to maintain a proactive stance in preparing for the client’s distinct needs.

Information technology (IT) would benefit the small business through improving communication lines, providing access to vast amounts of resources, enhancing efficiency in the operating process, and developing a competitive advantage over other small businesses that do not utilize IT. As emphasized by Acevedo (2011), “companies using a first-movers strategy can use information technology to create new products, distance their products from the existing market or enhance their customer services. Companies that follow a low-cost product strategy can look to information technology solutions to reduce their costs through increased productivity and reduced need for employee overhead. Businesses can also build-in information technology to their products that makes it difficult for customers to switch platforms or products” (par. 4). Further, IT enables small businesses to maximize revenues by minimizing costs. As disclosed by Acevedo (2011) “cost savings could also be found through outsourcing opportunities, remote work options and lower-cost communication options” (par. 5).

As the evaluations from the benefits derived from IT, Sew What? Inc.’s remarkable journey towards financial success should be emulated by other small businesses that aim to parallel their corporate growth. In Duckett’s case, her financial success and various accolades should continue to provide the burning desire to surpass their achievements. Since technology continues to develop, one could be assured that new applications would emerge in the market which should be evaluated by organizations in terms of catering to their distinct needs. The ultimate purpose is always to ensure those customers’ needs and demands are persistently satisfied.

 

 

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