There’s a problem with how most small businesses choose their technology solutions, and we see it far too often. First the owner or manager purchases a product that solves a particular perceived pain or problem. Then they try to make it work within their existing business model and organizational structure. We feel that this approach is backwards, and your business ends up not getting the real value from the tools you choose. It’s not the technology that small businesses need first, but rather core knowledge and capabilities in the areas of business, market, content marketing, design/usability and implementation.
Ideally, you should know the key activities that will expand and sustain your business, and the key resources you’ll need to execute those key activities. In the Business Model Canvas (the one-page business model generator that we use and recommend), these two elements appear on the left-hand side of the model or the “backstage” area of your business.
From working with so many small businesses over the years, we have become adept at helping businesses identify their key activities and resources (business objectives), as well as the technology solutions that can support those activities implemented by your key resources. In the following infographic, we’ve organized our favourite technology tools and services around six different business objectives (the concentric circles), building up from the five core knowledge areas in the middle.
The productivity tools in the infographic are indicated by their company logos, and are arranged in concentric circles according to the business objective(s) of each tool. These circles radiate from the core capabilities and also correlate to the size and maturity level of an organization. We believe that businesses of every size can benefit from assessing their core capabilities and having a well-curated technology “stack,” a combination of software services used by staff and customers to achieve various business objectives.
For more details about NewPath’s technology “stack” (combination of software services) and the services we use and recommend the most, please see our post about software integration.
The five core capability areas are:
- Business – clarifying your business model and business objectives, and your professional ethics and legal practices such as contracting and intellectual property.
- Market – understanding the customer and what motivates them to engage, and defining your value proposition and the 4 Ps of marketing (product, price, promotion, place).
- Design and usability – creating the necessary online environment to deliver value to customers, which includes branding, graphic design, security and privacy.
- Implementation – developing or acquiring technical knowledge and fundamental capabilities of digital workplace software services
- Content marketing – combining capabilities 1 through 4 to publish and distribute content that will help you find and retain customers and business partners
For reference, here is the full set of subtopics for each of the five core capabilities:
Of course, you may be thinking, how can I be awesome at all of these core capabilities?!? Be assured, no single business owner can be equally good at all these areas of knowledge. In fact, MBA (Masters of Business Administration) graduates focus on only two of these core capabilities – Business and Marketing. Many companies are started by a ‘technician’ who does not likely have many business or marketing skills, or a business whiz who doesn’t have the implementation skills to deliver on the value proposition by performing the core service offering.
What you need is to invest in getting help to bridge the gaps, yet we rarely see businesses doing this well. We get it; it’s intimidating. But there are resources out there to help you learn, and people you can hire to help. In fact, we hope you’ll let us help you.
Going outwards from the centre of the diagram we focus on the “orbits” that surround the core knowledge areas. We believe the software tools you choose must be aligned with the maturity of your business – how long you’ve been in business, how many people work for you, and your revenue.
We begin, as most small businesses do, with the content and experience band – a website and lead generation program. Unfortunately, most organizations stop here, but as your company grows you will need more tools and services. The next band is advertising and promotion, where you start making more direct and outbound offers.
As your business grows, you might want to start selling online, and you’ll need services that support your commerce and sales process. As we go further out, you’ll need to build awareness with a larger audience through social media and relationship building.
When you grow to the data layer, specifically if you are a larger organization, this is where you’ll need things like analytics, invoice and billing, and data aggregation services. At the management band, you will need human resource management products, training and project management tools that have a broader scope.
What’s important is not just which products you choose, but what business objectives each tool serves and how they work together. As your organization grows, you should be adopting these products based on your needs and level of maturity. The more mature your business, the more tools you will have to adopt and integrate. Yet if you start loading up on software too soon, you’ll create chaos and confusion while wasting money and time.
The customer is the most important thing
We believe the most important thing to any small business is its customer, and that today’s online customer requires that you have the high quality digital workplace we have outlined here. From that solid foundation you can get more customers, deliver more value, to then be able to charge more and earn more revenue.
This article concludes our blog post series on digital transformation for small businesses. First we covered the need for building a digital workplace. Then we revealed the importance of creating and evaluating your business model, a must for digital transformation. In this article we addressed how to choose the right software for your business, based on NewPath’s own software-as-a-service (SaaS) technology stack and how we’ve used these tools to help our customers grow.
The important question now is what do YOU think is the most important thing to your business? If you’re still juggling time and money as your top priorities, instead of your customer, we invite you to make this business paradigm shift to focusing on your customers.
NewPath’s SMB experts are here to help you choose, implement and use new technology in order to benefit your business and find you more time. Business Success Plans start at $239.00/month for all-inclusive technology, service and support with no contracts or start-up fees. Contact us today for your free consultation!