2011 smb collaboration study hlighlights

December 2011

2011 SMB Collaboration and Communications Study

Highlights

Sanjeev Aggarwal

Laurie McCabe

Brent Leary

Arjun Aggarwal

1/8/2012 1 © SMB Group and CRM Essentials

SMB Collaboration and Communication Study Goals

1/8/2012 2

Small and Medium

Businesses

Perceptions and attitudes

about collaboration

solutions Key triggers for moving

to an integrated

collaboration suite

Spending/ collaboration

solutions

Use of free vs. fee-based collaboration

solutions

Use/ planned use of

collaboration solutions

Company demographics

and impact on

collaboration

Collaboration culture,

attitudes and capabilities

The SMB Group’s 2011 SMB Collaboration and Communication Study examines related trends, dynamics, opportunities and challenges among small and medium businesses, assessing: o SMB collaboration culture and practices

o Current and planned use of collaboration solution and services

o Perceived benefits of collaboration solutions

o Integration of collaboration and communication solutions with other business applications and processes

o Impact of social media and mobility on collaboration requirements

o Shift from standalone collaboration and communication solutions to integrated collaboration suites

© SMB Group and CRM Essentials

SMB Employee Size Company Distribution

1/8/2012 © SMB Group and CRM Essentials 3

Sample Size = 249, 100-249 empl.: 103; 250-499 empl.: 69; 500—999 empl: 77

2.) How many full-time employees, including yourself, are employed by your company (not including contractors)?

100-249 empl., 41%

250-499 empl., 28%

500-1,000 empl., 31%

1-19 empl., 73%

20-49 empl., 14%

50-99 empl., 13%

Sample Size = 568, 1-19 empl.: 413; 20-49 empl.: 80; 50—99 empl: 75

Small Business

Respondent Breakdown

Medium Business

Respondent Breakdown

Top challenges for both SB

and MB are to: #1: Attract

new customers #2: Grow revenue

#3: Maintain profitability

5.) What do you view as the top 3 business challenges for your company in the next 12 months?

SMB Top Business Challenges


54%

41%

16%

26%

51%

43%

46%

36%

39%

23%

11%

10%

18%

20%

19%

21%

15%

29%

5%

11%

8%

12%

15%

25%

SB

MB

Attracting new customers Reacting quickly to changing market conditions

Growing revenue Maintaining profitability

Improving cash flow Obtaining financing

Attracting & retaining quality employees Improving customer experience and retention

Improving employee productivity Effectively managing relationships with suppliers

Adding resources to meet market demand Streamlining business processes to be more efficient

#1

#1

#3

#3 #2

#2

Small

Business

Medium

Business

8.) Which statement best describes your company’s culture when it comes to collaboration?


SMB Collaboration Culture Employee Size Matters

Sample Size = 249

48%

48%

49%

33%

39%

31%

23%

25%

23%

32%

29%

29%

15%

21%

27%

33%

32%

38%

1-19 empl.

20-49 empl.

50-99 empl.

100-249 empl.

250-499 empl.

500-1,000 empl.

We recognize and reward employees for collaborative achievements more than individual ones most of the time.

We recognize and reward individual achievement more than collaborative achievements most of the time.

We recognize and reward individual and team accomplishments equally.

Sample Size = 568

How Collaboration Culture Affects Corporate Performance


13%

18%

22%

25%

23%

28%

57%

51%

44%

We recognize and reward employeesfor collaborative achievements more

than individual ones most of the time.

We recognize and reward individualachievement more than collaborative

achievements most of the time.

We recognize and reward individualand team accomplishments equally.

Revenue Increase Revenue Flat Revenue Decrease

10%

15%

12%

13%

26%

22%

75%

56%

63%

We recognize and reward employeesfor collaborative achievements more

than individual ones most of the time.

We recognize and reward individualachievement more than collaborative

achievements most of the time.

We recognize and reward individualand team accomplishments equally.

Revenue Increase Revenue Flat Revenue Decrease

Small Business Medium Business

• Businesses that reward team achievements over individual ones are

more likely to forecast revenue growth.

• The gap widens as company size increases.

8%

2%

19%

13%

36%

29%

31%

46%

7%

10%

Small Business

Medium Business

Heavy reliance Moderate reliance Neutral

Little reliance No reliance

Reliance on and Satisfaction with Collaboration Tools

1/8/2012 SMB Group Confidential 7

11.) How much does your company rely on collaboration tools

to collaborate more effectively, accomplish tasks and achieve

business goals?

12.) Overall, how would you rate your company's satisfaction

with collaboration tools to facilitate collaboration and help your

business succeed?

2%

0%

7%

9%

49%

37%

34%

47%

8%

7%

Small Business

Medium Business

Very Satisfied Satisfied

Neutral Dissatisfied

Very Dissatisfied

Reliance Satisfaction

Collaboration Budgets


18, 22, 26) What is your company's annual budget for traditional/Social/Communications collaboration solutions for 2011

(NOT including salaries of company staff involved)?

Sample Size = 413

Collaboration Segment Small Business (SB)/Year

Medium Business (MB)/Year

Traditional Collaboration $1K - $2.5K $25K - $49.9K

Social Collaboration

$500 - $1K $10K - $24.9K

Traditional Communications $1K - $2.5K $25K - $49.9K

Integrated Collaboration Solution

$5K - $10K $25K - $49.9K

Free vs. Fee Based Solutions Over 75% of SBs are using free traditional collaboration tools

Over 60% of MBs are using free traditional collaboration tools

Adoption and Plans for Integrated Collaboration Platforms

Small Business Top “Must-haves”

• Traditional: email; calendars, file storage and sharing, contacts

• Social: social capabilities and integration, instant messaging, online discussion forums

• Communications: Web conferencing, Internet phone solutions

• Additional functions: integration with business apps/workflows, native support for mobile devices

1/8/2012 © SMB Group and CRM Essentials

9

Medium Business Top “Must-haves”

• Traditional apps: email (66%); file storage and sharing , real-time shareable document collaboration, shared project management, contact management

• Social: instant messaging, social capabilities and integration, online discussion forums

• Communications: Web conferencing, video conferencing

• Additional functions: integration with business apps/workflows, native support for mobile devices

•

16%

28%

20%

35%

64%

37%

Small Business

Medium Business

Currently use an integrated collaboration suite

Plan to use an integrated collaboration suite in the next 12 Months

No plans to use an integrated collaboration suite

Top 3 Collaboration Platforms Selected by SMBs


Vendor Small Business Medium Business

Microsoft (BPOS, 365, SharePoint)

54% 52%

Google Apps for Business 26% 26%

IBM (Lotus Live, Lotus Software)

4% 15%

Top Reasons to Select a Specific Integrated Collaboration Solution

1/8/2012 SMB Group Confidential 11

35.) Apart from solution capabilities, what were the top 3 reasons that influenced you to select this solution?

2%

19%

11%

19%

23%

21%

15%

9%

27%

22%

21%

30%

52%

30%

0%

9%

11%

11%

14%

16%

17%

24%

26%

29%

30%

34%

39%

40%

Other

Stronger customer references

Higher ratings by industry analysts

Better reviews/ratings in technology and business publications

Better customer service and stronger service levels

Stronger security and encryption

Available as a "cloud" or SaaS solution

Easier to use

Stronger reputation and brand

More positive reviews in social media

Availability of local service and support

Faster to deploy

Lower price

Easier to customize for my business

Medium Business Small Business

• SB top reasons: lower price, easier to customize, faster to deploy. • MB top reasons: easier to customize, lower price, faster to deploy.

40%

39%

18%

20%

7%

8%

5%

3%

4%

5%

21%

26%

12%

13%

9%

18%

48%

50%

65%

27%

10%

7%

SB

MB

People feel that what are doing works well enough Difficult to determine what we need in an integr. collabr. suite

Difficult to compare different integr. collabr. offerings Deciding who should be involved in the selection process

Had tried a collaboration suite before, but it didn't work out Lack of time to evaluate and try different solutions

User resistance to learning something new Difficult to migrate from current solutions

Too expensive Too few employees to make it worthwhile

Other (list)

Top Reasons for No Plans to Use an Integrated Collaboration Platform


45.) What are the top 3 reasons that your company is not using/planning to use an integrated collaboration platform?

MB • 50% think that an

integrated suite is too expensive for their needs.

• 39% think that what they’re doing works well enough.

SB • 65% think they

have too few employees to make it worthwhile to adopt an integrated suite.

• 48% think its too expensive and 40% think that what they’re doing works well enough.

• 12% more likely to be

forecasting revenue growth

than those that reward equally

and 19% more than those that

reward Individuals more


satisfied with achieving

business goals than those that

reward equally and 38% more

than those that reward

Individuals more


satisfied with collaboration

tools than those that reward

equally and 35% more than

those that reward Individuals

more

• 20% more likely to adopt/plan

to adopt an Integrated

collaboration platform than

those that reward equally and

6% more than those that reward

Individuals more

• Spend 2-3X more than on

collaboration solutions than


1.5-2X more than those that


Segmentation Highlights Collaboration Culture is a Key Segmentation Variable

1/8/2012 © SMB Group and CRM Essentials

13


forecasting revenue growth

than those that reward equally

and 6% more than those that



satisfied with achieving

business goals than those

that reward equally and 10%

more than those that reward

Individuals more


satisfied with collaboration

tools than those that reward

equally and 10% more than

those that reward Individuals

more

• 14% more likely to

adopt/plan to adopt an

Integrated collaboration

platform than those that

reward equally and 6% more

than those that reward

Individuals more

• Spend 3-4X more than on

collaboration solutions than


2-2.5X more than those that


SB MB

• Web-based survey

• Data collected in July 2011

• Sample selection: Random sample of small and medium businesses across 18 different industries and non-profits

• 55 questions

• 817 respondents/completed interviews covering the four segments:

• Very Small Business (1-19 employees)

• Small business (20-99 employees)

• Medium business (100-249 employees, 250-499 employees)

• Mid-market business (500 to 999 employees)

• SMB survey respondents are decision-makers and influencers for collaboration and related solution decisions in their business

• The survey is intended to provide directional guidance to solution providers as they develop their go-to-market strategies and messaging

Methodology

14 1/8/2012 © SMB Group and CRM Essentials

Definitions Used For This Study

• Traditional collaboration tools: Company/team oriented collaboration tools such as email, calendar, contact management, document sharing, project management systems, conferencing, etc.

• Social media collaboration tools: Social media oriented collaboration tools such as Twitter, YouTube, social bookmarking, blogging, Facebook, Wikis, etc.

• Integrated collaboration platform: An integrated set of tools that address several collaboration needs. Not every collaboration platform includes the same capabilities, but most provide a blend of traditional and social media collaboration solutions. Some also include productivity solutions (such as word processing, spreadsheets, presentation software) and/or voice/telephony communications solutions. Examples include: Google Apps for Business, Microsoft Office 365, IBM LotusLive, HyperOffice, etc.

• On premise solutions: Your company buys, installs, runs and manages software on your own systems and servers.

• Software-as-a-service (SaaS) or "cloud" solutions: Your company accesses and uses software delivered over the Internet via a browser. Users pay a monthly subscription fee to use these solutions.

1/8/2012 15 © SMB Group and CRM Essentials

2011 smb collaboration study hlighlights

Technology

kintegrated collaboration

smb group confidential

reward individual achievement

team achievements

business processes

sample size

reward individual51

reward employees57