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US SB - Business Issues, Role of IT, Social Media, Use of iPadReport

Table of Contents

Executive SummaryMethodologyBusiness Issues & IT InitiativesIT Infrastructure Refresh PlansUse of iPad and Smart PhonesSupplier Purchase Preference for Mobile HardwareMarketing InitiativesSocial Media Usage

Executive Summary

Business Issues & IT InitiativesReducing operational cost, expanding into new markets, and improving effectiveness of sales and marketing are top of the mind business issues that small businesses are facing today.Rising medical cost and taxations along with poor availability of credit/loans are some of the issues cited by small businesses hindering their growth rate.Higher employee size businesses are also looking at staffing changes in terms of restructuring or reducing or even off-shoring.Nearly 40% of small businesses are looking at SaaS/Cloud Computing, business intelligence, and virtualization. The focus moves from simple building blocks of technology to higher end technologies as small businesses move from lower to higher employee size categories.Remote back up is still a top of the mind IT initiative for small businesses.Not only enhancing IT is important for small businesses but also improving productivity through automation is extremely important. It is interesting to note that 1-4 employee size category is looking to an increase in prices to offset their cost of operations.Among the newer technologies that they are currently investing in include: Windows 7, refresh of PCs and servers, as well as smart phones.

IT Infrastructure Refresh PlansIt is quite clear that small businesses are seriously looking at enhancing their IT infrastructure, migrating from older technologies to more modern hardware platforms are key initiatives for reducing cost of operations.Over 60% of small businesses think that it is time for a refresh of their PCs and servers.

Executive Summary

Use of iPad and Smart PhonesAbout 20% of small businesses have at least one iPad. Notably businesses that are using iPadshave a higher average number of PCs and Smart Phones than businesses that don’t own an iPad.Small businesses today at best are not sure of the usage of iPads although iPads are being used for emails, demos, as well as internet.At least 76% of small businesses use smart phones to access their corporate email and 50% of the employees of these small businesses are on an unlimited data plan.

Marketing InitiativesMarketing department is usually managed by the head of the business with an average of 7% workforce as well as 7% revenue dedicated to marketing activities.Print advertising is the most used marketing activity followed by search engine Adwords. Direct mail and yellow pages are behind Adwords unlike the trend that was about three years ago.

Social Media UsageSocial networking tools are rising in popularity among SBs but Tweeting lags other tools.Nearly 45% of small business are not sure how social networking tools can help promote their business.Although both social media and websites have the same level of effectiveness of creating awareness, websites are a lot more effective by as much as 13% in driving revenue.

Data Collection and Capture

Synthesis and Analysis

Reporting

Methodology

A total of 406 small businesses were contacted for the surveyA 25 minute questionnaire was administered to each respondentRespondents were IT decision makers, President/CEO responsible for making decisions for IT purchases and initiativesIn respondent organizations where IT and Marketing were managed by two different people, both the respondents were contacted for the surveyThe surveys were conducted in October 2010Sampling quota was fixed by employee size categories: 1-4, 5-9, 10-19, 20-49, 50-99This report consists of data and analysis for US only

Sample Size 1-4 5-9 10-19 20-49 50-99 Total

N= 83 82 80 81 80 406

Business Issues

& IT Initiatives

Small businesses consider IT to be important enough to

enhance, refresh and invest in new technologies to reduce

operational costs and improve sales and marketing

Top 3 Business Issues1. Reducing operational costs2. Focusing on new markets3. Improving effectiveness of sales & marketing

Top 3 Trends1. Rising medical costs2. Taxation3. Entrance of new competitors

Top 3 IT Initiatives

1. Migrating from older technologies to more modern hardware and/or software platforms

2. Maintaining and enhancing current IT infrastructure3. Controlling costs and improving financial justification for continued IT investment

Top 3 Steps to Reduce Costs

1. Enhancing IT (upgrading, consolidating, looking at new technologies)2. Improving productivity through automation3. Increasing prices

Technology Currently Investing/ Investigating

Investing:1. Smart phones2. Windows 73. Refresh of PCs & servers

Investigating:1. SaaS/Cloud Computing2. Business intelligence3. Remote back up

IT forms nearly 16% of a small business’ budget allocation,

second largest component behind labor and staffing

IT16%

Sales & Marketing (excluding

advertising)7%

Travel & Entertainment

5%

Telephony & Communications

7%

Advertising6%

Labor and staffing25%

Equip. & Machinery related to business

(excl. IT)8%

Transportation & Logistics

5%

Office Supplies6%

Office rental/lease9%

Other Costs/Expenditures

6% Purchase/Upgrade of servers, PCs

18%

Purchase/renewal of software and

licenses14%

IT staffing (including external

consultants)18%

Maintenance of PCs and Servers

16%

Installation/Purchase/Upgrade of

networking equipment

11%

SaaS applications/Clou

d Computing5%

Purchase/Upgrade of

Printers/Peripherals

10%

Other IT costs8%

What percent of your annual budgets are allocated for? How is your IT budget spread across?

What would you say are the top three business issues your company is facing and addressing today?

Reducing operational cost along with expanding into new

markets and improving effectiveness of sales and marketing

are top of the mind business issues for small businesses

Reducing costs associated to IT is important in terms of reducing operational cost and improving productivity as seen in subsequent slides

34.5% 32.3% 32.3% 32.0% 29.3% 27.8% 23.4% 18.2% 13.3% 13.1% 11.1% 9.4% 8.1% 7.9% 7.4%0%

15%

30%

45%

Reducing operational

costs

Focusing on new markets

Improving effectiveness of sales and marketing

Improving workforce

productivity

Improving quality of

products and processes

Keeping pace with

competition

Creating innovative products

Reducing costs associated to

IT

Improving speed to market

Attracting and retaining

employees

Managing inventory effectively

Managing aging assets

Coordinating supply chain

and or product development

Investing in Green

Technology

Developing an outsourcing

strategy

Overall

Rising medical costs and taxation are top trends

impacting small businesses

What would you say are the top three trends impacting businesses of your size?

Rising medical costs, taxation, and availability of credit/loans seem to be hindering the growth of small businesses across all employee size categories.However, it is observed that the very small businesses are also facing business slow down due to the entrance of new competitors. This is in spite of the sluggish economy and is probably prompted due to a large number of experienced and unemployed manpower who are going into business for themselves.

56.2%

44.6% 44.6% 43.8%

32.0%27.3%

21.9% 19.5%

10.1%

0%

15%

30%

45%

60%

Migrating from older

technologies to more modern

hardware and/or software

platforms

Maintaining and enhancing current IT

infrastructure

Controlling costs and improving financial

justification for continued IT investment

Developing and/or

implement new strategic IT

applications to improve

organization's competitiveness

Consolidating hardware and

software applications

Improving disaster

recovery and security

Integrating disparate software

applications

Investing in Cloud

Computing

Outsourcing IT activities

Overall

What would you say are your organization’s top three

IT initiatives for the next 2 years?

Small businesses are seriously looking at a refresh of their IT infrastructure in the hopes of reducing the cost of IT

It is also interesting to note that as businesses grew, they have mixed installations of older and newer technologies and are now looking for consolidation

What would you say are your organization’s top three IT

initiatives for the next 2 years? (by employee

size)

8.4%

22.9%

37.3%

48.2%

25.3%

47.0%

48.2%

60.2%

2.4%

Investing in Cloud Computing

Consolidating hardware and software applications

Improving disaster recovery and security

Maintaining and enhancing current IT infrastructure

Integrating disparate software applications

Controlling costs and improving financial justification for continued

IT investment

Developing and/or implement new strategic IT applications to improve

organization's competitiveness

Migrating from older technologies to more modern hardware and/or

software platforms

Outsourcing IT activities

1-4 Employee Size

14.6%

37.8%

24.4%

43.9%

18.3%

43.9%

40.2%

69.5%

7.3%

5-9 Employee Size

28.8%

37.5%

18.8%

38.8%

27.5%

37.5%

42.5%

51.3%

17.5%

10-19 Employee Size

24.7%

27.2%

27.2%

53.1%

17.3%

48.1%

45.7%

50.6%

6.2%

20-49 Employee Size

21.3%

35.0%

28.8%

38.8%

21.3%

46.3%

42.5%

48.8%

17.5%

50-99 Employee Size

Please tell us which of the following technologies you

are either “investing in”, “investigating”, or “ignoring”

Among the key technology areas that small businesses are currently investing in include: smart phones, Windows 7 (agrees with enhancing and refreshing IT Infrastructure), refresh of PCs and servers, as well as virtualization. As the small businesses mature and prime themselves for empowerment and growth, they are actively investigating use of SaaS/Cloud Computing, business Intelligence, as well as remote back up.Refresh of PCs and servers seem to be a very important initiative for small businesses that is causing them to both invest as well as to investigate.



For 1-4 employee size category businesses, Windows 7 and smart phones clearly stand out as areas they are investing in. Storage, remote back up, and refresh of PCs are the key areas they are investigating.



For 5-9 employee size businesses seem to be following the same pattern as 1-4 employee size businesses.In fact, both 1-4 and 5-9 employee size businesses exhibit similar characteristics across all business issues and technology initiatives.These are the businesses termed as very small businesses and have been largely ignored by vendors and channel partners alike.



10-19 employee size businesses start to investigate and invest in newer technologies, hence it is seen that apart from investing in smart phones and Windows 7, they are also seriously investing in areas such as email campaigns, business intelligence, virtualization and video conferencing.Again, refresh of PCs and servers is extremely important to them for reducing the cost of IT and improving business productivity.



For 20-49 employee size businesses, initiatives include: Windows 7, smart phones, virtualization, web conferencing, and refresh of PCs and servers.Among the technologies they are investigating include: business intelligence, video conferencing, and Android OS.



The 50-99 Employee size category businesses consider technology enough to be investing rather than investigating in a large number of technology areas.

Enhancing IT and improving productivity through automation

are 2 most important steps that small businesses plan to

take to reduce their operational cost

67.5% 65.0%

44.8% 44.1%32.3% 29.3%

17.0%

0%

15%

30%

45%

60%

75%

Enhancing IT [upgrading,

consolidating, looking at new technologies]

Improving productivity

through automation

Increasing Prices Staffing changes [Restructuring, reducing, off-

shoring]

Obtaining loans/funds

Reducing number of products

Others

Overall

If reducing operational cost is important to you for your business. What are the three most important steps that you are taking or planning to take to reduce these costs?

61.4% 55.4% 54.2%39.8% 37.3%

28.9% 22.9%

0%

15%

30%

45%

60%

75%

Increasing Prices Enhancing IT [upgrading,



through automation

Others Obtaining loans/funds


Staffing changes [Restructuring, reducing, off-

shoring]

1-4 Employee Size

Enhancing IT and improving automation are important steps in 1-4

employee size category in reducing operational costs, however, it

may be easier for them to increase prices to offset costs


67.1% 61.0%48.8%

41.5%34.1% 34.1%

13.4%0%

15%

30%

45%

60%

75%


through automation



Increasing Prices Staffing changes [Restructuring, reducing, off-

shoring]



Others

5-9 Employee Size

5-9 Employee businesses are big enough to think in terms of using IT for

automation to reduce costs, which could be in terms of essential solutions

such as bookkeeping, POS, and other sales management technologies


67.5% 67.5%

47.5% 43.8%36.3%

30.0%

7.5%0%

15%

30%

45%

60%

75%




through automation


shoring]

Increasing Prices Obtaining loans/funds


Others

10-19 Employee Size

10-19 Employee size businesses start to look at IT as more of an essential

technology to reduce their operational cost and hence focus on enhancing IT

and improving productivity through automation


80.2%65.4%

55.6%

32.1% 28.4% 28.4%9.9%

0%

15%

30%

45%

60%

75%

90%




through automation


shoring]

Increasing Prices Obtaining loans/funds


Others

20-49 Employee Size

20-49 employee size category businesses follow the same

pattern as 10-19 employee size category businesses


73.8% 71.3%53.8%

37.5%25.0% 25.0%

13.8%0%

15%

30%

45%

60%

75%

90%




through automation


shoring]

Increasing Prices Reducing number of products


Others

50-99 Employee Size

Unlike 20-49 employee size businesses, for 50-99 employee size

businesses, enhancing IT and improving productivity through

automation are equally important for reducing operational cost


IT Infrastructure

Refresh Plans

An average of 2.4 years has passed since a major refresh of PCs for

most of the small businesses and is also evident when they mention

refresh of PCs and Servers as a key initiative

43.4%

32.9% 35.0%39.5%

28.8%36.0%

20.5%

26.8% 26.3%22.2%

32.5%25.6%

19.3% 24.4% 18.8% 16.0% 20.0% 19.7%

6.0% 4.9% 12.5% 13.6%11.3% 9.6%

3.6% 6.1%3.8% 2.5%

5.0%4.2%

4.8% 2.4% 3.7%1.3% 2.5%

2.4% 2.4% 3.8% 2.5% 1.3% 2.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

Thinking about your IT infrastructure (PCs) how long has it been since you had a major upgrade, refresh or overhaul?

More than 6 years

5-6 years

4-5 years

3-4 years

2-3 years

1-2 years

Less than 1 year

2.33 2.44 2.43 2.41 2.41 2.40Average # of years

Similarly for servers, average number of years since refresh

is 3.27 and larger for lower employee size categories

25.3%15.9%

33.8%28.4% 28.8% 26.4%

10.8% 26.8%

16.3% 24.7% 27.5%

21.2%

14.5%

17.1%

16.3%16.0%

21.3%

17.0%6.0%

12.2%

11.3%13.6%

12.5%

11.1%

3.6%

4.9%

10.0%8.6%

5.0%

6.4%

10.8%

9.8%

3.8%

6.2% 1.3%

6.4%28.9%

13.4%8.8%

2.5% 3.8%11.6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

Thinking about your IT infrastructure (Servers) how long has it been since you had a major upgrade, refresh or overhaul?

More than 6 years

5-6 years

4-5 years

3-4 years

2-3 years

1-2 years

Less than 1 year

4.29 3.60 3.03 2.80 2.60 3.27Average # of years

With the use of wireless technologies and higher replacement cycles for

switches and routers, it is not surprising that only an average of 2.8 years have

passed since the last networking refresh happened among small businesses

21.7% 25.6%32.5%

21.0%

32.5%26.6%

34.9% 26.8%

28.8%

35.8%

28.8%31.0%

13.3%15.9%

12.5%14.8%

21.3%

15.5%

7.2% 12.2%

11.3% 14.8%

10.0%

11.1%3.6%

9.8%6.3% 6.2%

2.5%

5.7%6.0%

2.4% 3.8% 4.9% 3.8%4.2%13.3%

7.3% 5.0% 2.5% 1.3%5.9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

Thinking about your IT infrastructure (Networking) how long has it been since you had a major upgrade, refresh or overhaul?

More than 6 years

5-6 years

4-5 years

3-4 years

2-3 years

1-2 years

Less than 1 year

3.20 2.98 2.66 2.77 2.39 2.80Average # of years

The very small businesses seem to have a longer refresh cycle for

telephony as these small businesses are increasingly using VOIP

services such as Skype, Vonage and Google Voice

20.5% 20.7%28.8%

21.0% 18.8% 21.9%

20.5% 22.0%

25.0%

25.9%21.3%

22.9%

18.1% 18.3%

16.3%

16.0% 26.3% 19.0%

6.0%

13.4%

11.3%

9.9%8.8% 9.9%4.8%

4.9%

5.0%13.6%

5.0% 6.7%6.0%

6.1%

2.5%9.9%

8.8% 6.7%24.1%

14.6% 11.3%3.7%

11.3% 13.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

Thinking about your IT infrastructure (Telephony) how long has it been since you had a major upgrade, refresh or overhaul?

More than 6 years

5-6 years

4-5 years

3-4 years

2-3 years

1-2 years

Less than 1 year

3.93 3.51 3.03 3.17 3.43 2.85Average # of years

Time for refresh?

49.4% 48.8%

73.8% 67.9% 67.5% 61.3%

50.6% 51.2%

26.3% 32.1% 32.5% 38.7%

0%

25%

50%

75%

100%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

Do you think it is time for an upgrade, refresh, overhaul?

Yes No

2.3 2.4 2.4 2.4 2.4 2.4

4.3

3.6

3.02.8

2.6

3.33.23.0

2.7 2.8

2.4

2.8

3.9

3.5

3.03.2

3.4 3.4

2.0

2.5

3.0

3.5

4.0

4.5

5.0

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

# o

f Y

ear

s

Average # of Years since an Upgrade, Refresh, or Overhaul

PCs Servers Networking Telephony

The sweet spot for targeting refresh of IT seems to be the 10-19 Employee size categories although the average number of years since their last refresh is amongst the lowest. This shows that this employee size category is preparing itself for growth to the higher employee size category

Use of iPad and

Smart Phones

Use of iPad and Smart Phones among small

businesses

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 OverallAvg # of iPads within iPad Businesses

2 3 5 10 15 9

Avg # of iPads within All Businesses

0 1 2 5 8 1

Avg # of PCs within iPad Businesses

6 13 22 46 96 49

Avg # of PCs within All Businesses

3 8 18 38 85 13

Avg # of Smart Phones within iPad Businesses

2 5 13 30 58 29

Avg # of Smart Phones within All Businesses

1 4 10 20 58 6

6.0%

24.1%

48.0% 50.0%54.5%

20.3%

61.4%

82.9%89.3% 92.0%

96.1%

83.9%

0%

25%

50%

75%

100%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

% of Businesses with at least one.....

iPad Smart Phone

It is interesting to note that businesses that are using iPads have a higher average # of PCs and Smart Phones than businesses that do not own an iPad

What are the applications for iPad

60.0%

25.0%

30.8%

18.6%

39.1%

30.1%

5.0%

2.6%

9.3%

4.3%

5.2%

40.0%

60.0%

64.1%

62.8%

52.2%

58.8%

10.0%

2.6%

9.3%

4.3%

5.9%

0% 20% 40% 60% 80% 100%

1 - 4

5 - 9

10 - 19

20 - 49

50 - 99

Overall

Emp

loye

e S

ize

What is the planned use for the iPad in your organization?

Mainly as a viewing device for emails, demo presentations, Internet readership

Mainly as an inputting device for company applications such as database enrichment

All of the above

Not really sure its best use

iPads are predominantly being used as a device for emails, presentations, and internet surfing. However, higher Employee size categories seem to be starting to use iPad for data capture, either by salespersons or by “roaming” customer support personnel. About 6% of small businesses are not yet sure about the usage of iPad.

Very small businesses seem to have a preference for

notebooks over iPads, while at higher employee size

categories, the preference for both begin to increase

1.2%6.1%

15.0% 14.8% 11.3% 9.6%

59.0%

37.8%

33.8% 35.8%

30.0%39.4%

2.4%

13.4%10.0%

11.1%

13.8%

10.1%

9.6%

2.4%5.0%

6.2%

3.8%5.4%1.2%

4.9%

5.0%2.2%

19.3%

26.8%15.0%

19.8%28.8% 21.9%

8.4% 12.2%21.3%

7.4% 7.5% 11.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

Would you say you prefer…?

Both iPads and Notebooks are important

All three (iPads, Notebooks, Netbooks) are important

You prefer Netbooks over Notebooks

You prefer Netbooks over iPads

You prefer both iPads and Notebooks

You prefer Notebooks over iPads

You prefer iPads over notebooks and netbooks

Within the small businesses, the percentage of employees

using smart phones increases with the employee size

category

38.6%

73.2%87.5% 86.4%

96.3%

76.1%

61.4%

26.8%12.5% 13.6%

3.8%

23.9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

Do employees access their email, calendar, tasks (Outlook or other similar) by smart phone?

No

Yes

38% 46% 62% 52% 53% 50%Avg % of employees that are on an unlimited data plan

1-4 5-9 10-19 20-49 50-99 SB

Top 1st Reason

Top 2nd Reason

Top 3rd Reason

Reasons for purchasing an iPad

1

2

3

It is a cool device

Sales/Demos

Experiment

Email

Product Catalogs

Customer order/ Input

Vertical Applications

Who is using the iPad

Top regularly used applications for iPad

1-4 5-9 10-19 20-49 50-99 SB

Top 1st

Top 2nd

Top 3rd

Top 4th

Top 5th

Top 6th

Top 7th

Top 8th

Top 9th

Email

Internet Search

Social Media

Reading Books

Web Conf./Comm.

Games

Productivity

Vertical Applications

Access Primary PC

Supplier Purchase

Preference for Mobile

Hardware

Purchase of IT and telecom from different suppliers is the predominant theme

although at higher employee size categories with a better procurement process

in place, nearly 25% of small businesses start to use a single supplier

10.8% 17.1%29.3% 25.3% 28.9%

22.0%

89.2% 82.9%70.7% 74.7% 71.1%

78.0%

0%

25%

50%

75%

100%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

How do SBs Purchase IT & Telecom HW Equipment

We buy our IT hardware and Telecommunication equipment from two or more different companies/suppliers

All our IT hardware and Telecommunication equipment are purchased from the same company/supplier

22.9%

36.6%42.7%

36.0%43.4%

36.1%

77.1%

63.4%57.3%

64.0%56.6%

63.9%

0%

25%

50%

75%

100%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

How do SBs Purchase Telecom HW Equipment

Fixed Telecom and Mobile Telecom hardware & connection services from different suppliers

Fixed and Mobile telecom hardware & connection services from the same company

Very small businesses prefer to purchase Mobile Hardware

from retailers whereas higher employee size businesses use

Mobile Operators and IT dealers

28.1% 28.8%37.2% 33.3% 37.2% 32.4%

71.9% 71.2%62.8% 66.7% 62.8% 67.6%

0%

25%

50%

75%

100%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

Why SBs Purchase Telecom HW from Different Suppliers

We purchase Mobile hardware anywhere but for connection service we have to deal with service providers

Mobile hardware and connection services have bundled offers that do not cover fixed line solutions

27%20% 27%

34% 30% 27%

51%

46% 32%27% 29% 37%

7%

11%12%

16% 19% 13%

5% 17%19%

16% 17% 15%

10% 7% 10% 6% 5% 8%

0%

25%

50%

75%

100%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

Where do SBs Purchase Their Mobile Hardware

Other

Value Added Reseller

IT dealer

Retailer

Mobile Operator

Price drives the type of supplier across all businesses

apart from going to their preferred current IT supplier

20.3% 19.1% 17.0%23.2% 22.2% 20.3%

31.1% 35.3% 41.5%42.9% 42.6%

38.0%

45.9%30.9%

34.0%32.1% 29.6%

35.1%

2.7%14.7%

7.5% 1.8% 5.6% 6.6%

0%

25%

50%

75%

100%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

Have you considered sourcing all your computing and telecommunications equipment from the same company?

No, did not know we could have

No, we have different purchasing practices and cannot see how it can be done

Yes, but there is no single supplier able to serve our needs price competitively

Yes, but there is no single supplier able to provide all relevant products and services

14.9%23.5%

13.2%25.0% 25.9% 20.3%

5.4%4.4%

11.3%

12.5% 7.4%7.9%4.1%

10.3%3.8%

12.5%11.1%

8.2%

75.7%61.8%

71.7%

50.0% 55.6%63.6%

0%

25%

50%

75%

100%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

If you could choose, would you prefer to source all your IT and telecommunication equipment from…

Is irrelevant as long as the price offered is what matters

Your current fixed telecom equipment supplier

Your current mobile equipment supplier

Your current IT equipment supplier

Marketing

Initiatives

Presence of marketing department

2.4% 6.1%21.3%

37.0%

55.0%

24.1%

97.6% 93.9%78.8%

63.0%

45.0%

75.9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

Do you have a separate marketing department in your organization? This is

different than a sales department.

No

Yes

100.0%

20.0%29.4%

6.7% 4.5%12.2%

80.0% 58.8%

60.0%52.3%

56.1%

11.8%

30.0%38.6%

28.6%

3.3% 4.5% 3.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

How many personnel are there in your marketing department?

10 or more

5 - 9

2 - 4

1

1.0 2.6 2.9 4.5 5.0 4.3Average # of personnel

As would be expected, over 50% of higher employee size category has a marketing department of an average of 5 marketing personnel.There is an average jump of about 15% in presence of marketing department as businesses move from 5-9 to 10-19 to 20-49 and to 50-99 employee size category.

Who manages the Marketing Department?

84.3%

63.4% 65.0%

43.2% 38.8%

59.1%

7.2%

8.5% 7.5%

7.4%

2.5%

6.7%

2.5%

3.7%

2.5%

1.7%

2.4%

13.4% 11.3%

22.2%

18.8%

13.5%

3.6%11.0% 6.3%

11.1%

12.5%

8.9%

2.4% 3.7% 7.5% 12.3%

25.0%

10.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

Who manages marketing in your organization?

A marketing executive manages it

One of a designated staff manages it in addition to his/her regular job function

Our sales personnel manage it

An external consultant manages it

Nobody manages it

The CEO/President is largely responsible for managing the marketing of small businesses, however at higher employee size categories, the businesses begin to hire marketing and sales executives who take on the managing of the marketing department.Interesting to note that a very small percent of small businesses mention that nobody manages the marketing, which clearly shows despite the absence of a formal marketing department, small businesses do consider marketing to be an important function within their organizations.

For very small businesses, business success is dependent upon

customer delight whereas for 50-99 employee size category,

efficiency and optimization also become important

77%79%

68%

60%

54%

68%

8% 9%

23% 23%

30%

18%

6% 5% 5%

11%9% 7%

8% 7%5% 5%

8% 7%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

Which of the following value-statements best describes your business?

Our business success depends upon a strong relationship with the customer, providing goods and services highly customized to their needs and being responsive to their demandsOur business success depends upon implementing highly efficient and optimized processes so as to deliver the products and/or services at the lowest possible costOur business success depends upon implementing cost effective IT solutions so as to improve productivity, efficiency and profitabilityOur business success depends upon our ability to consistently innovate and bring cutting edge products to market

An average of 7% of revenue is allocated for

marketing activities by small businesses

34.9%

19.5%

6.3% 4.9% 2.5%

13.8%

33.7%

34.1%

32.5% 32.1%30.0%

32.5%

24.1%

24.4%

37.5% 40.7%

30.0%

31.3%

2.4%

8.5%18.8% 12.3%

27.5%

13.8%

3.6%

8.5%

5.0%7.4% 7.5% 6.4%

1.2% 4.9% 2.5% 2.5% 2.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

Typically what percent of your total annual revenue do you allocate for marketing activities for your business?

More than 20%

16 - 20%

11 - 15%

6 - 10%

1 - 5%

Less than 1%

4.4% 7.2% 7.3% 7.9% 9.0% 7.2%Average % of revenue

Similar to 7% of revenue dedicated to marketing, 7% of

workforce is dedicated to marketing

50.6%

35.4%

20.0%14.8%

8.8%

26.1%

21.7%

30.5%

21.3% 34.6%38.8%

29.3%

7.2% 18.3%

32.5%

30.9%25.0%

22.7%

2.4%

6.1%

15.0%11.1%

16.3%10.1%1.2%

3.7%11.3% 7.4%

7.5% 6.2%16.9%

6.1%1.2% 3.8% 5.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

What percent of your total workforce is dedicated to marketing activities?

More than 20%

16 - 20%

11 - 15%

6 - 10%

1 - 5%

Less than 1%

7.1% 5.8% 7,3% 6.7% 7.8% 6.9%Average % of workforce

Print advertising and direct mailing combined form a bulk of

the marketing expense, however, Adwords constitute a

higher percentage than direct mailing and yellow pages

Print advertising, 21%

TV advertising, 3%

Direct Mail, yellow pages listing, 15%

Telemarketing, 7%Search engine

marketing/Adwords, 18%

Event Sponsorships, 11%

Other, 24%

% of Marketing Spending Allocated

Referrals, testimonials, followed by web advertising are the most

effective activities in driving new businesses

Please tell us which of the following activities are most effective in helping you drive new business.

Marketing budget

65.1%57.3%

46.3%39.5% 41.3%

50.0%

14.5%

12.2%27.5%

27.2% 21.3%

20.4%

9.6%

11.0%

20.0%

17.3% 22.5%

16.0%

8.4%

7.3%

6.3%

7.4% 8.8% 7.6%3.7%2.5%

5.0% 2.2%1.2%

2.4%3.7% 1.5%

1.2%6.1%

2.5% 1.3% 2.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

For 2011, will your Marketing Budget?...

Decrease by more than 10% over 2010

Decrease by 6-10% over 2010

Decrease by 5% or less over 2010

Increase by more than 10% over 2010

Increase by 6-10% over 2010

Increase by 5% or less over 2010

Remain the same as 2010

2.1% 1.1% 3.2% 2.4% 3.3% 2.4%Average % of increase

Social Media

Usage

Small businesses have begun to use social media for creating

awareness about their business; Facebook shows the highest usage,

while Twitter the least amongst latest tools

35.5% 34.5%

31.3%28.3%

24.6% 24.1%

14.0%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Facebook Page

LinkedIn Facebook Events

Blogs Ads on Social Sites

Twitter Myspace

Percent SBs That Use Different Social Media

In which of the following areas and to what extent has the use of social media services impacted your business?

Nearly 70% plan to use social media in the next 12 months,

however, 45% are not sure how it could help their business

45.0% 44.3%

25.2%

1.5%0%

25%

50%

Our business is not suited for

such technologies

We are not sure how these

technologies would help our

business

Our customers do not use these

tools

We are not aware of these technologies

Reasons For Not Using Social Networking Tools

28.9% 34.1%51.3%

29.6%

55.0%39.7%

32.5%31.7%

26.3%

32.1%

27.5%

30.0%

12.0%11.0%

10.0%

19.8%

7.5%

12.1%

26.5% 23.2%12.5% 18.5%

10.0%18.2%

0%

25%

50%

75%

100%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

How likely are you to use social networking tools in the next 12 months to promote your business

Very unlikely

Somewhat unlikely

Somewhat likely

Very likely

Almost every small business now has a

website

8.8% 4.4% 4.8% 2.9% 1.4% 4.3%

10.5%32.4% 27.0%

19.1% 18.3%21.7%

26.3%

23.5% 28.6%39.7%

32.4%30.3%

26.3%

23.5% 19.0% 22.1%26.8% 23.5%

28.1%16.2% 20.6% 16.2% 21.1% 20.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

How long have you had your website?

< 1 year 1 - 3 years 4 - 6 years

7 - 10 years More than 10 years

8.02 6.27 6.71 6.68 7.44 7.0Average # of years

68.7%82.9% 78.8% 84.0% 88.8% 80.5%

31.3%17.1% 21.3% 16.0% 11.3% 19.5%

0%

20%

40%

60%

80%

100%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

Does your business own a website such as www.yourcompanyname.com?

Yes No

And nearly 60% of the businesses have identified a

dedicated staff to update website content

3.5% 5.9% 7.9%14.7% 19.7%

10.7%3.5%5.9%

20.6% 8.8%

26.8%

13.5%

1.8%

20.6%

17.5%16.2%

14.1%

14.4%

24.6%

8.8%

11.1% 23.5%

9.9%

15.3%15.8%

17.6%

12.7%7.4%

15.5%

13.8%

8.8%

11.8%

15.9% 19.1%

5.6%

12.2%

14.0%

10.3%

4.8%4.4% 2.8%

7.0%21.1%8.8%

4.8% 2.9% 2.8%7.6%

7.0% 10.3% 4.8% 2.9% 2.8% 5.5%

0%

25%

50%

75%

100%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

How frequently do you update content on your website?

Don’t know

Once a year

Once every 6 months

Once every 3 months

Once a month

Once every couple of weeks (twice a month)Once a week

More than once a week

Everyday

29.8%

50.0%

69.8%60.3%

81.7%

59.3%

0%

30%

60%

90%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

Do you have staff dedicated to updating the website content?

How effective has your website been in each of the following areas?

Although both social media and websites have the same

level of effectiveness of creating awareness, websites are a

lot more effective by as much as 13% in driving revenue

83.6%75.6% 72.4%

79.6%72.0% 68.4%

85.6% 83.2% 76.8%87.5%

79.8% 81.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Increasing awareness of your business

Increasing the number of inquiries or leads for product

or service information

Increasing referrals from existing

customers

Improving your company’s image with customers

Improving customer satisfaction with your

product or service

Increasing business revenue

Effectiveness of Social Media vs Website

Social Media Website

7.5%4.4%

7.8%7.8% 13%

2%

Businesses do track the # of hits to their website but the real

analytics of website traffic starts at higher employee size

categories

47

.4%

66

.2%

68

.3%

64

.7%

76

.1%

65

.1%

35

.1%

54

.4% 61

.9%

58

.8%

77

.5%

58

.4%

40

.4%

19

.1% 3

0.2

%

26

.5%

43

.7%

31

.8%

0%

30%

60%

90%

1-4 5-9 10-19 20-49 50-99 Overall

Actively track # of visitors/hits Analyze website traffic Allow ads on website

The use of CRM to track customer inquiries increases

with the employee size category, and over 33% of the

businesses analyze customer data every week

20.5%

34.1%

50.7%54.7%

59.2%

43.2%

0%

10%

20%

30%

40%

50%

60%

70%

1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 Overall

% of SBs That Use CRM Software to Track Customer Inquiries

4.1%

18.3%

33.1%

8.9%

20.7%

13.0%

1.8%

% of SBs that Analyze Customer Related Data to Help Define Marketing Strategies and Tactics

We do not analyze customer data

Every day

Once a week

Once every 2 weeks

Once a month

Once a quarter

us sb - business issues, role of it, social media, …...social media usage social networking tools...

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