'High tech' refers to highly advanced technological development especially in electronics, or the use of computers, to accomplish everyday tasks. High tech has no doubt had a revolutionary effect on the conduct of international trade and small businesses have not been left out. Every aspect of business has been affected from customer relations management to procurement, production, inventory management, sales, distribution, payment and marketing. Earlier in the high tech revolution most of the opportunities were only available to large companies due to cost, but continuous advancement has driven down the costs making it available to even the smallest of businesses. High tech facilitates small businesses in two basic ways; through e-business and e-commerce.
E-business is the transformation of an organization’s processes to deliver additional customer value through the application of technologies and computing. Three primary processes are enhanced, namely: production processes, customer focused , processes and internal management processes. Production processes, include procurement, ordering and replenishment of stocks; processing of payments; electronic links with suppliers; and production control processes. Customer-focused processes, include promotional and marketing efforts, selling over the Internet, processing of customers’ purchase orders and payments, and customer support. Internal management processes, include employee services, training, internal information-sharing, video-conferencing, and recruiting. Electronic applications enhance information flow between production and sales forces to improve sales force productivity. Work group communications and electronic publishing of internal business information are likewise made more efficient.
In e-commerce, information and communications technology (ICT) is used in inter-business or inter-organizational transactions (B2B), transactions between and among organizations and in business-to-consumer transactions (B2C), transactions between organizations and individuals.
E-business and E-commerce now within reach of small businesses entrepreneurs have facilitated international selling opportunities for small businesses. We shall mention a few specific instances.
With the use of the Internet, market research and analysis has been made available to the small business who can now cheaply and easily find suppliers, manufacturers, financiers, buyers and new business opportunities. These may be located anywhere on the globe.
At the other end of the spectrum, technology has provided ample low cost advertising for small business giving them a global advertising reach hitherto available for million dollar budgets. Apart from the use of web sites to feature services and products (like the advertising pages of a newspaper), more effective marketing that targets the ideal client can be carried out because the small business can obtain specific need information of its prospect. This magnifies marketing effort and result.
Technology has made available powerful customer relationship and database management tools. The small business without having a large marketing department can manage their client base and effectively sell to a global market based on need and preference.
Handling payments across country borders with diverse currencies always posed a major barrier to the small business. With the advent of technology-enabled pay systems like Paypal, selling internationally becomes more attractive to small business as the prohibitive cost of international banking is eliminated.
High tech trading platforms like Alibaba and Amazon, have provided the small business a 'credibility cover' which greatly enhances their ability to sell internationally. Take for instance a local bookseller who operates out of his home. A buyer may never buy from him simply because he has not built trust. But the buyer will be willing to part with his money to Amazon, because the known name gives authenticity to the transaction.
Technology driven supply chain means small businesses even without physical presence in a country can fulfill client orders by relying on trusted supply chain partnerships, using technology to tackle worldwide distribution.
Effectively high tech has opened up to the small business a market potential which until now was only available to large players with the capital to have physical presence around the globe.
Sources
http://www.apdip.net/publications/iespprimers/eprimer-ecom.pdf
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