Information & Communication Technology

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Accelerate your business successwith information and communications technology (ICT)

February 1, 2012

2 Accelerate your business success with ICT

Agenda

> Investing in ICT: Now is the time

> Top 10 strategies to maximize ROI using ICT

> BDC can be your ICT partner

Investing in ICTNow is the time


The big picture

Canada needs to make gains in productivity

> Canada is only in the middle of the pack when it comes to small business productivity

> We do not adopt technology (ICT) as readily as the U.S. or Europe

> Canada could make great gains in global competitiveness by addressing this one factor

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Global competition will only get tougher.

ICT can help Canadian companies stay lean, productive and competitive!


Now is the best time to invest in ICT

> Canada’s economic fundamentals are relatively strong

– High dollar boosts buying power for capital investment

– Software prices are attractive right now

> Canada is awakening to the importance of ICT investment

– Canada should experience the highest IT spending growth of any country in 2011, with an increase of 7%1

– Comparatively, U.S. and global IT spending is expected to grow by 5.6%2

1. IDG News Service. 2. TransWorldNews.

This may be an opportunity you can’t afford to miss!


Accelerate your business success

> ICT stimulates growth

– Technology opens access to new markets and creates new opportunities to engage with customers

> ICT drives productivity

– Technology improves efficiency, reduces costs and boosts profitability

> ICT improves management

– Technology lets entrepreneurs do more, increase capacity, and compete globally

> ICT sparks change

– Technology is a catalyst for positive change, improving processes and motivating people to work more creatively


Numbers tell the story

> Almost 80% of entrepreneurs report that the results of their technology investments met or exceeded their expectations

> Only 14% of entrepreneurs reported results below expectations

> Productivity increases 1.3% for every 10% increase in the number of employees using computers1

> The average company with several ICT applications has 12% higher productivity than the average company without any ICT applications1

> Revenue grows an average 8.5% after adopting Internet business solutions2

Expectations and results of investment in technology

Don’t know, 7%

Results below expectations, 14%

Results above expectations, 9%

Results match expectations, 70%

Canadian Federation of Independent Business, Building Business Success: A Survey of SMEs on Productivity, April 2007.

1. OECD, Does ICT Use Matter for Firm Productivity? May 20062. Canadian e-Business Initiative, Net Impact Canada IV, 2004


BDC client success story

Polaris Transportation Group

Polaris is a rapidly growing transport company in Mississauga, Ontario. Management was uncomfortable with technology before they decided to make a first investment.

Approach:> Hired BDC Consulting to conduct an in-depth needs

assessment > Reviewed manual processes first, then looked at

technology> Used technology to trim costs, save time and free up

resources > Used these new advantages to focus on sales

Results:> Far better than they imagined> Helped triple sales to $40 million> Planning another ICT upgrade to target sales of $100

million

“I’ve gone from fear and trepidation about technology to embracing it.”

Larry Cox, Owner

Top 10 strategiesMaximizing ROI using ICT


Top 10 strategies to maximize ROI using ICT

Top 10 strategies to maximize ROI

using ICT

Align ICT investments with business strategy

Assess productivity/ ICT

adoption

Leverage current ICT

Introduce new applications

Leverage the InternetComplete or cancel

ICT projects

Integrate with your supply chain

Support your ICT

Manage your ICT risks

Continue to invest in ICT


1. Align ICT investments with business strategy

> Create an ICT strategy that aligns with the overall business strategy

– Focus on the key aspects

– Prioritize the business issues

– Concentrate efforts on the most urgent ICT needs

> Establish an ICT plan that defines the overall orientation and architecture

– Ensure that current and future ICT investment are part of a logical chain of events

> Make decisions

– Revisit decisions regularly to ensure they still align with evolving business priorities


2. Assess productivity of operations and current level of ICT adoption

> Invest in areas where productivity and ICT adoption are low

> Benchmark productivity with industry averages to identify opportunities

– Identify key pain points/bottlenecks affecting operational efficiency

> Identify causes of inefficiency

– Low levels of automation

– Extensive manual tasks

– Low visibility/availability of information

> Give priority to areas that represent the following

– A significant proportion of operational costs

– Substantial gaps with industry efficiency averages

– The highest potential for revenue growth



Helly Hansen Canada

Helly Hansen Canada is the Canadian arm of a worldwide premium activewear company. During the recent recession, a decline in sales left the company with too much inventory.

Approach: > Adopted new technology that provides better forecasts

− A database that helps plan inventory levels

− A more efficient and manageable invoicing system

− New analytical reports and forecasting tools

Results: > Inventory costs down 33% over two years> Product development cycle 40% shorter

“If we’re not innovative, we’re going to get run over.”

Dan Clarke, President


3. Leverage current ICT

> Fully leverage existing applications before investing in new ones

– In many cases, existing applications have been implemented partially without utilizing all functionality, so consider the unused potential

– Limitations in existing applications may be addressed by installing newer versions of the same software, so think about upgrading

> Ask your ICT vendors for a more complete description of the capabilities of your applications

– Some websites (such as www.technologyevaluation.com) offer a quick way to validate system functionality

> Integrate your applications to increase your productivity

– Manual processing of data drives up costs and error rates

http://www.technologyevaluation.com/


4. Introduce new applications

> Make sure to select the applications that best fit your current and future business needs

> Budget adequate resources (time, money, consulting support) to make the project successful

> Define clear implementation objectives, and make tough decisions when needed

> Do not customize software; leverage standard functionality

Implement new applications with an experienced and expert team to dramatically increase your likelihood of success.


Vendor considerations

> When choosing a solution, you are also choosing a firm that will work with you throughout and after implementation

> It is important to find the partner that best fits your needs– Learn the strengths and

weaknesses of potential implementation partners

Key questions for potential vendors

1. What kind of customers do you typically serve?

2. What kind of references are you able to provide?

3. What is your methodology for implementation?

4. How will you facilitate process re-engineering?

5. How do you handle organizational change management?

6. What type of budget/scope controls do you use?

7. How will you handle mismatches between our business requirements and the software’s off-the-shelf functionality?

8. How will you define implementation success?

9. How are benefits measured and realized?

10. What is the experience of the team members you are proposing?



Sitka Surfboard

Sitka Surfboard is a Canadian manufacturer and retailer of surfboards, skateboards and clothing based in Victoria, B.C. Sitka found itself with an inefficient patchwork of different software systems in various parts of the company.

Approach:> Implemented an enterprise resource planning

(ERP) system to tie the whole company together> Removed various types of systems in each

department; the ERP system does it all

Results:> Improved sales forecasting> Better management of inventory across retail

stores, the online store and wholesale operations

“We see this as a key part of our growth strategy. Improving our efficiency now will

pay off tenfold as we scale up in the future.”Andrew Paine, President


5. Leverage the Internet

The power of information has shifted from the seller to the buyer


Define an Internet strategy

> You can use the Internet in many ways to support your business

– Reduce your client acquisition costs

– Increase your sales

– Promote your brand

– Reduce your cost of serving clients

– Streamline your supply chain

– Enable collaboration between employees, suppliers and business partners

Ask yourself...

> What objectives do you have for your website?

> Who are your customers, prospects and community members?

> What are they looking for?

> Do you know what your customers think about your business?

> What are your competitors doing?


Define an Internet strategy

> Determine what your website could offer your customers that adds real value and could help grow your business

> Remember that building a website is the easy part, but defining the ideal visitor experience is the key part

> Integrate your social media presence with your Internet strategy

The establishment of an

Internet strategy is key.

It must be consistent with your

overall business strategy and

recognize that competitors are

only a few mouse-clicks away



Philip and Henry Productions Inc.

Philip and Henry Productions is a North American network of professional magicians, with a Canadian head office in Vaughan, Ontario. The company saw an opportunity to grow by using the Internet.

Approach:> Defined website goal> Explored Internet marketing options> Developed a list of keywords > Tested different content and design alternatives

Results:> 30% growth, year over year> Better efficiency and effectiveness> Instant access to real-time information


6. Complete or cancel ICT projects

> Focus on high-impact projects and commit to their completion, especially if you achieve ROI in a short period of time

> Cancel projects with low impact that require a long time to achieve ROI

– Also focus on projects where alignment with evolving business priorities and buy-in from management are no longer there

Typically, 35% of ICT projects are perceived to be successful and 19% are considered failures (the remaining 46% are “challenged”)

The number one cause of failure is a lack of the right resources with the right skills


7. Integrate with your supply chain

> Work with suppliers and large customers to get a sense of their ICT plans

> Analyze overall value and invest in the highest-impact systems

> Take advantage of cloud computing to shorten implementation timeframes and potentially lower costs

> Engage vendors in your ICT planning process and your strategic purchasing decisions

> Turn to “trusted advisors” for independent and objective assessment and advice

You are part of a larger supply chain

and everyone is looking to reduce costs


8. Support your ICT

> Secure qualified resources to support your ICT

– Could be internal or external

> Make sure to keep your ICT resources up to date on new technology you bring into your company

> Monitor the age of your ICT infrastructure and consider retiring unsupported applications

Unsupported ICT is a ticking time bomb that will eventually cause system downtime. Imagine your organization without email or access to sales orders!


9. Manage your ICT risks

> Steps to reduce ICT risks

– Create a list of critical business processes and technologies you depend on

– Identify the people responsible for support during all business hours

– Fill gaps and document key contact information

– Know how to contact vendors in the event of an external problem

– Develop a contingency plan and communicate it to those who need to know

– Back up your information regularly and store it off site


10. Continue to invest in ICT

> When capital is scarce, tough decisions need to be made, and ICT investment is often reduced or frozen– Cutting back on ICT expenditure over a long period of time will result in obsolete

systems and over-reliance on manual business processes

> Steps to unfreeze capital investment– Do the work outlined in the previous slides to determine opportunities, impacts and

risks

– Invest incrementally in an independent and objective ICT assessment to finish identifying and prioritizing projects

– Work with your trusted advisors to ballpark approximate investment costs

– Focus on high-impact solutions to secure the necessary funding

– Use a proven system selection methodology to make the right choice for the long term and to achieve the highest ROI possible

ICT AdoptionBDC can be your partner


Our framework for recommending ICT

•This is not just about technology; it’s about improving your productivity to sustain growth and profitability

Understand your business strategy and assess the efficiency of your current business processes

•Before proposing additional technology investments, we will evaluate how well your current technology platform is able to address your strategic and/or business process gaps

Fully leverage past and current investments in ICT

•Our independent and objective ICT experts will evaluate how investing in new technology would affect your company’s success

Assess the merits of investing in new technology


Our framework for recommending ICT

•We will develop a prioritized action plan that will accelerate the creation of incremental business value in your company

Plan ICT deployment according to growth and profitability drivers

•With our proven approach and experienced professionals, we will reduce the risk of such investment by helping you find the best solution, and we will guide you through the process of negotiating a system purchase

Help you select the enterprise software that best fits your business

•We can provide term financing with beneficial terms and conditions as a sound way to preserve your short-term working capital

Provide financing designed for ICT needs


ICT solutions and tools

bdc.ca/smarttech

ICT consulting solutions> ICT Essentials> ICT Diagnostic> Website Diagnostic> Internet Strategy> System Selection Support

Free tools> ICT Assessment> Web Assessment

Resources> Free eBook> Learn about ICT

ICT financing


ICT financing

Get vital capital to invest in the following> Hardware (servers, network, telephony,

computers and accessories)> Software (ERP, CRM, human resources,

supply chain, finance and accounting)> Services (IT planning, strategy, security)> Internet services (online sales, marketing,

social media)

Benefits> Financing with beneficial terms and conditions

to get your project off the ground> A sound financing alternative to preserve your

short-term working capital


Accelerate business success

Both BDC client and non-client companies, including small businessessuch as home offices, may apply for an ICT loan

Beneficial terms and conditions

> BDC floating base rate + 1%

> 4-year repayment period

BDC client

Contact Rod Wolfe, Sr. Account Mgr.

204-983-6508 [email protected]

Not a BDC client

Get up to $50,000*

Apply online at bdc.ca/ictfinancing* For financing needs that exceed $50,000 call 1 877 BDC-BANX (232-2269) or the nearest BDC business centre.Certain eligibility criteria apply.


ICT Essentials: A development and coaching program

Need-to-know technology for business owners and managers > Assess your organization’s readiness to

capitalize on ICT opportunities > Manage your ICT resources: people,

equipment, vendors > Make strategic decisions about ICT

Both options include a free Website Diagnostic and practical ICT planning templates

Option1

Option 2

Online learning modules

4 half-day workshops

Personalized coaching hours

4 half-day workshops

Online learning modules


ICT Diagnostic

Discover how technology can transform your business> A thorough diagnostic to assess your

overall ICT needs, ranging from technological tools and applications to the valuable new capabilities of the Internet

Our focus> Assess your current ICT environment > Identify areas for improvement > Develop a strategic ICT investment path

that supports your existing business plan > Recommend an action plan > Prioritize recommendations


Website Diagnostic

Get a professional evaluation so you can make the right changes> A thorough diagnostic to evaluate the

strengths and weaknesses of your current website, and provide a prioritized list of recommendations

Our focus> Increase visibility on Internet search

engines > Sort out site design and technical issues > Measure your traffic patterns

Online purchase for quick and efficient delivery of results


Internet Strategy

BDC Internet specialists can work with you to do the following> Develop a custom Internet strategy> Develop project specifications to build the

website > Create an e-marketing plan that includes a

social media and lead-nurturing plan

Our focus> Increase your web traffic > Improve the quality of visitors so that most are potential customers > Boost the percentage of visitors who respond to a call to action > Differentiate your online presence to make you more competitive > Build trust and credibility


Software System Selection Support

Expert assistance from start to finish> System specialists at BDC Consulting will

guide you through every stage of the selection process, from identifying functional requirements to negotiating a purchase contract

Our focus> Prioritize needs based on business impact

and process fit > Choose the best software solution for your

needs > Negotiate the best deal with the vendor > Avoid common software selection mistakes

Minimize time, cost and risk on your next project to select an ERP, CRM, supply chain management or other system


Free online assessmentswww.bdc.ca/smarttech

ICT AssessmentAnswer 41 multiple-choice questions and get your confidential report back instantly, in a printable format

See how well you use different ICT to > Increase sales > Improve productivity > Optimize infrastructure

Get recommendations for improvement

Web AssessmentJust type in your web address and get your confidential report back instantly, in a printable format

See how well you do in these key areas > Marketing – How well marketed and

popular the website is > Experience – How satisfying the

website is likely to be for users > Accessibility – How accessible the

website is to mobile and disabled users > Technology – How well designed and

built the website is

www.bdc.ca

Rod Wolfe

Sr. Account Manager

Winnipeg, MB

204-983-6508

[email protected]

Thank you!

Documents

Information & Communication Technology