We have all read about the e-commerce giants and how they are monopolizing e-commerce. Large cash flows and teams of developers enable them to adjust to new e-commerce challenges overnight. If they feel their competition is an asset they acquire the organization either with a direct or leveraged buyout. However, the small business still has an edge over the larger organizations which is why over 70% of the businesses in existence today are classified as small businesses.
Large organizations take time to implement changes. Sort of like watching a large ship turn in the ocean. They are required to hire personnel at every level of development and implementation to meet the larger turning radius of their organization. This is where the small business has the edge.
Small business is like the fighter plane vs. the heavy bomber. If the fighter engages the bomber prior to the deliver of its payload, the fighter wins. Small business can beat larger organizations before they launch new initiatives into e-commerce by paying attention to the signs and intercepting the initiative.
Take for instance a new operating system for a personal computer. Many new operating systems provide the user with added functionality, especially in the area of Web 2.0 compliance (think collaboration). However, larger organizations will not adopt these new operating systems until the first service pack is issued. The reason is they cannot risk data flow interruptions. However, the small business can seize this opportunity to get on the cutting edge.
Small business has access to more “unique” resources than large organizations. Large organizations need to stick with their hiring decisions while the small business can obtain many unique outlooks. A couple of these organizations are S.C.O.R.E and the SBA. You can also find help with the IRS and other small businesses.
Large organizations also have a problem with communications. In order to justify their positions, many organizations employ a method known as vertical silo communications. This is where ideas have to propagate down the ladder of authority and when a problem arises the problem needs to go back up the ladder, cross over to another department by means of a common manager, then proceed back down the ladder. Once resolution is achieved it follows the reverse path. Vertical silo communication takes time.
Since the small business has fewer levels of management, they should be using horizontal silos of communication. Horizontal silo communications is where people work together to solve a problem and do not need to justify other levels of management by involving them in the decision making process.
So, remember to stay focused, use every available resource, and communicate. This will enable your small business to grow over the long term while the larger organization begin to downsize and falter due to their inability to address emerging markets due to a bloated management structure. E-Business Juncture LLC is staying on the cutting edge and can help you do the same.
Enjoy,
Mike Kniaziewicz, MIS