SME IT Investment Survey 2009



Before the outbreak of the financial crisis, SMEs are an IT company official told us they coveted; the financial crisis broke out, many SMEs have been facing catastrophe, at stake. However, we heard the news is, IT companies for the SME market, lower investment and is expected to have not seen - the crazy IT vendors, so that on the all too obvious to ignore; or a bravado performance, only In order to make their own "Xiong Qi?"

In order to explore the truth of SME IT investment demand. Depth interview with this reporter, Guangdong, Zhejiang, Jiangsu, Heilongjiang, Wuhan, Xinjiang, Chengdu and other areas more than 30 small and medium enterprises. Our concern is: by how much business impact? IT investment in 2009 will cut? IT technology to the enterprise and what real change? Drive enterprise IT investment factors? Influence companies to reduce IT What are the factors of investment?

When the fact that many live in the face, we are deeply depressed. Small is too large and complex groups, any attempt to outline an idea of the overall picture is very funny, like "blind men feeling the elephant." But fortunately, we can present a number of points, some of the details, a number of fragments, from which can still see the "real faint."

Interview survey results disturbing. More than 30 companies surveyed, only six companies made it clear that its 2009 IT investment rise, not fall, an increase of about 20% basically; both companies adopted the attitude; while the remaining respondents have said that it will reduce or even cut IT budgets.

Indeed, the financial crisis has brought to SMEs fatal blow to struggling in the line between life companies, IT investments can not talk about nature; the "confidence crisis" of the spread, but also to cast a heavy investment in 2009, shadow IT. Depressed stock market, property market and hovering weak consumption and other factors interact, so many small business owners on the IT investment has taken "no expansion, no update, do not enter the" attitude.

Therefore, we will see, in previous years the growth of SMEs in the market pretty steep curve will turn straight down. In 2009, IDC forecasts IT explicitly mentioned, the SME IT market growth will decline significantly. For cost and sales pressure, in 2009 the growth rate of SME IT spending before the financial crisis will be 14.3% to 8.5%.

However, the three categories of SMEs still full of opportunities: namely Beijing, Shanghai, Dalian and other cities in 20 service outsourcing and service outsourcing and service outsourcing training related to SMEs; new and good momentum of development in the Internet business; and government 40000 billion in the investment industry (such as transportation, education, health care and other industries) relevant to SMEs.

Long-term plan to increase investment

"This year our annual IT investment of about 50 million ~ 60 million yuan, mainly for the purchase of IT infrastructure, networking and ERP and other software." Garments Co., Ltd. Wenzhou Semir Ministry of Information Director Zheng Yuyu on IT very proud of the development of enterprises. In recent years, Semir maintains 50% sales growth in turnover has reached 40 billion yuan. Since taking the domestic market, Semir in this financial crisis almost unscathed.

Business not directly impact small and medium enterprises in 2009 is to maintain or even increase IT investment most important prerequisite. In the fierce market competition to maintain our edge, is the main reason for SMEs IT investment.




IT business health worry

"The financial crisis has some influence on medicine, but the effect is not large, we are affected even less." Wuhan Ma Ying Long Dispensary Information Minister Huang Lei told reporters, "Overall, this year's IT investment should not be less than last year. Moreover, we will further increase business investment to expand the circumstances. "

Wuhan Ma Ying Long is based on the domestic well-known pharmaceutical companies. According to information, the company's performance in 2008 than in 2007, an increase of 20%, and maintained a very good profit margins. In 2007, Ma Ying Dragon Pharmaceutical sales 600 million yuan, profits reached 120 million yuan. Performance and profit growth in both circumstances, the horse should be Dragon Pharmaceutical's IT investment to maintain high growth rates. According to Huang Lei description: "IT in 2008 than in 2007, investment increased by 20%, mainly for infrastructure and software upgrades."

Dalian Heavy Crane Co., Ltd. Information Minister Bijian Lin also told reporters: "In 2009 the company's IT investment plans do not come out, but will not reduce the overall amount of investment." Dalian Heavy Crane Co., Ltd. in 2008 estimated 12 billion sales yuan, of which only less than 10 billion came from exports, so little affected by the financial crisis. It is understood that, in 2007 and 2008, Dalian Heavy Lifting Limited IT investment growth in more than 20%, mainly used to address the needs of enterprise business growth.

Has long been believed, Zhejiang, Guangdong SMEs injured most. In the interview we did see that those who do not build the brand on behalf of the factory is almost forced into a corner, but some companies have their own brands affected are relatively small, both the textile industry, chemical industry, automobile parts, or glasses industry, are true.

According to Guan Sheng Zhejiang Wenzhou Auto Parts Manufacturing Co., the person in charge, the company is the production of cars containing crown shaft, due to the impact of U.S. economic downturn, can not sell new cars, used cars overturn more than repair, so The company's auto parts sales increased by 15% over the previous year. In recent years, the company's investment in information dynamics is quite large IT investments in 2008, more than 200 million yuan, an increase of 20% in 2007. The company's business development director Zheng Changlun told reporters: "In 2009 the company's IT investment will remain at 2008 levels."

Ahead of the competition

2007 and 2008, for two consecutive years, Dell Small Joint International Federation (ICSB) announced the world's small business IT survey, more than 150 global IT purchasing decision makers of small businesses do an in-depth research, which An important survey is the "IT investment in small enterprises in the drivers of what" the findings of the top three are: to improve customer service (an average of 67%, China 58%), expansion (average 64% , China 69%), to maintain competition in the market (an average of 58%, China 61%).

To maintain market competitiveness, the SMEs were an important reason for IT investment. Garments Co., Ltd. Wenzhou Semir Information Director Zheng Yuyu IT department told reporters: "We considered a large garment enterprises, Metersbonwe to the same field of pure opponent, they done a good job in information technology, forest Ma certainly hope that their IT technology leader in the peer. "

Behind the store's competition is competition in IT technology. A push a year ago clothing style, it is now quarter of a push, probably a month after a group of new products. IT can improve supply chain efficiency, shorten production cycle, reduce inventory, which is critical for the service. Previously, Semir clothing needs from custom to ship 45 days after the use of IT technology to shorten the 10 days. It is understood that, in order to expand rapidly in Shanghai and Wenzhou Semir build two industrial parks, its 2010 sales will reach 10 billion yuan, bringing the natural expansion of the business IT investment.

Very similar situation was also party Wo Shuaikang. "Side of information technology too is leading in the industry, one did anything, Shuaikang to quickly look up." Side too Kitchenware Co., Ltd. Qiguan Bu Xu Jiming minister, told reporters that in 2008 the company invested 5 million to 600 million in New Park for IT projects, including HR systems, purchasing computers and servers and so on. Fang Tai Shuaikang are an old enemy, and it is the pressure of competition between, the two sides on the catch-me-in information technology, with each side.

Investigation, we also noted that although some companies are in the doldrums in the market environment, but the investment in IT is proactive. Zhejiang Dafa Packing Material Co., Ltd. Consulting Minister Yu Yixiong told reporters in September by the financial crisis, foreign business fewer than on many, but the company is spending money to buy a second production line is expected after two years to production. For IT investments, he said: "The overall IT spending will not cut. However, given the cost, we will control what the cost of maintenance."

Changsha Gong Love has been doing steel business, he found a good steel market, the lack of information on trading platform, so in the industry by virtue of their experience and resources to build a network of steel stock, the last 3 years of IT investment of about 100 million, mainly for the purchase of servers and some software development, IT spending in 2009 was about 200,000 yuan. "Although the steel industry slump, but we are optimistic about the future, do not care about short-term losses. We have 2006, 2011, total investment 10 million yuan to market position, our goal is to become steel industry's Baidu."

IT is no longer an option

"Corporate die, no complete information." Dalian Heavy Crane Co., Ltd. Information Minister Bi Jianlin resounding throws out such a sentence, so that's great surprise. In fact, small enterprises in China's emphasis on information technology project teams to ICSB's experts by surprise. According to Dell and the International Federation of SMEs worldwide release of the 2008 Small Business IT survey shows that 76% of small businesses in China that the "IT for small business development is very important", 23% say "more important"; 91% Enterprises that "greater understanding of various IT technologies to help increase the majority of small business income."

And compared to other countries, small and medium enterprises, SMEs in the IT investment in China's attitude was positive. According to Dell and ICSB jointly issued a report in the "Why small enterprises to upgrade their technology," because options on the "failure of existing technology or problem started when" option, China's support is the lowest, Only 14% of the global average of 41%; in the "need more advanced technology" option, China is the highest degree of recognition, reaching 46% of the global average of 25%. This shows that China's small enterprises in emerging technologies for acceptance is very high.

Guo Xin, President of IDC China, in the analysis of this phenomenon that many small business owners recognize that, if you do not use IT technology and efficient management, corporate life will be more fragile and risk-resisting ability is even worse, more easily drained. Moreover, we see a noteworthy phenomenon is that the scale of private enterprises into China have from the "business generation" into the "management generation", the successor of these private enterprises are often have a global outlook and forward-looking vision of the IT technology understanding and acceptance are higher, better use of IT technology to enhance the competitiveness of enterprises.

In the survey we also found that some SMEs although the economic situation in 2009, expressed deep concern, but put the necessary information, they did not flinch. Zhejiang Qingfeng Textile Printing and Dyeing Co., Ltd. computer room director Zhu Xiaojun, said: "In the case of a bad economic situation, our 2009 IT spending may not be many, but in the bar area will make great efforts. We want to develop a complete bar code system, capable of identity authentication, customers and sales staff as input to digital input from bar code scanning into in order to improve efficiency. "

Cost-cutting life insurance




IDC forecasts 2009 growth of SMEs in IT spending before the financial crisis will be 14.3% to 8.5%. Our interviews also confirmed this.

In nearly 30 interviews with SMEs, we can clearly note that in 2009 on IT "high throw" rare enterprises, most enterprises are living within our means, selectively and rationally to IT investment.

Hard-hit investment constraints

Zhejiang, Guangzhou, the two SMEs hardest hit by the financial crisis. Wenzhou Glasses Co., Ltd. Information Manager Development l Ge Yang Li told reporters that the company is to do foreign trade, starting from August 2008 orders began to decline orders for the last few months of almost nothing. Wenzhou, Guangzhou is the city two glasses, glasses big manufacture in Wenzhou, there are 10 more than the countless small, and now most companies are struggling in the loss of the edge, especially to do OEM, and life more difficult. "From the industry point of view, IT investment in 2009 will drop to freezing point." Ge Yang Li also disclosed that "the only clear-cut 2009 investment in the company file encryption system, will invest several million others have stopped."

"We go all out to maintain a sufficient supply of food now is a good winter. Not only our company so that the entire battery industry is so." Huizhou Desay Battery Co., Ltd. Manager Liu Jun, told reporters it bluntly, as the company has a lot of export business, business in 2008 also been seriously affected. According to reports, Desai battery in 2008 than in 2007, reduced IT spending by 50%. "In 2009, excluding the normal system maintenance and upgrades, as well as some inevitable IT spending, we basically do not put."

Financial crisis, not just East and South China's SMEs are hit. Hubei salt Hongbo is a salt manufacturing companies, financial crisis, their main customer base in a semi-cut-off state enterprise soda, salt Hongbo's overall business has been greatly affected. Director of Information Center in Salt Hongbo Nie Guoqing said: "The 2008 company-wide IT spending only 30 million investment in IT in 2009 will certainly be more careful." Specific reduction plan, but he declined.

Dandong Chemical Fibre Company Intelligence Director, Centre for High-million strong computer told reporters, started from February 2008, due to the textile and apparel industry exports adversely affected, including Xinxiang Chemical Fiber, fiber, etc., many of Nanjing, China chemical fiber plant is completely discontinued The whole man-made fiber industry facing a grim situation. Therefore, Dandong Chemical Fibre Company in 2008 IT investment is almost negligible in 2009, even Needless to say, and certainly very bad.

Cement Machinery Co., Ltd. Shenyang vice president Dong Hongzhi star in recent months has been worried about survival, order less than half, to the staff wages are somewhat difficult. He told reporters that IT spending in 2008 about 10 million for maintenance and equipment purchases. But in 2009 the market is not good, simply can not carry out IT investment.

In hard times, companies tend to cut down the IT investment is chosen to maintain their business operations. Cargo security measures Chengdu Computer Center consultant Licheng Yao said that while security measures goods turnover in 2008 than in 2007 increased by 100 million, but did not increase the total profits. "More competitive, can only survive in the cracks, control costs is the first choice for small and medium enterprises survive principle, it is not too much energy for the enterprise information."

"Invisible killer" constraints

According to Dell and ICSB research report jointly released the world of small business owners in the IT investment are facing similar problems: 75% of surveyed companies said that budget constraints limit their use of information technology is the first major elements; followed by " no time to learn about new IT products and services ", 21% of the interviewed companies have chosen this; third reason is" I already have all the skills I need "; The fourth reason was" for me, IT is too complicated, do not quite understand how can my business benefit. "

In our interviews also found that the dominant constraint on SME IT investment due to financial crisis, and the "invisible killer" is the overall awareness level of SMEs to information is limited. The simple fact is that the investment in SMEs in IT is not high. Wuhan Ma Ying Long Dispensary Information Minister Huang Lei frankly, Ma Long's IT spending should account for 5% of the total expenditure of enterprises, this ratio is better on the medicine. Other medicine in Wuhan but the proportion of IT spending only 1% to 2%, some companies did not reach even this percentage, most business owners do not want to spend enough money on IT investments.

Ningbo Bo Yang Textile Co., Ltd. Information Center, Ren Zhangying also believes that corporate information spending account if even 1% of the total expenditure of good, and this information is basically to keep up with the pace of enterprise development. And now the whole textile industry in Ningbo IT spending only 0.6% of total expenditure to 0.7%, clearly too few. She also admitted that, if the enterprise information out of 5 points, then, Bo-yang can only play 3.

Until now, many large enterprises to China, information technology is a cost center rather than a profit center. For SMEs, the benefits of information often not significant, enhancement of efficiency is not easy to quickly look to see. As the salt Hongbo Nie Guoqing said, "the cost of information is not large, enterprise can not afford this amount of money is not the dig. But some companies are they will not want to IT spending, IT investment that does not matter, this is a concept the problem. "

"Many small and medium enterprises only see the immediate revenue and profits, they do not realize that if management can not keep up, will probably die a few years." Cargo security measures Chengdu Computer Center consultants Licheng Yao believes that "all SMEs have a lack of enterprise information issues. They may have thought, planned, but just do not implement. "

In the interview, we also note that information in SMEs "fish effect." SMEs are often in the coastal cluster, such as the textiles industry Boyang leading textile companies such as, kitchen classes are also well-Wo Shuaikang, clothing have Metersbonwe and Semir, these industries and enterprises in a geographical aggregation, competition between them, in terms of information they imitate and learn from each other, or even compare with each other and catch up, making the overall level of information technology industry is improved.

But in the west and northwest regions, clusters of enterprises had no apparent effect. Productivity Promotion Center of Xinjiang subsidiary Boxin Management Consulting Co., Ltd. Chief Executive Officer Liu Xinyu told reporters that small and medium enterprises in Xinjiang, information technology, the industry often do not promote a better person, nor a classic as a reference, it can not form a good climate and the atmosphere, which affected the region as a whole the level of information.

Dell and ICSB Joint research report released also showed that Chinese SMEs in the choice of IT role models, the industry and other small businesses account for 34%; (43% worldwide, China is the lowest in the world); our industry Large enterprises accounted for 54%; (38% of the world, China is the highest in the world). From two groups of data, the industry leader in the information area of the demonstration effect is fairly obvious.

Technology conservative Popular

"Technology update so soon, but we will not blindly pursue newer technology, such a waste of money, it has not been effective." Ma Ying-Long Huang Lei, minister of information said that. His idea is quite representative. In the interview, we also found that some companies had the previous two years, large-scale information technology investment, the investment rate in 2009 also is slowing down, this is because SMEs are conservative and practical technology advocates.

This ICSB's research may be confirmed. In the 2008 survey, the majority of experts (55%) believe that small businesses use new technologies aimed at IT itself will not be eliminated in the competition; only 20% of the experts believe that small businesses use of IT technology, the main motivation of the new is to stay ahead of the competition; nearly 2 / 3 of the experts believe that small businesses usually only on the basis of existing IT innovation to upgrade, transform or copy the implementation of IT innovation initiatives are rare.

Salt Hongbo Nie Guoqing, told reporters bluntly on: "As long as sufficient information can, and we do not pursue the change in time to keep up with IT technology. Reluctant to carry out IT investment because there is no urgent need, and now have enough equipment used. "

Indeed, SMEs pay for IT can be said when thinking over and over again, cautious. But as long as they think deserve, or pay for IT's. From a macro perspective, according to IDC forecasts, the following three categories of SMEs still full of opportunities: namely Beijing, Shanghai, Dalian and other cities in 20 service outsourcing and service outsourcing and service outsourcing training related to SMEs; emerging and developing momentum better Internet companies; with the 4 trillion yuan investment industry (such as transportation, education, health care and other industries) relevant to SMEs.

Illuminate every corner of the IT innovation

■ Any reporter Xiao Zhi Xiang Li




Business world has always needed to solve the problem of innovation and inspiration, meet challenges, promote economic development. The "Dell Global Small Business Excellence Award" established for the purpose is to inspire and motivate all the thinking, the dream of business forward. Journalists participated in the 2008 Dell Small Business Excellence Award for the Asia Pacific Region winner of the "Day at Dell" activities, particularly small business innovation will be three stories to share with you - Innovative use of IT technology, you can make your business benefit from good more.

Earthworms and web2.0

"During a visit to the Hereford Blakemere pastoral farm life as poetry and painting it, I would like to join. I have the skills include: tame earthworm; do bees, butterflies and beetles of the air traffic management ... ..." This is the best-selling book wrote to the British writer 艾米斯图尔特 Wiggly Wigglers's an open cover letter - a way to publish blog, along with her a photograph of her right hand all hold a hen, smiling .

Wiggly Wigglers general manager Heather soon blog on her back: "I am pleased to inform you that your application has been allowed. However, because of Northern California and at least between Hereford Blakemere estate flight 16 hours, I think you'd better work remotely. "

This is the Wiggly Wigglers company's communication with his fans, full of weird, kind of sense of humor; This is the secret of the success of Wiggly Wigglers, a large number of Internet fan culture, and through the blog, podcasts, Wikipedia and other social media with them close communication. It is selling seeds, trees and flowers, feeding birds, a variety of worms, worm composting (through the cultivation of earthworms, the family of solid waste into a spikelet) while also teach you a lot of practical gardening skills, and sincere answer customer strange problems.

You are certainly hard to believe that a company actually cool side of a remote village living in the United Kingdom, where it is in a small village only 70 people. But it is a first worm composting kits to sell mainly small garden verge of closing down the company, through word of mouth, podcasts, blog and Facebook and the company's Web site, to become Britain's most successful small-scale horticultural marketing company.

In 2006, founder Heather began to try to use the blog describes gardening knowledge, then she found podcasts to communicate better, and she began to use their own personal computers produced podcasts, her husband (a native of the farmers) and the adjacent right-left homes have been pulled her to be an actor. Surprisingly, her farm in remote Blakemere real life with incredible entertainment, we are beginning to enjoy watching her blog, listen to her talk with friends or neighbors of some horticultural matters. Gradually, Heather podcast listeners, blog readers and Facebook on the Wiggly fans have become her clients.

Currently, the company expanded its 90,000 global customers, its products are exported to Europe, due to the transfer of traditional advertising to the network, it reduces 80% of the advertising expenditures. Wiggly Wigglers on Facebook now have 898 fans, and has more than 170 discussion topics. Beginning in 2006, have held 50 podcast (weekly), "Wiggly sofa" thousands of listeners each week, was the San Francisco Chronicle readers as "the most popular gardening podcasts." 2009, Wiggly Wigglers become the global Dell Small Business Excellence Award winner, was provided by Dell, 50,000 U.S. dollars prize.

Implications: Social Media is giving small businesses a huge business opportunity. But now, the world's wealth, only 5% to 6% of SMEs using social media in the global Fortune 500 companies, only 11% of enterprises have blog. Clearly, many companies marketing and communications for the Web2.0 not cored, it certainly is a big mistake.

Rustic and mobile phone vendors

2008 Dell Small Business Excellence Award winner is a Japanese contest called Michi No Eki Towada small businesses, and only three employees. Its award-winning grounds, "for farmers, called Sancho Mail service to provide updates via phone sales. Meanwhile, members of the customer e-mail systems, customer information on agriculture can also exchange through mobile phone platform. So farmers interested in starting IT. "

Mr. Yoshifumi Tomabechi founder and his company gave journalists left a deep impression. Hotan City, Aomori Prefecture, Japan is the second to last in per capita income of Japan's regions, where the average age of residents is 55 years, agriculture and fishing, most of the young people to work at the city, left behind are the elderly , and he founded the company is to provide information for these elderly services.

His business idea first come from their own experience in the vegetable market, he noted that every July, when sales of vendors who will fall badly, because the farmers market Nothing to sell. He thus germination of an idea, develop a platform that allows these vendors to keep aware of their sales, and based on past sales records to stocking, so that does not occur because of insufficient stock of goods but the situation had nothing to sell.

This service is through the vendor's POS machine to connect to the server to complete, the sellers will have access to the system for each transaction which, through the system, using SMS, it can be weeks of each vendor's sales records and monthly sales records feedback to the vendor's cell phones.

The service is simple, the first is completely free to everyone, the current farmers market vendors in the 106 and 66 individuals have been using the service. Yoshifumi Tomabechi now most worried about is the server is down, because the old man ramble, old ladies will continue to call to ask, when the machine repaired? Some customers will even come to their homes to ask the machine state of repair.

On the difficult start, he joked, in order to invest in servers and computers, his children are hungry and lost, but narrowly missed, and his wife divorced. He will own company called "rustic", but his dream was "vulgar, in the future as the world's leading companies."

Enlightenment: a "rustic", created an obscure small company for a group of "country bumpkins" provides very local characteristics of services. Low technical content of the service, but it practical, simple, effective and well received. Which inspired us, IT technology is not profound, complex and elusive, it around us.

Trouble of queuing and intelligent POS

2007, NCR's global survey shows that Australians are the world's most people do not like queuing, 81% of people in the queue will become impatient; more than 1 / 3 of respondents (36%) said in the retail line up Zuifan; while 73% can not stand people who had had the experience of queuing up and leave the store.

Task Retail Technolog's Xchangexec SMS ordering function to solve this problem. Users send text messages as long as a meal to a specific number, Xchangexec will automatically identify the customer's number, and to send the order to specify the store's POS terminals. Because the POS system can see all the things, such as a single volume under the kitchen, it can immediately calculate the time required to prepare food, and then return SMS, you can probably take this price and meal time. Message ordering in Australia is likely to be an important business, because it has found customers love the habit of using mobile phones, also solved the annoying trouble of queuing.

This is only Task Retail Technolog company Xchangexec an interesting application of the system. Xchangexec is the first to reflect the real situation of the entire enterprise retail operations and details of the POS system, the core composition including video surveillance, POS terminals, operation of the software platform. System allows any POS terminal with every salesperson, every peripheral, every transaction is made visible and transparent. The company's clients include Donut King, Brumby'sBakery and bb's café these well-known Australian retailers.

Task Retail Technolog companies from Australia and New Zealand 170 competitors to become the region's winner, won the 2008 Dell Small Business Excellence Award. Task Retail Technolog's award-winning grounds yes, they created a revolutionary, network-centric POS software solutions, to provide real-time device management, data transfer, as well as anywhere in the world on a series of key sales information.

Inspiration: a present, only 13 employees of small businesses, large enterprises actually get the favor of the courage and billions of dollars of company assets, strong words, brave and grab a single company like IBM. Only because its products and services are very personalized features. This is a great example of a small stroke.