Management Blog

US businesses set to further embrace apps

This year could turn out to be known as the 'year of the app' with a new US report indicating there is intense business interest in mobile and social media software applications, emarketer reports.

The report by DM2PRO and Quattro Wireless found the top one third of advertisers and agencies currently using mobile apps planned to up their investments by 75% or more in 2010.

Reasons behind the growing popularity of using apps as a marketing channel include greater engagement with audiences, growing standardisation of app platforms and consumer demand.

According to the study, the leading mobile app platform last year was the iPhone, followed by Google's Android; the most popular business channel for social media apps was Facebook.

How to sell a new idea

It can often be harder to sell a new idea to colleagues or clients than it is to develop a new concept in the first place, writes creativity blogger Andy Eklund.

But fear not, Andy believes there are five golden rules to follow to ensure your idea is given the attention it deserves. In summary these are:

1. Be purposeful - link the idea to an outcome or a way to eliminate a problem

2. Network it - involve key decision makers in your creative process as early as possible

3. Show don't tell - avoid text heavy PowerPoint slides and instead use imagery or illustrations to show your idea 'in action'

4. Timing matters - don't rush into selling your idea if it's still incomplete or tell a trusted critic before seeking out a wider audience

5. Protect yourself - be prepared to face some form of negativity, it's inevitable but can be overcome

The online transformation of SMEs

New media technology is transforming small businesses as well know them, writes futurist Ross Dawson in a recent post on the destiny of the SME sector.

Dawson notes that small businesses are increasingly playing an important part in national economies and chipping away market share from larger contemporaries.

He claims number of technology driven trends will see the SME sector further expand its reach. These include:

• Online WOM - search engines and recommendations from social networks are changing the way customers find small businesses
• Who's your friend - smart small businesses are building strong ongoing relationships with customers
• Working smarter - productivity tools (see rememberthemilk.com) are helping small businesses to be more efficient
• Outsourcing - small businesses are now in a position to outsource tasks to online workers on matter where they're located

What's in store for retail in 2010

Australia's retail sector is headed for a post-GFC, new media, niche brand driven shake-up, writes Michael Baker in a recent Age article on industry trends.

A few of the trends speculated to be coming to a virtual or bricks and mortar high street near you include:

• Mobile retail - with smart phones becoming more and more popular a growing number of consumers will shop without leaving their homes or offices
• Cheaper designer labels - many luxury brands expanded their moderately priced labels during the GFC in a trend that's been embraced by consumers and should stick around for some time
• Specialty and concept stores return - in a stronger economic climate fragmented consumer markets will boost demand for niche concept stores and sub-brands
• Way to go DFO - expect more factory outlets to pop up as consumers continue to look for cheaper alternatives to 'full priced' stores

Who uses social media?

Social media is becoming an increasingly important business tool, one that many commentators say has the potential to make or break a business.

According to Harvard Business' Working Knowledge, one of the biggest pitfalls is not understanding both the profiles and behaviours of social media users.

In a recent article on how to understand the world of social networking, the publication covers a number of key concepts including:

• Social networks succeed when they address real world deficiencies
• Imagery is vitally important
• Men and women are prone to use social networking sites in different ways
• It's a trap for businesses to consider social networks as 'just another media'

Why it pays for businesses to be good

As capitalism reaches a crossroads the most success businesses are the ones that add value to society, the new book SuperCorp by Rosabeth Moss Kanter argues.

Speaking to Harvard Business School's Working Knowledge magazine Kanter describes businesses that have a strong sense of social purpose as "vanguard companies".

Kanter says the companies she has studied that fit into this category understand exactly how to use their sense of purpose to speed up the innovation process.

In addition, the majority of these companies are also said to have used their sense of purpose to outperform their peers during the recession.

So what does a vanguard company look like?

According to the article they offer employees a dynamic working environment in which staff have a greater say on when and where they work.

Business travel boost profits: study

At a time when many professionals are being urged to reduce travel expenses, new research suggests there could be a link between corporate travel and profitability, Reuters reports.

The US study, which was commissioned by the National Business Travel Association and American Express Business Travel, considered data over a 10-year period across 15 industries.

While findings varied across industries, researchers found an incremental 1 per cent increase or decrease in travel spending resulted in a corresponding 1.7 per cent rise or drop in sales.

In addition, it's claimed economy-wide corporate profits could be maximised at a point where business travel spending is increased by 5.3 percent.

SMEs embrace the online world

A new survey has found Australia's small business sector is becoming more comfortable with online technologies, Digital Media reports.

The Sensis 2009 e-Business Report [PDF] has found over 95 per cent of SMEs are now connected to the internet and that a large number of these businesses are starting to use online content more creatively.

Researchers say one third of SMEs have embraced email marketing and a quarter of small businesses are engaged in marketing pursuits via third party websites.

According to the article, 71 per cent of respondents said the internet enhanced business effectiveness in areas such as customer awareness, market research, enquiries and sales.

Airline complaint takes off online

United Airlines has recently learned a valuable lesson about user-generated online content: don't underestimate it.

After songwriter Dave Carroll saw his guitar being damaged by baggage handlers prior to a United flight's takeoff he naturally complained and asked for compensation, Fast Company reports.

But when this request for United to pay the repair bill for his guitar was ignored the muso took matters into his own hands by writing a song and then uploading an accompanying video onto YouTube.

Claims have since emerged that within four days of the video being uploaded United's stock fell 10 per cent, a cost to shareholders of US$180 million.

While Fast Company claims it's a stretch to attribute this freefall to Carroll's video, the fact that over 4.5 million people have seen 'United Breaks Guitars' should be a cause of concern for the airline.

Most Aussies businesses haven't planned for the worst: study

A recent Telstra-funded study has found 52 per cent of Australian businesses haven't considered the development of a disaster plan, The Age reports.

No business owner or manager wants to spend their time thinking about an impending disaster, but the article makes a good case for taking time out to plan ahead for worst-case scenarios.

And with a multitude of natural disasters from fires to floods hitting the country SME owners are reminded they often have more to lose from the unexpected than larger, multi-site organisations.

Hitachi Data Systems chief technologist Simon Elisha says the first step towards creating a disaster plan is to look at ways to ensure the longevity of the company; from this point it’s suggested businesses focus on a highly organised approach to backing-up data.

A smart tip that can help your business avoid a post-disaster nightmare is to test information that has been backed-up to ensure the system is working and that information can be fully restored.