The Role of Information Technology in Small Business Success<\/p>\n\n\n\n
What do Sting, Elton John, and Madonna have in common? Besides being international rock stars, they all use theatrical backdrops designed and manufactured by custom drapery maker sew What? Inc. Based in Rancho Dominguez, California, Sew What? Provides custom theatrical draperies and fabrics for stages, concerts, fashion shows, and special events worldwide and has become an industry leader in rock-and-roll staging. Founded in 1992 by Australian-born Megan Duckett, Sew What? has grown from a tiny kitchen-and-garage operation to a multimillion-dollar enterprise, thanks to Duckett\u2019s never-say-no approach to customer satisfaction. \u201cWhen I see a problem, I just don\u2019t back down. I find a way to overcome it and I use everybody I know to help me,\u201d she says. What made it possible for a one-woman business that started in a kitchen to evolve and grow into a multimillion dollar company with 35 employees? Megan Duckett attributes her success to hard work, quality workmanship, and especially information technology. So What? has enjoyed explosive growth in recent years, reaching $4 million per year in sales by the end of 2006. Company president Duckett credits much of her firm\u2019s rapid growth to its ability to leverage information technology and the Internet to drive sales. \u201cBefore we put up our Web site, sewwhatinc.com, our business was almost all local,\u201d says Duckett. \u201cBut after launching the Web site three years ago, we now have clients all over the world. In fact, last year our revenue grew 45 percent on the previous year\u2019s sales, and this year we are on target to enjoy a 65 percent increase on 2005 sales. And nearly all that growth came from Web-driven sales.\u201d Although the company\u2019s Web site may take center stage, managing all the business the site brings in requires a lot of effort behind the scenes. In particular, Duckett relies on a solid IT infrastructure to help keep the company running smoothly. \u201cWe are a customer-centric company,\u201d notes Duckett. \u201cIt\u2019s critical that we have excellent back-office information technology to manage the business and deliver outstanding service to our customers.\u201d So What? runs most of its business with Intuit\u2019s Quick- Books Enterprise Solutions Manufacturing and Wholesale Edition software and Microsoft\u2019s Windows Server operating system installed on a Dell PowerEdge 860 server, sporting an Intel Xeon processor and 146 gigabytes of disk storage. According to Duckett, \u201cRunning our business requires a lot of storage. In addition to customer information and vital operational and financial QuickBooks files, we need to store thousands of drapery and fabric image files, customer instruction document files, and other types of data.\u201d So What?\u2019S additional computer support includes an older Dell PowerEdge 500 server dedicated to a few smaller applications and a variety of Dell desktop PC systems for employees. So What? Started in 1992 as a part-time endeavor, with Duckett cutting and sewing fabric on her kitchen table. She went full time in 1997 and incorporated in 1998. The important role technology plays in running a successful small business hit home when she lost a big contract. The potential client said that without a Web site, her company \u201clacked credibility.\u201d \u201cBefore losing that contract, I thought, \u2018I run a sewing business, a cottage craft. I don\u2019t need a Web site,\u2019\u201d she says. Duckett admits she was rather cocky, mainly because she had grown her business \u201cquite well\u201d by word of mouth alone. \u201cI quickly learned the error of that thought process. You can\u2019t have that attitude and stick around,\u201d she acknowledges. Losing the contract also coincided with a period of low growth between 2001 and 2002. That\u2019s when Duckett decided to embrace technology. Using Microsoft Publisher, she designed and built her own Web site. \u201cYou figure things out and learn how to do it yourself when budgets are thin,\u201d she admits. Duckett kept working to improve the site and make it better for her customers. A year later, feeling that the site needed refreshing, she signed up for a 10-week course in Dreamweaver and again completely rebuilt the site. Yet another Web site reconstruction helped Sew What? grow into a company with customers around the world and a clientele list that includes international rock stars, Gucci, and Rolling Stone magazine. In 2005, Duckett decided she needed to improve the site\u2019s navigation because \u201cI wanted it to be sleek and to provide a really good customer experience. That was beyond my abilities, so we hired a Web marketing consulting company to build a custom navigation system for the site.\u201d She worked with the hired guns on branding, search engine optimization, overall design, and site layout. Duckett still provides all the content, including text and images. There\u2019s also a Spanish version of the site, and the professionals tuned up the main site\u2019s search features to include spelling variants for different English-speaking countries. For example, you can search for the American spelling of theater or the British and Australian version, theatre. The site also lets potential customers review all kinds of color swatches and teaches them how to calculate accurate measurements for their projects; the differences between a scrim, a tormentor, and a traveler curtain; the proper care and feeding of a variety of drapery materials; and a lot more. While perusing the Dell Web site one day, Duckett saw a news article about the Dell\/NFIB Small Business Excellence Award. The National Federation of Independent Businesses (NFIB) and Dell Inc. present this annual prize to one small business in recognition of its innovative use of technology to improve its customers\u2019 experience. The winner receives $30,000 worth of Dell products and services, a lifetime membership to the NFIB, and a day at Dell\u2019s headquarters with Michael Dell and other senior executives.<\/p>\n\n\n\n
\u201cThe description of the kinds of businesses they were looking for perfectly described Sew What?\u201d Duckett realized. \u201cEverything they were looking for, we\u2019d done, so I decided to enter. My husband [and business partner] laughed and reminded me that I never win anything.\u201d Writing the essay for the contest caused Duckett to reflect on everything she and her employees had achieved over the years: \u201cWe got to sit back and feel really proud of ourselves. Just that process was enough to invigorate everyone in our weekly production meetings.\u201d<\/p>\n\n\n\n
The contest judges also recognized Megan Duckett\u2019s passionate commitment to customer satisfaction and use of information technology for business success, so they awarded Sew What? the Small Business Excellence Award. Winning the award proved to be a very emotional experience. Looking at the caliber and achievements of the nine other finalists, Duckett figured Sew What? would remain just a top-10 finalist: \u201cI could not believe that a big company like Dell\u2014so entrepreneurial and advanced in every way\u2014would look at our little company and recognize it.\u201d Like other small business owners, Duckett puts an enormous amount of physical and emotional energy into her work. \u201cWinning this award is so flattering on a personal level,\u201d she says. \u201cThis business is ingrained in every cell of my body, and to have someone saying, \u2018Good job,\u2019 well, in small business, nobody ever says that to you.\u201d That may have been true previously, but Sew What?\u2019s technology leadership and business success continue to earn recognition. In March 2007, the company received a Stevie Award for Women in Business for \u201cmost innovative company of the year\u201d among those with up to 100 employees. A few months earlier, Sew What? had received an SMB 20 Award from PC Magazine , which honors 20 of the most technologically innovative small- and medium-sized businesses (SMBs) each year. \u201cSmall and medium businesses drive today\u2019s economy. However, they often don\u2019t get the attention and recognition they deserve,\u201d said PC Magazine \u2019s Editor-in-Chief, Jim Louder back. \u201cWe want to highlight the hard work, technological leadership, and innovative spirit of thousands of SMB companies throughout the world.\u201d Duckett plans to use her prize winnings to add a bar code system that can track the manufacturing process at the company\u2019s warehouse. In the drapery business, fabric is stored on a roll in the warehouse and then moves through different stages: receiving, cutting, sewing, shipping, and so forth. The scanning process will enable Duckett\u2019s team to track how long the fabric stays in any given stage. These data will give them a better idea of their costs, which will then help them produce more accurate price lists. \u201cWe don\u2019t need to charge an hour and a half for labor if the cutting only takes an hour and 15 minutes,\u201d Duckett notes. Currently, the company uses a handwritten system of sign-in and sign-out sheets that, she says, takes too long and introduces too many errors. \u201cThe new system will also let us track the progress of individual orders,\u201d she promises. \u201cWe\u2019ll be able to provide better service by keeping the customer updated.\u201d<\/p>\n\n\n\n
CASE STUDY QUESTIONS<\/p>\n\n\n\n
REAL WORLD ACTIVITIES<\/p>\n\n\n\n
The Correct Answer and Explanation is :<\/strong><\/mark><\/p>\n\n\n\n Information technology (IT) has been instrumental in the success of Sew What? Inc., a company specializing in custom theatrical draperies. Founder Megan Duckett leveraged IT to transition from a local operation to a global enterprise. The launch of their website expanded their market reach, leading to significant revenue growth. Implementing Intuit’s QuickBooks Enterprise Solutions and Microsoft’s Windows Server streamlined operations, enhancing efficiency and customer service. These IT investments have been pivotal in managing increased demand and maintaining high-quality service.<\/p>\n\n\n\n As of recent estimates, Sew What? Inc. generates approximately $53.7 million in annual revenue with a workforce of 215 employees. This growth reflects a 30% increase in employee count over the past year. Competitors in the custom drapery and theatrical fabrics industry include companies like Rose Brand and ShowTex. To maintain its competitive edge, Sew What? Inc. should continue to innovate and adapt to market trends.<\/p>\n\n\n\n To further enhance success, it’s advisable for Sew What? Inc. to integrate advanced technologies such as Artificial Intelligence (AI) and cloud computing. AI can optimize inventory management and personalize customer experiences, while cloud computing offers scalable resources and improved collaboration tools. Embracing these technologies can lead to increased operational efficiency and better decision-making capabilities.<\/p>\n\n\n\n Small businesses often hesitate to adopt new technologies due to perceived high costs and complexity. However, IT solutions like cloud-based services and managed IT support can be cost-effective and scalable, providing enhanced security and operational efficiency. For instance, cloud inventory management systems offer real-time tracking and reduce hardware expenses, making them accessible to businesses with limited resources. By embracing these technologies, small businesses can improve productivity and competitiveness in the market.<\/p>\n\n\n\n In summary, Sew What? Inc.’s strategic use of information technology has been a cornerstone of its growth and success. Continued investment in advanced IT solutions will be essential for sustaining this trajectory and staying ahead in a competitive industry.<\/p>\n","protected":false},"excerpt":{"rendered":" The Role of Information Technology in Small Business Success What do Sting, Elton John, and Madonna have in common? Besides being international rock stars, they all use theatrical backdrops designed and manufactured by custom drapery maker sew What? Inc. Based in Rancho Dominguez, California, Sew What? 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