This shock finding underscores recent police statements that small businesses have increasingly become victims of crime.

The interim findings of SME Survey 2008 are released halfway through the process of 5,000 interviews with decision-makers at SMEs in South Africa, to give an indication of key findings that will be contained in the final report. The project is sponsored by Standard Bank and Fujitsu Siemens Computers.

“Some small companies that have been impacted by crime have lost more than just their hardware,” says Danny de Beer, Alliances Director at Fujitsu Siemens Computers. “They have lost vital information assets, due to not having either the storage capacity or data backup policies in place to protect and secure their vital information.” De Beer adds that many organizations do not consider the value of backup, recovery and archiving solutions until it is too late. “Storage prices and storage complexity has reduced substantially over the past few years and SMEs today have access to enterprise-class solutions – at an SME affordable price. And whilst this doesn’t act as a deterrent towards the crime situation, it most certainly minimizes the impact of crime on the continuity of the enterprise.”

According to principal researcher Arthur Goldstuck, the fact that there is no change in the reported impact of crime from 2007 to 2008 is an indication that crime has not diminished for the SME. “We asked what keeps the SME owner awake at night. 27% of respondents have again indicated that crime is a key worry, which mirrors exactly the findings of last year.”

“An astonishing 45% of SME owners have been victims of crime, with more than a third having experienced a crime in the last two years,” he says.

Crime, Goldstuck states, is a daily reality for SMEs. “Perhaps more shocking is that one in four SMEs have been victims of crime more than once. This shows how vulnerable businesses are and how difficult protection is, as you tend to increase preventative measures after any incident. But with such a high level of repeat victim, the findings show that crime cannot be beaten at the individual business level.”

The only saving grace, such as there is, is that the impact on the business itself is not as great as the extent of the occurrence of incidents would suggest. The Survey has found that 15% of SMEs have lost more than 1% of annual turnover to physical crime, while 71% have lost up to 1% of turnover. Only 7% have lost more than 1% to fraud.

“Physical crime, such as robberies, is a more serious issue and the monetary cost is not as severe as the human consequences,” says Goldstuck. “A lot of the crime we are seeing might be ‘small fry’ in terms of cash value, but that comes with an enormous human cost in terms of psychological and physical effect.”

Ends…

For more information please contact Debbie Whittaker on 083 273 5337

The paper, entitled “The blueprint for a successful SME in South Africa”, is based on interviews with more than 5,000 decision-makers in small, medium and micro enterprises in South Africa.

“This is a great opportunity to showcase the resources used by competitive SMEs in a developing country such as South Africa,” says the study’s principal researcher, Arthur Goldstuck, who will present the paper at the conference. “SME Survey has always produced groundbreaking insights into issues affecting SMEs in South Africa. Having our 2007 findings presented at a high-level international conference is an indication that the findings have relevance for other developing countries too.”

This will be the 53rd ICSB World Conference and the theme of the conference is “Advancing Small Business and Entrepreneurship: From Research to Results”. A key aim of the conference is to bridge the gap between research and action.

All papers submitted for the conference are subjected to a peer-review process, with a selection panel scoring the submissions and selecting the highest-scoring papers for presentation at the conference. Researchers, educators, policy makers and business service providers from around the world will attend the event, to be held at the World Trade and Convention Centre in Halifax, Nova Scotia, Canada from June 22-25 2008.

Scott Gilmour, Head of Customer Strategy for Personal and Business Banking at Standard Bank, says: “Standard Bank is thrilled to learn that local research will be shared at such a renowned platform. This provides a great opportunity for South African entrepreneurs to benchmark themselves against other developing countries, and facilitates an exchange of information that could help accelerate the development of small business in the country.”

Dumisani Mtoba, Portfolio Manager Services at Fujitsu Siemens Computers South Africa, adds: “Fujitsu Siemens Computers is delighted to be able to play a part in the SME Survey 2008. This year we will focus on communicating our proposition for SMEs which is: “Enterprise-class Solutions for Small Business.” This theme concentrates on our holistic offering which sees us complement our comprehensive platform portfolio with services. This enables us to ensure that customers have the added peace-of-mind of our broad range of IT Infrastructure Services, ensuring that they have the best possible solution for their business situation. It’s another way that we deliver on our ‘we make sure’ undertaking.”

The research for SME Survey 2008, presently under way, focuses on the infrastructure challenges faced by SMEs in South Africa. The 2007 research was made possible through the sponsorship of Standard Bank and Fujitsu Siemens Computers, who have also sponsored the SME Survey 2008 project.

Please visit www.smesurvey.co.za to get more information on the 2007 findings

Media contact:

• Debbie Whittaker: 083 273 5337

This is the key finding of the VoIP in South Africa 2008 study, released today by World Wide Worx.

At the end of 2007, half of all corporations were making use of VoIP, and that usage level is expected to rise to 64% in 2008. Most of these companies are using it within the context of Least-cost Routing (LCR), which enables any phone call made from inside the company to be routed via the most cost-effective route.

Among Small and Medium Enterprises (SMEs), however, deployment of VoIP is still rather modest, despite LCR having been adopted at almost a similar rate as corporate adoption.

The use of VoIP among SMEs for business purposes rose from 9% in 2006 to 18% in 2007, after rising from 2% in 2004 (before legalisation) to 4% in 2005. This represents an effective doubling in each of the years in which it has been deployed among SMEs.

“In 2008, the expectations of SMEs are for dramatic growth in VoIP adoption, namely another doubling,” says Arthur Goldstuck, MD of World Wide Worx. “Experience suggests, however, that such high expectations are rarely met off a high base. A more realistic forecast would be for growth in VoIP adoption among SMEs to match the level of growth seen in 2007, i.e. to reach around the 25%-30% level in 2008.”

The background to the research

In early 2005, all eyes in South African telecommunications were on VoIP, due partly to its deregulation on 1 February of that year, and due to the vast promise it held for reducing communications cost for individuals and corporations alike.

In its first report on VoIP in South Africa, released in January 2005, World Wide Worx concluded that the technology was already in active use in large organisations, and such use would intensify, but that take-up among consumers and small and medium enterprises (SMEs) would remain muted for several years until seamless and bundled solutions, cost-effective broadband, and a clear value proposition were available.

This indeed proved to be the case. Many observers who had expected greater “fireworks” expressed disappointment in the take-up of VoIP during 2005 in particular, as well as during 2006.

However, the picture began to change in 2007, with broadband becoming more pervasive among existing Internet users, and VoIP beginning to attract SMEs in significant numbers.

Motivation and Methodology

World Wide Worx engages in a three-stage research process to provide an understanding of VoIP trends, namely:

• a detailed analysis of business and technology trends that are shaping the evolution of IP and being shaped by it;
• face-to-face interviews with decision-makers from 100 South African corporations, including more than 10% of the companies listed on the Johannesburg Stock Exchange;
• telephonic interviews with 800 small and medium enterprises.

The three phases of the 2008 study were conducted during the second half of 2007 and the beginning of 2008. Trend lines included in the report were developed from comparing the findings of similar research conducted by World Wide Worx in 2004, 2005 and 2006.

For more information, please contact Arthur Goldstuck by phone on 011 7827003 or by e-mail at arthur@worldwideworx.com

These are among the crucial questions SME Survey 2008 raises as it gauges the competitiveness and profitability of small to medium enterprises which are frequently seen as the engine room of growth in South Africa. Sponsored by Standard Bank and Fujitsu Siemens Computers, the survey is in its 6th year and measures sentiment, confidence and the factors that contribute to the competitiveness of an SME.

Arthur Goldstuck, principal researcher for SME Survey, notes that the economic landscape in South Africa has changed dramatically in just six months. “From a buoyant economic climate and abundant availability of credit, from a relatively reliable and stable power supply and the assurance that the water from the tap is arguably the best in the world, companies today find themselves challenged in ways they had never expected,” he says.

“In examining the infrastructure challenges which business must cope with, we are referring to the physical environment in which the SME operates. This includes roads, electricity, traffic lights and congestion, transport costs and more. That environment is changing in front of our eyes and is having an impact on how the SME is likely to perform,” says Goldstuck.

SME Survey 2008 will strongly focus on the impact of infrastructure problems created partly by load shedding and by the lack of planning in key infrastructural areas, Goldstuck continues.

“We will look at the ability of the SME to deal with these new rules of doing business. Questions that must be asked include the impact that load shedding has had on profitability and competitiveness. Methods of coping with these problems, such as the purchase of generators, laptops and 3G connectivity, will also be explored,” says Goldstuck.

Among the new rules of doing business is the issue of coping with crime. “Everyone is aware that our crime levels are incredibly high. In the midst of this, there is a perception that crime against businesses is faceless. It is not. The business owners are people, and crime has a material impact on them and their ability to run a competitive and profitable operation,” Goldstuck says.

According to Scott Gilmour, Head of Customer Strategy for Personal and Business Banking at Standard Bank, small business are impacted by infrastructure challenges.

“However it would be incorrect to imply that the current economic environment is placing significant stress on all small and medium-sized businesses. Consumer-dependent businesses are more susceptible in the current economic environment as consumer spending comes under pressure, but in general it is reassuring to see that businesses have been holding up fairly well,” says Gilmour.

“Participation in research initiatives such as the SME Survey helps Standard Bank better understand the changing needs of small businesses as they adapt to infrastructure challenges. This increased understanding assists us in developing relevant solutions and disseminating value-added business and banking information that support our business clients,” adds Gilmour.

Danny de Beer, business development director at Fujitsu Siemens Computers says: “The questions which this year’s survey asks are hard-hitting, but there is no question that business, big and small, has been hard hit by changing circumstances,” says Danny de Beer, business development director at Fujitsu Siemens Computers. “The SME has to deal with a new set of challenges that arguably threaten their ability to survive and prosper. Knowing how these issues are affecting business, and how they are coping, is essential.”

Goldstuck notes that many of the issues raised by the SME Survey have been addressed which is rewarding. The research and its findings can have an influence. “We do ask questions that evaluate how well government is serving the SME. It is reassuring to see the restructuring of and rethinking behind many government support programmes.”

About Standard Bank

The Standard Bank Group, which has been part of the fabric of South Africa for the past 145 years, is Africa’s largest bank with a network in 18 African countries and 20 countries outside of Africa including the key financial centres of Europe, the United States and Asia.

The Standard Bank Group is the largest South African banking group ranked by assets and earnings. The group had total assets of over R1,098 billion (approximately US$156 billion) at 30 June 2007 and employed more than 42 000 people worldwide. Standard Bank’s market capitalisation at 22 October 2007 was R145 billion (approximately US$21 billion).

In addition to its banking operations, Standard Bank enjoys a strategic interest in the insurance industry through control of Liberty Group, one of Africa’s leading life offices and financial services groups.

Outside of Africa the Group has a particular focus on emerging markets, providing corporate and investment banking services including debt, treasury, trade finance, structured finance and project finance services. This international expansion has been achieved through a combination of organic growth and acquisitions. In April this year, Standard Bank finalised its acquisition of BankBoston Argentina, enabling it to further extend its footprint in the South American market. In August this year, Standard Bank acquired controlling interest in IBTC Chartered Bank, giving it a significant presence in the Nigerian market.

Standard Bank has developed a good understanding of what is required in terms of the Financial Sector Charter. Standard Bank achieved an overall charter score of 92,31 points (out of 100) as at 31 December 2006, an “A” rating.

About Fujitsu Siemens Computers

Fujitsu Siemens Computers is the leading European IT provider with a strategic focus on next-generation Mobility and Dynamic Data Center products, services and solutions. With a portfolio of exceptional depth, our offering extends from handhelds through desktops to enterprise-class IT infrastructure solutions. Fujitsu Siemens Computers has a presence in all key markets across Europe, the Middle East and Africa. Leveraging the strengths, innovation and global reach of our joint shareholders, Fujitsu Limited and Siemens AG, we make sure we meet the needs of customers: large corporations, small and medium enterprises and private users. The company is a member of the United Nations Global Compact initiative.

For more information on Fujitsu Siemens Computers

Distributed by Coolcumba Communications on behalf of SME Survey. To unsubscribe from our media list, please send a blank e-mail with “unsubscribe” in the subject line.

Media Contact Details

Melissa Padia, Coolcumba Communications

(011) 996 6680

This is the core conclusion of the first study on the impact of the technology in South Africa, conducted by World Wide Worx. The report, “WiMAX in SA 2008: Year Zero”, released today, shows that only those companies that have already deployed WiMAX have appreciated its impact.

These companies are all using Telkom’s scaled down version of WiMAX, which is provided only where its ADSL fixed line service is not available, and only at ADSL-type speeds. WiMAX can theoretically offer speeds of up to 70Mbps, as opposed to ADSL’s fastest option in South Africa of 4Mbps. Even at far lower speeds, however, the potential offered by WiMAX is not yet on the horizon, since no serious competition exists to spur its roll-out, says Arthur Goldstuck, MD of World Wide Worx.

“The impact of such low roll-out is that expectations for WiMAX are being kept artificially low,” he adds. “The long wait for the availability of the technology resulted in both frustration and suspicion that it cannot deliver.”

The WiMAX in SA 2008 study reveals that a mere 8% of corporations had adopted WiMAX options as part of their connectivity mix in 2007. However, they did not use WiMAX as a preferred or only form of connectivity, but deployed it where no other options were available, such as in rural areas or areas with rough terrain that made fixed line connectivity impossible or uneconomical.

A number of factors, such as lower cost, smaller base stations and easier deployment, mean that WiMAX is an ideal solution for providing broadband data and even telephone services to rural and remote areas. It is also seen as a powerful technology for bringing affordable yet quality Internet access to isolated communities. In addition, it isregarded as an ideal technology for connecting corporate networks at high speed, and it is already playing a small role in this regard.

Projections for 2008 indicate a significant increase in WiMAX deployment, with 20% of corporations deploying it as an element of their connectivity solutions. Once again, it is not yet a primary form of connectivity, but rather being deployed where fixed line and digital line options are not available.

The fact that only those companies deploying WiMAX had appreciated its impact and importance, said Goldstuck, pointed to the damage that regulatory delays had inflicted on the WiMAX cause. Although WiMAX trial licenses had been issued to a number of operators more than a year ago, and these licenses had officially expired in January this year, the trial networks were being allowed to continue operating in pilot status until full licenses are awarded.

However, this means that commercial services still cannot be offered by these license holders. Existing wireless network operators, namely Vodacom, MTN, Sentech and iBurst, are allowed to use WiMAX to deliver broadband, but none had yet done so in any significant manner.

This adds to the confusion rather than supports the WiMAX case, says Goldstuck.

“Another consequence of delayed roll-out is that few corporate customers, let alone consumers, are aware of who the appropriate suppliers will be – further limiting their ability to include WiMAX options in their budgeting and infrastructure plans.”

Even when WiMAX’s importance is rated as an emerging technology over the next five years, from 2008 to 2012, its significance is not recognised outside those companies that have already deployed it, according to the research.

The WiMAX in South Africa 2008 study comprised face-to-face interviews with network and IT decision-makers in 100 South African corporations. Download an executive summary of the report below here:

Executive Summary - WiMAX in South Africa 2008.pdf

For more information, contact Arthur Goldstuck by phone on +27 (011) 782 7003.

Research conducted separately by leading independent technology market researchers World Wide Worx and the shopping search site Jump Shopping confirms that this will be South Africa’s first “e-Christmas”, when people go shopping online for festive season gifts on a large scale.

“We expect the holiday season to contribute to at least 20% of the total R929-million expected to be spent online in 2007, with the proportion possible rising to as much as 25%” says World Wide Worx managing director Arthur Goldstuck.

World Wide Worx’s study of Internet shopping, “Online Retail in South Africa 2007″, confirms that consumers are beginning to gain confidence in online gift shopping.

“While it is clear that books, DVDs, CDs and electronics like iPods and satellite navigation devices are hot online this month, it depends on the quality of online retail sites which stores and items benefit the most.”

That’s where the search engines play a role. Major search sites like Google and Ananzi will be the starting point for many shoppers, who will then often find themselves on specialised shopping search sites like Jump Shopping.

“We can already see which products are generating the most heat through the searches on our site,” says Jump Shopping managing director Albert Bredenhann.

The top product searches on jump.co.za are:

1. GPS (satellite navigation systems)
2. WII & Playstation 3 (games consoles)
3. iPod (MP3 player)
4. LCD Monitors
5. xbox 360 (games console)
6. HTC and Nokia (cell phones)
7. iPhone (Apple’s iPod type phone, not officially on sale in SA, but available)
8. LCD TV (flat panel TV)
9. Games (all consoles)
10. Digital Cameras

“It looks like it will be a gadget Christmas online,” says Bredenhann. “The great thing is that there is something for the whole family;. LCD for dad, GPS for mom, game consoles for boetie, iPod for sussie, phone for grandma and digital camera for grandpa.”

The 2006 South African holiday season sales figure of R137-million represented 20% of total online retail in 2006, up from 16% of the total in 2005.

“This indicated a growing ability to fulfill late orders intended for the gift market,” says Goldstuck. “We expect more stores to get it right this year.”

This findings also confirm the significance of holiday season spending for online retailers, in line with the experience of physical retailers, and for the first time represents a dramatic increase over normal spending patterns. Since the holiday season covers just over five weeks, which represents about 10% of the calendar year, a figure of 20% of annual sales being achieved during this period suggests a potential doubling of sales over this period for many online retailers.

More information

Contact Arthur Goldstuck by arthurg@internet.org.za only (he is escaping the holiday rush from today), or Albert Bredenhann by phone on (012) 809 3139 or albert@jump.co.za

These figures exclude the sale of air tickets online, which continue to dwarf the numbers for online retail. The five South African airlines selling tickets online, namely kulula.com, FlySAA.com, Mango, 1Time and Nationwide between them accounted for R2.3-billion in e-commerce in 2006, almost four times the size of conventional online retail. The figure is expected to rise above R3-billion in 2007.

These numbers indicate a dramatic turnaround in online retail in South Africa, which appeared to be stagnating in 2005. The 2006 recovery is being sustained in 2007, with all indications being of even more dramatic growth in 2008.

“There are two major factors behind this growth,” says Arthur Goldstuck, MD of World Wide Worx. “The first is the rise of broadband, which by the end of next year will see more than a million users in South Africa.

“The second is a phenomenon called the Experience Curve, which shows that only once users have been online for around six years are they comfortable with the more challenging aspects of the Internet, such as e-commerce. And the number of people who have been online for six years or more has finally reached the level where it is making a substantial impact in online retail.”

Both of these factors were forecast by World Wide Worx as prerequisites for future growth as early as 2004.

The number of online retail sites has also grown substantially, from 826 in 2005 to 1014 in 2007. This growth has come despite 310 sites – more than a third of those online at the end of 2005 – closing down from 2005 to 2007. However, no less than 498 new sites came online during this time.

The online retail market is dominated by 12 sites, which between them account for more than three quarters of online retail sales in South Africa, according to “Online Retail in South Africa 2007”.

“There have been many competitors to these dominant players,” says Goldstuck.” They tend to look at the numbers reported by a Pick ‘n Pay or Netflorist, and imagine there is a big market ripe for the picking, not realising just how much infrastructure, development and market knowledge has contributed to those dominant positions. The result is that the biggest drop-off of online retailers occurs precisely where the biggest players are active.”

They are the three major malls, M-Web ShopZone, the eBucks Shop and Digital Mall, the two largest online grocers, Pick ‘n’ Pay Home Shopping and Woolworths, the two largest online book retailers, Kalahari.net and Exclusive Books, the largest online florist NetFlorist, the largest online wine retailer Cybercellar, the largest online electronics store Digital Planet, the largest online health and beauty store, Ascot Direct, and the largest auction site, Bidorbuy.co.za.

For more information, please contact:

* Arthur Goldstuck by e-mail on arthurg@internet.org.za, by phone on (011) 7827003 or on his cell phone on 083 3264345

* Steven Ambrose by e-mail on steven@theworx.biz, or on (011) 7820045 or on his cell phone on 083 601-0333

It’s Easy To Order This Report

This report is available in PDF format at a cost of R7500 excluding VAT. Complete the online order form or call Steven Ambrose on 083 6010333 for any sales queries.

“Despite the dramatic rise of broadband usage, this is the slowest growth we’ve seen in overall user numbers since the arrival of the Internet in South Africa,” says World Wide Worx managing director Arthur Goldstuck, who has been tracking the Internet market since 1993.

The study reveals that there will be more than 800,000 broadband subscriber accounts active in South Africa at the end of this year. However, these represent only 650,000 unique users, or separate individuals. And, of these, a third also use another form of connectivity.

“The harsh reality is that broadband has not yet made a major impact on overall connectivity numbers, even while dramatically increasing the usage of those who are already connected,” says Goldstuck. “The majority of broadband users are simply migrating up the connectivity food chain, from dial-up to broadband. So, while the haves get more, the have-nots remain locked out.”

To emphasise this point, the number of dial-up users is falling dramatically this year, dropping by 122,000 users, and falling below the million mark for the first time since 2001.

While this can be partly attributed to the growth of broadband within the dial-up user base, it also reveals the limited extent to which new users are coming on board at the entry level. It is clear, says Goldstuck, that the high cost of local calls – the single Telkom usage rate that is not coming down in price in August – is a major obstacle to Internet connectivity for the unconnected.

“Add to that the fact that line rental is in fact going up in price, placing yet another limit on the growth of fixed lines, and you have a no-win situation for the mass market,” says Goldstuck.

This makes Telkom both the villain and the hero of Internet connectivity in South Africa, the report states. Telkom’s ADSL offering has been the main driver of broadband adoption in South Africa for the last four years. While it is expected to be overtaken by MTN and Vodacom’s 3G mobile broadband by the end of 2007 in number of connections, it will continue to be the principal form of connectivity for most broadband users until at least 2009. Many of these will use 3G as a backup connection or for use when out of the office or home.

The study shows that the only broadband offering attracting large numbers of new users, rather than upgrading existing users, is iBurst, the wireless broadband service from WBS. Until now the growth of iBurst has been held back by availability, but through its relationship with Vodacom it is expected to make a dramatic impact over the next two years.

Vodacom’s own pending new ISP, Neotel’s offerings expected in the coming months, and the effect of metropolitan city councils offering wireless broadband, have not been included in projections or expectations of growth for 2007 and 2008, due to the presently undefined nature of these offerings, says Goldstuck. However, he sees these as major interventions in connectivity growth and experience.

“The entry of these major players into Internet services has to make a massive impact,” he says. ”Far too much is being invested in their infrastructure for them not to make a difference. By 2010 we can expect to see a substantially altered connectivity landscape. But certainly not in 2007.”

About World Wide Worx

World Wide Worx is South Africa’s leading independent technology market research consultancy, leading research into technology trends, financial services, media and marketing. It conducts independent and commissioned research projects, and evaluates mobile, online, technology and marketing strategies and implementations.

Arthur Goldstuck is author of more than a dozen books, including The Hitchhiker’s Guide to the Internet and The Hitchhiker’s Guide to Going Mobile. He was responsible for groundbreaking research that first revealed the size of the South African Internet user base during the 1990s, and through World Wide Worx has continued leading valuable research into the impact of technology on business strategy.

For more information contact:

• Arthur Goldstuck, World Wide Worx
• Tel: +27 (0) 11 782 7003
• Cell: 083 326 4345
• Email: arthurg@internet.org.za

“Standard Bank continues to support this research initiative – this is our third consecutive year as primary sponsor of SME Survey, because we believe that the SME market plays a critical role in the growth of our economy,” says Melt van der Spuy, director, Business Support, Business and Private Banking, Standard Bank.

“Our involvement helps us gain a better understanding of the business segment so that we can provide enhanced solutions, and deliver better service that meets our clients’ needs,” he states.

“Over the past four years SME Survey examined areas that influence SMEs to regard themselves as competitive,” says Arthur Goldstuck, principal researcher of the Survey. “This year’s Survey differs because one of the primary intentions is to create something of a blueprint of what makes a successful SME highly competitive.”

He is quick to point out that the results are not a blueprint for success, but rather should serve as an indication of what smart companies use. “There is no substitute for a great idea backed by sound business principles. We’re identifying what the entrepreneur needs to support a good business and increase success.”

The interim findings paint a fascinating picture. While the use of available technologies, especially emerging mobile and wireless solutions, contribute greatly to competitiveness, there are many other factors. Some are anticipated, others surprising.

“Well established businesses are more than twice as likely to be competitive as start-up companies. In a country where failure of new businesses is commonplace, new business owners must accept that they have to be in it for the long haul. Success is not easy, but the indications are that those businesses that have survived up to five years, tend to be more competitive and can therefore expect further success,” he says. Businesses with a higher turnover fare better; Goldstuck believes a larger turnover means the ability to invest in better tools, technology and services to support the business.

Pointing out that perception is reality; Goldstuck says there is a correlation between the type of company registration and competitive advantage. “A Proprietary Limited company is most competitive, followed by a Close Corporation and then a partnership. Family businesses are substantially behind that,” he says.

This, Goldstuck believes, is owing to the fact that the business structure influences the perception among clients of the company’s intent. “Some structures are taken more seriously than others, and how seriously the market takes your business affects its competitiveness. This may be a prejudice but it has an impact,” he says.

Interestingly, the market targeted by the SME did not make a difference to competitiveness, whether that market was corporate, retail or consumer. However, those targeting government businesses tended to be most competitive. This may seem counter-intuitive, until one considers that government business is often the most lucrative,” Goldstuck states.

“The findings are shedding light on how SMEs in South Africa use available resources to their best advantage. This is both fascinating and highly useful for new businesses looking to increase their odds of prosperity,” Goldstuck says.

The final findings will be released in October 2007.

For more on past SME Surveys please go here: www.smesurvey.co.za

About Standard Bank

Standard Bank Group is a global bank with African roots. It is one of the big four full-service banks in South Africa and distinguished by its extensive operations in 18 other African countries. Outside the African continent Standard Bank Group operations span to 21 countries, with emerging market focus. Our customers benefit from our knowledge and expertise in emerging markets, coupled with our global outlook evident in our daily dealings with customers.

Standard Bank Group is the largest South African banking group ranked by assets and earnings, and had total assets of over R755 billion at 31 December 2005, with more than 40 000 people employed worldwide.

The Group has played a central role in the development of the Southern African economy for more than 144 years. It has done this by constantly aligning its presence in the market place to the evolving needs of the economy, and delivering relevant banking and financial services.

We have also focused on implementing a customer-centric and service-driven model in all our business.

Our three main pillars of business are Personal and Business Banking; Corporate and Investment Banking and Investment Management and Life Insurance. Across these areas, technology is a common thread, giving our customers tailor made banking solutions.

About Fujitsu Siemens Computers

Fujitsu Siemens Computers is the leading European IT provider with a strategic focus on next-generation Mobility and Dynamic Data Center products, services and solutions. With a portfolio of exceptional depth, our offering extends from handhelds through desktops to enterprise-class IT infrastructure solutions. Fujitsu Siemens Computers has a presence in all key markets across Europe, the Middle East and Africa. Leveraging the strengths, innovation and global reach of our joint shareholders, Fujitsu Limited and Siemens AG, we make sure we meet the needs of customers: large corporations, small and medium enterprises and private users. The company is a member of the United Nations Global Compact initiative.

For more information on Fujitsu Siemens Computers, please visit their website here: www.fujitsu-siemens.com

Media Contact Details

• Melissa Padia
• Coolcumba Communications
• (011) 996 6680

“This report shows South African companies have realised that self-service is an imperative in a market where customers are looking for convenience and where customer support costs are spiralling out of control. Those businesses that embrace an integrated self-service strategy will outperform those that don’t,” says John Ziniades, CEO of Consology.

Companies across all industries rate self-service as both an operational and strategic priority - with banks attaching the most importance to self-service and retailers the least. Respondents rated reduction of customer churn as the most important benefit of self-service, followed by cost savings from automating transactions, reduction of customer support costs, cross-and up-sell opportunities, and deflection of calls from the contact centre.

However, strategic priorities vary from industry to industry. Reduction of customer churn is the most important driver of self-service for banks and insurance firms, while telecoms companies gave the highest weighting to ensuring consistency of the customer experience. The retail group that participated in the survey gave cost reduction, transaction automation and account payment acceleration equal weighting as its top reasons to consider self-service.

The Web is rapidly emerging as the self-service channel of choice as a result of growing broadband penetration and the low-cost of the Web channel for companies and customers alike. All respondents agree that the Web is the most cost-effective channel for self-service, although it is not appropriate for all customers and situations. Call centre costs tend to be higher than anticipated and most organisations would prefer to migrate as many customers to Web-based self-service as possible.

“The research reveals that self-service is no longer a stand-alone extension to the business and its existing processes, but an integrated part of the organisation, which complements call centres and physical branches,” says Arthur Goldstuck. “We’re also seeing that companies are offering customers a growing range of alternative self-service options, including the Web, kiosks, ATM’s, cell-phones, speech self-service and interactive voice response (IVR).”

The survey also reveals that companies will be increasing their budgets for customer care in general and self-service in particular over the next three years. Most respondents indicated that customer care budgets were expected to climb by between 15% and 25% in 2007, and 10% to 20% from 2008 to 2010.

Estimates for annual increases in investment in self-service ranged from 10% and 25% in 2006, about 10% in 2007, and anywhere between 5% and 30% growth 2008 to 2010.

Concludes Ziniades: “The concept of self-service is becoming increasingly familiar to consumers. Customers are becoming used to serving themselves across a range of channels and applications – from self-service for parking and movie theatre tickets, up to online banking and automated flight check-ins.

“In many industries, self-service options that were once a nice-to-have or a competitive edge have simply become a ticket to play. Most consumers today wouldn’t even think about joining a bank that doesn’t have a solid Internet banking platform. Expect self-service to become as central in many other industries over the next few years.”

ENDS

About Consology

Consology provides Self-Service and Customer Management solutions that connect businesses to tangible and rapid return on investment and customers to superior service. Consology has pioneered the self-service market locally, implementing self-service and e-Billing solutions that benchmark new standards for online self-service in South Africa. Consology consultants have been involved in global self-service and Customer Management projects for some of the world’s largest companies across a variety of industries spanning financial services, utilities, healthcare, retail and telecommunications. Companies include Avaya, BT, KPN, Target, Tele2, Telecom Italia and the US Department of Education. Locally, Consology has deployed self-service solutions for large-scale clients such as MTN, the South African Post Office and Nashua Mobile. Founded in 2000, Consology is a certified applications partner of Oracle Corporation. Through an alliance with Metastorm, Consology is equipped to provide enterprise-class business process management solutions, being a vital component of self-service and customer management solutions. More information about Consology is available at www.consology.com .

World Wide Worx,

World Wide Worx is South Africa’s leading independent technology market research consultancy, leading research into technology trends, financial services, media and marketing. It conducts independent and commissioned research projects, and evaluates mobile, online, technology and marketing strategies and implementations. Arthur Goldstuck is author of more than a dozen books, including The Hitchhiker’s Guide to the Internet and The Hitchhiker’s Guide to Going Mobile. He was responsible for groundbreaking research that first revealed the size of the South African Internet user base during the 1990s, and through World Wide Worx has continued leading valuable research into the impact of technology on business strategy.

Issued by Idea Engineers on behalf of Consology and World Wide Worx.