Take note of the SMB Classification Categories!

In general, the Canadian ICT industry employs four different classification categories, two of which are SMB organization dependent and two that are ICT vendor dependent:

• SMB Organization Dependent Classifications
  • Number of Employees - the threshold associated with the required number of employees within the SMB organizations varies from one vendor to another. The data in most cases are readily available upon request.
  • Overall Gross Revenue - the threshold associated with the revenues generated by the SMB organizations varies from one vendor to another. Data in most cases are not readily available as many of the SMB enterprises are private organizations.

• ICT Vendor Dependent Classifications
  • Sales Force Organization Structure - the sales force is divided into several groups who deal with enterprise customers based on industry verticals (solutions), while the rest of the customers - irrespective of size - are lumped into the SMB category.
  • Revenue Contribution - the customers are classified purely on their revenue contributions to the ICT vendor's bottom line. The main revenue contributors (irrespective of size and industry type) are handled by a major account sales group, while the rest are lumped into the SMB category.

Needless to say, the use of any of these classifications varies from one ICT vendor to another, based on their management philosophy, corporate culture, and go-to-market strategy.

Be aware of the American and Canadian Divergence Factor

Another important factor that Canadian customers must realize is the divergence between the relative size of a US organization and its Canadian counterpart. The US market is the prime target market for most ICT organizations (multinational or otherwise); since the majority of the products are commonly developed with the prime market in mind, and US organizations are generally larger (given size of the American marketplace), the threshold between the typical Enterprise customer and the SMB customer is skewed towards the characteristics of the US marketplace.

Why is this important to you? How can you benefit?

As discussed in a previous JG&A article, the ICT industry in Canada -- and in fact worldwide -- has shifted its attention from the Enterprise market to the untapped SMB market is search of future revenue growth (please read our article entitled "SMB World: Finding Answers to Burgeoning SMEs' Business Needs").

With this industry marketing shift, a host of new product & service offerings are now available to meet the specific business needs of SMB organizations. This is a great development; however, since there is no consensus among industry members on how to classify SMBs, how can you be assured that your organizational needs will be met? And how can you be certain that the price points being advertised are suitable to your organization's business matrix?

Avoid falling for a "one-size-fits-all" SMB solution; verify with your prospective ICT vendor from the outset that your organization fits their SMB classification scheme. If you do not meet their SMB definition, you should look elsewhere to find a perfect fit.

Since most SMBs will require support for the ICT solutions that they choose to implement (due to limited in-house IT expertise), you should ask for a reputable regional distributor who is easily accessible from your business location. Most vendors should be able to accommodate this request, since those vendors who do not have national presence regularly procure their SMB solutions through regional business partners.

SMB World 2005:
A Two-Tiered National Approach to SMB Solutions

In response to the demands of the Canadian SMB marketplace, SMB World 2005 is targeted towards a clearly defined SMB audience: Small-Sized Organizations (1-99 employees) and Mid-Sized Organizations (100-1,000 employees). The SMB World conference program has been structured accordingly to address the needs of both SMB customer groups.

In addition, the Nation-Wide SMB Educational Program allows you to meet with the various SMB solution providers in your own region who are familiar with your unique business environment and can help you find "best-in-class" SMB solutions.

• For more detailed information about SMB World™ 2005, please visit the event website at http://www.SMBWorld.com.