Resellers strike gold in small firms

The small and medium-sized enterprise market is a goldmine just waiting to be exploited, but the main problem resellers face is how to break into this market.

The UK government has now launched a programme that could help resellers build closer relationships with smaller companies. The scheme, called Technology Means Business (TMB), was conceived in 1998 when studies by the Department of Trade and Industry (DTI) found that smaller companies were not being given adequate advice on how technology can improve their competitiveness and profitability.

As a result of the findings, the DTI and the Institute of Management planned to establish centres of excellence, where workers from various organisations could gain a TMB-accredited adviser logo and smaller companies could be guaranteed a certain level of expert advice.

TMB has been in a trial phase since April 1999, and the Institute of Management, which runs the scheme with help from sponsors BT, Intel, Compaq and Microsoft, has in the past year pushed the idea among resellers, vendors, distributors, independent consultants and the financial sector.

Nine TMB centres were created in the first year and 500 candidates registered for the accreditation exams. More than 10 per cent of individuals registered have now passed the accreditation. Between now and April 2001, the Institute of Management aims to have a further 1000 registered or accredited advisers and a total of 25 training centres. Up to 3500 individuals are expected to be TMB-accredited within the next four years.

Last month when E-minister Patricia Hewitt officially rolled out the TMB programme nationwide she said smaller companies are the "lifeblood of the UK economy".

"For small businesses, not knowing where to go for advice is one of the biggest barriers they face. It is vital that they receive the very best advice on harnessing information and communication technology. TMB is a professional standard for quality and consistency," she said.

Moving in for the skill
The Institute of Management will begin advertising the scheme nationally, and the vast network of smaller companies across the UK will have access to a pool of IT professionals who will have attended a strict training regime that can last up to six months and costs between £800 and £1000.

TMB advisers will take part in a two-part assessment process which will look at the adviser's role within the smaller business, how technology can help a company, and the ability to implement and evaluate the use of technology. A test follows completion of part one of the assessment.

Glyn Macken, director of management development at the Institute of Management, says: "We need to give the smaller business not simply someone who sells technology, but someone who speaks their language. TMB equips an individual with the knowledge of an smaller firm's business needs and constraints, and they get to know the market better than anything."

Resellers are being urged to register for the scheme by participating distributors including Computer 2000 and Datrontech. Nigel Judd, marketing and communications manager at Computer 2000, said the distributor wants all of the resellers in its Business Class scheme to have at least one TMB-accredited individual.

At least 60 resellers have applied for TMB accreditation directly through Computer 2000, says Judd. He suggests that the main benefit to the channel is the potential sales leads generated by the initiative. "It's important to set standards and government backing gives TMB unique credibility. Smaller businesses will use the programme to find a reseller and to distinguish between resellers," he says.

Computer 2000 is also considering joining with a third party to offer the TMB certification.

Look before you leap
Charlie Shaw, managing director at reseller Advantage Business Systems, welcomed the government's injection into the IT sector, but questioned the DTI's understanding of the needs of a business. "We want to look at the scheme more closely before joining because we believe that a company should show a satisfied customer base with a proven track record rather than an exam," he says.

Paul Spencer, managing director at reseller Axial Systems, agrees. "Accreditation has value only if it means something. If the entry requirement is too simple, it becomes meaningless, but if those ahead of the rest qualify and achieve industry-wide recognition, then it's worthwhile," he says.

Macken insists that advisers will have to pass the equivalent of a vehicle MOT every year to demonstrate successful case studies and knowledge of technology.

Graham Lind, technical sales director at Computer and Network Consultants, says accreditation schemes are no longer essential because most of the company's sales have come through word of mouth. "You can offer poor service even with a logo. Once we have the customer, it's up to us to keep them," he says.

But if TMB is what the smaller business market has been waiting for, it should not be long before resellers strike gold.