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The Long Arm of the Laptop
No matter what business you're in, the technology revolution has only begun to bite
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Business New Haven
5/1/2000
By: Linda G. Mele
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Ain't technology grand?
Yes. And no.
Yes, because it does generally make jobs easier and because it opens a wider range of options for streamlining administrative operations or offering customers more choices. “I remember when answering machines, fax machines and cell phones were first introduced - I saw no need for any of them,” says Joanne Jordan, a business coach from Ansonia who specializes in the beauty industry. “Today, my office is one big power station.”
Jordan isn't the only one who felt unmoved when those things first came on the market - but the same was true for computers, and now there's hardly a business of any size today that doesn't use computers and other technology.
In some industries - such construction and automobile manufacturing - technological advances have produced new materials and processes that allow more efficient homes and cars to be built. In others, such as real estate and banking, customers no longer have to leave the comfort of their easy chairs any because technology brings these services right into their homes.
On the negative side, small businesses may find it costly to hook up to the newest technology or take advantage of it. “The initial cost is high,” acknowledges Stevens Automotive Network President David Stevens, “especially if you have to computerize every aspect of the business like we did.”In addition, each industry has specific needs that must be met and that may or may not be addressed by programs and software already on the market.
Here are the ways technology has affected some industries:
Automotive/Retail
With five dealerships in Connecticut and Massachusetts, Stevens says switching his entire operation to computers was a daunting task.
“Not only did we need programs for the administrative end of things, but everything in cars became computerized, too, so we needed the new computer diagnostic equipment,” Stevens explains. “It was a big capital expense that many small businesses cannot afford.”
The days of having your neighbor fix your car in his driveway are definitely in the rear-view mirror, Stevens says. “In addition to the new diagnostic equipment and software, all the service technicians had to be sent to school to be retrained,” Stevens says, “which was another added expense. “We've always prided ourselves on having the most up-to-date, state-of-the art systems and equipment,” Stevens adds, “but the initial cost was high.”
And while consumers may like the convenience of browsing the Internet for information and pricing on cars and products, Stevens says he doubts many will actually purchase vehicles without seeing and sitting in them and taking a test drive. Purchasing other products like books, giftware and clothing on the retail level is more easily adaptable to buying on the Internet.
According to Stevens, each separate operation within the dealerships - accounting, inventory control, payroll, etc. - has to have a different program tailored to his operation.
“Computers do streamline everything once their in place and operating,” Stevens says, “but it does require a tremendous cash outlay.”
Personal/Business Services
Jordan says her salon clients are feeling the impact of the Internet.
“'To Web or not to Web,'” is how Jordan characterizes the dilemma. “Many salons that have resisted Web sites are beginning to rethink developing a Web presence.”
Technological advances “are giving the beauty industry a competitive edge in the new marketplace. The Internet has shrunk time and distance, and salons need to create focused, well-run organizations to strengthen relationships with clients,” Jordan says.
Jordan says many salons - like most doctors' offices - have shifted from paper appointment books to computerized scheduling systems. In the very near future, salons will be accessing e-book (online real-time) appointments, she adds. “Why not allow clients to access your Web site and make their own appointments, 24 hours a day?” Jordan asks. As with other small businesses, however, the challenge is acquiring the appropriate technology and footing the costs to upgrade to a new way of doing business.
Communications
The communications industry is probably the first industry that feels the bite of each new technology.
From the first telephone to the latest computer, from the first television to Web TV and digital cable service, from radio to e-mail and from the telegraph to the fax machine, many technological advances have affected the way we communicate with one another or the way businesses communicate with their customers.
Take the Internet, for example. Internet users are constantly looking for better, faster service, and SNET has launched a new service that promises the fastest service to date, company officials assert. SNET DSL (digital subscriber line) service should be available to 726,000 homes and businesses across the state by July, according to SNET spokesperson Beverly Levy.
The $6 billion-plus initiative “will provide downstream connection speeds [up to] 50 times faster than traditional analog modems,” Levy says. “For customers in need of higher speeds, SNET Enhanced DSL service is available at speeds [up to] 200 time faster,” she adds.
Unlike other less customer-oriented uses, subscribers pay for some of the costs of the technology.
Education
“The programs available today in music education enhance learning difficult skills, making the teacher's job a bit easier,” says Mary Tokarski, director of music education at the Tokarski Music Center in North Haven.
Instead of drilling on the lessons, students use the computer - which is fun - to acquire knowledge and new skills, Tokarski says. “There are a couple of challenges,” she explains, “like keeping up with new things and providing students with new challenges and goals. While nothing can replace the one-on-one lesson experience needed to build fine motor [and muscle] skills, the theory and mental 'working' abilities are readily adaptable with computer help,” Tokarski says. “And, even better, the student can move along at his or her own pace, repeating if necessary or moving on if able,” she adds.
Banking
While it's true many people resist new technologies, they often resist harder when it affects their money. “I won't use ATM machines,” says one area senior. “I don't trust them.” “New technology is causing the IS [information systems] department to become an integral piece of any part of the company's short- and long-term decision-making and planning processes,” says Tom Cugno, IS vice president of New Haven Savings Bank. “It's not just a necessary evil or an afterthought,” Cugno says, “and the biggest impact is in the area of communication networks and information database functionality.”
Cugno says the new technologies make it possible to make “more robust and consistent information available in a faster or more user-friendly manner.”
As with many industries, the challenges include integrating the new systems with the old, integrating a variety of unrelated products and programs within a common infrastructure, training employees and customers to use the new technology, providing the appropriate security and developing disaster recovery capabilities.
Health Care
In addition to making medical records faster and easier to access, computer technology now provides a whole range of health care products and services. Take Griffin Hospital's Web site, for example. According to the Derby hospital's vice president of support services,
William Powanda, the most popular places that people visit are the “Cradle Views” site, where photos and information about new babies can be found, the jobs board, which lists current openings, the physicians' directory and the patient programs and services section. “Clearly, the Internet has become a major source of health information for the public,” Powanda says.
“Over the past year, close to 100,000 people have visited the Griffin Web site,” Powanda explains. “They are people seeking information rather than relying on the media [as well as] marketing and health information from health care organizations”.
Manufacturing
While e-commerce is rapidly expanding, it may not lend itself to many manufacturing operations. “In our case that's due to the size of our products and the level of customization we get involved in with our customers,” explains Mike Toohey, marketing manager for the West Haven-based Bilco Co. Many manufacturers use computer technology to streamline the manufacturing process, using robotics or product-specific software for certain operations. Others praise computers' ability to organize inventory and ordering operations, making it easier and faster to respond to customer inquiries. “As an alternative to actually transacting business over the Internet, we are instead viewing it as a means of providing e-service,” Toohey says. The Bilco update site will feature access to drawings, specifications and details about products that were previously available only by contacting the company or one of its representatives directly, Toohey explains. “Speed is critical in our business,” says Toohey, “and we expect both the availability of this new information and its instant accessibility to be major benefits for our customers around the world.” “The development of this electronic information promotion does, however, compete for dollars with our traditional print advertising, and we are working to maintain an effective balance between the two,” he adds.
Construction
Technological advances already provide stronger and more efficient materials with which to build homes, buildings, playgrounds and bridges. But technology will affect the construction industry even more in the next few years since the advent of Computer Aided Design (CAD), according to industry watchers. “Technology has given us the ability to cut down on the amount of time it takes for the different trades to communicate with each other,” says William Cianci, executive director of the Construction Institute in West Hartford.
“No longer do we need to wait for the architect to visit the site or the project manager to visit the architect to answer questions or solve problems that arise during construction,” Cianci explains. Consumers can now search for stock house plans via the Internet or research new building techniques and materials. “As an information resource, the Internet is invaluable,” says Cianci. “With computers and e-mail, the project team can share information without the need to actually be on site,” he adds. The construction industry is very fragmented - including manufacturers, retailers, architects, contractors and trade unions. It remains largely a custom-built industry, however, which creates a challenge when trying to figure out how all its various components can best function in concert to make things easier and more efficient.
Real Estate
Gone are the days of gong from house to house to find just the “right” home. “In addition to being able to sit at home and access a Realtor's listings, with the advent of digital technology we can now provide a virtual tour of a home so prospective buyers can see what it looks like before actually visiting it in person,” explains Greg Wagner, manager of the Commercial & Investment Division of the Beazley Co., Realtors in New Haven. “It will never replace actually visiting a property,” Wagner says, “but it does help narrow the search.” According to Wagner, the same applies to both residential and commercial real estate searches. Wagner says someone in St. Louis who is looking for a commercial property in New Haven can look on the Internet and view a property and its specifications without the expense of traveling. “Someone can be 1,000 miles away and view one or more properties via the Internet or video conferencing,” Wagner says. “It cuts down on the time and expense of identifying appropriate properties.”
Wagner says the Internet also provides an array of sites where developers can access information about available properties on a local, state, regional, national or global basis. “We can get instant leads from the Internet,” Wagner says, “but if we don't respond quickly, we could lose out.”
According to Wagner, using the Internet or video conferencing can make the process impersonal and take away the one-on-one relationship people have with their Realtor.
“Fortunately, people still want to physically visit a home they might be thinking about buying, and business owners and developers still need to come to a site and evaluate its suitability,” Wagner says. For real estate agents, that's good news - they won't lose their jobs to the computer revolution.
Other industries report similar benefits and challenges when it comes to using the latest technology. But be assured that both businesses and consumers will be on the lookout for new equipment, software and gadgets that purport to make life and operating a business easier and more cost effective. The question is, what will they think of next? BNH
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