ACHIEVING BEST PRACTICE IN YOUR BUSINESS The internet The internet has kick-started a communications revolution that is helping businesses reduce costs, become more efficient, find new business opportunities and work more closely with customers and suppliers. Sometimes called the Net, the World Wide Web, or the web, the internet is a global network of computers allowing information to be shared quickly and cheaply. From your own computer you can communicate with other users anywhere in the world, via e-mail or online forums; and send and receive text, pictures, graphics, sounds and moving images. Using the web, you can have access to millions of pages of information. According to the DTI International Benchmarking Study 2003, around 90% of UK businesses already have access to the internet Ð this brochure will show how you can get internet access and how it can benefit your business. This brochure is for: Any business that is not yet connected to the internet or is thinking of changing the internet connection it currently uses. It covers: How you can benefit from going online and working more efficiently and cost-effectively, and how to set up online access for your business. The benefits Some of the immediate benefits of connecting to the web are instant communication and access to a wide pool of information. But it can also transform the way that your business operates by helping you cut costs, gain new markets or work more efficiently. Increasingly, not having access to the internet is like trying to run a business without a telephone or electricity! Fast, low-cost global communication ¥ Internet access allows you to use e-mail (electronic mail) to send and receive messages and data worldwide, quickly and cheaply. ¥ User-groups and newsgroups are discussion and problem-solving areas on the internet, which enable you to communicate with other users who share your interests. Instant access to information and resources ¥ User-friendly access to a range of websites and resources. ¥ Staff can familiarise themselves with industry-related issues, information about competitors and availability of suppliers. ¥ Search for new ideas, support or help facilities. ¥ Access business data from all over the world, such as research analysis and product and market information, often free of charge. Buying and selling online ¥ Save money and time by sourcing and purchasing goods and services online, you can compare prices and find the best value. ¥ Set up a website on the internet so you can market your business and sell your products or services online. ¥ Compete with the large companies Ð whatever size your business is. On the internet no one need know if you are multinational or a home-based business. ¥ Find and tap into new markets worldwide; you can accept orders and enquiries 24-hours a day, automatically. ¥ For more information take a look at our free publication, Building an e-commerce website, available at www.dti.gov.uk/bestpractice Work more closely with your customers and suppliers Having access to the internet can steamline the way you work with your trading partners and save time and money in the process. ¥ This can be as simple as saving costs by using e-mail instead of the post, or putting your company brochure or stock list on your website rather than printing it. ¥ Or it could be as radical as sharing your forecasting data with key suppliers so that you can both order only what you need, when you need it. Or tracking and storing customer buying patterns from your website, so you can then more accurately target them with personalised marketing. ¥ Remote log-in and file transfer, such as file transfer protocol (FTP), enable you to upload and share files and resources with other authorised users Ð wherever they are based. Case study Tibard Tibard, the textiles manufacturer and distributor, uses the internet to give its customers access to account information, and to submit and approve product designs electronically. By connecting its embroidery machines to its design and e-mail systems, Tibard can receive logos directly from the client rather than contract out this part of the process. The technology to allow this cost £180,000 but paid for itself within a week. Customers can access the account and invoice systems through a passworded area of the companyÕs website. This integration lets them see how much theyÕve spent, view invoices, and get statements of their account Ð which speeds up the job of both partiesÕ accounts departments. The website also contains functionality to allow clients to set up and access their own personal range of garments. Matthew Shonfeld, TibardÕs Managing Director, is convinced that the use of information and communication technology has played a major part in increasing sales and over 25% of sales now come from the website. As it takes time for staff to get to grips with new ways of working and new technology, the company has taken great efforts to ensure that they are properly trained to use the equipment. As Matthew says: ÒIt's essential to research purchases thoroughly and ensure that staff will actually use the systems you plan to introduce.Ó Tibard's success is thanks to intelligent investment in e-business solutions, and in only pursuing options that fit with its overall business strategy Ð all ensuring that the company stays ahead of its competitors. As Matthew says: ÒWe research the products and if it makes good business sense, we go for it.Ó Getting started Ð what you will need Computer If you donÕt have a computer yet, you should be able to buy all the equipment you need to connect to the internet for a few hundred pounds. If you get a second-hand computer, make sure that it has a CD-Rom drive and a modem and is no more than 3-5 years old. Nearly all new computers will be adequate for the internet. You will also need a connection from your computer to your phone socket. Telephone line Your computer and phone can share a single telephone socket, but this does mean that you canÕt use the internet and phone at the same time Ð so you will probably want to think about having a second telephone line installed. If you think you will be accessing the internet regularly, consider investing in a dedicated phone line for internet usage. Modem The modem links your computer to the phone network. Modems come in different speeds, measured in kilobits per second (Kbps), or ÔKÕ. Most computers already come fitted with a 56k modem, so it is unlikely that you will need to buy one. If you do it will cost less than £50. Web browsing software When you look at web pages on the internet, youÕre using a web browser. Web browsers also appear in simpler devices, such as internet-connected mobile phones, and PDAs (Personal Digital Assistants), such as the Palm Pilot. You will probably already have web browsing software on your computer, as it will have been pre-loaded when you bought it. If you donÕt, you will be able to get the software from your Internet Service Provider (ISP). Some of the most common web browsers are: Microsoft Internet Explorer; Netscape; Safari for Apple Macs; Opera; and Lynx which is a text-only browser that has been adapted for the visually-impaired. Choosing an ISP The main thing to consider is whether to choose a dial-up connection where you connect to the internet by making a call through the phone line or broadband giving you a faster, Ôalways-onÕ connection. To connect to the web you will need to set up an account with an Internet Service Provider (ISP) Ð and there are lots to choose from. Packages usually include connection, hosting your website and maintenance, and various security products. Some also offer website building. Some big name ISPs include AOL, BT and NTL, but there are plenty of smaller operators out there. Make sure you research the packages that are on offer thoroughly before you commit to one. YouÕll also need to choose between a dial-up connection where you connect to the internet by making a call through the phone line, or a broadband connection, which gives you a faster, Ôalways-onÕ connection. The two options are covered in more detail over the next few pages. Internet magazines, available from most newsagents, will often give comprehensive listing of ISPs and the packages and offers that they provide. Prices change frequently, so itÕs worth spending the time to research the best deals. Dial-up access Dial-up access to the internet is via a telephone connection, and the connection remains on for a limited amount of time. You are charged according to how much time you spend on the web, and the rate charged will depend on your package and possibly when you use it. There are several different options you could consider: ¥ Option 1: pay-as-you-go ¥ Option 2: package deals ¥ Option 3: subscription option 1: Pay-as-you-go This works like a pay-as-you go mobile phone package: itÕs quick and simple to set up. ThereÕs no monthly fee, but you do have to pay for internet phone calls which are usually charged at a local rate. Pros ¥ ItÕs a pay-as-you-go service, so you only pay for what you use. ¥ It can be more secure than Ôalways-onÕ packages as your system is only open to the internet at certain times. Cons ¥ Connection speed is slow. ¥ Download time is slow for files or large e-mails as it uses the standard 56K modem. ¥ You have to dial up every time you want to go online or send and receive e-mails. ¥ Some ISPs end the connection after a period of inactivity, which means you have to keep on reconnecting. Providers and costs You will need to compare individual providers and make sure you check the small print, for example support will often cost around 50p per minute. NTLÕs Pay-as-you-go package lets you use the internet any time for 1p per minute, though this service can be subject to a connection charge of 5p (4.9p in some areas) for each call. Other packages include: Breathe Ð Breathe Anywhere; Virgin Net Ð Pay-as-you-go; and Tiscali Ð Pay-as-you-go. If you only use the internet for e-mail and occasional browsing, say a few hours a month, then this is probably your best option. option 2: Package deals Many ISPs offer packages where you get free unmetered internet access for a fixed fee every month. Expect to pay around £8-£11 per month. This is suitable if you anticipate using the internet for longer periods. A lot of these packages still require a BT line and some are in conjunction with BT SurfTime, though the amount of choice is improving. Pros ¥ Cheaper than pay-as-you-go for heavier users of the internet. ¥ You can choose a package tailored to your requirements (all-day or off-peak only). ¥ You can leave it on, so you donÕt have to keep connecting. Cons ¥ Download times for larger files and e-mails are still slow (this still uses the standard 56K modem). ¥ Some ISPs have more users than they can cope with, leading to difficulties in signing on at peak times, and connections may be cut if there is a period of inactivity. ¥ You must consider security, such as a firewall, if you leave the connection open all the time. ¥ Some packages are not designed to meet normal business needs, for example they may prevent you from sending bulk e-mails. Providers and costs Make sure you check the terms and conditions as some ISPs will restrict what you can download, or have cut-off times to prevent continuous use and other usage restrictions. Examples of current packages include: ¥ NTL Ð Unmetered access for £10 a month, but only if you are an NTL phone customer. Phone and surf Ð where you use NTL for phone and internet Ð is £28.50 a month for 24-hour internet surfing, plus unlimited local and national calls, evenings and weekends. ¥ Freeserve AnyTime Ð £14.99 a month, and all internet calls are free, though you do need a BT line. ¥ BT Connect Anytime (Business) Ð £27.99 per month (no call charges). ¥ Tiscali Anytime Ð £14.99 per month. ¥ Abel Internet Dial Anytime Ð £27.99 a month. option 3: Subscription There is a range of subscription packages where you pay a monthly fee and call costs. The benefit is that you often get a quicker more reliable service with good technical support and other services. Pros ¥ Quicker more reliable service. ¥ Good technical support. ¥ Additional services Ð such as security options. Cons ¥ More expensive. ¥ May not be worth paying the additional costs, if your business is not using the internet for business-critical communication or information sharing. Providers and costs Here are some examples of subscription services. It is always worth checking the details to find out exactly what you are getting for your money: ¥ PIPEX Dial Internet Service Ð one-off set-up fee of £11.50, monthly fee of £12.75 and unlimited technical support at no extra cost ¥ Netscalibur Ð £11.49 per month or £100 annually (excluding VAT) ¥ Swift internet Ð specialises in the needs of Small to Medium sized companies and offers a range of different products, starting from £13.50 a month for Business Anytime ¥ U-NET Ð £12 per month or £100 per year, £12 set-up fee. Other considerations The ISP market is very competitive, which means you may be offered a wide range of other services. These include: a set amount of free internet access each month; improved after-sales and technical support; better security; and free content or web hosting. Remember to shop around to get the best deal for your business. Case study Wesco Aircraft Europe ÒWe invested in technology to give us our competitive edge,Ó says Alex Murray, Logistics Manager at Wesco, distributor of aircraft parts. Enhancements to the company website have extended services to customers and suppliers. Users can access real-time stock information with a password, and use tailor-made query reports to request quotes quickly and conveniently. The site also actively encourages customer feedback through a series of 'scorecards' and an online forum allowing users to participate in discussions. The company publishes widely on commercial sites so that prospective customers can view products and prices. Wesco now participates in aerospace online auctions. An unexpected spin-off of its involvement has been a raised industry profile, which has helped forge valuable new partnerships. Thanks to its e-business strategy, the company has seen a reduction in costs and improved communication and customer service. ÒWe can give customers more timely and accurate information,Ó explains Alex. ÒWe are able to manage a contracted supply base of eighty suppliers with just one person Ð without technology, youÕd need six people to do the same job.Ó With a continual exchange of information with customers and suppliers, relationships are now more focused and productive. Staff are freed from administrative duties to concentrate on discussing real issues and finding solutions. All of this has contributed to an increase in Wesco's turnover from £8m two years ago to £14m this year. As the company's investment in technology has been gradual and continual, there have been few problems when it comes to managing change. ÒWe've learnt to be patient when it comes to systems implementation, and to be persistent,Ó says Alex. Alex also stresses the importance of good project management and the phased introduction of new technology. ÒWhen we introduce a new system, we continue to run the old one in tandem until it is fully up and running,Ó he says. ÒDonÕt ignore the potential improvements that technology can bring and donÕt think that itÕs just a fad,Ó Alex says. broadband can transmit data ten times the speed of a modem Broadband Broadband is the common term for a high bandwidth internet connection. A broadband service can transmit data at up to ten times the speed of a standard modem and is Ôalways-onÕ Ð so you donÕt need to dial up every time you want to receive your e-mail or visit a website; you are already connected. It is probably worth investing in broadband if your business: ¥ frequently sends or receives large file attachments ¥ views web pages with lots of pictures, complex graphics or rich media. A broadband connection will also enable you to rent certain applications and services via the internet. What you need You pay a monthly fee for this type of connection, which is available via an existing phone line, fixed wireless links, cable or satellite. To establish a broadband connection, youÕll need: ¥ The correct hardware, a modem and possibly a network card. The ISP will usually supply the modem (or antenna or dish) plus cables, and will charge a fee for installing and setting up the connection. Several ISPs also offer a less expensive Ôplug and playÕ DIY install ADSL product that the technically aware can install without help. ¥ An ISP. Your connection fee could range from £20-£200, depending on which service you opt for, but your monthly fee will probably cost around £20-£30 per month. Some of the best value deals are through the cable companies, where you can get high-speed internet from just £25 per month. ¥ There may be extra costs for additional features, such as multiple e-mail addresses and handling, domain name services and website hosting. Pros ¥ Much faster than a conventional modem. ¥ You can use the phone at the same time as being connected to the net with no loss of connection or speed. ¥ A reliable and permanent way of connecting to the internet. ¥ Rapidly transfers or downloads files. ¥ It can handle much more information, more quickly than other forms of web access. ¥ Web pages download almost instantly, sound and pictures are of almost broadcast quality. Cons ¥ As you are permanently connected you must consider proper security measures, such as a firewall to prevent hacking (unauthorised access to your files). There is more information in our free booklet, Information security: the hard facts, available from www.dti.gov.uk/bestpractice ¥ Not all types of broadband service are available in all areas. Providers and costs Here are just some examples of broadband services and costs Ð but it is always worth shopping around, as prices frequently change: ¥ Virgin Net Ð broadband is now available for under £25 a month. ¥ Telewest Blueyonder Ð broadband internet starts from £33 per month or £25 if you subscribe to other Telewest services, along with a £50 installation fee. ¥ Claranet offers a number of different Broadband packages, including an ADSL Self-Install Ð for £53.00 + VAT per month. ¥ PlusNet offers broadband from just £20.99 a month. Find out more about broadband options in our publication, Broadband, available from www.dti.gov.uk/bestpractice. ADSL The most common form of broadband, it uses existing phone lines and is relatively cheap. Cable modem Also relatively cheap, it is delivered through cables Ð like cable TV Ð so you would need to live in a cabled area. Satellite (1-way) Uses a satellite to receive information and a telephone or ISDN for uploading information, itÕs widely available but there can be delays with transmitting information. Satellite (2-way) Uses a dedicated satellite dish to send and receive information. ItÕs widely available but there can be delays with transmitting information. Leased line A private telephone line reserved solely for an individual business, this is very fast and reliable, but expensive. Wireless Using radio transmitters and receivers to link computers Ð this gives lots of flexibility, as you can access the web on the move, but it is still quite a new technology and can be complicated to set up. Considerations ItÕs worth examining your business strategy to see how the internet could be used to achieve specific objectives. Dial-up versus broadband ¥ You will need to decide whether a dial-up connection will be sufficient for your business, or whether you need to invest in broadband. ¥ If you plan to send or receive large files and images, such as CAD/CAM files or video clips, then you will need broadband. There are also some online services that you can only really take advantage of if you have broadband. For instance a broadband connection is essential in order to use trading hubs and online auctions. SLA (Service Level Agreement) Whichever ISP you choose, make sure you have a Service Level Agreement (SLA) with them. This is a contract that specifies what services the ISP will provide. It is likely to cover the following things: ¥ the percentage of the time that services will be available ¥ the number of users that can be served simultaneously ¥ specific performance benchmarks ¥ how much advance warning you will get if there are going to be any network changes ¥ help desk response time for various types of problems ¥ usage statistics. Security Opening up your computer, or your computer network, to the internet does mean there is an increased risk to your data, for example from a computer virus or hacking. However there are lots of things you can do to minimise this risk, such as using virus protection software, or installing a firewall. Our Information security: the hard facts brochure gives more details of your options Ð this is available from www.dti.gov.uk/bestpractice. Implementation checklist This checklist will help you implement internet access in your business. To keep track of your progress, tick off each area as you work through it. Research & analyse Check availability Set goals for using the internet; do you want to expand your customer base, reduce costs, or improve efficiency? Agree specific, measurable objectives for what you want to achieve, such as reduction in supplier prices or percentage increase in new clients. Cost benefit analysis Compare the costs of going online Ð including the monthly cost of the ISP, increased phone costs, any equipment upgrades or staff training Ð with the benefits of greater efficiency, reduced operational costs, cheaper research. Research the options Establish what your business needs from your ISP. Explore the available options Ð ask about packages that are available, and find out about other businessÕs experiences of their ISPs. Decide whether your business needs broadband or a dial-up service. Compare prices of a package solution, pay-as-you-go, subscription and broadband. Compare ISPs Shop around and compare rates and services. Can you connect to the internet and remain online as often and for as long as you like as part of your monthly subscription? Does an additional charge come into force after a set number of hours free access? How many e-mail addresses are provided for your monthly subscription? Does your ISP offer faster access via ISDN or ADSL? Does your ISP offer after-sales support, advice and guidance? Does your ISP offer any additional content or services, eg local weather or traffic reports, internal conferencing or accessto databases of businesses information? Does the ISP cater for different sized businesses and would you be able to upgrade as your business grows? Does the ISP offer any additional facilities for businesses? Can you register a unique domain name (website address) for your business? How much commercial web space is available? Is there a limit to the number of pages available for your website? Can the ISP deal with high volumes of online traffic? Is technical support available 24-hours a day? Is there phone, fax or e-mail support? What level of security is provided? Consult Internally/externally Speak to staff to find out what they hope to gain from access to the internet. Talk to customers and suppliers, who are already online to find out what they use and what they get out of internet access. Plan & test Evaluate options Try before you buy Ð take advantage of freebies, many ISPs offer free trials, which will give you a chance to see how they work and what you could get out of internet access If youÕre uncertain of how much benefit your business will get from internet access, consider using pay-as-you-go initially, where you are not tied into a contract Ð you can always upgrade later if you decide it is worthwhile. Plan the rollout phase Decide whether staff will need training in how to get the most out of internet access and allow time for them to adjust to using it. Act Implement internet access Roll out any necessary training and encourage staff involvement and feedback, this will help smooth implementation, as staff buy-in can make or break a technology project. Measuring the results Get feedback from staff about how they use the web and whether they think it is a useful addition. Evaluate the impact on your supply chain Ð has the web opened up possibilities for new trading partners? Keep track of new suppliers and customers, and note how you found them or they found you. Evaluate Monitor and review the impact on your business and against your objectives. Get feedback from customers and suppliers on the changes. Evaluate the impact after 6 months and 1 year. Have you achieved your objectives? Establish how you could improve things further. Further help and advice Achieving best practice in your business is a key theme within DTIÕs approach to business support, providing ideas and insights into how to improve performance across your business. By showing what works in other businesses, we can help you see which approaches can help you, and then support you in implementation. Achieving best practice in your business To access free information and publications on best practice: ¥ visit our website at www.dti.gov.uk/bestpractice ¥ call the DTI Publications Orderline on 0870 150 2500 or visit the website at www.dti.gov.uk/publications Support to implement best business practice To get help bringing best practice to your business, contact Business Link Ð the national business advice service. Backed by the DTI, Business Link is an easy-to-use business support and information service, which can put you in touch with one of its network of experienced business advisers. ¥ Visit the Business Link website at www.businesslink.gov.uk ¥ Call Business Link on 0845 600 9 006 general internet information Having read this brochure, youÕll probably have some more questions about the technical aspects of the internet or about how you go about getting it. The following sources of information and advice should help you get answers to your questions. ¥ As well as detailed advice on getting the best from a whole range of technologies, our website has a section on the internet. Visit www.dti.gov.uk/bestpractice (or call the DTI Publications Orderline) for a wide range of useful publications, including: Ð Broadband (04/644) Ð An introduction to e-business (04/671) Ð Building an e-commerce website (04/658) commercial providers ISPs, Pay-as-you-go ¥ www.net2roam.com ¥ www.easynetdial.co.uk ¥ www.breathe.com ¥ www.virgin.net ¥ www.tiscali.co.uk Package deals ¥ www.ntlhome.com ¥ www.freeserve.com ¥ www.btopenworld.com ¥ www.Tiscali.co.uk ¥ www.abel.co.uk Subscription ¥ www.netscalibur.co.uk ¥ www.dial.pipex.com ¥ www.swiftinter.net ¥ www.u-net.net although the site is branded via net.works and redirects to www.vianetworks.co.uk technology Broadband ¥ www.blueyonder.co.uk ¥ www.uk.clara.net/businessaccess/adsl ¥ www.plus.net ¥ www.virgin.net Web browsing software ¥ www.browsers.com offers downloads for several well-known browsers ¥ www.opera.com ¥ lynx.isc.org or http://lynx.browser.org ¥ www.apple.com/safari ¥ www.netscape.com ¥ www.microsoft.com/windows/ie GENERAL BUSINESS ADVICE You can also get a range of general business advice from the following organisations: England ¥ Call Business Link on 0845 600 9 006 ¥ Visit the website at www.businesslink.gov.uk Scotland ¥ Call Business Gateway on 0845 609 6611 ¥ Visit the website at www.bgateway.com Wales ¥ Call Business Eye/Llygad Busnes on 08457 96 97 98 ¥ Visit the website at www.businesseye.org.uk Northern Ireland ¥ Call Invest Northern Ireland on 028 9023 9090 ¥ Visit the website at www.investni.com