The MICRO Wave

Entrepreneur, April, 1999 by Ilan Greenberg

As technology gets ever smaller, one question looms large: How micro should you go?

ONE OF THE GREAT triumphs of modern technology is miniaturization. As the computer industry never tires of reminding us, desktop computers pack more processing power than the 1960s-era computers that filled entire rooms. But the appeal of technology that is ever smaller and thinner isn't just limited to PCs. Everything from digital business card readers and portable projectors to the latest flat computer monitors is popping up in small businesses.

To be sure, some of these devices prove their worth almost immediately. Anyone who has traveled on a cross-country flight can testify to the value of the all-purpose laptop computer/printer combination. Small businesses are snapping up smaller products to accommodate cramped work spaces and enable "virtual offices," taking information and technological tools anywhere they're needed, be it to far-flung clients or on the subway for the morning commute.

For some small enterprises, smaller technology can mean the difference between staying put and moving to an entirely new office. That was the case for Jerry Kopf, a partner in Benjamin & Jerold Discount Brokerage in Chicago. "We bought small flat-panel screens for our computers as soon as the price went down," says Kopf, 56. "Was it worth it? We'd rather do that than move to new offices."

In fact, for many entrepreneurs, the trend toward small products is crucial to success. "[Staying organized] is one of the most important things I can do, especially since I go to outside appointments constantly," explains Genese Weber, 31, owner of Weber Consulting, a management consulting firm that serves small and midsized companies in the San Francisco Bay area. "Paper really doesn't cut it. I have two different offices, plus a home office, so I need as much information with me as possible."

THUMBS UP?

But the quest to miniaturize almost everything requires trade-offs. This is especially true as devices increasingly take a James Bond turn. E-mail can now be transmitted over a digital cell phone or a satellite pager. The advent of the Web means entire documents that previously required hundreds of loose pages in a big binder can now be downloaded onto a machine no bigger than the first portable calculators.

What some machines lose in bulk, however, they also shed in usefulness. Case in point: the current generation of Windows CE computers--midget laptops (sometimes called "subnotebooks") that run Microsoft's scaled-down operating system. The weight of these minicomputers is less than half that of a conventional laptop. But they also don't support the most popular cadre of small-business applications, such as Microsoft Office. While some businesspeople use a Windows CE device as a second or even third computer for specific tasks, like taking notes during meetings, in light of the declining cost and size of full-featured laptops, the advisability of purchasing a Windows CE computer, especially as your primary personal productivity computer, becomes a measure of diminishing returns.

"If you're going to carry a laptop, and all you need it for is to look at e-mail and run PowerPoint presentations, then it may make sense to get a smaller, lighter computer that has less horsepower. But if you need more power, odds are, you're going to have to carry something larger," says James Balderston, an industry analyst with Zona Research. "The temptation for many people is to get a laptop that has all the bells and whistles on it. But in many cases, not only will that cost you more, but it will also be larger. As for other devices, getting e-mails on your cell phone is great for an occasional text message, but for anything more than a basic text pager, it doesn't make a lot of sense."

As an entire product line, Windows CE may not make sense for many small businesses. But that kind of categorical neatness is the exception, not the rule, when it comes to considering smaller technology. Often, the point when products become literally too small to be useful is more difficult to pinpoint and differs by the brand or individual product model, say business technology experts. And while one rule of thumb can sometimes be, literally, the size of your thumb--especially with devices that have keyboards so small they render typing awkward at best--more often than not, decisions about small technology will require a more sophisticated strategy, one that takes into account the particular needs of both your business and, just as important, the individuals who will be using the product. After all, the value of technology slides down to absolute zero if no one uses it.

"You have to look at your needs and the return on your investment," says Ramon Ray, editor of the Small Business Technology Report newsletter and a small-business technology consultant in New York City. "ROI is a big corporate word, but when it comes to buying technology, even the smallest of technologies, I think small businesses have to look at it, too. It's amazing that so often small businesses forget to take that into account."