Intel Demonstrates Productivity and Profitability Gains for European Small Businesses That Embrace PC Technology

HANNOVER, Germany, March 20, 1998 -- Intel Corporation today outlined its strategy to help European small businesses embrace PC technology to maximize productivity and improve competitiveness and profitability.

At the CeBit tradeshow in Hannover, Germany, Rob Eckelmann, Intel's managing director of EMEA, discussed the opportunity small businesses have to embrace the "electronic transition" and use PC technology to their advantage. Eckelmann outlined the steps small businesses can take to implement technology easily and affordably, and the role Intel can play in guiding their success.

"On average, productivity can be increased by 33 percent once multiple PCs are installed, and another 22 percent once those PCs are networked¹," said Eckelmann. "The solutions are here today that can help improve the day to day business operations that Europe's 16 million small businesses face². Intel's role is to bring together the building blocks of the processor, PC platform and networking technologies that will enable small businesses to compete more visibly in a fast-paced marketplace."

More than half the world's work force and 58 percent of Europe's workforce is employed by small businesses (2-100 employees) today³.

Industry research indicates that only 51 percent of the small businesses in Europe have one or more PCs⁴, and that a large percentage of business owners believe they have limited technical knowledge and lack the resources required to implement technology⁵ -- namely, capital, expertise and time. Intel intends to help remove perceived barriers and bring these benefits of technology to a broader set of small businesses.

Eckelmann outlined four primary steps to technology adoption for small businesses and the benefits associated with each step.

Buying and Using a PC
Utilizing Intel Architecture-based PCs powered by mainstream Pentium® II processors can help small businesses improve common business processes such as bookkeeping, scheduling, correspondence, presentations, finances and inventory management. PCs also enable small business to accelerate response times to meet customer demands and to produce professional-looking and innovative marketing and sales brochures, menus and other documents.

Getting Connected Internally and to the Internet
Connecting those PCs within the company and to the outside world through the Web enables small business employees to access and share information critical to the company's success. Connections also improve efficiency through sharing common printers, scanners and Internet access lines. Implementing simple connectivity solutions using Intel's InBusiness™ networking products improves communication via electronic mail among employees, customers and suppliers, resulting in faster, better business processes. Intel's InBusiness products are designed for easy installation and usage, and can be up and running in minutes.

Building a Web Site and Establishing a Presence on the Internet
The next step for a small business is establishing a Web presence to expand the company's reach to a much wider customer audience. The global access and visibility offered by a Web site means hundreds of thousands of potential new customers and round-the-clock access to the company's information and services.

Executing Transactions on the Web
Ultimately, this technology can become the medium for increased sales, improved customer-supplier-relationships through tighter inventory control, and enhance customer service by giving customers and suppliers the ability to do business 24 hours a day, 7 days a week.

"What's exciting for small businesses is that there are incremental benefits at each simple step on this technology adoption path," said Eckelmann. "Each time a small business implements one more piece of technology, they see real productivity and profitability gains."

Eckelmann also noted that small business owners and resellers have come to recognize and trust the Intel brand as a symbol of reliability and technology leadership. Intel recently announced an extensive training program for resellers with the objective of enabling the resellers to offer their customers, and in particular small businesses, an unprecedented level of support and consultancy services to make the implementation of IT infrastructure a simple and successful task. Registration for Intel's new certification program is underway and classes begin worldwide on April 1.

For more information about Intel's small business solutions, visit Intel's small business Web site at www.intel.com/business/small.

* Other names and brands may be claimed as the property of others.

1 Charles River Strategies, April, 1996
2 IDC/LINK, December, 1997
3 IDC/LINK, December, 1997
4 IDC 1996, EuroStat, 1997
5 Business Research Group, 1996