'Stay in the Bay'

In February last year, I launched the 'Stay in the Bay' portal in conjuction with Priority One, the Western Bay of Plenty economic development agency.

The purpose of the portal was to provide an online e-marketplace for local businesses in the Western Bay. It was designed to enable large companies to place their procurement requirements online and for smaller vendors in the region to pitch for the business. Any business could advertise their procurement needs so it was effectively a route for registered businesses to either find new suppliers or pitch themselves for new business. A classic online e-marketplace.

Research prior to the launch by both Prioirity One and myself indicated real interest and support for the concept. We had a big launch at Baycourt and despite some extensive local press coverage and a month-long radio advertising campaign, only the Bay's larger companies signed up. In some ways, the companies it was most designed to help, local SMEs looking for new business, did not join up. Why?

A couple of thoughts.

Despite, the talk about Kiwis being 'early adoptors' of new technology, is that really the case? I do think that the historic quality and slow take-up of broadband in NZ has had a quite negative legacy effect in terms of the take up of new online services. It is quite unlike my offshore experience, to see so many businesses still using dial-up as their main point of connectivity, if at all.

And cost. The cost of joining the Stay in the Bay service (for unlimited use) worked out at about NZ$150 per year for the average local SME. Did this create a barrier to entry?

I had a meeting at Priority One's offices in Tauranga on Friday and we agreed that we would 're-launch' the Stay in the Bay portal next month as a free service, supported longer term by some advertising. It will be interesting to see whether the removal of the cost barrier proves more attractive to local businesses. With that barrier removed, it will come down to some intensive marketing and no doubt some 'free' advice.

At the end of the day, it will help me understand what makes NZ's SME's tick in terms of their understanding as to how new online services can help make their businesses more productive. I will let you know my experiences as the new launch unfolds.