Wednesday, July 21, 2010

"SMEs are the businesses that can benefit the most from the Internet"


Interview with Luciano Schlaen for the journal “Foro Esine (E-zine forum)”, number 105 (July, 2010). View in original format.

In 1994, in a context in which the Internet was practically unheard of, the company Paginar.net was created to undertake web projects. Currently, it is a consulting company specializing in web and online communication technology with more than 60 people who offer comprehensive Internet solutions for Europe, North America, and Latin America through its Madrid, New York and Buenos Aires offices.

Why create this company?
Our idea was ahead of its time by several years with regard to the needs of the market at that time. But we had faith in the potential of the Internet and saw that its development was inevitable. Time proved us right.
Throughout our 15 years of existence, we have completed thousands of projects and have survived more than one crisis. We work with large companies, such as Grupo Planeta, Vocento, Citibank, L’Oreal, Yahoo!, UNESCO, Johnson & Johnson, Danone, Lufthansa and Mapfre. We also work with SMEs, such as Visán, Alfageme and MAP & Associates, who are counting heavily on the Internet.

When did you arrive in our country? What were your goals?
We arrived in Spain at the beginning of 2002, seeking to expand and diversify our market. At that time, the online world was very new to this country, and we saw this as an opportunity, since it would inevitably have to evolve, grow and develop.
Up until 2001, Paginar.net was a company that focused on the Latin American market, mainly in Argentina. But, beginning that year, our strategy became one of expansion and diversification. We then began the venture into the United States and Spain at the same time. Today, nine years after that decision, we can say that we did the right thing.

What services do you basically offer?
Our company provides comprehensive service for the Internet, offering companies solutions from start to finish, always adapting to their needs, whether it is communications (search engine marketing, search engine positioning, social networking campaigns, etc.), design and development for the Internet (corporate websites, 2.0 tools, social networks, etc.), or implementation of corporate web technology solutions (intranets, management tools, etc.).

In your opinion, what are the key elements for the success of a company at this time?
If we are talking about Spain right now, I think it is competitiveness. After years of abundance and easy money, service companies now have to be able to offer results. In this sense, a crisis is an opportunity to really do your job well. Also, when faced with a crisis, the ability to adapt is fundamental. I think our success lies in the attention we give our clients and our ability to adapt. Having been around for more than 15 years, we are one of the few companies in the sector that has survived change and overcome difficult times, such as the “dot-com crisis”, in which almost 5,000 Internet companies disappeared.

Could you explain why it is so important today for companies to use the Net?
If you are not on the Internet, you do not exist. Today it is easier to find a company, a product and even the movie times on the Internet, whether through a computer, a mobile device or, soon, television. On another level, the Internet and new technologies allow companies to create new sources of revenue, or even reduce costs. New products and services can be developed, processes can be optimized so that they are more competitive, new markets can be reached, a network of partners can be expanded, work can be better organized and controlled, communications can be made more affordable and simplified, and endless other possibilities. The important thing is to study each situation to see how to take advantage of it. You have to also understand that the competition may already be doing so.

The company has managed web projects for large companies, such as Grupo Planeta, Yahoo!, Danone, and others. However, do you think that there is a clear opportunity for Spanish SMEs in all of the possibilities inherent in the Internet?
I think the SMEs are the companies who will benefit the most from the Internet. A small business can have a niche and a working capacity that could not even be dreamed of before. It was simply not within reach. Tools such as e-business or e-mail, to mention two of the more obvious examples, have allowed small organizations to do a large amount of business. Even advertising on the Internet is much more accessible and effective than the traditional means of radio, television or paper. And with social networks, the possibilities to obtain results is even greater. An SME can connect with its audience and promote a product, reaching its target without investing millions.
Today, the Internet continues to be a virtually wide-open space that offers incredible opportunities; although it likely will not always be that way. In time, investments in technology, advertising, online management, etc., will certainly become more costly and sophisticated. In fact, I am sure this will happen. But, in the meantime, the Internet offers incredible opportunities at an affordable price.
LUCIANO SCHLAEN
Has studied Communication Science at Universidad de Buenos Aires (UBA) and received a Media Communications degree from Escuela Técnica ORT (ORT Technical School).
Before he began to focus on Internet project development, he worked in the field of visual media as a commercial photographer and audiovisual producer.
He has also participated, along with other contributors, in the creation of www.laspropiedadesdelcristal.net, a Net Art project that mixes poetry, video and interactivity.


Are companies still not taking full advantage of all the resources the Net has to offer?
Yes, there are evidently a lot of companies that are not taking advantage of the potential offered by the Internet. In fact, there are a lot of companies who aren't even taking the least advantage of it. However, the good thing is that it has matured dramatically in the last three or four years in Spain. The evolution is notable. There are many companies that are making extensive use of the Net, in both communication and technology. And we are also seeing how some companies are even bold enough to try methods that are not fully guaranteed, with outcomes that are still unpredictable.

In this sense, what will it really take for Spanish SMEs and the self-employed to finally let go of their fear of new technology and web trends?
I think that, in Spain, the importance and usefulness of the Internet in business is finally understood. Now, it is a matter of understanding that this requires an investment, a sustained investment. Many believe that starting a website for 500 euros is enough. And that is all it takes. But that is not how it is. The most important thing is to come up with an online strategy, to decide how to proceed and to what end. And then to support this plan with an appropriate budget.

Do you think there is an entrepreneurial culture in these fields in our society?
Yes, definitely. They have Tuenti, Idealista and even Zinkia. There are a lot of entrepreneurs trying it out. In fact, in the last two or three years, we have been participating in some Internet venture projects. We have also been consulting for others. Also, in recent years dot-coms have returned to Spain.
Recently, in the USA, it was reported that Facebook had surpassed Google’s user traffic. In this regard, what could you tell us about the evolution of search engines and the boom of new social networks? I just wrote an article about this, in which I noted that there are three periods that can be distinguished that clearly mark the evolution of Internet use: the portal era, the greatest example of which is Yahoo! (from 1995 to 2000), characterized by the organization of online content in directories; then the search engine era, with the indisputable domination by Google (from 2000 to present), in which the explosive growth of content included the triumph of robots in the classification work that had become impossible for humans; and now the social network era, dominated by Facebook, which has been made official by the fact that, in the United States, it has surpassed the traffic and usage time of Google, where people produce, recommend and comment on the content they see. The interesting thing about this evolution is to see how we have gone from a classic sender-channel-receiver communication model to an interactive model, in which roles are often not clearly defined.

What are the effects caused by the current economic crisis in the sector?
I think that, in our sector, the crisis has had, and will continue to have, positive effects. Because of it, we have seen how the portion of the overall budget set aside by companies for the Internet has increased, particularly in the area of advertising. However, it has also increased for web development, in the creation of new services or businesses and the implementation of management tools to make specific processes more efficient in order to lower costs.

In conclusion, what projects have you set your sights on in the near future?
We believe that we have enormous potential in the North American market, and we want to develop it. Although we have done a lot in a few years, the United States is gigantic and the ceiling of potential is still very high. There is also a lot for us to learn. So, we are focused on our office in New York. It's strategic.
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