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Setting up a basic IT system

Your IT system is made up of all the computer technology in your business. It can include PCs, printers, servers, mobile phones and more.

You should specify and source an IT solution which meets your immediate requirements but which you can also expand in the future.

This briefing covers:

  1. Your requirements.
  2. Core components.
  3. Optional extras.
  4. Software.
  5. Budgeting and buying.

1 Your requirements

1.1 Consider what you will use your IT system for.

Typical uses include:

  • Managing your accounts, producing invoices and running payroll.
  • Customer relationship management or a central customer database.
  • Email and the Internet.
  • Producing letters, leaflets and other printed material.
  • Processing sales and stock control.
  • Word processing and presentations.

1.2 Examine objectively how your business operates and whether there are functions which could be more effectively carried out using IT.

  • You can bring in an IT consultant to offer an external perspective and new ideas.
  • For instance, you could use a customer relationship management (CRM) system to track every contact with customers and improve retention.

1.3 Work out how many employees will be using the system.

  • If you have fewer than five employees, a simple system without a central server may be adequate.
  • If you employ many staff, the system will need more capacity.

    A central server would be advisable.

1.4 Consider the importance of Internet access.

  • If your company relies on the Internet to do business, you will need a robust connection.

1.5 Identify any unusual requirements your business has.

  • Do you need to run any non-standard software?
  • Does a staff member with a disability need particular software or hardware to do their job?

2 Core components

At the heart of your IT system will lie a number of core components.

2.1 Computers are the workhorses in your business.

  • You may wish to give each employee in your business their own computer.
  • Desktop computers are cost-effective, but laptops are more flexible.

    For instance, employees can use them to work from home. See Remote working.

  • Even the cheapest PCs can run basic office software.
  • Pay attention to accessories like keyboards, mice and monitors.

    Ensure they are comfortable to use and get the largest monitors you can afford.

2.2 A network allows you to connect your computers together.

  • Most businesses with more than one computer will benefit from a network.
  • Information and documents can be easily shared.
  • See Networking your business.

2.3 An Internet connection allows you to get online.

  • A basic broadband connection (also called ADSL) uses a telephone line to connect you to the Internet. This offers a cost-effective, fast connection.
  • Other types of Internet connection are available. These can be faster and more reliable. If the Internet is central to your business, ask your IT supplier to advise on connection options.
  • You can share your Internet connection through a network.

2.4 A server sits at the centre of your computer network.

  • Servers provide a central place to store data and can improve network performance.
  • It can be tricky to set up a server if you are not an IT expert.
  • If you choose not to invest in a server initially, plan for the possibility as your network grows.
  • See Network servers.

3 The extras

You may wish to add additional hardware or purchase support options or training programmes.

3.1 Webcams and headsets make communication easier.

  • Your staff can hold conversations using free instant messaging (IM) software.

    This is cheaper than using the phone.

  • You can transmit video, allowing you to hold virtual meetings through IM software.
  • Voice over Internet protocol (VoIP) software allows you to make international calls cheaply.
  • See Telecoms for competitive advantage.

3.2 You may need to provide support for your IT systems.

  • When determining what support you need, consider how a fault could affect your business.

    For instance, you may want to ensure problems with your customer database can be fixed quickly.

  • The level of support you require also depends on the level of in-house expertise you have.

    Can you support your own systems effectively?

3.3 Most IT suppliers will offer a number of support options.

  • Hardware generally comes with a year's warranty at no extra cost.

    However, you may be without the equipment if it has to be sent away to be repaired.

  • You can usually upgrade warranties.

    For instance, many companies will guarantee a visit from an engineer on the day you report the fault.

  • Make sure critical hardware is covered by a warranty which guarantees a fast response time and replacement if the fault cannot be fixed quickly.

    For example, four hours or less.

3.4 You may also need to train your employees to use your IT system.

  • Training may be required for specialist or unusual applications.

    For instance, any custom software you have.

  • Your IT supplier should be able to advise on training options and cost.
  • A cost-effective option can be to train up one or two staff members in each department.

    They can then train other employees.

4 Software

In order to get the most from your IT system, you must choose the right software for your business.

4.1 The operating system is the basic software on the computer.

  • The most common operating system is Microsoft Windows.
  • Most PCs will come with Microsoft Windows as the pre-installed operating system.

    Unless you have good reason not to, it usually makes sense to use this as your staff are likely to be familiar with it.

  • If you have a server, that will require an operating system, too.

    There are several options. See Network servers.

4.2 An office suite is a collection of programs allowing you to carry out common tasks.

  • It will usually include word processing, spreadsheet and presentation software, plus email and calendar applications.
  • The most common office suite is Microsoft Office.
  • A good alternative to Microsoft Office is OpenOffice.

    This is free and offers many of the features of Microsoft Office. However, it is not industry standard, and you may experience problems transferring files to other systems.

4.3 Accounting and payroll software can make managing your finances much easier.

  • See and .

4.4 Stock-control software allows you to predict buying or manufacturing needs to help drive efficiency, which in turn can provide customer service benefits.

4.5 Customer relationship management software allows you to log each contact you have with a customer.

  • This information can be shared between everyone in your business.

    Whoever speaks to the customer will have instant access to the full history.

5 IT security

Computer viruses, hackers and other threats can cause major disruption to your business.

5.1 Install security software on all your business computers.

  • Security software protects you from viruses and hackers.
  • All-in-one security suites offer the essential protection you need.
  • Alternatively, you can purchase separate packages to protect against viruses, spyware, hackers, and so on.

5.2 Use firewalls.

  • A firewall filters network trafffic and can block hackers from trying to access your systems.
  • Each of your computers should have its own software firewall.
  • For extra protection, you can install a hardware firewall between your network and the Internet.
  • A hardware firewall is essential if you have a network server.
  • 5.3 Keep all your software up-to-date.
  • Software companies release regular security updates to their products.
  • Install these on your systems promptly.

5.3 Create a robust backup system.

  • Set up a procedure for making regular partial and complete backups.
  • Store backups off-site. Keep them away from heat, moisture and magnetism.

See IT security and .

6 Budgeting for your system

6.1 One of the first things to budget for are the computers in your business.

  • For around £300, you should be able to buy a PC suitable for basic office applications such as word processing, simple accounts, sending email and surfing the Internet.
  • For £600, a system will handle all the above and be more powerful, as well as having more extensive sound, graphics and storage capabilities.

    This could be used for web and print design, or for stock-control systems that juggle large amounts of data.

  • For £1,000, you should get high-speed processors, lots of memory and advanced graphics.

    High-end machines are only necessary for businesses that depend upon processing speed.

6.2 Laptops may be worth the extra money.

  • You will typically pay a 20-30 per cent premium for a laptop compared with a desktop PC of similar specification.

    However, laptops are much more versatile.

  • It may be worth issuing laptops as standard in your business, especially if you expect employees to work remotely or on the move.
  • See Remote working.

6.3 Dedicated servers cost from £300.

  • A basic server may be a false economy.

    You should expect your server to last several years and stand up to heavy use.

  • If you have fewer than five computers, a server may be unnecessary.

6.4 Remember to budget for accessories like printers.

  • See Choosing computer accessories.

6.5 Additional costs may include:

  • Software.
  • Maintenance and support.

    This may add significantly to intial costs. Check the level of support you get and if there are any hidden charges.

  • Training, for you and your staff.
  • Cabling and other network costs, if required (eg routers and firewalls).
  • Internet access fees.

See Specifying and purchasing IT.

7 Making the purchase

You can source your system from a number of different channels.

7.1 From a retail store.

  • Retailers will generally be able to supply hardware quickly.

    This makes them good for urgent, one-off purchases.

  • They are generally more expensive than buying online or direct from the manufacturer.

7.2 From a reseller, online or over the phone.

  • Online resellers offer competitive prices on hardware and software.
  • Delivery can often be arranged quickly.

7.3 Direct from the manufacturer.

  • This allows them to keep prices low and build systems to your exact specification.
  • You may be able to discuss your requirements before purchasing, although you will need an idea of what hardware and software you want.

7.4 Use an IT consultant or specialist supplier.

  • This is the best option if you are planning a new system, or making major changes to your existing set-up.
  • A consultant will be able to examine your requirements and suggest what type of system you need.

    You can then take these requirements to the supplier of your choice.

  • Purchasing IT equipment this way is more expensive, but the best option if you lack in-house expertise.
  • Check references when choosing a supplier or consultant.