Digital Business

Two-thirds of SMEs win by utilising teleworking says MYOB Monitor research

THE rise in teleworking - often out of economic necessity - is having a positive impact on small-to-medium enterprises in Australia, according research by business management solutions provider, MYOB. Image

Almost two in three SMEs - 64 percent - now have employees who telework to some extent, up from 57 percent in the March 2013 MYOB survey.

Released for last week's National Telework Week, the results of the MYOB Monitor survey of 1,022 Australian SMEs showed 27 percent have staff who work partly from home and partly from the business premises while 37 percent have staff who work mainly from a location other than on-premises. Staff of the remaining 38 percent work on-site only.

MYOB chief technology officer Simon Raik-Allen, who delivered the results to last week's Telework Congress, said teleworking and digital technologies were having a dramatic and mostly positive effect on the business sector.

"Teleworking is an increasingly attractive proposition as more business operators become comfortable with using advanced hardware, software and online services," Mr Raik-Allen said.

" They're more comfortable with how technology transforms the way we work and how we communicate with each other. A greater number of operators are realising the bottom line benefits, and a wider range of cost-effective telework-enabling technologies are entering the marketplace.

"Our research shows teleworking can play a vital role in business success, providing benefits including increased efficiencies and productivity, reduced overheads and happier employees," he said.

"It's about implementing the right technology and learning to make the most of it to maximise your and your team's effectiveness. A well-structured and tailored teleworking program can ensure more businesses reap the rewards and attract and retain the best staff who can deliver from anywhere."

The MYOB survey found, businesses with teleworkers felt less pressure from common SME pain points such as cash flow (30% versus 34% of non-teleworkers) and price margins and/or profitability (27% versus 37%), though they slightly felt more pressure from fuel prices (46% versus 45%).

Fuel cost was the top pressure point for SMEs overall, and has been since March 2011, while cash flow and price margins and/or profitability tied for second.

SMEs  had a greater chance of more sales/work than usual in their short-term pipeline (30% versus 27%) and were slightly more likely to both expect annual revenue to increase (23% versus 22%) and be satisfied with their work/life balance (51% versus 49%).

Delving deeper into SMEs that take advantage of teleworking, MYOB asked about the locations their workers operated from. One in two respondents said ‘mainly on the road' while two in five (39%) said ‘mainly from home'.

The survey also asked SMEs without teleworkers why they did not leverage the now-commonplace practice.

Two in five (41%) said their business wasn't suited to it because employees needed to be onsite at all times, over one in five (21%) said they didn't know, one in five (20%) said they had other reasons, while close to one in 10 said it was too disruptive and another one in 10 said they haven't assessed and managed the risks associated (8% each).

Established in 2004, the MYOB Business Monitor is a national survey of small and medium business owners and managers, commissioned to independent market research firm Colmar Brunton. The most recent study ran in July and August 2013, surveying 1,022 operators from sole traders to mid-sized companies, representing the major industry sectors.

The Monitor researches business performance and attitudes around areas such as profitability, cash flow, pipeline work, technology usage and government. As part of the survey's methodology, it weights MYOB client and non-client respondents in a way that reflects overall market proportions.

http://www.myob.com/

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Digital farming: Willunga Farmers Market bears fruit through Internode and NBN

WILLUNGA Farmers Market has embraced an Internode-delivered National Broadband Network (NBN) service to show how great produce, hard work and creative communication can rejuvenate a sidelined country town.

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Willunga Farmers Market 'spreads the love' through broadband.

 

Through astute and adaptive e-newsletters and Facebook marketing, plus a new ‘virtual tour' on its high-speed website, the markets have grown a strong following and deeper relationships with regular visitors.

When the highway from Adelaide to Victor Harbor bypassed Willunga in the 1990s, the South Australian Southern Vales town suffered enormously, with some shops closing their doors because of the drop-off in trade.

Launched in 2002 to re-attract people to the town, Willunga Farmers Market generated more than $100 million in economic value for the local area over the following nine years. Today, Willunga flourishes each Saturday morning, with artisan stores, craft shops and cafes along High Street filled with visitors.

Since late 2011, Willunga Farmers Market has used an Internode-delivered NBN fibre service to boost its visibility through more regular newsletters, a ‘virtual tour' and real-time call-to-action marketing.

Willunga Farmers Market chair Steve Scown said the NBN had made it easier for the market to communicate with its community.

"We have 1600 active members on our database and 3500 subscribers to whom we email a quarterly newsletter to promote the market," Mr Scown said.

"Before the NBN came along, that newsletter used to take half a day to set up and send out while our website was difficult to maintain. Our slow broadband service meant we couldn't make the progress we wanted. Now, even when our newsletters have an attached PDF, we just hit 'send' and it goes."

Each Saturday morning, Willunga Farmers Market attracts scores of stallholders and thousands of shoppers to the picturesque town in the heart of the Fleurieu Peninsula.

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Willunga Farmers Market visitors can discover more about produce and suppliers through online contact. Some have developed direct customer relationships as a result.

 

In 2011, a Flinders University study identified that more than 800,000 people had visited the market during its first nine years of operation, spending more than $40 million. Based on a conservative three-fold economic multiplier, this contributed more than $100 million in economic activity to the Willunga region.

In late 2011, Willunga Farmers Market became one of the first businesses in South Australia to connect to the NBN. The market uses an entry-level Internode NBN Bronze 12/1 service.

Since Internode connected it to the NBN, Willunga Farmers Market has experienced major benefits. An immediate advantage was distributing electronic newsletters.

The quarterly e-newsletter is now so quick to produce, that the market publishes interim editions with latest news and seasonal highlights.

Mr Scown said the biggest benefits of the NBN were its speed and immediacy.

"With only three staff on deck and an average of 2500 to 3500 visitors on a Saturday morning, we're always busy," he said.

"The Willunga Farmers Market Facebook page has 3800 followers. Each Saturday morning, one of our staff uploads a photo and story about an interesting product for that week. The call to action is incredible. Whatever's featured sells out.

"The NBN has changed the way we promote the market. Now it takes just seconds to upload a photo to our Facebook page whereas before we could spend 10 minutes in the office uploading just one. The NBN has definitely helped us get more in touch with our customers."

The improved broadband speed has also allowed Willunga Farmers Market to enhance the capabilities of its website with an interactive virtual tour of the market. The tour lets online visitors ‘walk' through the market, search for a supplier by name or stall number or just click on their location to view photos of the stall, its products and the farm that produced them.

Mr Scown said the market's virtual tour helped consumers learn more about the farmers.

"The key to this is that we're not selling a product, but a lifestyle and a relationship," he said.

"It's about getting to know your grower and your farmer. We also use it to educate people about food seasonality.

"Websites are good for in-depth information, but to develop a relationship with a customer, it has to be interactive, which needs speed and bandwidth. That's what the NBN gives us."

http://willungafarmersmarket.com.au/

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Digital Business insights: A little row of shops

THERE IS a small row of shops on the way to the nearby shopping centre in an awkward position by the side of the main road. There is limited parking and it is hard for cars to stop easily, unless they already know what's there.

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John Sheridan,Digital Business insights CEO.

 

I have watched over the years as new tenants have tried their luck with the location.

Most have failed. 

The remainder have established themselves with customers who visit regardless of the awkward position.

There is an air conditioning and solar retailer that has now relocated to Darra, so this shop is empty.

A small travel centre is right next door with three desks to pick up passing trade. It surprises me that it is still there, but it is.

Then a fish and chip shop, that has changed hands a few times.

Each new owner brings a different approach to quality, content, and charm or otherwise.

Next, a hair and beauty supply wholesaler.

And next door to that, is a formal dress hire shop. It has been there a long time.

Then a teaching centre for Maths and English.

A football shop with collectibles for football enthusiasts.

Another formal wear hire shop. Two in the same row.

An Asian grocery store. And a computer repair shop, "break fix and box drop" as they are known in the industry. The owner looks after the problems of the local residents and small businesses in the area and probably picks up a bit of passing trade.

What do they all have in common? They all specialise in something. They have been there long enough that occasional customers expect to find them when they next visit. And they do.

None of them are going to be the next Woolworths or Myers.

One or two are part of a chain, and most are making enough money to pay the mortgage. Maybe more.

Do any of them have a website?

They all have a website except the Asian grocer. 9 out of 10.

Will they survive the digital revolution? Probably.

They don't have the same overheads as the larger retailers. They are not in a prime position. They don't have the same competitors from anywhere as the mid range commodity retailers.

There is a lot of passing traffic, though little in the row of shops to attract attention, beyond the sign above the door.

But specialisation has given them a niche to hide in. And the pickings are relatively thin and don't justify full on competition.

There are little rows of shops across the nation. They all face different challenges depending on what they sell, where they are, and the volume of local traffic.

But between the big guys - Woolworths and Coles, and the little rows of shops lies the real danger zone.

Territory that is hard to defend successfully. Where the business model has to be reviewed and reviewed again.

Territory where value can be leveraged by anybody, anywhere getting the business model exactly right - whether pure digital and/or bricks and mortar.

And territory where the effort of trying and succeeding might just deliver enormous return on investment. So you can bet that somebody is trying right now.

Welcome to the danger zone.

 - John Sheridan, September, 2013.

John Sheridan is CEO of Digital Business insights, an organisation based in Brisbane, Australia, which focuses on helping organisations and communities adapt to, and flourish in, the new digital world. He is the author of Connecting the Dots and getting more out of the digital revolution. Digital Business insights has been researching and analysing the digital revolution for more than 12 years and has surveyed more than 50,000 businesses, conducting in-depth case study analysis on more than 350 organisations and digital entrepreneurs.

www.db-insights.com

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Lord Mayor Graham Quirk explains Digital Brisbane at CIO Forum

BRISBANE Lord Mayor Graham Quirk will explain Brisbane City's energetic approach to the new digital economy at a gathering of chief information officers and digital business leaders at the Brisbane CIO Forum on October 1.

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Brisbane Lord Mayor Graham Quirk will speak on 'Digital Brisbane' at the CIO Forum on October 1.

 

This week Brisbane launched the transofrmative website, www.digitalbrisbane.com.au which features a digital business directory, case studies and links for businesses seeking help in adapting their businesses to take advantage of the opportunities 'digital' provides.

Following his appointment as Lord Mayor in May 2011, Cr Quirk has been driving a strong agenda of innovation and economic growth, with a focus on maximising Brisbane opportunities in the digital economy.

Key initiatives by Brisbane have also included the appointment of a Chief Digital Officer -- the second int he world after New York City - and the launch of Digital Brisbane, a five-year plan to kick start Brisbane's digital economy.

Brisbane's Digital Audit found that, irrespective of industry sector and business size, there is a need for Brisbane businesses to transform and lift their digital business capability if they want to compete in the digital economy.

The CIO Forum is regarded as a must-attend event for all senior IT leaders in Brisbane and attendees will be able to hear first-hand the Lord Mayor's thoughts and vision for Brisbane, and how he plans to seed innovation, incubate ideas and see the city become the technical hub for South East Asia.

Created by co-founder of Recon Solutions Steve Scanlan, the CIO Forum has been operating for more than five years, and brings together senior ICT managers from all industries.

Operating in both Brisbane and Sydney, the forums provide valuable insights and networking opportunities for members.  The events  are an opportunity for ICT leaders to meet their peers in a relaxed atmosphere, share experiences, and get to know and understand what others are doing across industry sectors. 

Mr Scanlan said Recon Solutions was formed to address a growing need in the market - "the provision of an end-to-end business solutions, focussing on providing the right resource solutions and the delivery of quality business outcomes". 

Recon Solutions runs both a recruitment practice and a business consulting practice, both of which are receiving positive reviews based on their ability to provide value-add solutions to its customers.

The Brisbane CIO Forum opens at 7am for a 7.30am start on Tuesday, October 1, at the Hilton Brisbane Queen's Ballroom. The event will finish at 9am.

E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it. This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

www.reconsolutions.com.au

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Digital Business insights: No future for commercial property

I RARELY read the Primespace section in The Australian, but I have been of late.  What captured my attention and intrigued me is the ongoing commentary about the bad or “soft” state of the commercial property market.

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John Sheridan, Digital Business insights CEO.

Week after week, office vacancy rates are published for the major cities – Melbourne 10% empty, Brisbane 14% empty, Sydney 10%, Perth 8% and so on.

The general view is that things are unlikely to improve soon.

It seems that the weak Australian dollar, the GFC, rising bond rates and the rising vacancy rates themselves are all leading to flat and falling rental income and resulting in a “challenging outlook” in the short to medium term.

Each week I now search in vain for some reference to the impact on commercial property of the digital revolution.

There is no mention.

In article after article, and interview after interview with industry experts not one of them raises the issue at all. Maybe they are frightened of lifting it onto the radar.

I would have thought it was obvious.

The digital revolution is having an enormous impact on commercial property and its prospects for recovery.

A “challenging outlook” is much too kind a description for a situation that is far worse than that.

In all the articles I have read over the past month or so I have never seen Teleworking mentioned – not once.

The Federal Government has been promoting Teleworking over the last year and there will be another Telework Week this November.

But that isn’t the point.

Businesses and organisations are teleworking already. Forget the Telework Week. It is happening right now.

In all of our recent surveys roughly half of organisations have one or more members of staff that work from home for some part of the week. Some for all of the week.

That's 58% of professional services, 67% of public administration, 72% of rental, hiring and real estate, 51% of wholesale, 50% of Information media and so on.

Which means less demand for office space.

And as more and more organisations become comfortable with teleworking, what possible evidence is there that vacancy rates are going to drop some time in the future?

They won’t. Vacancy rates will soar and the situation will get much worse. And businesses will become increasingly selective as a result.

Fast broadband. WiFi. Comfortable meeting spaces, variable sizes and lots of them.

Every organisation we speak with is reducing their demand for office space and in some cases getting rid of it completely.

And what businesses and other organisations will want from a commercial office in the future is very different to today.

It’s the same thing with retail space.

I’ll keep looking at Primespace every week, and hope to see an article about teleworking soon.

 - John Sheridan, August, 2013.

John Sheridan is CEO of Digital Business insights, an organisation based in Brisbane, Australia, which focuses on helping organisations and communities adapt to, and flourish in, the new digital world. He is the author of Connecting the Dots and getting more out of the digital revolution. Digital Business insights has been researching and analysing the digital revolution for more than 12 years and has surveyed more than 50,000 businesses, conducting in-depth case study analysis on more than 350 organisations and digital entrepreneurs.

www.db-insights.com

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Digital Business insights: New media

NEARLY 200 years ago in Europe, the sale of news and the sale of advertising were first combined together in the form of the newspaper.

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John Sheridan, Digital Business insights CEO

The sale of news was a vehicle and platform for the sale of advertising, which is what made the newspaper proprietors their money.

The ability to aggregate a large audience is what made newspapers and magazines valuable to advertisers. The same applied to the newer 20th century media of television and radio.

All these media were able to offer and provide a large audience, with broad and sometimes particular characteristics - young women, business people, computer owners, football enthusiasts, dog lovers and so on.

With the advent of the internet, these familiar and comfortable media options began to be challenged by multitudes of new websites offering information packaged in many different ways.

Because the cost of creating and managing a website was much less than the cost of publishing in other media, there was a proliferation of experiments and new offerings into the online marketplace, some successful and many unsuccessful, but nobody really cared.

It was possible to publish and see, 'launch and learn' and some new ventures were incredibly successful which prompted others to try their luck as well.

The technology also became cheaper, easier to use, faster to deploy and more powerful.

What used to cost millions or hundreds of thousands of dollars, and take months to deliver now cost thousands or hundreds and could be deployed in weeks or even days.

The risk and cost of entry was no longer a barrier. Advertising sites no longer needed any direct connection to news and publishing. They could focus on a single product or service, or even offer all products and services, and could do this in a variety of different ways.

Today, advertising messages can be delivered across a huge range of offline and online channels. But as a result the audience is much harder to target and reach effectively.

With the almost universal use of Google (or Baidu in China) to find information, the dominance of push (advertising) has shifted to the dominance of pull (search), and the power has shifted with it, from the vendor to the customer.

So for traditional media companies, incorporating new media alongside their traditional model doesn't address the issue of the new customer. Expectations have changed.

Buying successful online advertising sites would seem like the ideal solution - Seek, Carsales, REA, Domain, but it is only a short-term fix.

All these sites will be undermined or disintermediated in due course. They are a vendor's solution to a problem not a customer's and only postpone for a while an inevitable change.

Which has already begun.

There is a natural evolution under way from information to knowledge, and from push to pull.

These two currents of change are fundamental and remorseless. They are concurrent and explain much of the disruption experienced across all sectors as well as revealing new opportunities for those with eyes wide open.

The real strength of newspapers and media in general is journalism, insight and enquiry, but not as we have known it.

Journalism has to be refocused onto the new customer need (remember the move to pull from push). This requires a total shift in point of view. Not an easy thing to do.

And online sites have to be refocused on customer solutions not vendor solutions and on the new technology enabled ecosystems that are being created around shared value.

There is no room in this post to spell out exactly what this means for every sector of society. But get any part of the equation wrong and it "won't fly". It might get off the ground but not sustainably.

iTunes provides a clue to what I mean.

iTunes took the control of published content from the hands of the traditional 'editors' and 'publishers' and put it into the customer's hands.

The customer selected their album of songs and performances, their compilation, their collection. And were willing to pay.

The news media need to understand what this means for them.

People want knowledge and insights, as well as entertainment. And are willing to pay.

But to give customers what they want and actually need to be successful in the 21st century requires real vision and culture change in media organisations and it's not going to happen easily if at all.

In Australia, News and Fairfax are the result of decades of evolution. It has been hard enough for them to take a small step in this new digital revolution and add websites into their business models. But now a much, much bigger step needs to be made.

To get safely above the ongoing digital disruptive flood demands creating a customer driven platform that can deliver 'knowledge' on all subjects across any channel, medium or device.

That puts journalists back in the box seat and the 'right' content is king.

Putting current 'news content' behind paywalls is a misguided response and won't work.

It is not about whether content is free or not. It is about whether content is valuable to customers.

Propaganda isn't valuable and every time Mr Murdoch demands that his journalists beat up on the government or climate change or whatever, he fails to understand what has changed forever.

Power has shifted to the customer and has to be respected and incorporated in a shared value model or fail.

Professor Porter at Harvard has seen the writing on the wall. Shared value is the new paradigm.

Ignore shared value and the new customer will just use Google as always and find newer, and other, sources for real and useful news and information.

People will pay for content online - see iTunes example above.

But they will only sustainably pay for really useful information, insights and knowledge supported by software tools that make it easily accessible and understandable = knowledge.

It is not about the device, the channel or the platform. It is about what is delivered. It is not about the menu it is about the meal.

It is not about the editor's or the proprietor's view of news, it is about the customer's. That is a tough one for existing owners and managers to comprehend.

That means a new business model for most existing media empires and they are not up to the change or the challenge. Not at the moment.

Maybe the ABC is, but that is another story.

- John Sheridan, August 2013.

John Sheridan is CEO of Digital Business insights, an organisation based in Brisbane, Australia, which focuses on helping organisations and communities adapt to, and flourish in, the new digital world. He is the author of Connecting the Dots and getting more out of the digital revolution. Digital Business insights has been researching and analysing the digital revolution for more than 12 years and has surveyed more than 50,000 businesses, conducting in-depth case study analysis on more than 350 organisations and digital entrepreneurs.

www.db-insights.com

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