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GROWTH 2.0

Gearing up for the digital future

Rapid advances in technology are transforming Australian business, with the nation’s mid-market players getting set to face up to every challenge – starting with security.

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Technology will disrupt but also deliver advances we cannot even imagine yet. The nimble will own the day

(Mid-sized business, IT / Telecommunications)

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Australia’s small to medium enterprises are generally getting on with their digital transformation according to a recent survey undertaken by Fairfax Media and KPMG Enterprise. The Growth 2.0 survey found our mid-market business leaders are optimistic about technological change with its promise of business growth, cost reduction and improved business efficiencies. Moreover, getting technology right whether it be transitioning to cloud services or building better customer-centric software solutions are considered key to prospering in the digital age.

Yet their optimism is tempered with a little wariness around digital security and business readiness for potential cyber attacks.

PART ONE

Strong optimism on increasing
technological innovation

While there is plenty of rhetoric around how a digital tsunami is sweeping through the corporate world and the nature of business is changing irrevocably, our survey respondents are sanguine about technology and its potential to disrupt their business models. In fact, while the majority of respondents understand the challenges of the digital economy, they are increasingly confident it will deliver positive results.

Cloud

67

of leaders in mid-sized businesses are excited about the opportunities of technological innovation.

Cloud

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Technology and innovation in products and service delivery are driving our growth

(Mid-sized business, Manufacturing / Construction)

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Priorities in technological innovation for mid-sized businesses

Data or tools to improve insights into customers and experience
62 %
Cloud computing
41 %
Increased data security and/or protecting customer data
36 %
Large-scale digital transformation
26 %
Capabilities to protect against cyber risks
26 %
Al, machine learning or robotic process automation
24 %


PART TWO

Technology keeps leaders awake at night

The current relentless pace of change does fuel a general unease about technology as business leaders wonder if they’re adopting the right digital strategies and getting “bang for their buck” when it comes to technology investment. Further exacerbating mid-market player worries are recent studies such as the University of Surrey’s alarming Into the Web of Profit (Understanding the Growth of the Cybercrime Economy) study indicating the sheer breadth and reach of cyber criminal activity around the world.

Cloud

Cloud

1

issue worrying CEOs this year is “Digital and Innovation”
(Keeping us up at night: The big issues facing business leaders in 2018 – KPMG report)

Cloud

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Getting our digital strategy wrong, wasting money for no gain [is a reason for concern]

(Mid-market business, Banking / Financial Services)

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Cloud

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mid-sized businesses are worried about keeping up with the pace of technological change or the pressures of digital transformation.

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Improving technology can make some of the work we do redundant

(Mid-market business, Banking & Financial Services)

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PART THREE

Preparing for cyber attacks

When Dr Nathan Pinskier of the Royal Australian College of General Practitioners and an e-health specialist spoke of cyber security in Australia’s health system back in April, he echoed the comments of former FBI director, James Comey on American businesses when he said, there are only two types of healthcare organisations – those that know they’ve been hacked and those that don’t know they’ve been hacked.
Bearing this in mind, Australia’s mid-market businesses are broadly wary of a cyber attack and are mostly realistic in their assessment of their readiness and understand more needs to be done.

Readiness for a cyber attack

31%
are not sure if they are prepared
44%
say they are broadly prepared
25%
are confident they are prepared for one or more aspects

Cloud

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Cyber attacks are a reason for concern

(Mid-sized business, IT / Telecommunications)

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Australia’s mid-market companies understand how technology is changing their business models but they are energised by its potential. They believe the best is yet to come as technology and innovation will deliver advances right across all their business processes and, importantly, will enhance the customer experience.

According to KPMG Partner, Brad Miller, there is a first step when it comes to embedding digital technology into an organisation, and it’s answering a number of questions.

Firstly, what is the problem you’re trying to solve? Is it efficiency?

“Do you want to get closer to your customers? Do you want to be more secure? And I think the corollary to that question would be: what value does it create for you as an organisation?”

KPMG Partner Sarah Cain agrees companies need to ask the right questions before they take the next step in their digital transformation but just as important is ensuring they have the right people to drive change and being able to find the right talent in the Australian market.

Enterprise is a specialist division of KPMG Australia, dedicated to advising the emerging, private and mid-market. We work with established entrepreneurs, family businesses, not-for-profits, and fast-growing companies to build thriving organisations.

By bringing our diverse expertise together, we give our clients the confidence to focus on the things that will truly make an impact and help them grow.

At Enterprise, we offer an extensive range of audit, tax, accounting and advisory services to help clients through every stage of their life cycle, whether starting, growing or exiting their businesses.