A few insights about the business world today:
Uber is the world’s largest taxi company but owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba the world’s most valuable retailer but holds no stock. And Airbnb is the world’s largest accommodation provider but owns no real estate. www.techcrunch.com, 3 March 2015
And we've got our own Kiwi challenger brands like MyFoodBag changing the way you shop (or rather don't shop) for groceries and Xero simplifying your business accounts and changing your relationship with your Accountant, Bank and Accounts person. But from the looks of the Westpac 2015 Growth Report not all Kiwi businesses are embracing the opportunities (and threats) that new technology brings.
A few WORRYING facts about business in New Zealand: one-third of SMEs questioned in the Westpac 2015 Growth Report think that technology has had no impact on their business over the last 5 years, and almost the same again expect it to have no impact over the next 5 years. (Interestingly 38% were unsure what's needed or how to obtain the right staff or training to use digital technologies, which might explain this attitude). Also, while growth is up, there’s also a reluctance to grow further due to “lifestyle goals”, with 31% citing maintaining work/life balance as their reason maintain the status quo.
Should New Zealand SMEs be worried? Take a look at what’s coming down the line.
US companies following in Uber’s slipstream.
Entrepreneurs globally are taking a fresh look at every sector with the inspiration of Uber behind them and new technology at their fingertips. And just as we've already seen with Uber in the taxi space, Alibaba in retail, Airbnb in accommodation - change is coming to each and every business sector faster than our companies think. Don't believe me? Check out 5 example companies coming out of the United States today:
A few WORRYING facts about business in New Zealand: one-third of SMEs questioned in the Westpac 2015 Growth Report think that technology has had no impact on their business over the last 5 years, and almost the same again expect it to have no impact over the next 5 years. (Interestingly 38% were unsure what's needed or how to obtain the right staff or training to use digital technologies, which might explain this attitude). Also, while growth is up, there’s also a reluctance to grow further due to “lifestyle goals”, with 31% citing maintaining work/life balance as their reason maintain the status quo.
Should New Zealand SMEs be worried? Take a look at what’s coming down the line.
US companies following in Uber’s slipstream.
Entrepreneurs globally are taking a fresh look at every sector with the inspiration of Uber behind them and new technology at their fingertips. And just as we've already seen with Uber in the taxi space, Alibaba in retail, Airbnb in accommodation - change is coming to each and every business sector faster than our companies think. Don't believe me? Check out 5 example companies coming out of the United States today:
Cargomatic
Founded in 2014 Cargomatic is the Uber of freight and shipping. Cargomatic brings shippers together with truckers in an on-demand model that provides real-time connections, transparency, ratings and competitive pricing. It's a win for truckers who don't like driving half empty trucks so there's a chance for them to make some extra money. And it's a win for local companies who minute need goods shipped last minute at highly competitive rates.
Founded in 2014 Cargomatic is the Uber of freight and shipping. Cargomatic brings shippers together with truckers in an on-demand model that provides real-time connections, transparency, ratings and competitive pricing. It's a win for truckers who don't like driving half empty trucks so there's a chance for them to make some extra money. And it's a win for local companies who minute need goods shipped last minute at highly competitive rates.
BloomNation
Founded in 2011 BloomNation raised $5.6M funding to develop their software as a service (SaaS) market place for florists and as of October 2014 it was growing 15-30% month-on-month. They’re taking on the Interfloras but also championing the consumer by making it cheaper for them to purchase. Next up they’re taking on the Events and Wedding sectors.
Founded in 2011 BloomNation raised $5.6M funding to develop their software as a service (SaaS) market place for florists and as of October 2014 it was growing 15-30% month-on-month. They’re taking on the Interfloras but also championing the consumer by making it cheaper for them to purchase. Next up they’re taking on the Events and Wedding sectors.
GoodRx
‘Save up to 80% on your prescription drug costs!’ is the catch cry of GoodRx. It’s a prescription drug comparison tool, championing the consumer with cheaper prices, and delivery to your door convenience. They’re currently shaking up the Pharmacy sector in the USA.
‘Save up to 80% on your prescription drug costs!’ is the catch cry of GoodRx. It’s a prescription drug comparison tool, championing the consumer with cheaper prices, and delivery to your door convenience. They’re currently shaking up the Pharmacy sector in the USA.
Washio
The on demand laundry service brings a new level of convenience for customers who can schedule pickup and drop off of their laundry and dry cleaning via the mobile app. Launching originally in LA, it’s already expanded to Chicago, San Fran and Washington DC.
The on demand laundry service brings a new level of convenience for customers who can schedule pickup and drop off of their laundry and dry cleaning via the mobile app. Launching originally in LA, it’s already expanded to Chicago, San Fran and Washington DC.
Bento, GrubHub, Munchery
These are just a few of the companies shaking up the food, hotel and restaurant industry in the States. Providing catering on demand, new distribution channels, fast food and even meal replacements. Uber has also seen the synergies with its service and recently launched prototype UberEATS in Barcelona.
These are just a few of the companies shaking up the food, hotel and restaurant industry in the States. Providing catering on demand, new distribution channels, fast food and even meal replacements. Uber has also seen the synergies with its service and recently launched prototype UberEATS in Barcelona.
“The future of restaurants is no restaurants” Jason Calacanis, investor in Bento
Jason Calacanis may sound a little dramatic, but what are the real implications for Kiwi businesses? Mobile phones are driving consumer behaviour. Making it easier than ever to discover, learn, do or buy something. See my previous blog post for more on that. But consumers, with their mobile phones, are way ahead of Businesses and Government, and we’re now playing catch up. So there's an opportunity for companies who catch up and connect, and a threat to those companies who don't.
Even if you are a bit behind the times, it’s not too late to change. It's now cheaper, faster and easier than ever to bring digital into your business. The fundamentals haven't changed, it’s still about customer experience, awareness, consideration and purchase. The difference is the customer experience now takes place across digital and non-digital channels. Your business needs to map that customer journey (more on that in my next blog post), and build an integrated consumer experience across the relevant digital and non-digital channels before someone else does and steals them away.
Stay relevant. Stay alive.
To put it bluntly, being seen as dinosaur by consumers = extinction = no more work/life balance. Starting your digital transformation doesn't need to be a huge leap of faith or investment, in fact the exact opposite would be my advice. Start small and build, as going too big, too fast can have a negative impact on your business. So here are some small practical steps to start your digital journey:
But whatever you do, please start your digital journey NOW. Then you can keep enjoying that Kiwi lifestyle for years to come.
Even if you are a bit behind the times, it’s not too late to change. It's now cheaper, faster and easier than ever to bring digital into your business. The fundamentals haven't changed, it’s still about customer experience, awareness, consideration and purchase. The difference is the customer experience now takes place across digital and non-digital channels. Your business needs to map that customer journey (more on that in my next blog post), and build an integrated consumer experience across the relevant digital and non-digital channels before someone else does and steals them away.
Stay relevant. Stay alive.
To put it bluntly, being seen as dinosaur by consumers = extinction = no more work/life balance. Starting your digital transformation doesn't need to be a huge leap of faith or investment, in fact the exact opposite would be my advice. Start small and build, as going too big, too fast can have a negative impact on your business. So here are some small practical steps to start your digital journey:
- A good place to start is Digital Journey (supported by MBIE and Google) they offer a good digital assessment tool so you can benchmark your business vs your peers. They'll then recommend online training and resources to match your level. I'd like to know how you get on with this resource so please email me any feedback.
- Look for digital short courses for you and your team at Regional Business Partners, local Incubators, industry bodies or education institutions.
- Start reading online articles and resources. Here are a few suggestions: Google Digital Academy, Hubspot, Fast Company - Tech, Forbes - Tech, The Verge - Tech and Digital Journey.
- While you're starting to build up the digital skills in your organisation, you will need to consider working in partnership with an agency. But it's worth taking a few steps yourself first so you have at least a basic understanding of digital and where you want to head. Be careful not to jump straight to tools like social media, website and email marketing – no matter how tempting that may be. Start with your customer; take time to understand them and map their journey on and offline.
But whatever you do, please start your digital journey NOW. Then you can keep enjoying that Kiwi lifestyle for years to come.
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