In the Battle for Productivity, Your Country Needs You

<!doctype html><html lang="en-gb"><head> <meta charset="utf-8"> <title>In the Battle for Productivity, Your Country Needs You</title> <link rel="shortcut icon" href="https://www.commercevision.com.au/hubfs/Untitled%20design%20(6).png"> <meta name="description" content="Calling all SME business leaders. Australian productivity growth is on the decline, and it's up to us to take action."> <link rel="preconnect" href="https://fonts.gstatic.com/" crossorigin> <meta name="viewport" content="width=device-width, initial-scale=1"> <meta property="og:description" content="Calling all SME business leaders. Australian productivity growth is on the decline, and it's up to us to take action."> <meta property="og:title" content="In the Battle for Productivity, Your Country Needs You"> <meta name="twitter:description" content="Calling all SME business leaders. Australian productivity growth is on the decline, and it's up to us to take action."> <meta name="twitter:title" content="In the Battle for Productivity, Your Country Needs You">  <script type="application/ld+json"> { "@context": "https://schema.org", "@type": "BlogPosting", "mainEntityOfPage": { "@type": "WebPage" }, "name": "In the Battle for Productivity, Your Country Needs You", "headline": "In the Battle for Productivity, Your Country Needs You", "image": "https://1978039.fs1.hubspotusercontent-na1.net/hubfs/1978039/ruthson-zimmerman-Ws4wd-vJ9M0-unsplash_cropped-resized.jpg", "author": { "@type": "Person", "name": "David Bickerstaff" }, "datePublished": "April 26, 2023 1 AM", "dateModified": "May 24, 2023 1 AM", "abstract": "Calling all SME business leaders. Australian productivity growth is on the decline, and it's up to us to take action.", "text": "So much recent press around the government\u2019s Productivity Commission report reminds me of that WW2-era 'Uncle Sam' poster you used to see in funky bars and uni pubs long ago. Each, in their own way, a call-to-arms. In the fight to protect the country\u2019s prosperity, productivity, and Aussie way of life, your country needs you! With SMEs being the powerhouse of the Australian economy, it\u2019s especially critical that business leaders across this sector enlist. And in the battle for efficiency, digital technologies are the most powerful weapons in the arsenal. Calling all leaders And yet, there is hesitancy. An article in the March 20th edition of the Australian Financial Review lays much of the blame for slow growth squarely at execs. \u2018Tech Laggard Execs Squander Growth\u2019 points a finger at business leaders whose lack of tech capability has been holding company innovation back. \u201CThe substandard management and technology skills of Australian executives may be contributing to the nation\u2019s waning innovation and productivity, the Productivity Commission has warned. The frank assessment puts pressure on businesses to improve the management and technology skills of executives\u2026 Firms with stronger management are more likely to make good decisions about whether or not to adopt new technologies and practices, and when and how intensively to adopt them.\u2019\u2019 Those firms, the commission said, were also more likely to have the ability make the organisational changes needed to benefit from transformative technologies.\u201D Aside from issues of tech confidence, a significant challenge for SMEs is the enduring belief that automation is not relevant to them \u2013 that it\u2019s too hard, too costly, and really only feasible for the big players. But inaction by SME business leaders is a sure-fire way to be left behind. Failure to innovate and automate leads to reduced productivity \u2192 reduced competitiveness \u2192 loss of customers and \u2192 (worst case) the loss of your business. Luckily, there\u2019s plenty of evidence that the entrepreneurial spirit is alive and well in Australia. If you ask me, SMEs - especially manufacturers, wholesalers and distributors - are innovators at heart. Just peek inside the factory or warehouse and you\u2019ll see automation firsthand. We already employ sophisticated machinery, warehouse management and logistics systems, smart picking and RF devices. Automate for Australia So what more do we need to change? How do we accelerate productivity gains for our companies (and thus, our country)? I recently wrote an article on Automation in which I analogised the joining up of the Pacific Highway sections between Sydney and Brisbane to illustrate the benefits of automating all those manual process hand-offs that happen between business systems. If we are to meaningfully boost our productivity, it\u2019s these processes which cry out to be automated. Yes, there has been significant investment in digitisation by many of our companies. But there is still so much \u2018swivel chair automation\u2019 going on within SMEs. Five years ago, several innovative CV customers told us firsthand about the challenges they faced with manual process bottlenecks. A common theme emerged, in which their Customer Service staff were spending most of their day keying emailed purchase orders into their systems so their warehouse could pick, pack and ship. Looking for a better way, they approached us for solutions. Inspired by these customers, we brought Lucy to market in 2017. Since then, Lucy has freed up hundreds of customer service staff who were once bogged down performing swivel chair automation. By letting Lucy automate their sales order entry, they were able to move onto more value-adding activities to drive efficiency and productivity across their order-to-cash cycle. Automation theory into action If you\u2019re considering automating your own business process, you may be wondering where to start. Here\u2019s my battle plan: Model A \u2013 Cost efficiency If your business\u2019 strategic advantage is cost driven, in today\u2019s environment you will ultimately want to automate all across your internal supply chain. From procurement \u279E inventory control \u279E sales \u279E distribution, your aim will be to drive cost out of every single process. Begin with the one you estimate to have the highest potential value and lowest cost\/effort to change. Once identified, your critical first step is to baseline what that process currently costs. Work with your finance and supply chain teams to arrive at a unit cost, then identify the constraints. Finally, calculate: if these constraints were removed, what would the new unit cost be? Model B \u2013 Service delivery Alternatively, if your strategic advantage is responsiveness, you\u2019ll look to automate those elements of the value chain that don\u2019t put responsiveness at risk. Again, begin with the process estimated at the highest potential value and lowest cost\/effort to modify - but in this case be mindful not to compromise your unique selling proposition. Leverage business intelligence tools to identify pre- and post- constraint unit costs. These metrics will help build your automation business case, including projected ROI. Obviously, the process goes deeper than I\u2019ve outlined above, but the key steps remain: Understand your business and keep your strategic advantage in sight Identify processes that suffer constraints Baseline the current unit cost of the process Determine your new unit cost post-automation Finally, it's important to remember - Automation is NOT an IT project. Yes, the IT team are important as facilitators, but at its heart, Automation is a business project. So in the spirit of Uncle Sam\u2019s old rallying cry, come on Aussies - Your Company and your Country NEED YOU. Ready to explore automation options for your own organisation? We'd love you to get in touch.", "url": "https://www.commercevision.com.au/blog/in-the-battle-for-productivity-your-country-needs-you", "publisher": { "@type": "Organization", "name": "Commerce Vision", "logo": { "@type": "ImageObject", "url": "https://cdn2.hubspot.net/hubfs/1978039/COM%202829%20Logo_RGB-3.png" } }, "inLanguage": "en-gb", "wordCount": "1105", "keywords": "[strategy, automation, featured]" } </script> <style> a.cta_button{-moz-box-sizing:content-box !important;-webkit-box-sizing:content-box !important;box-sizing:content-box !important;vertical-align:middle}.hs-breadcrumb-menu{list-style-type:none;margin:0px 0px 0px 0px;padding:0px 0px 0px 0px}.hs-breadcrumb-menu-item{float:left;padding:10px 0px 10px 10px}.hs-breadcrumb-menu-divider:before{content:'›';padding-left:10px}.hs-featured-image-link{border:0}.hs-featured-image{float:right;margin:0 0 20px 20px;max-width:50%}@media (max-width: 568px){.hs-featured-image{float:none;margin:0;width:100%;max-width:100%}}.hs-screen-reader-text{clip:rect(1px, 1px, 1px, 1px);height:1px;overflow:hidden;position:absolute !important;width:1px} </style> <link rel="stylesheet" href="https://fonts.googleapis.com/css2?family=Montserrat:wght@200;400;500;600;700&family=Montserrat:ital,wght@0,200;0,400;0,500;0,600;0,700;1,400&display=swap"> <link rel="stylesheet" href="https://www.commercevision.com.au/hs-fs/hub/1978039/hub_generated/template_assets/170954162358/1718976796225/2022_Commerce_Vision_theme/css/pwr.min.css"> <link rel="stylesheet" href="https://www.commercevision.com.au/hs-fs/hub/1978039/hub_generated/template_assets/81800206200/1718873840295/2022_Commerce_Vision_theme/css/custom-styles.min.css"> <link rel="stylesheet" href="https://www.commercevision.com.au/hs-fs/hub/1978039/hub_generated/template_assets/81803333767/1719393731572/2022_Commerce_Vision_theme/child.min.css"> <link rel="stylesheet" href="https://www.commercevision.com.au/hs-fs/hub/1978039/hub_generated/module_assets/167882029582/1719415977232/module_167882029582_Header-2024.min.css"> <style type="text/css"> #hs_cos_wrapper_module_171618282778412 .main_menu-row { display:flex; 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pwr-post-header__info-box"> <div class="pwr-post-item__author" id="hubspot-author_data" data-hubspot-form-id="author_data" data-hubspot-name="Blog Author"> <a class="pwr-post-item__name" href="https://www.commercevision.com.au/blog/author/david-bickerstaff">David Bickerstaff</a> <span class="pwr-post-item__date">26 April 2023</span> <span class="pwr-post-item__n-min-read">4 min read</span> </div> <h1 class="pwr-post-header__title pwr--toc-ignore"><span id="hs_cos_wrapper_name" class="hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_text" style="" data-hs-cos-general-type="meta_field" data-hs-cos-type="text">In the Battle for Productivity, Your Country Needs You</span></h1> </div> </div> </div></div> <div id="hs_cos_wrapper_prev-next-nav" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="" data-hs-cos-general-type="widget" data-hs-cos-type="module"> <div class="pwr-sec-prev-next-nav pwr--light lazyload"> <div class="pwr-prev-next-nav__content 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</svg> </span> </a> </div> </div> </div></div> <div id="hs_cos_wrapper_blog-post" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="" data-hs-cos-general-type="widget" data-hs-cos-type="module"> <div class="pwr-post-body "> <progress id="pwr-progress-bar" max="0" value="0"></progress> <div class="pwr-post-social pwr-post-social--is-float"> <div class="addthis_inline_share_toolbox"></div> </div> <script type="text/javascript" src="//s7.addthis.com/js/300/addthis_widget.js#pubid=YOUR_ID"></script> <div class="pwr-post-content"> <span id="hs_cos_wrapper_post_body" class="hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_rich_text" style="" data-hs-cos-general-type="meta_field" data-hs-cos-type="rich_text"><p>So much recent press around the government’s Productivity Commission report reminds me of that WW2-era 'Uncle Sam' poster you used to see in funky bars and uni pubs long ago. Each, in their own way, a call-to-arms. </p>  <p>In the fight to protect the country’s prosperity, productivity, and Aussie way of life, your country needs you! <img src="https://www.commercevision.com.au/hs-fs/hubfs/UncleSamNeedsYou.png?width=260&height=400&name=UncleSamNeedsYou.png" alt="UncleSamNeedsYou" width="260" height="400" loading="lazy" style="height: auto; max-width: 100%; width: 260px; float: right; margin: 10px 0px 5px 11px;" srcset="https://www.commercevision.com.au/hs-fs/hubfs/UncleSamNeedsYou.png?width=130&height=200&name=UncleSamNeedsYou.png 130w, https://www.commercevision.com.au/hs-fs/hubfs/UncleSamNeedsYou.png?width=260&height=400&name=UncleSamNeedsYou.png 260w, https://www.commercevision.com.au/hs-fs/hubfs/UncleSamNeedsYou.png?width=390&height=600&name=UncleSamNeedsYou.png 390w, https://www.commercevision.com.au/hs-fs/hubfs/UncleSamNeedsYou.png?width=520&height=800&name=UncleSamNeedsYou.png 520w, https://www.commercevision.com.au/hs-fs/hubfs/UncleSamNeedsYou.png?width=650&height=1000&name=UncleSamNeedsYou.png 650w, https://www.commercevision.com.au/hs-fs/hubfs/UncleSamNeedsYou.png?width=780&height=1200&name=UncleSamNeedsYou.png 780w" sizes="(max-width: 260px) 100vw, 260px"><br><br></p> <p>With SMEs being the powerhouse of the Australian economy, it’s especially critical that business leaders across this sector enlist. And in the battle for efficiency, digital technologies are the most powerful weapons in the arsenal.</p> <h3>Calling all leaders</h3> <p>And yet, there is hesitancy. An article in the March 20<sup>th</sup> edition of the Australian Financial Review lays much of the blame for slow growth squarely at execs. ‘Tech Laggard Execs Squander Growth’ points a finger at business leaders whose lack of tech capability has been holding company innovation back.</p> <blockquote> <p>“The substandard management and technology skills of Australian executives may be contributing to the nation’s waning innovation and productivity, the Productivity Commission has warned. <br><br>The frank assessment puts pressure on businesses to improve the management and technology skills of executives…  Firms with stronger management are more likely to make good decisions about whether or not to adopt new technologies and practices, and when and how intensively to adopt them.’’ <br><br>Those firms, the commission said, were also more likely to have the ability make the organisational changes needed to benefit from transformative technologies.” </p> </blockquote> <p>Aside from issues of tech confidence, a significant challenge for SMEs is the enduring belief that automation is not relevant to them – that it’s too hard, too costly, and really only feasible for the big players.</p> <p>But inaction by SME business leaders is a sure-fire way to be left behind. Failure to innovate and automate leads to reduced productivity → reduced competitiveness → loss of customers and → (worst case) the loss of your business.</p> <p>Luckily, there’s plenty of evidence that the entrepreneurial spirit is alive and well in Australia. If you ask me, SMEs - especially manufacturers, wholesalers and distributors - are innovators at heart. Just peek inside the factory or warehouse and you’ll see automation firsthand. We already employ sophisticated machinery, warehouse management and logistics systems, smart picking and RF devices.</p> <h3>Automate for Australia </h3> <p>So what more do we need to change? How do we accelerate productivity gains for our companies (and thus, our country)?</p> <p>I recently wrote an <a href="https://www.commercevision.com.au/blog/want-to-boost-business-productivity-automate">article on Automation</a> in which I analogised the joining up of the Pacific Highway sections between Sydney and Brisbane to illustrate the benefits of automating all those manual process hand-offs that happen between business systems. If we are to meaningfully boost our productivity, it’s these processes which cry out to be automated.</p> <p>Yes, there has been significant investment in digitisation by many of our companies. But there is still so much ‘swivel chair automation’ going on within SMEs. Five years ago, several innovative CV customers told us firsthand about the challenges they faced with manual process bottlenecks. A common theme emerged, in which their Customer Service staff were spending most of their day keying emailed purchase orders into their systems so their warehouse could pick, pack and ship. Looking for a better way, they approached us for solutions.</p> <p>Inspired by these customers, we brought <a href="https://www.letlucy.com/">Lucy</a> to market in 2017. Since then, Lucy has freed up hundreds of customer service staff who were once bogged down performing swivel chair automation. By letting Lucy automate their sales order entry, they were able to move onto more value-adding activities to drive efficiency and productivity across their order-to-cash cycle.</p> <h3>Automation theory into action</h3> <p>If you’re considering automating your own business process, you may be wondering where to start. Here’s my battle plan:</p> <h4>Model A – Cost efficiency</h4> <p>If your business’ strategic advantage is cost driven, in today’s environment you will ultimately want to automate all across your internal supply chain.</p> <p>From procurement ➞ inventory control ➞ sales ➞ distribution, your aim will be to drive cost out of every single process. Begin with the one you estimate to have the highest potential value and lowest cost/effort to change.</p> <p>Once identified, your critical first step is to baseline what that process currently costs. Work with your finance and supply chain teams to arrive at a unit cost, then identify the constraints. Finally, calculate: if these constraints were removed, what would the new unit cost be?</p> <h4>Model B – Service delivery</h4> <p>Alternatively, if your strategic advantage is responsiveness, you’ll look to automate those elements of the value chain that don’t put responsiveness at risk. Again, begin with the process estimated at the highest potential value and lowest cost/effort to modify - but in this case be mindful not to compromise your unique selling proposition. Leverage business intelligence tools to identify pre- and post- constraint unit costs. These metrics will help build your automation business case, including projected ROI.</p> <p>Obviously, the process goes deeper than I’ve outlined above, but the key steps remain:</p> <ul> <li>Understand your business and keep your strategic advantage in sight</li> <li>Identify processes that suffer constraints</li> <li>Baseline the current unit cost of the process</li> <li>Determine your new unit cost post-automation</li> </ul> <p>Finally, it's important to remember - <strong>Automation is NOT an IT project</strong>. Yes, the IT team are important as facilitators, but at its heart, <strong>Automation is a business project.</strong></p> <p>So in the spirit of Uncle Sam’s old rallying cry, come on Aussies - Your Company and your Country NEED YOU.</p> <p> </p> <p><span>Ready to explore automation options for your own organisation? We'd love you to <a href="/contact" rel="noopener">get in touch.</a></span></p></span> </div> </div></div> <div id="hs_cos_wrapper_blog-post-preview" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_module" style="" data-hs-cos-general-type="widget" data-hs-cos-type="module"> <div class="pwr-sec-posts pwr--light pwr-sec-posts--vertical-layout lazyload"> <div class="page-center pwr--relative"> <div class="row-fluid"> <div class="pwr-sec-posts__intro-sec pwr-sec-posts__intro-sec--standard "> <h2 class="pwr-sec__title pwr-sec__title--default pwr-sec__title--narrow pwr-sec-posts__title">RELATED ARTICLES</h2> </div> <div class="pwr-sec-posts__container pwr-sec-posts__container--standard pwr--neg-margin-lr-10 pwr--clearfix"> <a class="pwr-post-item" href="https://www.commercevision.com.au/blog/how-to-increase-your-b2b-digital-sales-in-fy-2024-2025"> <div class="pwr-3D-box"> <div class="pwr-post-item__content pwr-3D-box__sensor pwr-3D-box--shaddow-on-hover pwr--colored-box "> <div class="pwr-post-item__img lazyload" style="background-image: url(https://1978039.fs1.hubspotusercontent-na1.net/hub/1978039/hubfs/Blog%20Content/Proficient%20young%20male%20employee%20with%20eyeglasses%20and%20checkered%20shirt%2c%20explaining%20a%20business%20analysis%20displayed%20on%20the%20monitor%20of%20a%20desktop%20PC%20to%20his%20female%20colleague%2c%20in%20the%20interior%20of%20a%20modern%20office.jpeg?width=600&name=Proficient%20young%20male%20employee%20with%20eyeglasses%20and%20checkered%20shirt%2c%20explaining%20a%20business%20analysis%20displayed%20on%20the%20monitor%20of%20a%20desktop%20PC%20to%20his%20female%20colleague%2c%20in%20the%20interior%20of%20a%20modern%20office.jpeg);background-image: -webkit-image-set(url(https://1978039.fs1.hubspotusercontent-na1.net/hub/1978039/hubfs/Blog%20Content/Proficient%20young%20male%20employee%20with%20eyeglasses%20and%20checkered%20shirt%2c%20explaining%20a%20business%20analysis%20displayed%20on%20the%20monitor%20of%20a%20desktop%20PC%20to%20his%20female%20colleague%2c%20in%20the%20interior%20of%20a%20modern%20office.jpeg?width=600&name=Proficient%20young%20male%20employee%20with%20eyeglasses%20and%20checkered%20shirt%2c%20explaining%20a%20business%20analysis%20displayed%20on%20the%20monitor%20of%20a%20desktop%20PC%20to%20his%20female%20colleague%2c%20in%20the%20interior%20of%20a%20modern%20office.jpeg) 1x, url(https://1978039.fs1.hubspotusercontent-na1.net/hub/1978039/hubfs/Blog%20Content/Proficient%20young%20male%20employee%20with%20eyeglasses%20and%20checkered%20shirt%2c%20explaining%20a%20business%20analysis%20displayed%20on%20the%20monitor%20of%20a%20desktop%20PC%20to%20his%20female%20colleague%2c%20in%20the%20interior%20of%20a%20modern%20office.jpeg?width=1200&name=Proficient%20young%20male%20employee%20with%20eyeglasses%20and%20checkered%20shirt%2c%20explaining%20a%20business%20analysis%20displayed%20on%20the%20monitor%20of%20a%20desktop%20PC%20to%20his%20female%20colleague%2c%20in%20the%20interior%20of%20a%20modern%20office.jpeg) 2x);"></div> <div class="pwr-post-item__overlay"></div> <div class="pwr-post-item__info-box pwr-3D-box__info-box"> <div class="pwr-post-item__author" id="hubspot-author_data" data-hubspot-form-id="author_data" data-hubspot-name="Blog Author"> <span class="pwr-post-item__name">Andrew Rogencamp</span> <span class="pwr-post-item__date">09 July 2024</span> <span class="pwr-post-item__n-min-read">4 min read</span> </div> <h3 class="pwr-post-item__title pwr--toc-ignore">How to Increase Your B2B Digital Sales in FY 2024 - 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In the Battle for Productivity, Your Country Needs You