“The pace and degree of digital transformation is accelerating in the wake of COVID-19, with ever greater pressure to meet customers wherever they are. This calls for flexible, ‘commerce everywhere’ business models, and a renewed focus on employee experience and purpose, to drive an enhanced customer experience.”
- Miriam Hernandez-Kakol, Global Head of Management Consulting, KPMG
There’s nothing like a global crisis to shake the complacent from their slumber. Just as wars traditionally yield a slew of technological breakthroughs, and recessions provide opportunities for entrepreneurial disrupters, it turns out a pandemic can stir even the most recalcitrant companies to embrace the digital world as never before.
More than two-thirds of Australian companies have accelerated their digital transformations, while Australia Post reported that online shopping has soared by nearly 50 per cent in just a year. At a time when job losses were mounting up, the number of technology workers grew by 33,400 in 2020 to a new high of 805,525. Deloitte predicts the number will top 1.1 million by 2026.
However, the huge digital gains don’t mean that opportunities for further growth are diminished, as 2.5 million Australians still have no access to the internet, either through choice or circumstance. Finding effective strategies to tempt them online is becoming a major focus.
Meanwhile the government is stepping up efforts to support SMEs in their digital journeys, providing A$12.7 million in the last budget to give 17,000 small businesses access to low-cost advice to help them make the transition.
THE FUTURE’S SO BRIGHT…
Frank Miletic’s obsession with sunglasses began when he was 15. Back then, it was about amassing a collection of the trendiest, most stylish pairs he could afford with his pocket money, but within a few years, he was working for a global sunglasses manufacturer designing cool, modern ranges.
Over the next 30 years, he gained a reputation as one of the most respected and successful operators in the industry so it was no surprise when, in 2018, he launched his own company, ACE (standing for authentic, clarity, excellence) in Beenleigh, Queensland.
His desire was to design and sell the highest-quality polarised eyewear that would “exceed the requirements of its wearers”. He was soon selling thousands in shops right across Australia. Business was booming right up until March 2020 when nearly every retail outlet was cruelly locked down.
Miletic moved with lightning speed to completely restructure the business from being a wholesale distributor to an online-only retailer. “Our digitalisation was the best decision I ever made, as we could still offer customers the very best sunglasses available, but on a global basis,” he says. “Building an online community really helped move the brand forward.”
Tech pace-setters
A glance at the most recent Deloitte Technology Fast 50 Australia awards in December 2020 gives an insight into digitalisation trends across the country.
The biggest category represented is online/direct to consumer (34 per cent), followed by software (28 per cent) and fintech (16 per cent).
“Every company nominated this year has shown great resilience and resourcefulness,” says Deloitte Partner Josh Tanchel. “The rise of businesses that have successfully harnessed technology is clear.”
He estimates that the pandemic accelerated the shift from physical stores to online by at least three years.
