The Australian economy’s gradual online transition was thrown into chaos when the first wave of COVID-cases hit Australia earlier this year, with businesses forced to adapt and re-engineer their business models on the run in order to simply survive.

While many businesses were already in the process of planning for such a transition as the global economy continues to become more connected, a lot of businesses, particularly many small and medium enterprises (SMEs) have been caught out.

But with the lessons we have learnt over the past few months, as well as the increased understanding of how embracing a move towards a more digitally focused economy can provide a multitude of long term benefits to the country, there is hope that we can come out the other end of the pandemic with a much more efficient, productive, future-proofed economy.

However, for this to happen, a united collaborated effort is required involving all aspects of the Australian economy, including SMEs, who make up some 99 per cent of the Australian economy.

So, what steps can we take to make this future, a reality?

To start off with, additional resources need to be put into enabling SMEs to develop a digital presence.

According to data revealed by Deloitte, SMEs with a strong digital presence were far more likely to thrive than those with minimal no online engagement. Digitally advanced SMEs were found to achieve 28 per cent more revenue growth, and eight times more likely to create jobs than those with basic levels of digital engagement.

Increased resources could come in the form of widespread access to the latest telecommunication services such as NBN and 5G networks. Not only is the successful roll-out of this technology crucial in establishing a secure platform on which Australia’s digital economy can thrive into the future, but it also, provides a reliable communication channel for employers, employees and customers.

The Department of Communications and the Arts has estimated that the successful integration of 5G across Australia will drive significant increases in productivity and business efficiency due to the speed, data capacity and device density increases compared to the currently available technology, adding up to $2,000 GDP per capita in the decade following the roll-out.

Businesses should also be encouraged to invest in technology and assets that will help accelerate their transition online. This could be achieved through the introduction of grants and incentives, like the extended instant asset write-off scheme introduced by the Federal Government.

Through these incentives, businesses should be encouraged to develop a greater online presence, expand or alter their business to maximise online opportunities, or invest in technology to transform their business operations.

It also needs to be easier for businesses to track their income and expenditures and pay bills. Introducing mandatory e-invoicing would allow smaller businesses to receive money sooner, helping to boost their cash flow, while also allowing big businesses to better track outstanding invoices and payments.

It is measures like these that are crucial to support the digital growth of SMEs into the future, which will, in turn, support the progression of a digital economy in Australia.

Source: the Australian (source required) | Time for digital reform as COVID-19 accelerates change in our lives

19 August 2020