Gordon Jenkins from Adaptive Innovation talks going global: how to transition your business from the small to the big pond. Watch our three-part series with Gordon Jenkins on Going Global.
Globalisation has increased competition for many businesses with many of their competitors able to offer lower priced goods and services due to lower wage costs. To compete and survive, the focus of many downstream businesses has been on reducing costs and doing so by offshoring components of their business process into lower wage countries. Once this is done, however, how can you take advantage of these lower costs to diversify and compete in to different markets? The answer is to think outside the box and to innovate. Don’t just look at traditional business models for diversification and growth. The Digital revolution is reshaping business in ways we haven’t even thought of yet. The ability to reach customers in new markets, communicate with them and service them better are only some of the benefits it brings. Many traditional industries (think videos, books, music, travel, even hiring a taxi) have been transformed by the digital revolution, leaving traditional business models on the extinct list. This has come about because Customers are time poor, want to get their products and services as quickly as possible and do far more shopping from their phone, work or home because of this. If they can’t find you or interact with you digitally and they can with your competitors, you will lose them. From a diversification perspective, the digital revolution changes the way in which we can enter new markets. Starting a website (that adjusts for Mobiles and Tablets) and selling your product online in a new market is a quick and relatively low-cost method of entering that new market. Couple this with social media and the use of mobile apps and gamification to generate awareness and give you exposure for your products or services. My recommendation is for businesses to embrace innovation and the digital revolution and look at how you can transform your business on an ongoing basis. You’ve transformed it by offshoring and reducing costs. Now transform it in how you deal with your customers. Look at what others are doing with digital in other industries and how they have transformed those industries and look at how you can leverage these ideas in yours. Focus on your time poor, instant gratification seeking customer and simplify their ability to purchase your product or service when they want to and do it in as many markets as you can.
Australian businesses quite often find themselves competing in a smaller market due to our geographically challenging location. As such, we wind up as big fish in a small pond. There’s endless opportunity for your business to succeed, however are you considering the other companies vying for that same opportunity?
Are you giving your business the greatest chance of profitability and success? Now may be the time to consider changing your tactics.
Most businesses are afraid of the idea of expanding and going global – there are risks, however to execute your expansion plan successfully you need to plan ahead.
1. Researching the market is key to succeeding.
It might seem obvious but believe it or not, researching your target market will ensure you receive traction instantly. You want to be able to see what your product’s potential demand is, as well as the cost of business.
2. Know who your competitors are.
While you are researching your target market, it’s also a good idea to research who the other players are. Knowing your competitors brand, product and their market presence is essential, if you want to go head to head with them.
3. Ensure your IT systems can handle your business going global.
If your business is ready to go global it usually means you are in a position where your business is growing rapidly. Technology plays a big part in preparing your business for globalisation. You need to ensure your systems can keep up with rapid business growth, without putting pressure on admin staff. You will want a system that gives you visibility over all aspects of business, from finance, to sales to inventory management – you need to see how your business is performing no matter the subsidiary.
4. Hiring the right employees.
Finding the right people to look after your business in another country can often make or break your expansion plan. You will need to consider hiring people that understand the language, business processes for that country etc… to ensure customers receive the best service. Hiring the right people will allow you to understand if there are any cultural differences that might impact the way your brand is perceived, or what the countries buying behaviours are.
As a business leader, you should think big. Consider all of your options before making the decision and ensure you are prepared. Researching is key and make sure you have the IT infrastructure to cater for change. Scalable systems will allow your company to grow rapidly, without business risk. Now, all you have to do is go global and reap the rewards that overseas markets can provide.
NetSuite Inc. ( NYSE: N), the industry’s leading provider of cloud-based financials / ERP and omnichannel commerce software suites, today announced that Battery World, Australia’s largest retail franchiser of portable power and specialist batteries, has selected NetSuite to transform its B2C and B2B retail franchise business operations. This modernisation effort can enable Battery World to gain the agility, flexibility and scalability it needs to maintain its market leadership and future proof its business. The company is replacing over 80 instances of on-premise COSTAR point-of-sale (POS), an in-house intranet, and multiple manual spreadsheets with NetSuite OneWorld. With NetSuite OneWorld, Battery World can run its POS, financial consolidation, franchise inventory management, customer relationship management (CRM), marketing and real-time analytics and reporting across more than 80 stores. Furthermore, Battery World also has plans to deploy NetSuite SuiteCommerce to enable eCommerce transactions from the same single unified cloud platform.
Disparate, Outdated Solutions Generate Inefficiencies software
Founded in 1997, Battery World (www.batteryworld.com.au) is Australia’s largest specialist retailer of portable power and batteries. However, opportunities to extend its leadership position were being hampered by limitations of using disparate software systems. The company was unable to effectively share data between stores, which meant that if a customer purchased from one retail outlet and returned the product to another, it required a lot of manual interaction between stores to fulfil national customer service and warranty coverage. Eighty-two separate instances of POS and the lack of a centralised system of record for financial planning, reporting, marketing and CRM insights also meant that generating reports to gain critical insights into the business was time-consuming and error prone. Additionally, as the business had already transitioned from being primarily a trade-based business serving a niche audience into a mainstream B2B and B2C retailer, Battery World’s current platform architecture is unable to scale for any future expansion into ecommerce or other territories. To read the entire article follow the link: