Cloud Computing Helping Australian Manufacturers Compete in Downturn

February 4, 2014

Australian businesses may face a challenging period ahead as the mining investment boom declines(opens in new tab) and commodity prices, which have buoyed the Australian economy, fall thanks to the stalled Chinese economy(opens in new tab).

However, economists expect these developments, along with a decline in Australia’s currency, to be a boon for the manufacturing sector(opens in new tab). Australia’s manufacturing sector has been in decline for years —struggling to compete with manufacturers from low-cost emerging countries and hampered by a strong currency that further made their prices uncompetitive.

But recent developments present an opportunity for manufacturers. If manufacturing companies become smarter in how they compete and manage their resources, they can use(opens in new tab) an economic downturn to their advantage. One such area of focus should be technology.

Under-investing in technology nowadays can leave companies unprepared and vulnerable to foreign competition(opens in new tab). Digitisation, mobile, social media and cloud are driving disruptive changes across many industries. Australian companies that are unable to adapt and capitalise on these technology trends risk falling by the wayside and becoming vulnerable during trying economic times.

Some Australian businesses have become smart about their technology strategy, using cloud computing(opens in new tab) to increase their profitability by increasing revenue and cutting costs. A survey(opens in new tab) by analyst and advisory services firm Telsyte(opens in new tab) found that cloud solutions, specifically on-demand business management software delivered via cloud such as NetSuite, are providing on average 9.4% growth through better agility and faster speed to market. Cloud-based businesses also saved an average of 8.7% of their operating costs because they did not have to worry about ongoing maintenance, power and support costs.

Cases in point are Headland, Precision Mechatronics and(opens in new tab) BA Equipment group(opens in new tab). These Australian companies use NetSuite’s cloud platform for manufacturing(opens in new tab) to more efficiently manufacture, forecast, price, track and schedule products, with a focus on design and a single platform for both B2B and B2C distribution.

If you are managing an Australian business and want to prepare your organisation for the expected challenges ahead, why not find out what 200 of your peers have said about their business performance following their adoption of cloud software. Check out our white paper(opens in new tab) titled “Cloud Creates Path to

Profitability for Australian Businesses.”

-Mark Troselj, VP and Managing Director for Asia-Pacific and Japan at NetSuite

NetSuite has packaged the experience gained from tens of thousands of worldwide deployments over two decades into a set of leading practices that pave a clear path to success and are proven to deliver rapid business value. With NetSuite, you go live in a predictable timeframe — smart, stepped implementations begin with sales and span the entire customer lifecycle, so there's continuity from sales to services to support.

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