1.
Navigating to the Future:
The Annual Pulse Check and
Action Plan for Small and
Medium Business in Australia &
New Zealand
Salesforce
November 2014

2.
Webinar Panel
Melissa Apte
Senior Marketing Manager
Salesforce
Jeff Downs
CEO
RedBack Conferencing
Joshua Tanchel
Partner
Deloitte Private
John O’Mahony
Director
Deloitte Access Economics
II Navigating to the Future The Annual Pulse Check and Action Plan for Small and Medium Business in Australia & New Zealand

3.
Webinar Overview
• Salesforce commissioned Deloitte to prepare the first of a series of annual reports
about the changing landscape for middle market SMBs;
• Deloitte Access Economics have produced a Pulse Check of changing conditions
for SMBs – the competitive landscape, digital technologies, and the aspirations and
planning of SMB owners and managers; and
• Deloitte Private have assisted in producing an Action Plan for SMBs to succeed in
Navigating to the Future.
1 Navigating to the Future The Annual Pulse Check and Action Plan for Small and Medium Business in Australia & New Zealand

4.
SMB Action Plan
Quality & Customer Service
SMBs can lift quality and customer service even
higher by focusing on doing something really well,
improving sourcing, rapidly refining products based
on customer feedback, and using the best channels to
communicate.
Cloud & Data
Cloud services for business functions including
sales, IT, finance and accounting, HR and general
business management can be cheaper and provide
more information about the business that can better
inform decisions. By using data analytics - the next
big trend on the horizon - it can challenge the
instincts of business managers so they are better
informed.
Sales & Marketing
SMBs can make sales more efficiently by
reassessing their sales cycle, offering free
trials, reducing friction points. Online channels
can offer superior ways to reach new markets.
It’s also important for more mature SMBs
to avoiding complacency on customer
satisfaction.
Building Business Agility
Business agility is particularly important for SMBs, as
businesses in the sector often have a narrow focus in
the market and rely on a small number of customers
for their revenue. Strategies like a flexible corporate
plan, reviewing market performance, having real time
information about the business and releasing products
and services as soon as they are viable can increase a
business’s agility.
Attracting & Retaining
Talent
Social media and online services can be a cost
effective way of reducing on-boarding time and
costs. Alongside traditional engagement tools
such as recognising personal objectives of staff
and offering training and variety, flexible ways of
working and access to new digital tools can also lift
employee satisfaction.
2 Navigating to the Future The Annual Pulse Check and Action Plan for Small and Medium Business in Australia & New Zealand

5.
How are SMBs competing?
The quality of goods
Great customer service
Competitive prices
An efficient workforce
Product differentiation-niche goods
Better marketing and sales strategy
Catering to changing market demand
Internal operational efficiency
The use of technology
Proprietary supply chain
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
13.7%
12.3%
11.5%
6.0%
7.9%
6.7%
8.1%
7.7%
5.4%
Question: Which of the above are most important to the success of your organisation? (multiple selection)
20.8%
Two years ago
Now
3 Navigating to the Future The Annual Pulse Check and Action Plan for Small and Medium Business in Australia & New Zealand

6.
Lift quality & customer service
even higher
• Focusing on doing something great and very high quality.
• Start from the source. A great starting point to improving quality is sourcing better;
inputs material.
• Refine products based on customer feedback.
• Reconsider your channels to interact with customers.
4 Navigating to the Future The Annual Pulse Check and Action Plan for Small and Medium Business in Australia & New Zealand

7.
Redback Conferencing
Making Distance Obsolete
SMBs need to avoid
commoditised services and
differentiate
Redback Conferencing is a teleconferencing and online events business
founded in 2007. It expects to host 1200 events this year.
According to Redback Conferencing CEO Jeff Downs SMBs need to avoid
commoditised services and differentiate. That is why Redback is moving
from standard teleconferencing to providing a high quality events service.
“Don’t try to be a biggest guy in the market, but try to be biggest guy in
the room.”
There were early struggles to get services to market in the first 18
months. The next step for the business required a ‘leap of faith’.
“Business owners have to stop working IN the business and start working
ON the business, empowering employees.”
Building employee engagement is very important for success, especially
in SMBs. Hiring for cultural fit, not just skills, is a good strategy.
Also important are offering an attractive working environment, and
recognising that employees have their own aspirations for the business
and their personal lives.
5 Navigating to the Future The Annual Pulse Check and Action Plan for Small and Medium Business in Australia & New Zealand

8.
SMB’s cutomers can experience
significant churn
Small to medium sized businesses
(i.e. up to 200 employees)
Consumer or households
Large corporate businesses
(i.e. more than 200 employees)
Government departments,
agencies or organisations
50%
26%
15%
5%
Question: What is the largest share of your customer base?
• Half of the customers in the SMB sector are SMBs themselves.
• There are approximately 300,000 new SMB businesses each year, and a similar
amount of business cease to operate (RBA, 2012, 0-199 employees).
6 Navigating to the Future The Annual Pulse Check and Action Plan for Small and Medium Business in Australia & New Zealand

9.
Make efficient sales and broaden
marketing
• Reassess the processes involved in selling to new customers (including websites and
mobile apps) – when they understand the value proposition, how they are contacted.
• Recognise that it usually cheaper to maintain customers than find new ones, so keep
an eye on existing customer satisfaction levels.
• Broader markets exist beyond immediate locales, and can be reached more cheaply
through online channels.
7 Navigating to the Future The Annual Pulse Check and Action Plan for Small and Medium Business in Australia & New Zealand

10.
Cloud and data analytics are the
next big digital trends
Mobile devices,
including
smartphones,
tablets and mobile
apps
Social networks
such as Facebook
or Twitter
Internet, including
websites and
search engines
advertising etc.
Data analytics and
Data visualisation
Machine
to machine
technology
Two years ago Now Two years from now
1
2
3
4
5
6
7
8
Question: Which of the above digital trend do you believe most affecting your business?
• SMBs are increasingly influenced by different types of technology.
• Internet, Mobile and Cloud are the top 3 Influences.
• Most noticeably, cloud has increased its importance from 8th to 3rd.
Cloud computing
and Cloud-based
tools such as
salesforce or
google docs
Wearable
technology
Teleworking
8 Navigating to the Future The Annual Pulse Check and Action Plan for Small and Medium Business in Australia & New Zealand

11.
Digital tools to help you get ahead
of the curve
• Consider cloud services for business functions including sales, IT, finance and account-ing,
HR and general business management. Do not see cloud as simply an opportunity
to reduce costs, but also provide more information about the business that can better
inform decisions.
• Data analytics strategies can range from basic spreadsheet analysis, to harvesting
online and mobile data to better design services for customers. Data offers a way of
challenging and testing the ‘instincts’ of business managers.
9 Navigating to the Future The Annual Pulse Check and Action Plan for Small and Medium Business in Australia & New Zealand

12.
War for talent
Recruiting the right talent
Increasing productivity
Competitive pricing
Improving quality
Adapting to technology
Increasing market reach
Diversifying product or services
Improving supply chain
Diversifying revenue
Acquiring other businesses
15% 20% 25% 30% 35% 40%
38%
36%
34%
34%
30%
28%
27%
22%
20%
20%
Question: Which of the following do you believe are most important to the growth of your organisation? (multiple selection)
• Business believe future growth is more likely to come from recruiting the right talent and
increasing in productivity.
• Separately, they cite accessing skilled labour as the number one issue facing their business.
10 Navigating to the Future The Annual Pulse Check and Action Plan for Small and Medium Business in Australia & New Zealand

13.
Attracting and retaining talent
• Consider new ways of finding and recruiting new employees including social media and online
services. This can be a cost-effective way of reducing on-boarding time and costs.
• Improve employee engagement by offering staff flexible ways of working, including allowing
bring your own device, use of the internet/social media for work tasks and telework.
• Beyond perks and pay, development opportunities are a very important staff motivator – offer-ing
job rotations, formal training, and variety of work or collaboration opportunities can also
build staff loyalty.
• Recognise that staff have personal objectives outside of work – value them, such as through
appropriate time off or flexibility policies, and celebrating employees’ personal achievements.
11 Navigating to the Future The Annual Pulse Check and Action Plan for Small and Medium Business in Australia & New Zealand

14.
Planning and profitability
% of SMBs
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
39
56
62
83 83
33
27 25
19
7
13
19
24
9
4
Don’t have a plan Current financial year One to three years Three to five years More than five years
Increased profit No change Reduced profit
12 Navigating to the Future The Annual Pulse Check and Action Plan for Small and Medium Business in Australia & New Zealand

15.
Build business agility
• Have a flexible corporate plan. Constantly review market segments and
identify weaknesses;
• Have scalable systems that can respond quickly to ups and downs; and
• Minimum viable product. Have the processes to enable informed but timely
decisions.
13 Navigating to the Future The Annual Pulse Check and Action Plan for Small and Medium Business in Australia & New Zealand

16.
Final Report
The final “Navigating the Future (2014)” will be emailed to all
registed participants.
Alternatively, an online version will be available for download
next week at:
www.deloitte.com.au
www.salesforce.com/au
14 Navigating to the Future The Annual Pulse Check and Action Plan for Small and Medium Business in Australia & New Zealand

17.
Research Methodology and
Sources consulted
Background research
• Desktop research of existing SMB publications and statistics
• Informing overall project scope and survey design.
Survey
• Deloitte designed the survey in conjunction with Salesforce
• Stancombe Research and Planning carried out the fielding to 502
SMB owners/managers across Australia and New Zealand
• Survey fielded between 4th Sept 2014 and 16th Sept 2014
• 31 questions in total covering 19 industries.
Consultations
• Individual consultation was conducted with three middle market
Australian companies including Revelian, Cohen Handler and
Redback Conferencing.
Sources
• Australian Bureau of Statistics, 8167.0 Selected Characteristics of Australian
Business
• Australian Bureau of Statistics, 8219.0 Business Use of Information
Technology
• ACMA (2014), Communications report 2012 – 13 series: Report 1 –
Australian SMEs in the digital economy
• Australian Taxation Office (2010), Understanding the Small and Medium
Enterprise Market
• CPA Australia (2013), The CPA Australia Asia-Pacific Small Business Survey
2013
• Deloitte Access Economics (2013), The Connected Small Business
• Deloitte Access Economics (2013), Digital Disruption: Short Fuse, Big Bang?
• Feng et al (2012), Customer orientation for decreasing time-to-market of new
products: IT implementation as a complementary asset. Industrial Marketing
Management, 41, 929-939.
• RBA (2012) Small business: an economic overview
• Telstra (2007), SME trends and achievements
• Telstra (2007), Australia’s future and the challenge for SMEs
• Telstra Business, Back to business survey series (2009 – 2011)
• Salesforce (2013), Secrets to Business Growth: Tips from 3 successful
entrepreneurs
• Sensis, e-Business report series (2012 – 2013)
• Yellow pages (2013), Yellow social media report
15 Navigating to the Future The Annual Pulse Check and Action Plan for Small and Medium Business in Australia & New Zealand

18.
This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively the “Deloitte Network”) is, by means of this publication,
rendering professional advice or services.
Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss
whatsoever sustained by any person who relies on this publication.
General use restriction
This report is prepared for Salesforce. This report is not intended to and should not be used or relied upon by anyone else and we accept no duty of care to any other person or entity. The report has been prepared
for the purpose set out in our Standard Form of Agreement dated August 2014. You should not refer to or use our name or the advice for any other purpose.
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