There are not many tech companies on the ASX 100.
Instead, it’s a list dominated by mining companies, financial services and property trusts; all “dinosaur industries”, according to Dave Slutzkin, general manager of Smart50 star performer Flippa.com.
Writing in Business Spectator this week, Slutzkin described reading the list of companies on the ASX 100 these days as like peering into a history book.
“The top companies are born from industries and ideas very much belonging to the previous century.”
Where it’s at, according to Slutzkin, are agile, entrepreneurial start-ups which are small and web savvy.
Of course Slutzkin would say this, given Flippa fits this description to a tee, but he does make a good argument that the ASX100 is in danger of being left behind by online tech companies.
“They aim to steal market share from established players and for this reason the dinosaurs should be worried,” Slutzkin writes.
Too many of Australia’s blue ribbon companies view the internet and digital media as an outpost of their marketing function, rather than an essential part of their business.
This attitude comes despite the release of a report by Deloitte last year which warned 32% of the Australian economy faced digital disruption in the short term.
The problem is when you are that big, it’s hard to adapt quickly and adopt new strategies.
But that shouldn’t be the case for SMEs.
It’s not too late for SMEs to get on board the online revolution and make the most of their smaller size to act swiftly.
Australian Bureau of Statistics figures released in August last year show only 28% of businesses accept online orders, even though consumers are increasing their online spend.
That’s a huge opportunity for the remaining 72% of businesses.
Slutzkin is critical of the businesses at the top end of town, but his criticism only serves to highlight the opportunities for SMEs in the digital space.