There are three important factors to help businesses unlock their true blueprint for growth: visibility, control and agility. This is according to Paul Farrell, VP product marketing at Netsuite who spoke to attendees at this year’s SuiteConnect conference in Sydney this morning.
During his presentation, Farrell discussed these three factors and how businesses can apply them to unlock growth.
Farrell explained visibility helps businesses to understand what has happened, what is happening now and what will happen in the future.
“In a lot of businesses, what we do is we sort of manage the top line and the bottom line. We have our reports and other things that sort of help us understand how the business is performing,” he said. “But visibility and good visibility solutions also help us understand the blind spots that are out there, things we haven’t thought about.”
Some of those blindspots include customer churn, creeping costs and flawed revenue mix.
“One of the things about NetSuite is we deliver tons of analytics that we built up over years and years and years of doing business across all different industries. So it allows you to manage some of those blind spots.
“Understanding customer churn, understanding that customers are eating into your profitability, understanding who your true valuable customers are. It’s not just the profit and overhead when you’re selling something or the cost of your brand when you’re selling something, it’s actually more than that.”
It is important to have that visibility, according to Farrell, but as businesses grow control becomes an issue. He warned brands should be staying on course and making sure that the business is adhering to the “North Star”.
He said, “As things grow you can’t sit on every sales call, you can’t understand every opportunity that’s there.
“You’ve got to trust that the business is running the way that you want it to using the right people but also using the right systems with the right control capabilities. It helps make sure that businesses are running in the direction that you want to.”
Farrell noted there are lots of things that fall outside your control as well, like the impact of coronavirus on global trade.
While control is imperative to make sure your business remains on track and runs the way that you want, agility is also important.
Farrell said as companies grow sometimes they squeeze out the entrepreneurship and the agility that made them great in the first place.
Agility also helps companies manage what might be major inflection points in their business and to be able to leverage them to evolve business models.
“If you’re a manufacturer, 20 years ago you made your product, you ship it, you invoice it, and then you recognise the revenue. Now, lots of companies are starting to use IoT usage-based billing subscription-based within what was a traditional transactional business model.
“Agility is huge for companies so they can take advantage of the opportunity, or they can withstand pressures quickly.”