{"id":44681,"date":"2023-10-20T15:37:39","date_gmt":"2023-10-20T15:37:39","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/businesses-need-to-get-smarter-when-investing-in-tech-startupsmart\/"},"modified":"2023-10-20T15:37:39","modified_gmt":"2023-10-20T15:37:39","slug":"businesses-need-to-get-smarter-when-investing-in-tech-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/businesses-need-to-get-smarter-when-investing-in-tech-startupsmart\/","title":{"rendered":"Businesses need to get smarter when investing in tech – StartupSmart"},"content":{"rendered":"
By Shahid M Shahiduzzaman, Marek Kowalkiewicz and Rowena Barrett<\/em><\/p>\n Business managers have a poor understanding of what technology to invest in and how to use it. Technology use alone doesn\u2019t lead to growth in a business but simple technology focused on solving customers\u2019 problems is key.<\/p>\n Our new research looked at 11 firms with high growth (turnover growth of more than 20% per year for three to five years) in Queensland.<\/p>\n The study featured interviews with 17 owners and CEOs of firms who were asked about their business model and the role technology plays in explaining their growth.<\/p>\n It showed that businesses are successful when technology is combined with human and organisational capabilities to deliver value and solve a problem for the customer.<\/p>\n The Reserve Bank of Australia (RBA) noted a decline in business investment when it cut the cash rate to 1.5%. Overall, gross investment in all sectors decreased 3.4% annually in 2014-15, following a decline of 1.29% annually in 2013-14.<\/p>\n While this decline is largely attributed to the decline in growth of investment in machinery and equipment, technology investment also declined, especially investment in electrical and electronic equipment (-4.33% in 2014-15 and -9.17% in 2013-14).<\/p>\n Research shows a poor connection between technology investment and productivity in Australia. The graph below shows the slow growth path of investment in the economy in recent years.<\/p>\nWhere businesses get it wrong<\/h3>\n