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With strong agricultural outputs returning, improving weather and the emergence of industry restructuring, Australian Agri-Businesses are looking to a period of change and renewal. Whilst short term fundamentals are good, industry structural challenges remain and players will need to manage a range of issues, including:
- Managing pricing and output demand
- Increasing focus on climate change
- Managing input pricing and volatility
- Participating in the changing industry landscape
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Why do so many IT projects fail? Our view is that the fatal decisions are made at the design phase of a project by selecting the wrong design philosophy. Often, a project is initiated due to a perceived business need, but by inappropriately following an IT centric design approach the project eventually loses sight of the original business problem.
The potential results are, at best, more cost and lower benefits than anticipated and, at worst an abandoned project with nothing to show for it.¹
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Reshaping the technology business unit to better meet business priorities of speed, flexibility and cost containment is a major problem for many companies. On the demand side the business does not see how they can understand and control the technology part of their operational budget. We have assisted a number of large organisations design and transition their IT department to a technology services model and summarised some key lessons from our experiences.
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As little as a year ago, a company's main pricing strategy concerns were managing the annual price increase cycle, reducing value leakage and ensuring net prices were aligned to customer value and strategic considerations. Now there is incredible pressure for price reduction (encouraged by less disciplined competitors), a blow out in accounts receivable and a salesforce driven to holding volumes at all costs in the face of a shrinking market.
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Though it takes 5-10 years for manufacturers to start delivering carbon sequestration through reforestation, tree based carbon suppliers are anticipating a surge in demand in the next 12-24 months, following greater clarity over carbon price paths from the Copenhagen climate conference in 2009.
In this article we look at the forestry and agriculture abatement curve and how planting new forest sinks will be a commercially justified part of the carbon abatement portfolio for large companies.
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Most of us have been through profit improvement exercises - programs with acronyms like TPI (Total Productivity Improvement), PIP (Profit Improvement Program), Delta P (Change Performance). Some we umbrella brand as continuous improvement, others are focussed on turnaround or survival. They can be cost, productivity or revenue focussed - or the lot. We may give them positive spins by adding innovation and growth targets, but ultimately they are about improving cost, efficiency and productivity.
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We commend the National Health and Hospitals Reform Commission (NHHRC) for producing a comprehensive review of the issues and options facing the Australian health system. While we support the overarching themes of the report, we would like to provide feedback on selected reform directions. Our feedback centres on 1) Taking Responsibility, 2) Connecting Care, 3) Facing Inequalities, and 4) Driving Quality Performance. You can read our full Open Submission to the NHHRC.
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Value based pricing is a concept supported in most businesses - however the reality often falls far short of the rhetoric. The promise of well executed pricing strategy is substantial - the potential margin increase is typically 2-4% of gross sales. However, inability to execute on the promise of value based pricing often arises from a practical inability to understand what ‘value' really is, and a lack of experience in capturing this value through price management.
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