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5 Oct, 2020
The women shattering the C-suite ceiling in tech
Financial Review

When Xero chief customer officer Rachael Powell was growing up, the job she's doing today didn't even exist.

It was impossible for Powell, who started out wanting to be a journalist like her grandma who worked for German newspaper Der Spiegel until she died at 88, to envision the job she'd find herself doing a few decades later.

This, she says, will be the reality for many women and men poised to embark on their careers today and for employers it means needing to look beyond a job description.

"For me, building a team is about understanding the skills I need, but also the aptitudes that are needed, so I spent a lot of time focusing on bringing the right people together," Powell says.

"The way I interview people is more of a conversation than an interrogation. I assess through tone and inference what someone is going to be highly engaged with.

"There's a lot of ambiguity when it comes to new roles, so you need people with good problem solving skills, that are fantastic at stakeholder management and are exceptional communicators. These are the skills that are important for any company looking to grow fast."

As Xero's chief customer officer (and formerly also its chief people officer), Powell is responsible for ensuring Xero customers, no matter where they are, have a "consistent and outrageous experience".

Powell is in charge of shaping a customer's exposure to Xero from when they first hear of the brand, through to their interaction with the company via its website, trying the product for the first time and the sales experience.

She's one of an increasing number of women pushing into the senior leadership ranks at the country's biggest listed tech companies.

At Xero, 42 per cent of the leadership team are women, as are 42 per cent of employees overall.

The new female faces are a welcome addition to what for a long time has been a predominantly white, male, cohort of senior leaders in the country's tech firms.

Earlier this year Cassandra Williams was appointed as chief enterprise risk officer at Afterpay, having previously worked at Commonwealth Bank, while at Xero Kirsty Godfrey-Billy went from chief accounting officer to chief financial officer when former CFO Sankar Narayan resigned to lead SiteMinder in 2018.

At logistics software company WiseTech, Gail Williamson has also climbed the corporate ranks, shifting from head of investor relations and corporate affairs to chief growth officer in 2017.

Williamson, like Powell, is doing a role that did not exist 10 years ago. As more new roles are created, she is hopeful that more businesses will embrace the need for greater diversity in their organisations - and not just from a gender perspective.

"You have to have culture, gender, socio-economic and life experience diversity," she says.

"Embracing diversity is the same as embracing innovation, neither is optional if we want better outcomes. When organisations embrace diversity, encourage creative abrasion and, importantly, can match those with engineered processes and semi-autonomous execution, growth can be exponential, not linear.

“Building teams stacked with diversity of cultures, experiences, gender, education and thinking styles, that are also given the freedom to be creative along with technology architectures to drive data and transparency, can generate stronger engagement, delivery and organisational agility.”

Unlike other chief growth officers at other firms, her job, she says, is not just fancy name for a marketing or sales role.

"Some chief growth officer roles are centred on sales, but here the role... involves accelerating growth and geographic expansion by aligning resources, looking at the tech pipeline, distribution channels, communications and acting as a soundboard between areas," Williamson says.

"Looking across functions and geographies lets your team have a vision on things that can be globally scalable, semi-automated and have local configurations that let you operate in many markets."

Williamson, who grew up in Belfast, Northern Ireland, before coming to Australia for high school says she has always had equal weighting between her left and right brain – enjoying art, but also mathematics.

Williamson too does not think linearly about who would make a good fit for a role.

Having dabbled in film production and design, as well as spending most of her career in investor relations (spanning a range of sectors including financial services and healthcare) before taking on the chief growth officer role at WiseTech, she knows the value of cross-industry experience.

I’m not a typical CFO. I’m not mid 50s, I’m not male, I have a child, but that’s cool. I am who I am.

— Kirsty Godfrey-Billy, Xero CFO

"There's a fear of experimenting, but having cross-industry experience is an enormously beneficial asset and it sets you up well to work in an innovative space," she says.

"I used to hire people to work in funds management while at Henderson in London who had zoology degrees.

"I've had periods in my career where I’ve concentrated on immersing myself on an areas like actuarial work and balanced it with period of deep creative work and working in tech … it's offered an extraordinary mix of being able to execute those different sides of your personalities."

While women like Williamson and newly appointed Telstra director Bridget Loudon have been busy shattering the glass ceiling within the tech sector, opening up the path for others to follow in their footsteps, there's still very few female CEOs of listed tech companies – either big or small – in Australia, or globally.

Of the companies included in the ASX's All Tech Index, Alcidion chief executive Kate Quirke is the only female. When you look beyond tech to the ASX top 200, the figures are only slightly better, with 6 per cent of companies in the top 200 led by women.

At the board level there has been progress made. Now, there's only one company in the ASX200 with no female directors, down from 50 five years ago. But, there's still more Michaels and Peters on boards than women - particularly at Westpac – and ecommerce company MyDeal is slated to come to market without any female board members.

Afterpay chief enterprise risk officer Cassandra Williams has been on boards before, but says she wouldn't do it again until she's no longer an executive.

"For me it's all about Afterpay [at the moment]. This is a great role and there's a lot for me to learn. In the long term though, I can see myself on boards. It's a really great step, especially with the experience I’ve got," she says.

"It's that thing that will happen when I'm ready to not be operating and running a function,"

Williams, who joined Afterpay in March as the world switched overnight to remote working, is a lawyer by training – a profession she chose in part due to her family, but also thanks to the '80s television show LA Law.

After university she got her first job as an article clerk at a three-partner firm in Hobart, before moving to Perth and then London to practice, and taking on roles with the London Stock Exchange and the UK Financial Services Authority.

After leading the UK FSA, she joined Investec, before being lured back to Australia and joining the Commonwealth Bank, where she was most recently chief compliance officer.

Williams says her time at CBA was an amazing experience and gave her a chance to "get into the weeds" of retail banking, but ultimately she was lured to Afterpay by the opportunity to be involved in a smaller, growing business, where she would be stretched and pushed to learn new things.

"It does feel different. Things move at a different speed, it's much faster. The decision making is speedier and people work really well together ... What I’m doing is also so intrinsically built into what the organisation is trying to do," she says.

"I'm responsible for governance, operational risk and compliance. It’s very much about engagement at a leadership team level, working with my direct reports or steering initiatives that we’ll be working on, writing a policy or developing new frameworks.

"Everyday is completely varied and that's exciting. There's nothing I'd change about it."

Williams took on the job at Afterpay during COVID-19 and was consequently thrust into a new role while remote working with a team she had never met.

The experience for her was not unusual though, having worked from home 19 years earlier when her daughter was a baby.

"I already knew you could be superproductive," she says.

"At that time, in 2000, working from home was not a thing, so I was pretty much the only person I knew who did it.

"For the first few years, I didn't have a work phone or blackberry. I had a laptop and the ability to remote access, but there was no WiFi. Access to the internet was by dial up and that could take a while – long enough to make a coffee and put on the washing. I would bring files home to work on, and I would be productive enough to get everything done, plus pick up my daughter early from nursery. So I actually continued to work from home until I moved to Australia in 2010 – moving to one day a week when I took on a management role."

Williams, Williamson and Powell were all optimistic that diversity in the technology sector would continue to improve and that visibility was key to encouraging the next generation of women to consider careers in tech.

Programs like Startmate's women-only fellowship are now creating pathways for women in traditional careers to transition into roles in high growth, early stage tech companies.

The most recent application round for the fellowship had more than 600 applicants for 100 positions, with the expectation that at least 50 per cent of these would come out the other side of the eight week program with jobs in tech start-ups.

Xero chief financial officer Kirsty Godfrey-Billy says Xero is the only company she would have left her partnership role at PwC for.

"I think [more diversity] will happen. There’s a number of females coming through university and I have a number of women in my team, but as you go up seniority levels, there's far fewer," she says.

"It’s not that we don’t have the talent ... women are fantastic leaders and so it’s beneficial for all ASX companies to have a fair share of women in the C-suite, not just in the roles that are usually the ‘women’ roles. But leading finance, product, and being CEOs. It’s important to have that diversity because we do offer different leadership aspects and thinking."

Godfrey-Billy had believed PwC would be her final workplace, but in 2016 Xero co-founder Rod Drury came calling and offered her the chance to join the fast-growing cloud accounting software company.

"One of my key pieces of advice to people is to just take opportunities. I've taken risks," she says.

"I saw the opportunity and the value I could create. I haven't looked back since moving to Xero. Something on reflection that women are very good at is wearing masks to make ourselves fit the environment we’re in. Everyday I was putting on a different mask depending on the meeting or the situation.

"At Xero, they approached me, so I decided they got me. I purposefully went into the role with no masks at all and ensuing that I turned up really authentically in every situation and that’s been quite transformative."

For Godfrey-Billy, being her true self in the workplace and having confidence in her abilities did not come naturally.

Previously she had been in job interviews where she felt like she should hide the fact that she is mother, but at Xero she felt empowered to be herself and embrace her leadership style which is centred on emotional intelligence and collaboration.

"It comes back to self confidence in what you bring to the table. I’m not a typical CFO. I’m not mid 50s, I’m not male, I have a child, but that’s cool. I am who I am," she says.

"But what you need to be now is very different from the cardigan wearing guy of 30 years ago. You need emotional intelligence, you need to relate to people, to communicate and care about your clients or business if you’re in a bigger corporate. It's more about relationships and providing a service, not just delivering a finished product."

5 Oct, 2020
https://www.smh.com.au/business/small-business/melbourne-tech-leaders-fear-tsunami-of-economic-devastation-20200908-p55tl9.html?utm_content=TOP_STORIES&list_name=2031_smh_busnews_am&promote_channel=edmail&utm_campaign=business-am&utm_medium=email&utm_sour
The Sydney Morning Herald

Melbourne tech industry luminaries, including venture capitalist Paul Bassat, are fearful the Victorian government's harsh lockdown restrictions will have a severe and lasting impact on the state's economy and damage its emerging startup sector.

Mr Bassat, who is also an AFL Commission board director, said there was a "certain irony" to weekly team meetings at his Square Peg Ventures investment fund. Staff based in Israel are working in the office despite the country recording 3000 new COVID-19 cases a day, while Melbourne employees are stuck at home and subject to some of the world's tightest and longest restrictions.

Mr Bassat said while he was not suggesting Israel had the right approach, Premier Daniel Andrews' road map to end lockdown was based on "incredibly conservative benchmarks" and he was worried about the long term impact.

"We just have to find a way to enable us to operate the economy at a faster speed limit without going back into a third wave," he said. "We have to get all of the best and brightest people in the state and the country working on testing and tracing because I think it's pretty clear we're not as good as we should be."

Mr Bassat said business leaders had been accused of speaking out of self-interest, but said his concern was for the city and state he loved, with the companies in Square Peg's portfolio doing "pretty well".

Dependent on the numbers being right, here are the main dos and don'ts as Melbourne continues toward the end of COVID lockdown.

"I think the consequence of a very extended lockdown, where economic activity is massively reduced, where kids are essentially missing out on an entire year of schooling, at least in-person schooling, we could feel the impact of this for the next next five or 10 years," he said.

I'm just really worried about what next year, the following year, or the year after, look like for people in our community

Paul Bassat

"I think as someone who loves Melbourne and loves living in it ... I'm just really worried about what next year, the following year, or the year after, look like for people in our community, particularly people in need, particularly people who need to get jobs or have mental health issues, or don't have the same educational opportunities."

Adir Shiffman, chair of ASX listed sports technology company Catapult Sports, described the government's road map as "a highway to hell" and said instead of a universal lockdown, restrictions should be based on areas where there were clusters of cases.

"There are pockets that are booming in tech, like e-commerce, but everyone is very worried, particularly in Victoria, about what happens when JobKeeper ends," he said. "At the moment, the federal government is providing pocket money to the Victorian tech sector and we all know an economic cliff is coming."

Mr Shiffman said he had never anticipated there would be this level of sovereign risk involved in basing a business in Melbourne.

"I'm sure every business employing staff is reconsidering where to employ them," he said. "There is a tsunami of economic devastation coming to Victoria. In a situation where it is easier to work from anywhere now, Victoria is unreliable in terms of understanding and justifying decision making," he said. "That's not a great investment pitch."

However, the co-founder of health startup Halaxy, Alison Hardacre, said founders started businesses where they lived and the lockdown would not change that. Halaxy has staff based in Cork, Ireland, and Ms Hardacre said it was challenging managing workers in the country who had returned to the office while Melbourne employees were stuck at home.

She said the government's exit strategy was "very, very conservative" but she understood it from a health perspective.

"If Daniel Andrews can announce the financial support measures for businesses as soon as possible, he is going to stem some of the mental health impacts I would hope," she said.

Didier Elzinga, founder of employee engagement startup Culture Amp, said there were no easy answers and the government was in a difficult position.

"Is it too slow? Probably. Could we open up more quickly? Probably not," he said. "The problem we have at the moment is everyone is feeling deflated and flat. We have to keep an eye out for each other, it is a long slog."

2 Oct, 2020
Why the time is right for MyDeal's IPO
Financial Review

Several times over the past few years, MyDeal.com.au founder Sean Senvirtne has considered listing, but now he's confident the time is right.

With online shopping booming during COVID-19, the e-commerce marketplace company's revenue rose 190 per cent in the year to June 30, hitting $15.7 million, and the gross transaction value across the marketplace surged 164 per cent to $103 million.

Now, MyDeal is raising $40 million – $35 million in new capital and $5 million via a selldown – at a price that values the company at $258.8 million.

Mr Senvirtne said the shift to online shopping was sticking around despite lockdowns being eased in states outside Victoria.

"Speaking to any retailer, even bricks and mortar, they'll say there's been a strong shift online. Prior to COVID-19 we were on track to do about $75 million in sales and with COVID we got to $103 million," he said.

"What we're seeing now is strong growth even outside of lockdowns. It's possible that this shift is permanent.

"People discover the convenience of online shopping – not needing to go to the shopping centre, or park the car – you can just order online and it's delivered in the next few days."

The listing is eight years in the making for MyDeal. It has had previous lives as a group buying site and pure drop shipping platform (a retail method where the seller accepts customer orders but does not keep goods sold in stock) but now also operates its private label.

We are profitable, but we're a growth-focused business.

— Sean Senvirtne

For the most part, the business operates on a low-margin, high-volume business model. But the margins on its private label products are substantially higher at 30-40 per cent.

Despite doing more than $100 million in sales through the website and hitting profitability in 2020, the business has raised only $5 million in capital to date, with backing from the Gandel family.

The capital the company is raising through the IPO, Mr Senvirtne says, will go towards expanding its private label, developing apps for iOS and Android, hiring more engineers, making strategic acquisitions and meaningfully investing in sales and marketing for the first time.

"We are profitable, but we're a growth-focused business and we want to establish the brand as the go-to marketplace for online furniture and household goods," he said.

"At the end of July, we had over 550,000 active customers, which is growing rapidly.

"It's a testament to what we've been able to achieve with very minimum capital raising [to date]. Now we believe is the right time to take the company public to increase the awareness of the business and to be able to retain talent. Some of our peers are also doing really really well."

During the pandemic, shares of e-commerce retailers such as Kogan, Redbubble and Temple & Webster have soared.

Success stories

In March, Kogan was trading around $3.80; today it fetches more than $21. Redbubble went from 50¢ to $4.40 in the same period, and Temple & Webster from less than $2 to almost $12.

On Monday, Street Talk revealed that e-commerce business Adore Beauty was speeding towards a listing, which is expected to fetch a $600 million-plus price tag.

MyDeal's listing, due on October 22, is the culmination of two years of hard work getting the business into match-ready shape.

The company has trimmed its operating expenses and invested in technology to reduce its reliance on manual processes and make the platform more efficient.

Today, its platform can list a seller's inventory and populate it with real-time pricing information within minutes.

Mr Senvirtne had also decided to go from selling all manner of goods to focusing on the home and garden category. The platform, he says, specialises in being able to deliver bulky goods.

Following the IPO, he will retain a 49 per cent stake in the company.

"The IPO is a means to an end for some companies and founders, but I believe this is the beginning," he said.

"When I started the business, e-commerce was still in its infancy and now with COVID what's happened in the last six months is there's been a paradigm shift ... there's enormous potential in the years to come.

"Our ambition is to make life affordable for all Australians. We see ourselves establishing ourselves as the marketplace for household goods and furniture."

30 Sep, 2020
Kogan targets new wave of e-commerce shoppers
Financial Review

Retail entrepreneur Ruslan Kogan is determined to weaponise his ultra-low cost base and Chinese supply chain to capitalise on the next wave of e-commerce growth, which will be driven by consumer convenience as much as price.

From lockdown in Melbourne, the entrepreneur admitted he has been uneasy over COVID-19's role in shaping the vertiginous rise of the online retailer in 2020, as sales and profit margins soared.

"So it never feels too nice to be winning in that sort of environment," Mr Kogan said. "But we do have a strong responsibility to service our customers at this time."

Kogan's success is built on cheap prices and the founder said the past 15 years of e-commerce were all about price, as shoppers who were early adopters primarily wanted cheaper goods. Amazon paved the way and Kogan followed in servicing this demand.

The post-coronavirus paradigm could be the rise of the convenience shopper, less price conscious and keener on strong customer service.

"That's what's going to drive e-commerce in Australia from 8 per cent to 30 per cent, it's that mass market, convenience customer, who just wants that beautiful experience of hassle free, item arrives quickly," Mr Kogan said. "We're balancing a high level of service, a high level of assurance, I'd say we're the best value by far in online."

Harnessing data

Part of the group's recipe for cheap prices is a relentless focus on data and inventory management in guiding its import of exclusive brands from China.

About half of gross profit still comes from house brands such as Kogan, Ovela, Fortis and Komodo, around 90 per cent of which are sourced from Chinese factories.

"Other than Aldi I can't think of a business in Australia that would do anywhere near that from an exclusive brands perspective," Mr Kogan said. "The way we manage inventory there [in China] is what makes us such a strong business."

As an online-only business, much of Mr Kogan's traffic comes via Google. Mr Kogan said it bids on at least 10 million search words daily and the data this generates shows what consumers are searching for online. It also has data from hundreds of thousands of shoppers visiting its website to help manage inventory orders.

World-leading operating costs

Very few of Mr Kogan's buyers previously worked in buying. "The core skill we value is a logical and analytical reasoning test and a Microsoft Excel data-modelling test. These are people monitoring consumer demand and allocating capital on products based on that.

"There's no gut feel involved, we're not interested in creating demand. We're servicing demand and that becomes a statistical play."

Brokers conclude Kogan has the lowest cost of doing business among retailers in Australia, and perhaps the world. The CODB metric measures Kogan's operating and marketing costs (largely staff) as a percentage of gross profit.

Canaccord Genuity estimates Kogan's CODB was 6 per cent in the first half of 2020 versus 20 per cent for Woolworths, 36 per cent for Myer, and 43 per cent for Harvey Norman.

"Typically JB [Hi-Fi] is well known for their low cost of doing business ... and we make them look like an expensive operation," Mr Kogan said. "We respect any business that has a low CODB."

According to Canaccord, gross profit margins at its exclusive brands business jumped to 31 per cent over the June half, versus 23 per cent over the prior half.

It added a record 152,000 new customers in August to take the total to 2.46 million, with a record monthly marketing spend to acquire more customers.

It has also invested heavily in more than a dozen distribution centres to boast the largest logistics footprint of any e-commerce player in Australia, according to Mr Kogan.

Its founder suggests this points to more sales and revenue growth ahead. "We've got record numbers of new customers and then on top of that we've got record repeat purchase rates.

"So not only are we winning customers at a faster rate than ever before, they're coming back ... faster than we've ever seen."

25 Sep, 2020
Afterpay turns to new chief financial officer
Financial Review

Afterpay shares tumbled 6 per cent to $74.01 on Thursday, after the $21.2 billion buy now, pay later pioneer revealed chief financial officer Luke Bortoli will leave his role effective October 6.

Mr Bortoli joined Afterpay as its finance chief in May 2018, after previously holding senior finance roles at Aristocrat Leisure and investment bank UBS.

Afterpay chief executive Anthony Eisen offered little specific explanation for the resignation, other than to say the decision was made following discussions with regard to Mr Bortoli's future ambitions.

The lender said Rebecca Lowde will replace Mr Bortoli, who has agreed to stay on as an Afterpay employee until the end of FY 2021 next June.

Ms Lowde has been chief executive officer of ASX-listed marketing business Salmat for the past three years and previously held the role of chief financial officer at fintech player Bravura Solutions for five years.

In April 2020 Afterpay's chief technology officer, Jon Donoghue, also left the group and is widely reported to have been offered a role as chief information officer at National Australia Bank subsidiary uBank.

Afterpay said Mr Donoghue left the business as part of a global restructure, which saw Xin Ge appointed global chief technology, risk, and analytics officer. Mr Ge previously worked at Uber, and at Afterpay rival PayPal for nearly eight years, according to his LinkedIn profile.

Its London-based European chief Carl Schieble is also ex PayPal.

Afterpay is set to compete head to head with PayPal for market share in the key US market, after PayPal announced a planned move into the sector this year.

Sean Sequeira the chief investment officer of Australian Eagle Asset Management said Afterpay investors are likely to have unanswered questions given two senior management personnel have recently departed.

The two most senior left being its co-founders and major shareholders Nick Molnar and Anthony Eisen.

"So is it the choice of those two [departed], or is it the senior shareholders saying look these people are not working out?" asked Mr Sequeira.

"Is it because the senior people feel they need someone that's more attuned to their new strategy or is there another more personal reason."

Mr Bortoli said in a written statement that he was extremely proud of all that Afterpay achieved in his time at the business.

"I am particularly proud of the depth and diversity of the finance team I helped build with five of the eight finance team leaders being women,” he said.

Afterpay has also appointed Meahan Callaghan as its chief people officer, with Mark Teperson appointed chief strategy officer to help develop consumer and merchant data insights.

25 Sep, 2020
Catch Group launching autonomous picking robots to boost online capabilities
Inside Retail

Catch Group is launching over 100 autonomous robots in its Victorian distribution centre, which will allow the business to pack an additional 2000 orders an hour.

The project is the largest rollout of autonomous robots in Australia and New Zealand, and will enable Catch to manage an additional 80000 product lines.

“This investment is a significant step for Catch Group in its move to offer faster and more convenient fulfilment options for its increasing customer base,” Catch’s head of fulfilment Richard Whetton said.“By adding thousands of SKUs to Catch’s already extensive online store, we are providing Australians with easy and convenient access to their much loved high street brands. We are excited to see where this technology deployment takes us and to seek out further opportunities where we can utilize this kind of agile and flexible technology.”

The picking robots will go live in November, and will allow the business to ship items out the same day they are picked and moves Catch closer to being able to offer same-day delivery.

Catch Group reported a 68.7 per cent increase in total sales during the second half of FY20, as online orders across the retail industry skyrocketed due to the closure of many bricks-and-mortar stores.

The project has been facilitated by technology firm Körber, which previously worked with Wesfarmers Group in implementing Kmart’s Android Voice picking solutions.

“Kmart was one of our very first customers and we are thrilled to be working with another retailer in the Wesfarmers Group,” said Körber managing director of supply chain and AMR solutions Nishan Wijemanne.

“Catch Group is an absolute pioneer in the e-commerce landscape in Australia and [we’re] excited to work with them.”

24 Sep, 2020
H&M says its recovery from Covid-19 is much faster than expected
Inside Retail

Global fashion retailer H&M had warned its preliminary third-quarter results may well be below that of the previous corresponding period – but it beat profit forecasts and has recovered much faster than expected.

The company’s pre-tax profit for the quarter to August 31 was US$227.3 million, well below the $570 million from the previous corresponding period. H&M attributed the success to selling more goods at full-price, combined with strong cost controls.

“As a result of appreciated collections together with rapid and decisive actions, the H&M group’s recovery is better than expected,” the retailer said in a statement.

For the period, H&M group’s net sales decreased by 16 per cent in local currencies compared with the corresponding period last year.

The company said the improving sales through the quarter reflected the Covid-19 situation: at the beginning of the quarter about 900 of the group’s more than 5000 stores were temporarily closed. At the end of the quarter, the other stores had reopened and only about 200 stores remained temporarily closed.

The final results for the third quarter will be published on October 1.

Meanwhile, the company denied it had any ties with a Chinese yarn producer over accusations of “forced labour” that involves ethnic and religious minorities from China’s Xinjiang province, according to a report by Channel News Asia

The report stated the fashion retailer specified it didn’t work with any garment factories in the area and would no longer source cotton from Xinjiang, China’s largest cotton growing region.

24 Sep, 2020
Booktopia sales spike 28 per cent as lockdown feeds book lovers
Inside Retail

Online bookstore Booktopia has reported sales growth of 28 per cent during the 2020 financial year, reach a record $165 million as customers increasingly want for physical books.

Throughout 2020 the bookseller shipped around 30,000 items daily, selling over 6.4 million books, with sales accelerating quickly in the second half of the financial year.

“The growth of online purchasing of physical books has been increasing steadily, year on year, for many years,” Booktopia founder and CEO Tony Nash said.

“The events of the last six months have now brought forward much of that future growth and we would expect many of the converts to be convinced that online purchases are their new preference.”

According to Nash the Australian book market is in the strongest position it has been for many years, with demand spiking across several categories as Australians isolate and prepare for a different kind of Christmas.

And Booktopia has spent the past year ensuring it has the inventory and distribution capacity to handle the spike in growth, having raised $20 million in capital to expand its inventory, picking and packing capacity at its Lidcome distribution centre in Sydney.

The upgraded DC can now hold handle receiving and sending out stock at a rate of 60,000 items per day, compared to the 30,000 that was possible before.

“The funding will allow us to accelerate our growth in a controlled and measured way by investing in our ability to deliver to Australian book consumers through automation, robotics and stock,” Nash said.

“This has been a proven high growth and predictable model for us for 16 years and we are not about to change. We know that’s what our customers want from us.”

21 Sep, 2020
Oracle set to win TikTok race as Microsoft's offer rejected
SOURCE:
The Age
The Age

Technology giant Oracle is in the box seat to make a deal with TikTok after Microsoft's offer to buy the viral social media platform's US operations was rejected by its Chinese parent company ByteDance.

ByteDance's rejection of Microsoft leaves Oracle as the sole known remaining bidder for TikTok and The Wall Street Journal reported Oracle is set to be announced as TikTok's "trusted technology partner" in the United States with the deal not likely to be structured as an outright sale.

However a partnership with Oracle may not address security concerns and the involvement of TikTok's operations in Australia in any deal is unclear.

Microsoft was considered the lead contender in the race to buy TikTok after United States President Donald Trump made an executive order banning the social media platform unless it was sold and a deal with Microsoft included the sale of TikTok's Australian operations.

Oracle now appears to be the front runner with founder and chief executive Larry Ellison a friend of President Trump and the President has said he supported Oracle's bid to buy TikTok.

At the centre of negotiations is Australian Vanessa Pappas who took on the role of chief executive at TikTok just two weeks ago.

However Fergus Ryan, an analyst at the Australian Strategic Policy Institute, cautioned it was unclear what the scope of any deal with Oracle would be. "Oracle is likely to become a trusted technology partner which would seem to suggest that there is not going to be any significant transfer of assets from ByteDance to Oracle," he said. "It will be interesting to see how they propose that they are going to address all the national security issues involved in that case."

Mr Ryan said the spread of disinformation on TikTok was a matter of concern and it was not clear how a transfer to Oracle of TikTok's user base but not its algorithms would counter this concern. "When Beijing puts algorithms like the one TikTok uses on their export control list, that was a clear indication from China that they consider the contents of that to be a question of national security," he said.

TikTok's targeted 'for you' algorithm serves up 15-second videos of users mostly lip syncing, dancing and performing comedic skits.

The app's popularity has soared during the COVID-19 pandemic with more than 2 billion downloads globally and an an estimated 1.6 million users in Australia.

Microsoft posted a statement on its website stating that ByteDance had let Microsoft know it would not be selling TikTok's US operations to Microsoft.

"We are confident our proposal would have been good for TikTok's users while protecting national security interests," the statement said. "To do this, we would have made significant changes to ensure the service met the highest standards for security, privacy, online safety and combating disinformation."

Microsoft said it "looked forward" to seeing how TikTok's service evolved in these "important areas".

Dr Belinda Barnet, senior lecturer in media at Swinburne University, said Microsoft was TikTok's obvious purchaser and a partnership with Oracle would be a strange outcome.

"Microsoft is quite right they have the deepest pockets and the most experience in privacy and security functionality," she said. "My immediate thought is that Oracle has won because it has close ties to the Trump administration. It is a large company but it has nowhere near the might and power of Microsoft. It is also a completely new direction for the company."

Prime Minister Scott Morrison has previously said there were no plans to ban TikTok in Australia after security agencies found the Chinese company did not pose serious national security concerns.

Oracle and TikTok declined to comment.

21 Sep, 2020
Collaboration works better in the office, says Google chief
Financial Review

Google may be at the forefront of enabling people to work from home effectively, but the technology company warns remote working in the long term will be detrimental to the productivity and culture of businesses.

While the COVID-19 pandemic had shown just how efficient employees could be working from home, there were long-term negative effects, said Mark Golan, Google's chief operation officer of real estate investments and development.

"People are very efficient of doing their work at home in their home office, once they know what they are doing. The problem is when you have to decide what to do next," Mr Golan told an online audience at the inaugural Lendlease Autonomous Building Summit last week.

"The act of creating a new product, or program ... where the 'figuring out' part is very messy and requires input from a lot of different people from a lot of different backgrounds generally through very ad hoc interactions, that's where, if you don't have physical co-location, I think we are all going to struggle. You run the risk of being very efficient at doing the wrong work, and I think over time that's the risk that we run."

Nevertheless, in July Google extended its voluntary work-from-home policy, allowing employees to work remotely until at least July 2021.

"Physical co-location still allows people to collaborate better and, I think, relate better," he said.

"Traditionally, relationships are formed in person. They are formed when you are in the office together, when you're leaning over a shoulder talking to [someone], when you go to lunch with them.

"So when you go into this kind of environment like we've seen with COVID, you can then lean on these relationships. But if you've never had a chance to form them, there is nothing to lean on."

Balancing teams and individuals

He said over time there would be a deterioration in relationships and company culture if people weren't physically brought together.

"Companies are going to have to find a way to rekindle that feeling of culture and teams that comes from the formation of personal relationships."

He said the challenge for Google in the future was working out how to strike the balance between the needs of the team and the wishes of the individual.

"Individuals have lots of different reasons for why they want to work remotely or from home, and often times those reasons don't necessarily enhance the team," Mr Golan said.

"For Google as a company, there has always been this interesting dichotomy because at one level we've probably been one of the foremost companies that produces technology that allows people to be efficient from wherever they are, and yet we still fundamentally believe in the concept of physical co-location as the driver of productivity and culture."

Lendlease chief executive Steve McCann said technology had been a big winner of the pandemic, but he was confident there would be a "solid" office-based sharing environment in the future.

"We, along with lots of other companies, have seen a significant lift in concern around the mental health impact of just staring at a screen all day and talking to people without that physical contact," Mr McCann said.

"And the other factor is how do you innovate when you're sitting by yourself and you're not able to leverage off the people around you?"

But, Mr McCann said, companies would have to adapt the design of offices in anticipation of another scenario similar to COVID-19 in 10 or 20 years' time.

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