Most companies that live and breathe the online revolution are smart smaller firms that use online tools to run their core business better to cut costs, reach customers and suppliers, innovate and get more control.

Many others, however, are falling behind, according to a new Grattan Institute discussion paper.

If advanced online technology becomes the norm among small and medium enterprises (SMEs) – which employ two-thirds of private sector workers and contribute more than half of Australia’s private sector GDP – the productivity gains will spread through the whole economy.

Businesses need to explore and exploit four online toolsets to stay relevant:

  • the Cloud
  • social
  • mobile
  • data analytics

Read the full article by Jim Minifie, Productivity Growth Program Director at Grattan Institute.