Is Ransomware fears holding Australian businesses back from a digital future?

Are you protecting your firm from cyber-attackers? Or is the widely publicised threat of ransomware hindering it from you avoiding much needed technology focused upgrades?

Last month's WannaCry ransomware cyber-attack was a shocking reminder of how

vulnerable IT systems can be. The attack led to more than 300,000 computers in 150 countries being affected, but thankfully, government agencies and businesses here in Australia didn't report any damage.

Nevertheless, it'd be extremely naive to say that means they're safe from the cyber-threat. Indeed, an attack could come from anywhere at any time, so it's essential that all organisations are checking and updating their IT infrastructure where necessary.

Furthermore, several recent studies have highlighted the fact that small businesses in particular are extremely vulnerable to this menace. For instance, research by the Office of the NSW Small Business Commissioner showed that nearly one in three small firms in New South Wales have fallen victim to cyber-crime in the past.

That's a significant proportion and particularly worrying in light of the fact that it's these businesses that have the least time and money to refresh and maintain their IT infrastructure.

According to the Australian Cybersecurity Centre, the hackers took advantage of vulnerabilities in Windows software to strike. As a result, it believes anyone using Windows XP, Server 2003 and other unsupported operating systems are at high risk. Small businesses therefore can't afford to be struggling along with antiquated systems and outdated approaches such as on-site data servers.

Storing data remotely in the cloud could be a much safer option, as the onus is on the cloud provider to keep the information secure, and you'll be able to access the data even if your office computers are rendered useless.

Small businesses could also help themselves deal with the cyber-threat by providing adequate training on the issue to staff.

If employees follow certain procedures, such as encrypting and restricting access to sensitive data, they create a further line of defense between themselves and cyber-criminals looking to bring down their systems.

James Turner, an adviser with IBRS and the founder of CISO Lens, commented: "SMBs don't need to be the cyber-security equivalent of rally drivers - they only need to be able to drive safely on the public roads.

"Some may argue that it should be up to the government to educate and inform, as with any other public health and safety campaign. Others will argue that market forces should be allowed to fill the potential market opportunity, of which there absolutely is one."

But there's no real reason why smaller firms can't be proactive on this issue, especially as many of the precautions they can take aren't expensive and will pay off handsomely if it means they are safe from a cyber-attack.

Writing in Financial Review, Mr Turner stressed that great progress has been made since the Australian Cyber Security Strategy was launched last year.

However, he insisted the country can't afford to allow small and medium-sized businesses to get left behind, as the economy can't thrive without them.

Last week's cyber-attack should serve as a warning and a wake-up call to us all. In this increasingly connected world, we must be safe from those who seek to exploit it for their own ends.

Australian businesses plan to step up cloud spending Cloud technology has moved firmly into the mainstream, with businesses in many industries embracing the idea of storing data and applications off-site.

According to a new report by Telsyte, spending on Infrastructure as a Service (IaaS) systems will rise from $621 million last year past the $1 billion mark by 2020. Estimates also suggest that cloud IaaS will be used by 99 per cent of Australian businesses by this point.

In addition, the report indicated that nearly half plan to step up their spending on cloud technology in the coming years, while more than a third said they have a cloud-first policy. A further third have a cloud strategy currently in the early stages of deployment, while 16 per cent are now in the testing and development stage. Eleven per cent, meanwhile, said they use cloud hosting but do not have it integrated with on-site systems.

The findings are a clear demonstration that businesses in Australia have come to embrace the flexibility, financial savings and resilience that cloud-based systems can offer. But they also show that the extent to which firms have brought cloud technology into their operations varies significantly.

Also, many of those companies that already using cloud-based systems to some degree look set to change their approach in the coming years. After all, 72 per cent of firms surveyed by Telsyte said they are either creating a hybrid cloud platform or looking into the possibility of doing so. This compares with just 56 per cent in 2013 and 60 per cent in 2014.

So why is this particular approach to cloud computing taking off to such an extent?

According to Rodney Gedda, senior analyst at Telsyte, hybrid cloud "aligns well with the preferences of IT leaders when it comes to application hosting".

"A total of 57 per cent intend to run most of their IT infrastructure in-house and augment it with selective cloud resources for different applications," he commented.

"This compares with 24 per cent who said they intended to run most IaaS in the cloud while also retaining some on-premises infrastructure."

Mr Gedda added that a hybrid approach allows organisations to be agile when choosing the mix of platforms and services that best meets their requirements.

The figures are a clear sign that Australian businesses are happy to continue investing resources in cloud-based services.

Indeed, the growing focus on embracing a hybrid approach suggests many firms are only just starting to tap into the potential and growth opportunities that it offers.

How can smaller firms promote staff wellbeing?

A business relies on a healthy and motivated workforce and many employers are keen to be seen actively trying to promote staff wellbeing. There is a strong business case for intervening when you look at stats on the subject. For instance, a recent survey carried out by the Federal Government demonstrated that workplace health and wellbeing programs can have a big impact on the health of the workforce.

Being proactive here can help to tackle a whole host of issues, from workplace stress and reduced productivity to the level of absenteeism, and maybe even staff retention. But in many cases, there's only so much an employer can do, as small and medium-sized enterprises (SMEs) in particular don't always have the resources to create full-blown employee wellness programs.

Writing in Smartcompany, founder of HR consulting firm Wattsnext Sue Ellen Watts pointed out that perks such as gym membership are expensive and have a minimal impact on people's health.

Furthermore, she said that an individual's health is ultimately their responsibility.

"As employers we are not our employees’ parents," she commented.

"It is not up to us to make sure they eat well, get enough rest and stay fit. Surely as adults we can make the right choices without relying on our employer to look after our health?"

These might seem strong words, but that's by no means the end of the story. After all, Ms Watts stressed that employers with limited resources can still "promote a wellbeing-focused workplace and encourage healthy living without it being an extra expense to an SME's already-stretched budget".

One approach she has adopted is providing each employee with a mid-range Fitbit and setting everyone a 10,000 steps per day challenge.

A Slack channel was then set up, so everyone could share updates on their progress with each other and discuss how to stay healthy.

Ms Watts said this shows SMEs don't have to spend lots of money, as they "just need to be creative and let the team lead the way". Other good options that don't necessarily have to break the bank could include providing healthy food options in the office, such as a well-stocked bowl of fruit.

That could be enough to stop people nipping outside for a less healthy snack and encourage them to stay filled up on nutritious and energy-providing food.

Offering flexibility when it comes to working hours could also be an option worth pursuing. Indeed, it's the norm in many workplaces these days for employees to choose when and where they work, as long as they get the work done.

If employees are struggling to manage certain responsibilities outside the office, allowing them a degree of flexibility makes it less likely that these difficulties will impact on their job.

And it's a workplace perk that doesn't actually cost any money, yet could be invaluable in supporting the mental health of staff and encouraging them not to move to a new job.

Manufacturing sector continues growing The Australian manufacturing industry enjoyed its seventh consecutive month of growth during April 2017, new figures have revealed. The sector earned a score of 59.2 in the latest Australian Industry (Ai) Group Australian Performance of Manufacturing Index, with any score above 50 indicating an expansion in activity.

April's figure is 1.7 points above the score for March and is the seventh monthly increase in succession. Growth was also seen in all seven activity sub-indexes, with new orders remaining elevated at 61.5, although this was 1.1 points down on the score in March. Sales, meanwhile, rose by 7.8 points to 65.5 and supplier deliveries increased by 9.4 points to 62.3. Exports went up by 7.5 points in April to a healthy 58.6.

Another interesting finding in the report was an apparent recovery in selling prices. The sub-index jumped by 5.4 points to 58.9, which is the highest it has been since September 2008.

In addition, the input prices sub-index rose by 4.3 points in April, finishing up at 69.8, as increasing energy prices were the only growing cost cited by respondents over the last few months.

Innes Wilcox, Ai Group chief executive, said the "strong showing" by the Australian industry in April consolidates the recovery that has taken place in the industrial sector since August 2015, barring the slight setback that occurred last autumn.

Furthermore, he pointed out that while April's result is not a record, it does mean the two highest PMI readings since May 2002 have been recorded since February this year.

"The April performance featured strong growth in exports and local sales of food and beverages manufacturing, building materials, specialist machinery and equipment and specialist chemicals," Mr Wilcox observed.

"Resurgent output and prices in our agricultural and mining sectors are having a positive effect on demand for a range of locally produced manufactured equipment."

Mr Wilcox said this surge is taking place despite the closure of the automotive assembly sector, as well as recent disruption caused by Cyclone Debbie in some areas. Nevertheless, he conceded that the outlook for the sector is not necessarily smooth. Indeed, he said the growth currently being experienced in the sector is being threatened by "sharp rises" in energy costs, with gas in particular becoming more expensive.

Mr Wilcox said the increases in energy costs are proving difficult to pass on, which means the margins and even the viability of some firms in the manufacturing sector are being put at risk.

As a result, he believes recent announcements on energy policy are "welcome steps towards the much-needed comprehensive energy and climate policy framework".

With these question marks hanging over many companies in the industry, stakeholders will be eagerly awaiting the next set of figures and seeing whether these current concerns are justified.