Digital disruption morphs distribution models - Mullins

DISTRIBUTION models are being severely disrupted by the digital revolution and business leaders need to urgently get a handle on threats and opportunities for their businesses, according to Mullins Lawyers partner, David Williams.

“Many distribution models have been set up many years ago when the current technology was not in place,” Mr Williams said. “Therefore, starting again and dismantling the distribution model should not be out of the question for any business, subject of course to an assessment of key legal risks that may be inherent in your distribution model. 

“Businesses now operate in the large global village and it is up to business owners to think outside the square and not accept what you have done in the past and has been in place for long periods of time,” he said.

“This provides a wonderful opportunity for business owners to review your distribution channels to ensure you maximise the revenue lines available to you and the markets to which you can then distribute.”

Mr Williams said putting in place a new and improved distribution model, which provides the appropriate checks and balances and facilitates the growth of company revenue, needs to be high on a business leader’s agenda at the moment.

“Technology, which is ever-changing, enables the communication and networking of businesses to a worldwide economy,” he said. “Controlling and protecting your valuable intellectual property and the cashflow to your business are the number one goals.”

Mr Williams put the challenge in context, outlining how the digital disruption that is impacting businesses around the world is “a modern day industrial revolution many times over”

“Every business is now facing the reality that the way you are conducting your business may not be the most efficient method having regard to technology,” Mr Williams said.

“It does, however, provide an opportunity to stop and reflect upon your own distribution model of how you get your goods and services to market. 

“The market for most businesses is now borderless and the opportunities are mindboggling for distribution of products or services.”

www.mullinslaw.com.au

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