Aotearoa New Zealand’s $7.8 billion digitalisation alternative
In the case of productiveness, it’s no secret Aotearoa New Zealand lags closely behind our OECD counterparts. In truth, our current analysis reveals Kiwis would wish to work 20 % extra to succeed in the common OECD GDP output.
For Kiwis working a 40-hour work week, that is equal to working an additional day per week to make up the labour productiveness hole – and that’s simply to succeed in the common productiveness mark.
These are unimaginable numbers.
We are able to’t merely put our heads down and work our technique to higher productiveness. We have to guarantee each hour spent working is doing one thing solely a human can do.
The chance for digitalisation
This week we launched new insights developed by the New Zealand Institute of Financial Analysis (NZIER) revealing a 20% improve within the variety of companies adopting cloud-based enterprise instruments sooner or later may add as much as $7.8 billion to Aotearoa’s annual GDP by way of improved productiveness.
In unsure financial instances, we have to do all the pieces we are able to to digitalise our small enterprise economic system and switch this nation right into a world-leading digital nation.
The analysis additionally confirmed the payback interval for companies’ funding in digitalisation is comparatively brief, usually lower than two to a few years earlier than they begin seeing an ongoing constructive return.
In as little as two years, we will help rejuvenate the economic system, doubtlessly including billions of {dollars} by way of the improved productiveness delivered by the elevated uptake of digital instruments.
Taking classes from worldwide success tales
Whereas economies world wide proceed to quickly digitalise, Aotearoa New Zealand’s digital competitiveness has fallen behind within the main classes of data, expertise, and future readiness.
Within the 2022 IMD World Digital Competitiveness Rankings, we ranked twenty seventh out of 63 international locations, down from an general rating of nineteenth in 2018.
Singapore and Denmark proceed to steer the digital method globally and are key examples of what sturdy, dedicated authorities funding into digitalisation can do for an economic system.
Singapore’s Go Digital programme consists of in depth assist for SMEs reminiscent of pre-approved options for digitalisation supported by way of the federal government’s Productiveness Options Grant.
It additionally provides SMEs a chief expertise officer-as-a-service – a self-help platform empowering enterprise house owners to establish their digitalisation wants and entry digital consultants for customized recommendation and market-proven options.
The roadmap to enhancing digitalisation in Aotearoa New Zealand
After all, the enterprise group can’t do that alone. The New Zealand Authorities must do all the pieces it may to assist our digital progress.
We’d like insurance policies encouraging the enlargement of the digital economic system by addressing the important thing obstacles many enterprise house owners face together with monetary constraints, expertise gaps, attitudes and consciousness.
Our newest report by NZIER highlights the teachings from digitalised international locations to tell future actions and insurance policies for digitalisation.
Within the brief time period, growing a Productiveness Options grant to fund enterprise digitalisation is a key instance of empowering development.
Total enchancment of digital literacy in any respect ranges of society in the long run is essential, as is boosting the competitiveness of Aotearoa New Zealand’s tech sector immigration coverage.
There’s no fast repair to an issue as complicated as productiveness. However we all know investing in additional digitalisation is a step in the best course.
For NZIER’s breakdown of high-priority actions for the Authorities, learn the total report.
