Spark and NZIER explores the challenges and opportunities
According to the latest findings from Spark and NZIER, New Zealand’s productivity challenge lies in the need to work smarter, not harder.
The report, titled Accelerating Aotearoa businesses one technology generation forward, stressed that digital transformation is crucial for enhancing productivity but warned that merely adopting new technologies isn’t enough – effective integration into business strategies is essential for real change.
“This study shows the importance of digital technology in transforming the business landscape in Aotearoa,” said Jason Shoebridge (pictured above left), NZIER CEO.
“There are many business and policy decisions that need to be made to ensure that we benefit from the opportunities that digital transformation provides. We have identified in our analysis the significant benefits in adopting digital technology and applications.”
Unlocking economic potential with advanced technologies
The report highlighted the rapid development of advanced digital technologies, such as artificial intelligence, and their potential to unlock unprecedented opportunities. It pointed out the foundational role of technologies like 5G and converged technologies in supporting this wave of innovation.
Economic benefits of modernisation
NZIER’s research, based on a 20% increase in the utilisation of advanced digital technologies, projected significant economic benefits for New Zealand, including:
- industry output boosts ranging from 0.7% to 1.3%
- an overall industry output increase of $14.5bn to $26bn over a decade
- an annual GDP growth of 1.15% to 2.08%
This, in turn, would catalyse compounding benefits for New Zealand society and initiate a bold ambition to advance one technology generation, the joint Spark-NZIER report said.
Digital transformation: A continuous journey
Christina Leung (pictured above), principal economist at NZIER, emphasised the inevitability and importance of digital transformation for New Zealand organisations.
“The key message for New Zealand organisations across the private and public sectors, is that digital transformation is not a matter of choosing ‘if’ but ‘when’ to proceed and that it is a continuous process,” Leung said. “Organisations choosing not to integrate digital technology into their operations will fall behind in their ability to meet their customers’ expectations.”
Access the full report from the NZIER website.
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