On the subject of productiveness, it’s no secret Aotearoa New Zealand lags closely behind our OECD counterparts. In truth, our current analysis reveals Kiwis would want to work 20 % extra to achieve 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 achieve the common productiveness mark.
These are not possible 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 means of improved productiveness.
In unsure financial occasions, we have to do every part we are able to to digitalise our small enterprise financial 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 quick, usually lower than two to a few years earlier than they begin seeing an ongoing constructive return.
In as little as two years, we may help rejuvenate the financial system, probably including billions of {dollars} by means 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 means globally and are key examples of what sturdy, dedicated authorities funding into digitalisation can do for an financial system.
Singapore’s Go Digital programme consists of in depth help for SMEs corresponding to pre-approved options for digitalisation supported by means 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 homeowners to establish their digitalisation wants and entry digital consultants for customized recommendation and market-proven options.
The roadmap to bettering digitalisation in Aotearoa New Zealand
In fact, the enterprise neighborhood can’t do that alone. The New Zealand Authorities must do every part it could to help our digital progress.
We’d like insurance policies encouraging the enlargement of the digital financial system by addressing the important thing limitations many enterprise homeowners 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 quick time period, growing a Productiveness Options grant to fund enterprise digitalisation is a key instance of empowering progress.
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 advanced as productiveness. However we all know investing in additional digitalisation is a step in the precise course.
For NZIER’s breakdown of high-priority actions for the Authorities, learn the total report.