It’s no secret that Aotearoa New Zealand lags far behind OECD countries when it comes to productivity.In fact our Recent research This indicates that kiwi would need to work more than 20% to reach the average OECD GDP output.
For New Zealanders who work 40 hours a week, this equates to working an extra day a week to close the labor productivity gap, just reaching the average productivity mark.
These are impossible numbers.
We can’t just sit back and work on improving productivity. We need to ensure that every hour spent at work is doing something only humans can do.
released this week new insights A 20% increase in the number of businesses adopting cloud-based business tools in the future could boost Aotearoa’s annual GDP by up to $7.8 billion through increased productivity, according to a study developed by the New Zealand Institute of Economic Research (NZIER). It became clear that it was possible.
In an uncertain economic climate, we need to digitize our small business economy and do everything we can to transform this country into one of the world’s leading digital nations.
The study also showed that companies have a relatively short payback period for their digitization investments, typically less than 2-3 years before achieving a sustained positive return. .
In just two years, it can help revitalize the economy, potentially adding billions of dollars in productivity gains brought about by the increased adoption of digital tools.
Learn from international success stories
As economies around the world continue to rapidly digitize, Aotearoa New Zealand’s digital competitiveness lags in the key categories of knowledge, technology and future preparedness.
In the 2022 IMD Global Digital Competitiveness Ranking, China ranked 27th out of 63 countries, down from 19th in the 2018 overall ranking.
Singapore and Denmark continue to lead the world in digitalization and are important examples of what strong and committed government investments in digitalization can do for their economies.
Go Digital Program in Singapore This includes extensive support for small businesses, including pre-approved solutions for digitization supported through government productivity solutions grants.
We also offer Chief Technology Officer (CTO) as a Service for SMEs. It is a self-help platform that enables business owners to identify their digitalization needs and access digital consultants for custom advice and market-proven solutions.
Roadmap for digitalization improvement in Aotearoa New Zealand
Of course, the business world cannot do this alone. The New Zealand government should do everything it can to support digital progress.
We need policies that address key barriers faced by many employers, such as financial constraints, skills gaps, attitudes and awareness, and encourage the expansion of the digital economy.
A new report by NZIER highlights lessons from digitalizing countries that will inform future actions and policies towards digitalisation.
In the short term, the development of productivity solutions grants to fund the digitization of businesses is a key example of driving growth.
Increasing the competitiveness of Aotearoa New Zealand’s immigration policy in the tech sector, as well as the long-term overall improvement in digital literacy at all levels of society, is critical.
There is no quick fix to a complex problem like productivity. But we know that investing in more digitalization is a step in the right direction.
For NZIER’s breakdown of government priority actions, read the full report..