Transform your business for the future
The pace of change is faster than at any time in human history – 300 times that of the Industrial Revolution, with significantly greater impacts.
By 2025 nearly half of all jobs will not exist, or will have changed considerably because of computerisation and automation according to a Chartered Accountants Australia and New Zealand research paper Disruptive Technologies, Risks and Opportunities.
New Zealand is well placed to adapt and prosper in the face of this technological wave thanks to its relatively flexible regulatory environment, moderate ageing trends (we are younger than most OECD countries) and resilient economy.
So far automation has impacted most on blue-collar workers. However, the coming wave of innovation threatens to upend white-collar work as well, including accounting. Certain highly skilled workers will prosper in this new environment, but far more may be displaced into lower paying service industry jobs at best, or permanent unemployment at worst.
And as the pace of technological change increases, job turnover will rise along with ‘frictional unemployment’ resulting from temporary job changes.
To support businesses through technological change, and to help create globally competitive products and services, our education system needs to teach flexibility, adaptability and lifelong learning skills to prepare our children for occupations we can’t even conceptualise as yet.
For businesses, there is growing impetus to adapt to minimise the disruptive effects of technology because current business models won’t be sustainable.
Successful home-grown companies such as Xero, FNZ, Gameloft and Rocket Lab show that we are not just fast adopters of technology, we are also able to push the frontier of technological change and create globally competitive new products and services.
Given the significant pace of change, it’s important that we start preparing now for the challenges and opportunities that lie ahead.
What can you do to prepare for the inevitable?
Adopt a comprehensive digital strategy that takes into consideration how the digital economy will affect all employees, product and service offerings and delivery models. Consciously develop the power of your online brand.
Develop a plan for employees to prepare for the impact of technological change and encourage on the job training and up-skilling throughout an employee’s career.
Regularly consider how business strategy, growth targets and investment plans may be affected by technological shifts. The risk of stranded assets is relevant for many businesses as well as government. This may require longer strategic planning horizons.
Be fast adopters – experiment with new technologies that can deliver the same, or better, outcomes for customers.
Enhance the key elements of your business that utilise human interaction, such as developing networks and enhancing customer experience.
Be prepared to go global with commercialisation of new technologies and business models. As part of this, seek outside capital and business support when needed.
Prepare for automation by digitising, streamlining and automating business processes and incorporating new technologies wherever appropriate