Digital transformation to contribute US$7 billion to NZ
- By 2021, digital transformation is expected to add 0.7% CAGR GDP growth annually.
- Digital transformation has increased profit margin, revenue from new and existing products & services, productivity, as well as improved customer advocacy. These benefits will also improve by at least 40% in three years.
- Leaders in digital transformation reap double the benefits compared to Followers.
- Digital transformation in New Zealand will benefit citizens with increased access to better education, training and creation of higher value jobs.
By 2021, digital transformation will add an estimated US$7 billion to New Zealand’s GDP, and increase the growth rate by 0.7% annually, according to a new study released today by Microsoft in partnership with IDC Asia/Pacific.
The research, “Unlocking the Economic Impact of Digital Transformation in Asia Pacific”, predicts a dramatic acceleration in the pace of digital transformation across Asia Pacific’s economies.
The study found that in 2017 about 6% of New Zealand’s GDP was derived from digital products and services created directly using digital technologies, such as mobility, cloud, Internet of Things (IoT), and artificial intelligence (AI).
“New Zealand is clearly on the digital transformation fast track. Within the next four years, we expect to see approximately 55% of the market’s GDP to be derived from digital products and services,” said Russell Craig, National Technology Officer, Microsoft New Zealand.
“At the same time, organisations are increasingly deploying emerging technologies such as artificial intelligence (AI) as part of their digital transformation initiatives, and that will accelerate growth even further.”
The survey conducted with 1,560 business decision makers in mid and large-sized organisations across 15 economies, including 100 New Zealand respondents, highlights the rapid impact and widespread disruption that digital transformation is having on traditional business models. More >>.
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