Digital transformation will add 0.7% annual GDP growth to New Zealand – Microsoft, IDC
New Zealand’s GDP will be boosted by $9.6bn (US7$bn) over the next four years, according to new research from Microsoft and the International Data Corporation (IDC).
This equates to an annual GDP growth of 0.7%, powered by the 95% of Kiwi organisations currently embarking on digital transformation projects, says the report titled ‘Unlocking the Economic Impact of Digital Transformation in Asia Pacific’.
In the wider Asia Pacific (APAC) region, digital transformation will add an estimated US$1.16trn to combined GDP by 2021.
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Ralph Haupter, President, Microsoft Asia, commented: “Digital transformation has a positive and measurable impact on Asia Pacific’s economy, and it is widely regarded that every organisation needs to be a digital one.
“In fact, organisations are seeing tangible improvements from their digital transformation initiatives between the ranges of 15% to 17% today, which shows that digital transformation is no longer an idea, but a reality.”
In New Zealand, some 55% of GDP is forecast to be derived from digital products and services, which is set to drive growth in every industry.
Daniel-Zoe Jimenez, Research Director Digital Transformation Practice Lead, IDC Asia/Pacific, added: “The study shows leaders seeing double the benefits of followers, with improvements in productivity, cost reductions, and customer advocacy. To remain competitive, organisations must establish new metrics, realign organisation structures, and rearchitect their technology platform.”
While 95% of NXZ organisations are embarked on digital projects, only 7% are classed as leaders in the study.
The below infographic summarises the findings across the whole APAC region.