Many NZ SMEs say technology has no impact on their business 22 Apr 2015
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- Sludge Report #192: The Naked Budget Columns
- Budget 2010 – Building the Recovery News
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- Unemployment rate falls from 7.1 to 6 percent Recruitment
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
Many NZ SMEs say technology has no impact on their business: Westpac survey
By Fiona Rotherham
April 22 (BusinessDesk) - Nearly one third of New Zealand small and medium-sized enterprises say digital technology has had no impact on their business over the past five years and 27 percent don’t expect it to in the next five years.
That’s one of the findings of the 2015 Westpac Grow New Zealand survey of nearly 1,200 SMEs ranging in size from $250,000 to $5 million in turnover.
Some 38 percent had bought new hardware or software in the past five years and 36 percent intended doing so in future but less than a third had used that new technology to change their marketing approach or online processes and 10 percent and under had changed their logistic and distribution processes, organisational structure, or suppliers as a result.
Around 10 percent had hired new staff as a result of the new technology and a further 13 percent expect to do so in the next five years while 3 percent had laid off staff as a result.
Westpac chief economist Dominick Stephens said the lack of impact from digital technology was surprising along with the fact many SMEs were also not confident about securing the right staff to capitalise on it.
“In the US, productivity gains have been made by altering business structures to suit the new technological reality,” he said. “There doesn’t seem to be as much pressure for New Zealand firms to adapting quite as quickly.
The Productivity Commission’s report into New Zealand’s productivity, which has improved of late but remains low by OECD averages, said that was due to weak international connections and companies underinvesting in knowledge-based capital.
“There’s no point just buying a computer, having a website or buying a smartphone, you have to also look at technology and what opportunities are presented by this stuff and completely re-engineer your business,” said Commission chair Murray Sherwin.
A report last year by the Innovation Partnership, a group of private and public sector individuals facilitated by Google that want to drive greater innovation in New Zealand through the internet, said the capacity and capability of the Internet, particularly with the ultra fast broadband rollout, can be at the centre of New Zealand’s drive for economic growth. Businesses should be making effective use of the Internet to add billions of dollars of productivity and export gains to the economy, it said.
It pointed to businesses that make substantial online sales are up to 25 percent more productive than the average firm in their industry, yet only 12 percent of businesses are taking online payments via their website.
The Westpac survey also showed only 56 percent of respondents have a website, 60 percent were using social media, and 82 percent had a smartphone. Only 15 percent had dedicated apps for their industry and a similar number used other cloud-based products or services.
The survey also found more than a third of Kiwi SMES hadn’t improve the position of their business in the last four years since the bank last surveyed them, despite New Zealand’s strong economic growth relative to the rest of the world.
The improved economic position didn’t change investment intentions with there being little to no change around expanding businesses, maintaining the size of the business, or looking to sell.
Westpac chief executive David McLean said “we don’t want to be the tallest Hobbits in the room. There is a big opportunity for businesses."
The lifestyle mentality of many SME owners towards their business seemed to be a key driver with 31 percent saying the biggest barrier to growth was their desire to maintain their work-life balance or retire, which is up 10 percent on 2011.
Sherwin said other countries also had the same issue with what they call leisure companies whereas in the US the attitude was more “you have to be on top of your game or you’ll be swallowed by someone else. It’s a more competitive, dynamic environment."
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more