Productivity, or how much sweat we've got to break into to earn our standard of living, has been lagging behind the OECD average in both Australia and NZ since the early 2000s. It's as though we've been caught flat-footed in the third industrial revolution.
When it comes to Australian and Kiwi SMEs, the real question is this: how many punches do we need to throw to earn that dollar? If we are labouring more than our competitors overseas but earning the same amount or less, we are not fighting efficiently. It takes us a lot more sweat and grind to get meaningful results for clients and earn that trip to Bali. That's the productivity issue we're talking about.
Knowledge, they say, is power. Understanding the slow uptake of productivity-enhancing tools and techniques in our local markets gives you a unique edge, a leg up, a secret weapon, if you will.
See, while others may be taking their sweet time in embracing these productivity-boosting tools and techniques, you, armed with this insight, can race ahead. You have the opportunity to swoop in and put these productivity enhancers to work. Here's the thing. Because our part of the world has been somewhat slow on the uptake, the low-hanging fruit is still up for grabs. That means you can snatch it and make some real gains before everyone else clocks on to what's happening.
So while the average organisation might be late to the party, you don't have to be. This is your chance to seize the advantage, to outcompete by embracing what others have been slow to adopt. Step into the forefront, lead the charge, and watch as your business reaps the rewards.
Let’s understand the issue so that we can act on it. Several culprits have been fingered for the lag:
Lack of Capital Investment: Both Australian and New Zealand SMEs are dealing with notably low levels of capital deepening, which represents an increase in capital per worker, a key player in bolstering labour productivity.
Snail-Paced Tech Adoption: Aussie and Kiwi SMEs have been a tad slow off the mark in adopting new technologies that could power up productivity, often due to thin resources or a knowledge gap about the right solutions.
Skills Shortage: With the work landscape morphing at lightning speed, new skills are perpetually in demand. If SMEs don't pour resources into upskilling their teams, they risk a skills shortage that could puncture labour productivity.
Geographic Isolation: For New Zealand, in particular, being cut off from the rest of the world can stifle the flow of knowledge and ideas, throttling innovation and slowing improvements in total factor productivity.
We might not be able to control the size of our capital markets, our location or the societal imbalances draining our capital and skilled labour, but there are plenty of things we can control, and it starts with technology, training and knowledge. In this productivity ring, technology and automation stand as heavy-hitters. We need to upskill, understand and employ productive technologies. So, let's break down the strategy:
1. Prioritise Training
You don’t know what you don’t know. It starts with understanding what is available and how it can benefit your business. For example, did you know that there are online tools for lead prospecting, or that a chatbot can in 2023 answer 90% of customer support queries? Do you know how to setup an automated email drip campaign, or how to hire a virtual assistant? Let us put it this way: how much is it costing you per year not knowing how to do these things? Pour resources into upskilling yourself and training your team to exploit these technologies to the fullest.
2. automate with software
Automation isn't a buzzword; it's your secret weapon. From customer service chatbots to software for routine administrative chores like invoicing and payroll, automation can shoulder the mundane, freeing up your team to drive strategic, high-value initiatives.
3. Leverage AI
The power of artificial intelligence (AI) is a game changer in the productivity equation, and here's why. AI, with its ability to learn, adapt, and automate, can be harnessed to supercharge productivity in ways we've only started to scratch the surface of. Think about tasks that are routine and time-consuming, like data entry, customer enquiries, or inventory management. These are jobs that AI can handle with ease, freeing up humans to tackle more complex, strategic tasks — the kind of tasks that really move the needle.
For outsized, 10x returns, work with an AI Automation expert, such as Muli, to rethink your processes with AI and automation.
4. Harness Government Grants and Incentives
Don't let cost be a roadblock to your tech progression. Both Australia and New Zealand roll out various grants and incentives to stimulate tech adoption among SMEs. It's critical to explore these avenues and capitalise on the financial support to turbocharge your digital transformation.
5. Embrace Cloud-Based Services
In the digital arena, cloud-based services aren't an 'extra'; they're a prerequisite. They provide a cost-effective, flexible alternative to the pricey and high-maintenance in-house servers, allowing seamless access and collaboration from any location. It's time to cut the cord and jump into the expansive, scalable cosmos of the cloud.
As a forward-thinking business, understanding this landscape of missed productivity opportunities within the Australian and New Zealand markets is like unearthing a treasure map. While many businesses are cruising along, seemingly content with the status quo, you've got the inside track. You're aware that the wider market has been hesitant to step fully into the digital revolution, and you understand the untapped potential that lies in seizing this moment.
Harnessing productivity-boosting tools and techniques, such as AI, not only levels the playing field with international competitors, it also sets you strides ahead of your local competition. By automating routine tasks, embracing efficient systems and investing in upskilling yourself and your team, you free up your time to focus on higher-value strategic work.
Simply put, this knowledge is your golden ticket to stand out from the crowd. While others are asleep at the wheel, you're primed and ready to redefine what's possible.
