Comfortable with being uncomfortable?

More and more we recognize that innovation and technology are important for the future of Australia. A few recent data points:

-         At the Advance Australia Awards this month we saw amazing examples of innovation, driven by Australian expats across the world and in industries as diverse as manufacturing, creative services, health care, food, agriculture and energy. The overall winner, Dr David Patrino, is the Director of the Abilities Research Center and Assistant Professor of Rehabilitation and Human Performance at the Icahn School of Medicine at Mt Sinai. His research is using innovative technology solutions to achieve better healthcare accessibility for individuals in need.

-         Closer to home, the EY Australia Entrepreneur of the Year for 2019 is Lex Greensill from Bundaberg who has built a global software platform that uses artificial intelligence to price and issue bonds into the global market. Today Greensill Capital is one of the largest bond issuers in the world, with annual turnover in excess of $A150 billion, funding everything from mobile phone handsets to prompt payments for pharmacists who provide life-saving care in the UK. His reach is global and his influence is expanding at an exponential rate, having evolved into one of the largest bond issuers in the world. 

-       On a different note, Ginni Rometty, who has run IBM, a $US120 billion company since 2012, was in in Australia recently. She warned that Australian business leaders must change their approach to hiring or risk being left behind. She described the need for investing in technology with the “ABCDQ” of technology being: AI, blockchain, cloud computing, data and quantum computing.

-         Malcolm Turnbull, the former Australian Prime Minister came out this week, stressing the importance of innovation. “... the bottom line is: if you want to maintain Australia as a high-wage country with a generous social welfare safety net, you have to embrace innovation," he said. He also stressed that Australia was at an "inflection point" for becoming a source of cheap and clean renewable energy. At the same time there was a recognition by the Labour Leader, Anthony Albanese, that being number 58 in the world for fixed line internet speeds is not good enough. He stressed the importance of a high speed broadband network plan, “built on 21st century fibre” to support Australia’s future prosperity and productivity. He also highlighted the importance of such a network to revolutionise the delivery of health and education services, for business and for unlocking the growth potential of regional Australia.

At a time when many countries are re-positioning to respond to a changing economic environment as a result of technology developments, the topic of innovation is on the minds of many people in the Australian business and government communities. This is very apparent in roundtable discussions EY has recently held on this topic. Here is a flavour of the collective sentiments expressed by diverse groups of participants:

-         Australia is a fantastic country with an educated population, significant natural resources, a culture of inventiveness and fast technology adoption

-         However, we are falling behind against many of the success factors for a technology driven, globally competitive economy, including on R&D spending, educational outcomes in maths and science, ease of doing business and fixed line internet speeds

-         Our economy has been strong historically and is likely to perform well in the short term which gives us a solid base – however, we need a longer-term perspective

-         There is a sense of complacency and too much comfort in parts of the wider community and among government leaders after many years of continuous growth

-         Technology is disrupting most industries resulting in countries around the world competing for new industries and new ways of doing things

 And here are some of the suggested actions:

-         There is a need to generate a national conversation with business, governments and citizens to grow awareness and create a longer-term plan for the future of Australia

-         In this context, we should showcase some of the real innovation that takes place, for example in health research where Australia consistently punches above its weight

-         We need to create better paths for the commercialisation of Australian innovations

-         In the light of Australia’s relatively small economy, it would be smart to pick a few industries that build on Australia’s strengths and actively support their development with funding etc.

-         We should ensure that these new industries are global, competitive and can be developed as a growing portfolio

-         We must set an aspirational target for Australia – for example to be the world leader in new energy and in health care research

 Participants consistently confirm the responsibility of business and government to lead public opinion around these important issues. Moving towards solutions requires courage and persistence.

 Here is how Ginni Rometty puts it: “You have to get comfortable with being uncomfortable. Ask yourself: When did you grow the most, and did you feel at risk? Almost 100 per cent of people will say yes. It’s true for people, it’s true for companies and it’s true for countries.”

 The question for the nation today is: how will we respond to the profound economic and social changes that are coming due to the technology revolution? 

Let’s embrace some discomfort and explore emerging opportunities as we chart a new path for Australia’s future.

Watch my video on this topic here:  

https://www.dhirubhai.net/posts/ernstandyoung_eybetterquestions-activity-6587820541770551297-z6c_

 See all the videos from EY’s Conversation with the Nation here:

https://www.ey.com/en_au/oce-digital-transformation/conversation-with-the-nation

EY - better questions lead to better answers and a better working world.