Digital Australia: seizing the opportunity from the Fourth Industrial Revolution

Digitally-enabled innovations are creating opportunities and disrupting business models across all sectors of our economy

Key findings

Key findings at an economy-wide level include:
• Waves of digital innovation are accelerating, reaching scale faster than ever before—resulting in inevitable disruption, but also creating new opportunities for those who are able to move quickly to take advantage of the disruption

• Digital can represent the next frontier of productivity and economic uplift for Australia, with the potential to contribute between A$140 billion and A$250 billion to Australia’s GDP by 2025, based on currently-available technology alone

• Australia’s digitisation is uneven, and still a distance from its full potential; knowledge intensive industries lead service industries, which in turn lead asset intensive industries

• Australia has doubled its digital growth over the last five years, however, particularly asset intensive Australian sectors still have in general lower levels of digitisation than their peers in the United States

• High digitisation growth for a sector over the past 5 years appears to be correlated with higher labour productivity.

Digitally-enabled innovations are creating opportunities and disrupting business models across all sectors of Australian’s economy

About the report

One of the central goals of this report is to contribute to the debate about how Australia can benefit most (both economically and socially) from what the World Economic Forum has called the Fourth Industrial Revolution.

Digitally-enabled innovations are creating opportunities and disrupting businessmodels across all sectors of our economy. This Digital Australia report represents a synthesis of our recent research into the digital opportunities and threats across seven
major sectors of the Australian economy, as well as providing a picture of the level ofdigital maturity across the Australian economy as a whole (the ‘Digitisation Index’). Itis the latest in a series of similar reports published by McKinsey & Company that have
drawn on insights from the McKinsey Global Institute (which published our Digital America report in 2015 and a similar Digital Europe perspective in 2016). The report draws on the result of a research collaboration with the Australian Federal Department
of Communications and the Arts, and we gratefully acknowledge their contribution to the research.

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