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Monday, April 21, 2025

Are you ready for NZ 4.0?

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Charles Miller. Photo supplied
  • By Charles Miller

There’s a new game in town and it’s fast becoming the latest business buzzword: ‘4.0’.

Simply put, 4.0 is the evolution of productive systems driven by the confluence of digital transformation, interconnected technologies, cloud storage, AI and data-driven decision-making.

Agriculture ‘4.0’ transforms traditional practices by integrating advanced technologies such as data analytics, sensors, robotics, satellite imaging, and biotechnology.

The outcome is precise, real-time decision making about planting, irrigation, fertilisation, and harvesting, reducing waste and environmental impact generating improved yields.

The term originated in Germany about 10 years ago with ‘Industry 4.0’, a state-sponsored initiative to supercharge manufacturing through the integrated application of technology and data, the so-called fourth industrial revolution.

The first three were respectively, ‘1.0’, being mechanisation, using windmills and waterwheels in the 18th century.

‘2.0’ was mass production, harnessing electricity at the end of the 19th century and ‘3.0’ was automation, driven by computers at the close of the 20th century.

‘NZ 4.0’ is our opportunity to ride this latest wave, not by trying to be all things to all people, but by focusing our resources where we can get the greatest return.

A recent report from the Boston Consulting Group (BCG) urges New Zealand to concentrate its investment on those few areas where we have competitive advantage and global relevance – what they call industry ecosystems.

An ecosystem is a cluster of connected players, i.e. businesses, universities, researchers, investors, and government amongst many others, working in the same field, often in the same place, sharing knowledge, talent, infrastructure, and opportunity.

BCG identifies five such strategic ecosystem opportunities for New Zealand.

Agriculture, Space, Green Tech, Medicine, and the Creative Industries.

All of these lie in the sweet spot where our recognised strengths, global demand, and commercial opportunity converge.

In the case of agriculture, primary industry has underpinned our economy for generations, with New Zealand’s farming technology and productivity already admired around the world.

New Zealand organisations are building from this solid foundation to transition to ‘Agriculture 4.0’, to ‘feed more with less’. This isn’t a pipe dream as it’s already underway.

Compac, a local Auckland firm founded over 30 years ago by Hamish Kennedy, began by developing fruit-sorting machines that combined mechanical, electrical, and optical technologies to enhance the accuracy and speed of fruit grading and packing.

Through smart engineering, algorithm-driven systems, and years of research and development, it’s become a global leader.

That’s ecosystem thinking in action: specialise, collaborate, export and prosper.

How can your business prepare for, and be part of ‘4.0’?

Understand where you’ll fit and where your unique attributes will add value.

Identify who else is active in other aspects of this space, then connect and partner, going deep, not wide. Digitise and invest in R&D and your people.

As part of your strategy development, talk to your local university, industry association and incubators.

Also organisations like Callaghan Innovation are set up to guide you through digital readiness, R&D support, and innovation pathways.

We are Kiwis, we value innovation and research, we split the atom in 1917, lets collaborate and innovate our way into ‘NZ 4.0’

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