The Minister of Communications and Information Technology says New Zealand businesses are slow to adopt new technology, which is putting them out of step with consumers.
At a Telecom Gen-i conference in Wellington on Tuesday, Amy Adams said technology is a way for New Zealand to compete locally and globally.
She said the Government had invested about $1.6 billion in its fibre roll-out programmes and will be working on the auction of the 4G digital dividend spectrum this year, both of which will transform the tech sector.
Ms Adams said New Zealand has the ninth highest internet usage in the world and a recent study indicated 80% of New Zealanders buy goods online.
But she said only about 30% of New Zealand businesses have an online presence and 60% of the firms surveyed suggested they did not see value in a website.
Ms Adams said 14% of businesses are using cloud-based services and about 18% consider themselves early adopters of technology.
"So let me be really clear with you, this is where your customers are and it's where they expect you to be.
"We all have to start to embrace those changes in technology."
Ms Adams said businesses will increasingly find consumers want to engage through technology and mobile data in particular is a big growth area.
She expects more than 250,000 households will have access to ultra fast broadband by June.
