AUSTRALIAN companies must embrace the digital world and take their businesses online, in the knowledge that their competitors will, opposition communications spokesman Malcolm Turnbull says.
Mr Turnbull said so far Australia's response to the growing online business environment had been "patchy", with some companies doing it well and some, such as newspapers, slow to respond.
"Everyone has to look at their business model very carefully and embrace the digital world," he said.
"Because if you don't do that, if you're not prepared to embrace the digital world and compete with your own bricks and mortar business, then somebody else will do it."
Mr Turnbull's comments came as a new report warned that one third of Australian businesses faced a "short fuse, big bang" scenario, offering them little time to adjust to the major changes brought by the digital economy.
The BankSA Trends economic bulletin said the impact would be felt hardest in the eastern states where major change to key sectors was coming fast.
"The eastern states capitals, particularly Sydney, where there is a far greater concentration of industries such as finance, information and communications technology, and media and professional services, face a more immediate impact from the changes brought by digitisation," the report said.
It said older economies such as agriculture and manufacturing probably had more time to adjust.
Mr Turnbull said a very large percentage of Australian businesses still had no online presence, not even a web page, despite the opportunities it offered.
He said the internet also created much more competition.
"If you owned a dress shop in Adelaide you would have thought, not too long ago, that your competition was the department store around the corner. Now it's the entire world," he said.
Mr Turnbull said the critical thing for all companies was to take decisive action.
"The shortest commodity in the internet world is not technology," he said.
"It is technological imagination. It's businesses having the imagination to think laterally and recognise the opportunities that the online environment offers them."
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