Business models have been challenged by the substantial change occurring in the structure of the economy, itself a response to changes in relative prices, in technology, the high exchange rate and other forces. The good news is that businesses can respond to that, and they are doing so.
This process will need to continue and, as you will recall, there is the “to do list” set out by the Productivity Commission.4 But there is also, I think, a broader set of questions increasingly being asked, about whether our overall business environment is conducive enough to risk-taking and innovation, and whether we are doing enough to develop the relevant competencies.