Australia's car industry demise is proof the nation is adapting into a 21st Century economy that should be embraced, not resisted, says ANZ Bank chief Mike Smith.
The future of Australia and the world would involve smaller and more nimble companies as we become more technologically driven, he told a Trans Tasman business lunch in Melbourne.
"You won't have these massive organisations in the way that you used to have them, they will be much more nimble and need to be more flexible," he said.
"The classic example is the car industry... banking is another one. We would not have even conceived of it five-10 years ago we would be doing our banking on our phones, and there are still changes to move.
"Australia has got so much advantage here, it just needs to engage and ensure it takes the opportunity rather than just try and preserve the past."
The agriculture, education, medical research and even high value manufacturing - such as making racing car gearboxes - were areas in which Australia had an advantage, he said.
Confidence was starting to return in Australia post the mining investment boom, he said.
The comments come in the wake of the Business Council of Australia's recent blueprint - developed by McKinsey consultants - pushing for governments to support sectors that hold natural advantages, such as agriculture and resources.
The comments were criticised by the competition regulator the ACCC chair Rod Sims and some other industry groups for "picking winners".
Mr Smith said the document was well considered and said Australia should look to New Zealand's example in which its agricultural sector was thriving, through its free trade agreement with China.
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