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Land of sweeping change Powering Australian business towards a connected future A research report uncovering the gaps between supply and demand for M2M in Australia John Ferguson Senior economist Economist Intelligence Unit

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Page 1: Land of sweeping change Powering Australian business ... · Land of sweeping change Powering Australian business towards a connected future A research report uncovering the gaps between

Land of sweeping change

Powering Australian

business towards a

connected future A research report uncovering the gaps between

supply and demand for M2M in Australia

John Ferguson

Senior economist

Economist Intelligence Unit

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Land of Sweeping Change | Charles Ross | April 2015 Page 2

About us

The Economist Intelligence Unit (EIU) is the world's

leading resource for economic and business research,

forecasting and analysis. It provides accurate and

impartial intelligence for companies, government

agencies, financial institutions and academic

organisations around the globe, inspiring business

leaders to act with confidence

since 1946.

EIU products include its flagship Country Reports

service, providing political and economic analysis for 195

countries, and a portfolio of subscription-based data and

forecasting services.

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About the research

100 in telecommunications

50 each in agriculture and agribusiness; logistics and

distribution; manufacturing; and, transport

Simon Berman vice-president of product marketing, Jasper

Haydn Bowbyes managing director, IVCS Australasia

Eric Harvey managing director, Gilgai Farms

Morgan Hurwitz president for supply chain solutions & CIO, Linfox

Iynky Maheswaran, head of mobility, Macquarie Telecom

Phillip Rollason IT manager, Alsco

Ken Sheridan chief financial officer, NetComm Wireless

Survey

Interviews

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Land of sweeping change

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Same meaning, different terminology

M2M simply means using technology in new ways to further

automate processes or enhance current tasks

In the survey conducted for this report, we defined M2M “as

the devices and sensors that are connected to the Internet

and can thereby interact with each other or with humans”

This definition captures three distinct but interrelated aspects of

M2M: hardware, software, and the networks that allow them

to communicate

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Land of Sweeping Change | Charles Ross | April 2015

Land of sweeping change

Things connected in 2015

4.9bn Things connected in 2025

25bn*

*Gartner

Page 6

Real-time access to data at any time and from anywhere will improve productivity and reduce costs.

“ Mr Maheswaran ”

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Powering Australian businesses towards a connected future

Figure 1: How important will M2M be for revenue growth in your industry three years from now?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Very unimportant

Somewhat unimportant

Neither important nor unimportant

Somewhat important

Very important

All respondents

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Clear vision

But lasting legacies

Rushing for unclaimed territory The view from telecommunications companies

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Land of Sweeping Change | Charles Ross | April 2015 Page 9

Clear vision

Figure 2: In your view, what aspects of M2M will be most important to your organisation to realise the benefits of M2M over the next three years?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

People (ie hiring new employees or enhancing current skills)

Mobility (ie remote control and work)

Business and management processes

Hardware and tools

Software and app development

Network and systems integration

Demand-side respondents

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Land of Sweeping Change | Charles Ross | April 2015 Page 10

But lasting legacies

Figure 3: In your view, what are the main roles of telecommunications providers in providing M2M services?

0%

10%

20%

30%

40%

50%

60% Network provider

Software and app development

Hardware supplier of M2M tools

Business and management consulting

services

Technical ICT consulting services

End to end provider

Telecoms

Agriculture and agribusiness

Logistics and distribution

Manufacturing

Transport

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Gaps in supply and demand

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Return on investment

I would not confuse awareness with actual understanding. Simply because they understand what M2M is doesn’t mean they have a business understanding of it.

“ Mr Sheridan ”

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A lack of targeted solutions

We understand that from a solution point of view, they can’t be fit for purpose as more customisation means more cost. But in the business world it has to be customised to what you’re doing.

“ Mr Rollason ”

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Cited by telecoms execs as a target industry

37% 55% 58% 46%

Land of Sweeping Change | Charles Ross | April 2015 Page 14

Same opportunities, different takes

M2M cited by industry execs as very important in three years

22% 26% 44% 34%

Agriculture Manufacturing Logistics Transport

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Conclusion

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Land of Sweeping Change | Charles Ross | April 2015 Page 16

Conclusion

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The need for better communication between the demand- and supply sides

Focus on integrated solutions that meet specific needs

Create a better demonstration of business benefits

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Thank you