What the Internet of Things could mean for Australia
When I think about the defining feature of the current environment, above all I think of the constant, and unprecedented speed of change.
Reflecting on what the world was like when I was growing up, compared to the world my four young daughters are navigating today, the changes are too numerous to list. But one of the most profound changes, which is largely yet to unfold, is the change brought about by the Internet of Things.
My daughters are growing up in an environment that they increasingly expect to be interactive. Their experience of the world, and the objects within it, is informed by real time data and smart technology. This merging of the digital and physical worlds means that their entire lives will be experienced through technology in a way that I could never have comprehended when I was growing up.
It’s clear these new technologies are triggering a fundamental transformation - not just of the way we are engaging with the world around us, but also of the business landscape. But the true scope of the opportunity is hard to grasp. That’s what our report Australia's IoT Opportunity: Driving Future Growth out today aims to do - to quantify the opportunity represented by the Internet of Things for Australia, and also the loss if we miss the boat.
It’s true that we have been lucky to enjoy nearly three decades of uninterrupted economic growth in this country. The unfortunate truth is this growth has largely relied on the bounty of our natural resources, and we cannot dig our way out of trouble indefinitely. Modeling by PwC shows that unless we do something to improve productivity, we could slip out of the G20 as soon as 2030.
The Internet of Things could provide part of the answer to the productivity challenge. The analysis in this report, the first of its kind in Australia, shows that in the five key industries assessed, efficiencies achieved through the Internet of Things could deliver benefits of $194-$308 billion per year. Globally, it is expected to deliver economic benefit of $5-6 trillion by 2023.
What a huge opportunity for Australia, if we can be leaders in this space.
Professional Services Consultant
6 年As we were struggling to link our Google Assistant to various household devices - I said to my 11 year old daughter "remember this because when you are our age everything will be connected seamlessly". If we could take a lead in getting the ease of connectivity sorted we will be at the forefront.
Managing Director | Customer-centric Transformation | Commercial | Sales | CX | Strategy | ex-Uber | ex-PwC | Advisory Board
6 年Very thought provoking, Luke Sayers. It reminds of a recent conversation with the inspiring Matt Kuperholz where he cited Amara’s law, which I feel is very applicable to IoT. This law says that, ‘We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run’. In light of this, I’d ask Executives how their organisation is looking to proactively harness the potential here...?
Nexus Consulting /Interim Executive
6 年I was wondering what is IOT means when Andy Penn and others talk about it this explains all and it’s about technology application for many situations and it’s another jargon
Company Owner / Director at Proactive Ageing Pty Ltd
6 年The Internet of Things will be part of the Industry 4.0 infrastructure. Yes, it is important to grasp it's potential. But what is really a huge opportunity for Australia, is if we can develop differentiated industry niches in areas where we have a global advantage sitting atop this new infrastructure (e.g. picking just one industry - healthcare systems & services, allied healthcare, social insurance, instead of our highly fragmented component medtech R&D focus). Aust really struggles with the value-add part in almost every industry sector. We love the safety of still being China's quarry. To be leaders in this space, we'll need the skills of PWC and other to assist with 21st century industry value-add propositions focused on the top end of the value chain.