From data scientist to CEO, data-driven leadership to be the upshot of Big Data in Australian organisations

June 2, 2015

SYDNEY, AUSTRALIA – More than 70 per cent of large Australian organisations, those with 200 employees or more, will become data-driven by the year 2019, according to a new study released today by emerging technology analyst firm Telsyte. This will increase from today’s figure of around a third of large businesses, mainly found in the retail, manufacturing and government sectors.

Telsyte research shows that Big Data analytics is fast becoming the ultimate way to empower CEOs and boards to drive the innovation agenda. There is also a growing realisation that the information era is leaving traditional decision making methods behind.

“We are seeing a new generation CEO, who no longer relies on a hunch or gut feel to determine the future direction of their organisation,” Telsyte senior analyst Shayum Rahim says.

Telsyte predicts that if the CEO is not a data scientist themselves, the organisation will certainly have one on the executive team within the next few years.

“The data-driven CEO uses numerous sources of data to make decisions with precision, which is now essential in being able to study to the board and ultimately shareholders,” Rahim says.

Telsyte research conducted with CIOs, CMOs and other business and technology leaders shows that 38 per cent of large businesses are currently using Big Data analytics, however many organisations are still at the early stages of maturity.

Telsyte’s Big Data Maturity Model evaluates organisations through six stages of maturity based on a range of factors including infrastructure, skills and knowledge, budgets and deployment.

Telsyte found that there are still many barriers to Big Data analytics adoption in Australia, such as the ongoing skills shortage, and infrastructure and data integration challenges. However, the desire by today’s leaders to use data to transform their businesses is such that many are looking to external service providers to overcome such barriers.

Telsyte research shows that Big Data investments outside of the remit of are fuelling the growth of IT spending. Around 5 per cent of organisations have Line of Business (LOB) spending on technology surpassing that of the IT department. Telsyte expects this trend to continue driven by solutions that utilise data from “Internet of things”, social media and digital marketing. The main spenders outside of IT were Management (63%), Operations (62%) and Marketing (54%)

For many organisations the Big Data journey has begun with their e-commerce, CRM and marketing data, and this is creating a more empowered CMO.

“Data does not just inform; ideally, it persuades” Telsyte senior analyst and digital marketing lead Steven Noble says.

“Data-driven leaders in fields like marketing, eCommerce and executive management use insights to craft inspiring stories that bathe the company, its customers and its competitive environment in a whole new light,” Noble says.

The study also profiles a number of vendors across Big Data infrastructure, data management and analytics products including: Cloudera, Hortonworks, MAPR, EMC, Hitachi Data Systems, NetApp, IBM, Oracle, Pivotal, Microsoft, SAS, Splunk and Tableau Software.

Additionally, Telsyte has reviewed a range of new entrants who are taking the challenge to the traditional data management vendors.

“The new entrants are an important part of the landscape because they bring a more flexible approach that can lower the barriers to entry, such as subscriptions and pay per use” Rahim says.

The study has determined that on average, two thirds of organisations investigating Big Data solutions are also looking to increase technology OPEX spending in the next 12 months, creating lucrative opportunities for vendors and service provider alike.

About the Telsyte Big Data and Analytics Study 2015

The Telsyte Australian Big Data & Analytics Study 2015 is a comprehensive 102-page study which provides subscribers with key market insights across many aspects of Big Data adoption in Australian organisations. This includes how it is driving the IT and business agenda; challenges that organisations are facing; the maturity stages of Australian organisations to Big Data; market overview; usage and intentions; budget and spending; a comprehensive vendor SWOT analysis; and recommendations.

For further information on the study or media inquiries contact:

Foad Fadaghi
Managing Director
Tel: +61 2 9235 5851
Twitter: @foadfadaghi
Email: ffadaghi@telsyte.com.au

For sales and consulting enquiries please contact Foad Fadaghi on +612 9235 5851 (ffadaghi@telsyte.com.au).

About Telsyte
Telsyte delivers strategic insights and advisory services to businesses that are producing, or are impacted by, disruptive technologies. Telsyte publishes studies into emerging consumer and business markets and provides custom research and advisory services. Telsyte is a wholly-owned independent business unit of UXC Limited. UXC is an ASX-listed Australian IT services company and the largest Australian-owned ICT consultancy firm with over 2,500 customer organisations in the private and public sectors across Australasia. www.telsyte.com.au

The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial/non commercial purpose, except for news reporting, comment, criticism, teaching or scholarship

Australian tablet sales drop 20% in 2014 as wearable computers start to become popular gifts

April 29, 2015

SYDNEY, AUSTRALIA – Australian’s appetite for media tablets decreased by 20 per cent in 2014 as a cyclical slowdown affected the market, according to a new study from emerging technology analyst firm Telsyte.

Apple reclaimed the market leader position in the second half of 2014, making up nearly half of all unit sales from July 1 to December 31. However, only Windows tablets saw a year-on-year increase in unit sales amid growing consumer interest in smart wristbands and smartwatches during the same period.

Telsyte believes the slowing demand was mainly due to saturation in the iPad and Android tablet markets.

Nearly half of Australians who have ever purchased a tablet, did so in 2013, and few found a reason to upgrade their device in 2014. Furthermore, increased demand for the new iPhone 6, new larger screen Android smartphones as well as a range of wearable devices such as Fitbits, impacted tablet sales in 2014.

Telsyte estimates that at the end of 2014 around 13 million Australians, or more than half the population, had access to a tablet. Facebook, interactive games, news and video content were the most frequently accessed applications. Online shopping using a tablet also became more popular in 2014.

Tablet gifting impacted by smartphones and wearable devices

Telsyte Senior Analyst Alvin Lee says low cost tablets purchased as gifts have lost their appeal and more consumers are now looking towards wearable devices as presents, or to meet their gadget buying urges.

“The average cost of a smart fitness band is similar to an entry-level tablet, making it a popular alternative for those who already own a tablet,” Lee says.

Telsyte expects wearable devices such as Microsoft’s HoloLens and Samsung’s Gear VR to also challenge the role of tablets in a connected-home environment.

“In the coming years, we are likely to see more connected-home apps being developed for wearable devices such as virtual or augmented reality headsets,” Lee says.

New tablet market growth driven by Windows notebook upgrades

Telsyte predicts the market will bounce back in 2015 as Windows-based PC users look to upgrade to convertible or hybrid devices* that allow them to run PC applications on a tablet form factor.

Telsyte Managing Director, Foad Fadaghi, says computers remain the preferred device for the creation of documents and media editing.

“Telsyte believes there will be strong demand of convertibles or 2-in-1 devices, as mainstream business and consumer users look to update to Windows 10 later this year,” Fadaghi says.

Despite their massive appeal, Telsyte’s research indicates two-thirds of Australians do not believe a pure tablet device will ever be their primary computing device, a figure that has risen from 56 per cent in 2013.

For further information on the study or media inquiries contact:

Foad Fadaghi
Managing Director
Tel: +612 9235 5851
Email: ffadaghi@telsyte.com.au

Alvin Lee
Senior Analyst
Tel: +612 9235 5890
Email: alee@telsyte.com.au

About Telsyte’s Australian Media Tablet Market Study 2015

Telsyte’s Australian Media Tablet Market Study 2015 is a comprehensive study which provides subscribers with:
• Tablet market sizing, platform and vendor market shares and forecasts
• End user trends across devices, services and mobile media
• Purchase intentions
• Product reviews and insights
• Tablet audience estimates for media companies

* Telsyte defines convertible tablets (or hybrid tablets) as Windows 8 or later portable PCs that have a touch screen and detachable keyboards, or a foldable form factor which can provide a pure media tablet like experience. E.g. Microsoft Surface or Lenovo Yoga 3 Pro. Touch screen notebook PCs are not measured in this study. Devices with screens under 7” are not measured in this study and are considered Phablets.

In preparing this study, Telsyte used:
• An online survey of a representative sample of Australians 16+ years of age conducted with 1,251 respondents in November 2014.
• An online survey of a representative sample of Australians 16+ years of age conducted with 1,009 respondents in February 2015.
• Financial reports released by mobile carriers, manufacturers and service providers.
• Interviews conducted with executives from mobile operators, vendors, retailers, and channel partners.
• On-going monitoring of local and global market and vendor trends.

Enterprise mobility market to near $5 billion by 2019 as mobility becomes strategic to Australian organisations

April 22, 2015

SYDNEY, AUSTRALIA – A combination of mobile device hardware, management software and value-added services will drive Australia’s enterprise mobility market up to $4.9 billion in 2019, according to a new study released today by emerging technology analyst firm Telsyte.

Telsyte’s Australian Enterprise Mobility Market Study 2015 surveyed more than 248 CIOs and ICT decision makers on their organisation’s approach to mobile devices, applications and services[1].

The findings revealed mobility is becoming strategically important to Australian organisations with 24% of enterprises with more than 20 staff having a dedicated mobility manager.

Telsyte Senior Analyst Rodney Gedda says with 84% of organisations having some staff who regularly performing their job outside a remote location, the need for mobile application enablement is only going to increase.

“There is a perception mobility is a market with diminishing value, however, CIOs are telling us mobile strategy is shifting away from devices to multi-platform and application management making the value of business mobility exhibit strong growth,” Gedda says.

More than 80 per cent of organisations continue to buy mobile devices for staff, however, a combination of BYOD and CYOD (choose your own device) is now an option for people in more than 70 per cent of organisations.

Wearable computers are the next BYOD frontier with 50 per cent of organisations already open to allowing BYOD for wearables, which have many business applications including access control and worker assistance in confined spaces.

Australian CIOs are also seeing more value in approved mobile application catalogues which are gaining favour over open BYOA tolerance.

“More than a third of businesses do not allow BYOA, which has remained steady, however, more organisations are providing app catalogues which can be reviewed for integration with the overall IT environment,” Gedda says.

According to Telsyte research, popular BYOA software used for business include: data backups and storage (Dropbox, iCloud); calendaring; collaboration (GoToMeeting, WebEx); voice communications (Skype); project and task management (Remember the Milk); productivity (Pages, QuickOffice Pro); multimedia; and note taking (Evernote).

Mobile device management (MDM) growing strong

The uptake of mobile device management continues to grow strongly with Telsyte forecasting 75 per cent penetration among Australian enterprises by 2019.

“With most MDM implementations on-premises there is a big opportunity for managed service and cloud providers to offer on-demand device and application management,” Gedda says.

Summary of key findings in the study

How organisations procure mobile devices
The size of the enterprise mobility market and what is it forecast to reach in 2020
The market split between mobile devices, software and services
The market penetration for mobile device management
How organisations are using MDM to manage and secure mobile devices and apps
The state of BYOD (including wearables) and BYOA (apps)
How people work outside the office, including remote locations
Are organisations adopting wearable computers and how they are viewed by CIOs
How mobility is impacting sales and operations
Is the CIO losing control of enterprise mobility?

About the Telsyte Australian Enterprise Mobility Market Study 2015

The Telsyte Australian Enterprise Mobility Market Study 2015 is a comprehensive 70-page study, which provides subscribers with key market insight across mobile service provider market share; mobility strategy; device purchasing trends; supported mobile operating systems; smartphone brand penetration; factors influencing smartphone purchasing; mobile e-mail; BYOD; BYOA; media tablet market share and impact on PCs; mobile app development; apps used on smartphones and media tablets; mobile device management (MDM); mobile application management (MAM) and enterprise wireless (Wi-Fi).

For further information on the study or media inquiries contact:

Rodney Gedda
Senior Analyst
Tel: +612 9235 5891
Twitter: @rodneygedda
Email: rgedda@telsyte.com.au

For sales and consulting enquiries please contact Foad Fadaghi on +612 9235 5851 (ffadaghi@telsyte.com.au).

About Telsyte

Telsyte delivers strategic insights and advisory services to businesses that are producing, or are impacted by, disruptive technologies. Telsyte publishes studies into emerging consumer and business markets and provides custom research and advisory services. Telsyte is a wholly-owned independent business unit of UXC Limited. UXC is an ASX-listed Australian IT services company and the largest Australian-owned ICT consultancy firm with over 2,500 customer organisations in the private and public sectors across Australasia. www.telsyte.com.au

[1] Telsyte’s survey was conducted in November 2014 with a representative sample of 248 CIOs and ICT decision makers in Australian businesses with greater than 20 employees

22% of all IT spending by Australian organisations now from lines of business outside IT

March 4, 2015

SYDNEY, AUSTRALIA – Australian businesses will experience a new wave of disruption in 2015 as a combination of wearable technology, remote working, online services and business unit technology spending change traditional IT spending and strategies, according a new research from emerging technology analyst firm Telsyte.

More than half of all CIOs believe line of business IT spending will exceed central IT spending within 5 years.

Telsyte senior analyst Rodney Gedda says business units like operations, marketing and finance have always had a say in the type of IT they use, but in today’s climate of on-demand procurement it’s easier than ever work with – or by-pass – IT to get a service they need.

“Today’s operations and marketing managers rely on technology to deliver business outcomes and the CIO is no longer the source of all procurement decisions,” Gedda says.

The Telsyte Australian Digital Workplace Study 2015 covers trends in business ICT spending and strategy and how IT and business leaders are preparing for the impact of emerging technologies.

Australian IT departments are also having to deal with more business unit IT spending with 79 per cent of organisations having at least one line of business – including marketing, operations and finance – with its own IT budget.

“This is up 5 per cent from 2014 and shows a growing demand for IT services from areas of the business like marketing. Combine this with more accessible cloud-based applications and the CIO has another information management procurement channel to deal with,” Gedda says, adding the central IT function still controls on average greater than 70 per cent of the total spending value.

The appetite for investment in 2015 is strong with organisations looking to increase ICT budgets by an average of 5 per cent and more than half (57%) of CIOs expect in-house IT staff numbers to increase this year.

Areas organisations are looking to increase spending most in include cloud computing, mobility, software-as-service and cloud UC and telephony.

“While operational cost savings remains the top business priority for 2015, both revenue growth and business process improvement are a higher priority than they were in 2014,” Gedda says.

The proliferation of consumer technology, including wearable computers, will extend the reach of the bring your own device (BYOD) phenomenon and organisations will need to prepare for more unmanaged devices on their networks.

“Like smartphones before them, wearable computers like augmented reality headsets might have business applications and people will find ways to be productive with them at work.”

The Telsyte Australian Digital Workplace Study 2015 is a comprehensive 100-page study that covers the key trends and strategies CIOs are employing to manage information and deal with social and technological change.

For further information on the study or media inquiries contact:

Rodney Gedda
Senior Analyst
Tel: +612 9235 5891
Email: rgedda@telsyte.com.au

For sales and consulting inquiries contact:

Foad Fadaghi
Managing Director
Tel: +612 9235 5851
Email: ffadaghi@telsyte.com.au

About The Australian Digital Workplace Study 2015

The Australian Digital Workplace Study 2015 is derived from primary research of 424 Australian CIOs and other ICT decision makers in organisations with 20 to 20,000+ employees. The comprehensive study provides subscribers with strategic insights on:

• What are organisations spending ICT budgets on and how are they changing?
• Are organisations outsourcing more and what value do they get from outsourcing?
• Which line of business units are spending on IT and what are the key trends?
• What are the top ICT and business priorities and challenges?
• Business mobile and fixed line use and spending
• How are work practices changing, including the penetration of remote working and teleworking?
• How is activity-based working (ABW) changing the way we work?
• What are the key Bring Your Own Device (BYOD) strategy and intentions?
• Is Bring You Own Apps (BYOA) the next BYOD?
• Is social media being used for business benefit?
• What is the future of the enterprise business desktop?

About Telsyte

Australia’s smartwatch market to exceed $400M by 2018 as wearable computing takes hold alongside nearly 17M smartphones

February 20, 2015

SYDNEY, AUSTRALIA – With some 370,000 smartwatches sold in 2014, Australians are warming to wearable computing with the market poised to exceed $400 million by 2018, according to new research from emerging technology analyst firm Telsyte.

Watch jewellery is a mature market with around 40 per cent (more than 7 million) of Australians (age 16 and above) wearing a watch almost every day. Notwithstanding the challenges, smartwatches have the potential to disrupt the traditional market as people consider wearable devices an extension to their smartphone and apps they use for fitness and communications.

According to Telsyte’s Australian Smartphone & Wearable Devices Market Study 2015, the smartwatch market is expected to grow by at least 50 per cent in 2015 due to the arrival of an Apple Watch.

Samsung, an early entrant in to the smartwatch market is the current market leader.

Telsyte Managing Director Foad Fadaghi says smartwatches will become more appealing to consumers as new stylish and featured devices enter the market, with the 25 to 44 year-old age group representing the best sales opportunity in 2015.

“There is a lot of anticipation for the Apple smartwatch and our research indicates half of all smart fitness band users are looking to upgrade to a smartwatch, creating a potentially vibrant new product category” Fadaghi says.

Telsyte research showed that over 800,000 smart wristbands such as those made by Fitbit and Garmin were sold in 2014.

As with smartphones, consumers consider ease of use, pricing and battery life the most important attributes of smartwatches. Many current smartwatches have been criticised for their short battery life and limited unique usage scenarios.

Telsyte’s research found the top three applications people want from a smartwatch are to (1) check the time and date (2) use it as an alarm clock or a reminder alert, and (3) read messages, including e-mail.

Smartphone sales mature as hand-me-down devices shake up the mid-market

According to Telsyte research, there were 16.8 million smartphone users in Australia at the end of December 2014 with sales of just below 5 million units in the second half of 2014.

This was around 10 per cent less than Telsyte expected over H2, despite very strong iPhone 6 sales.

Telsyte Senior Analyst Alvin Lee says the iPhone gained market share in H2 2014, but the overall share trends are likley to change again as an Android-users upgrade cycle in expected to commence in early 2015.

However, Telsyte has recognised increased competition to Android device by older model iPhones, typically received through a “hand-me-down”.

“The durability of handsets and the hand-me-down phenomenon is impacting the market, along with a flood of second hand iPhones cutting into sales of mid-tier Android handsets in the second half of 2014,” Lee says.

Telsyte estimates 1.3 million iPhone 6 and 6 Plus units sold in Australia last year, with the iPhone 6 outselling the iPhone 6 Plus, at a ratio four to one. Despite this Telsyte believes the demand for phablets or larger form factor smartphones is growing and will represent around a quarter of smartphones in use by 2019.

For further information on the study or media inquiries contact:

Foad Fadaghi
Managing Director
Tel: +612 9235 5851
Email: ffadaghi@telsyte.com.au

About the Australian Smartphone & Wearable Devices Market Study 2015

The Telsyte Australian Smartphone Market Study 2014 is a comprehensive study which provides subscribers with:
• Smartphone market sizing, platform and vendor market shares and forecasts
• Smartwatch market sizing, platform and vendor market shares and forecasts
• Smart wristband/fitness band market sizing, platform and vendor market shares and forecasts
• End user trends across devices, services and mobile media
• Purchase intentions & acquisition channels

In preparing this study, Telsyte used:
• Financial reports released by manufacturers, mobile carriers, and channel partners.
• Interviews conducted with executives from vendors, retailers, mobile operators, and channel partners of all major market participants.
• An online survey of a representative sample of Australians 16+ years of age conducted with 1,009 respondents in January 2015.
• On-going monitoring of local and global market and vendor trends.

About Telsyte