Future Trend Report for Accountants & Bookkeepers

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Introduction ..................................................................................................................3

1. Transport ....................................................................................................................4

2. Retail .................................................................................................................................8

3. Hospitality .............................................................................................................11

4. Trades ..........................................................................................................................14

5. Services ...................................................................................................................17

6. Manufacturing .........................................................................................20

Contents

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Welcome to the 2019 MYOB Radar Report - the third edition of a trend report specifically written for accountants and bookkeepers. The first edition, written by Futurist Maree Conway, overviewed macro trends that are currently,

or destined to affect us.

Then, last year, Australia’s leading Futurist and author, Steve Sammartino, reported how these

trends will affect accountants and bookkeepers directly. In this third edition, Steve is back, with

fellow Futurist, Tommy McCubbin, to give deeper insight and actions, specific to the clients and

industries that accountants and bookkeepers focus on.

In this edition, Steve and Tommy dissect the industries of transport, retail, hospitality,

trades, services and manufacturing, empowering accountants and bookkeepers to

initiate and drive conversations and strategies with clients in those industries. The

content is full of tactics to adopt, helping accountants and bookkeepers expand their

services beyond the financials, to a broader, business consultancy offering.

To complement the 2019 report, we have created a film series, where our Futurist hosts

meet with industry leaders across the six industry verticals, have a conversation about

the impact each sector is facing and how to navigate and grow amidst massive and

exponential change.

This content series is designed to inspire a mindset of constant curiosity, learning and

experimentation, which will help to understand and adapt to future trends before they

arrive. We hope you enjoy and share the Radar Report, and help our collective futures

be a bright and prosperous one.

Introduction

MYOB Radar Report

STEVE SAMMARTINO

TOMMY McCUBBIN

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1. Transport

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1. Transport

1.1 How we got herePossibly more than any other industry, transport impacts every moment of how we work and live. It

defines the whole gamut of daily life; which resources we can get close to economically, what is an

acceptable distance from our home and place of work, how physical goods are delivered, and even

the scale and shape of urbanisation. Transport, as an industry, has invented a multitude of industries

which define our modern existence.

The modern transport revolution we lived through in the 20th century was

defined by the industrialisation of artificial, machine-made power. The

industrial dawn enabled humans to extract raw materials from the ground

to manufacture, build and power our multitude of vehicles.

Metals, oils and gas built the modern cities and the transport ‘boxes’ we move

around in. Fossil fuels enabled humans to move further and faster than we ever

had before. We can skip to the other side of the globe in a single day at 30,000

feet, and drive hundreds of miles across mega-cities in just a matter of hours.

But, artificially powered transport has been so successful, it has clogged up

our cities, our suburbs and even polluted our skies. For transport to take us

into the future, it can’t just be powerful, it has to get smarter. It’s fortunate that

we now have the technology to enable a revolution as we enter the era of

‘smart transport’.

1.2 Factors of ChangeThe major shift in transport is the increase of ‘intelligence’ in its systems. Just like we added machine

power to the horse and cart, we are now deeply in the process of adding artificial intelligence to all

modes of transportation as hardware and software are embedded within.

All of our ‘transport boxes’ are evolving from just machines, to becoming proactive, intuitive rolling

computers packed with sensors and driven by thousands of data points.

Soon, all modes of transport will become nodes ensconced with sensors, scanners, cameras and

thinking capacity. This will enable them to talk to each other, people and the products they are

moving - and then self-organise in the same way a physical neural network would. The chips,

sensors, batteries and cameras that make up our smartphones and computers have all become

so cheap and are manufactured at such a scale that this functionality will be added to transport

to change both its capability and how we use it.

1.25 million people die in car crashes around the world each

year. 94% is based on human error.

Artificially powered transport has clogged up our cities, our suburbs and even polluted our skies

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1. Transport

WHAT WILL CHANGE: + All transport will eventually be powered by batteries and electricity. Cars and trucks first,

the eventually long distance air travel.

+ The UK Government has released a strategy called ‘Road to Zero’ which outlines an ambition

to see half of new cars have ultra low emissions by 2030.

+ Volvo pledged all of their cars will be electrified by the end of this year, and Mercedes also

have confirmed they will offer every model available with electric engines soon after in 2022.

+ Cars will quickly become automatic, but these vehicles will be segmented to certain roads

and districts in the medium term while the infrastructure and regulation catches up.

+ New forms of transport risk will emerge, including the ability for systems and transport devices

to be hacked.

+ Cities, suburbs and exurbs will be complemented by air travel. Autonomous drones as cheap

as cars will fill the skies and move people and products as an alternative to our congested

roads and highways.

+ Cities will be reconfigured towards a more pedestrian and retail friendly environment. Congestion

taxes will be required where cars can cruise around looking for the next job and 12 year olds can

have their own vehicles license free.

+ Expect to see an increasing number of urban areas close down to private cars, and open

up to modernised automatic buses and micro transport - such as bicycles and scooters.

+ Private vehicles not actively transporting goods or people will be charged large access fees

to our roads - mandating maximum efficiency as the desired outcome.

+ The shape of cars and trucks will change shape to be more modular,

accommodating a variety of uses. Cars and buses will be able to become

rolling offices, lounge rooms, retail hubs, mobile restaurants and anything

else that can currently happens in a space with four walls. This will invent

infinite new kinds of trading and commerce.

+ Product distribution systems will be able to accommodate small

shipments at scale with autonomous delivery vans and drones. Robots

will be ready to transport anything from pencil sharpeners to hedge

clippers for a fraction of the costs.

+ Any unused rooftop that is structurally capable will become drone

delivery and landing pads, offering a new stream of revenue for property

owners.

WHAT WON’T CHANGE: + Congestion on roads won’t go away. In fact, the transport options and autonomy will exacerbate

the current issues. Smart solutions will be needed to overcome the vastly increased number of

transport devices being used in; electric scooters, bicycles, cars, buses, drones & trains.

+ People owning private vehicles won’t go away, and is likely to increase. The cost of electric and

autonomous options will open up new markets, driverless distribution of goods, and even young

car owners and those previously unable to drive due to age or disability.

+ Transport and transport strategy will be a major component of every industry, as this landscape

changes - with physical goods having entirely new ways from getting from A to B.

Airline passengers will Double (2x) by 2030.

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1. Transport

1.3 Looking forwardThe future of transport is defined to two simple words; electric and autonomous. Both of these will

invent a new set of possibilities underneath them. They will make moving anything cheaper, faster

and easier. The immediate opportunities aren’t just about leveraging these two factors as they

arrive, but about building out systems that facilitate their arrival in any industry.

Nimble businesses will be part of designing and building new infrastructure that enhance the

speed with which electric and autonomous transport can move from the test site to the streets.

In order for these technologies to scale, we need to retro-fit houses, car parks, shopping centres,

roofs and highways. We will need to lay concrete, steel and add electrical and data cables.

New forms of delivery and landing zones will also need to be built to accommodate the demand

for a more efficient drone transportation.

Better forms of transport systems integration will become possible now that they can ‘talk to each

other’, allowing for more efficient use and cross fertilization- rail, car, bus and sky. Consumers

and goods will move fluidly from one mode to another, as we will see certain areas in urbane life

become ‘zoned’ for certain forms of transport and populations increase around them.

The Urban Sky Movement (USM) will emerge as battery powered drones

become an affordable way to move people and payloads. This will happen

more rapidly than most people imagine. This is due to two important

reasons; the exponential improvements in drone technology, and the fact

that ‘sky travel’ doesn’t require new infrastructure to be built to make it

possible. No, we don’t need to build a road to connect two ports, the sky

is the limit, in a world of highways up there in the 3rd dimension.

While cities will continue to trend towards economic and population growth, we’ll also witness a

regional renaissance. Facilitated by faster and cheaper means of travel and micro distance flights,

exurb regions within 100 to 300kms of major cities will be opened up. Their cheaper cost of living,

housing and environmental benefits will create an alternative to urbanisation. This opportunity

is bigger than most recognise and will massively develop over the next 5 to 50 years, where

technology will swing back to create a regional economic advantage.

1.4 Actions

ACTIONS FOR NOW

ACTIONS FOR SOON

ACTIONS FOR LATER

+ Transport operators should

rethink how long their

investments in new vehicles

and infrastructure will be

valid for, given the costs

of automated and electric

transport will be much

lower and the vehicles and

operators be more effective.

+ Review the current

technology and digital

platforms that manage the

logistics of your client’s

product and/or people to

ensure longevity.

+ If your clients are in

logistics they should

explore and connect

with electric autonomous

trucking and vehicle

companies, ensuring they

are first in line to leverage

their new technology and

vehicles once regulation

inevitably opens up.

+ Inspire your clients to

widen their scope of where

they can recruit people

from, given they can soon

travel further, cheaper and

easier.

“ Flying cars? That makes more sense than the self-driving ones” DARA KHOSROWSHAHI - UBER CEO

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2. Retail

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2. Retail

2.1 How we got hereThe marketplace has been around for thousands of years. It’s a wonderfully simple and

self-regulated system where demand drives supply, and currency flows from buyer to seller,

thus, creating an economy.

For centuries, local markets have sourced products from far and wide, dating back to the days

of the (original) SIlk Road. Villages, towns and cities have all been defined by a central retail district,

making shopping not only a leisurely activity, but something that helps build the culture of its people.

In the wake of the industrial revolution, retail was taken to another level of service and convenience

in the form of department stores, shopping malls and supermarkets.

Retail has often been a true reading of the health of an economy. In the 20th Century, the

West’s love of capitalism fueled consumer consumption to a point of excess where ethical and

environmental consequences were brushed aside for price, distribution

and shiny lights.

Only in the past couple of decades have brands become much more

accountable for the provenance of it’s wares. The true cost of cheap

product manufacturing has become evident, with regulation tightening on

human labour, animal testing, toxic material use and waste. A heightened

awareness and consciousness in society has made retail brands become

more transparent and generous with their story, process and ingredients.

“ Customer experience is not an initiative. It’s a mindset change” RUTH CROWLEY VP CUSTOMER EXPERIENCE DESIGN, LOWE’S

The marketplace has been around for thousands of years.

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2. Retail

2.2 Factors of ChangeFor the first time, the ‘e’ in ‘e-commerce’, was responsible for a real time

global marketplace, where finding and discovering anything, anytime

became possible. We weren’t limited to what the local shop owners had in

stock in the store we were physically in - if we were connected to the web,

we could see the infinite variations of that product, the prices, and the means

of getting it delivered to our doorsteps with the click of a button.

Although, retail has been rattled from this rapid wave of innovation, with

legacy retail brands such as American giant, Sears, closing down due

to a rapid and devastating decline in sales.

But it is not all doom and gloom, bricks-and-mortar stores can, and do

still thrive, and their connection and integration with the digital shopfront

is getting stronger. When both factors work in harmony, it benefits both

vendor and customer. The most successful retail spaces are the ones

that prioritise the customer experience, not the quick sale.

WHAT WILL CHANGE + The shape of, and the ways money (or value) move through the ecosystem.

+ Cryptocurrencies will be an important changemaker with innovations such as Facebook’s Libra,

which will trigger a truly global digital currency, with massive POS infrastructure and reach, all

owned and governed by a private company.

+ The line between online and offline will get even more blurry.

+ As technology, data and AI improve, we will be more comfortable with outsourcing purchase

decisions to ‘the machine’.

+ The general awareness of the power and leverage that marketplaces such as Amazon have

over the vendor will increase. Regulation will likely constrain their inevitable monopolisation

of markets. American Senator, Richard Blumenthal has requested an investigation into Amazon

having ‘abusive business practices’.

WHAT WON’T CHANGE + Demand for nice things. Society’s culture is built on the bedrock of

consumption. More, more, more. We feel good when we buy things!

+ ‘Brand’ and ‘Product Story’ will always be a key factor in our

purchase decision.

+ Pressure from competition will be ever-present.

+ Personalised, ‘old school’ customer service will be highly valued.

+ The consumer will be more and more empowered.

The ‘e’ in ‘e-commerce’ is responsible for a real time, global marketplace, where finding and discovering anything, anytime is possible.

57% of online shoppers make purchases from

overseas retailers

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2. Retail

2.3 Looking forwardThe retail landscape will continue to change, leaving those that fail to adapt in its wake.

The consumer is more empowered than ever, so if there is a better, faster, cooler, cheaper

product or service available, they will go for it - unless your story and brand remove the

rational reasons for shopping elsewhere.

The tools and data available today can mimic the experience of old school customer service.

You can welcome customers in the store with facial recognition, understand what they are

looking for based on previous search history and purchases, and contextualise the message

based on the current weather and time of week.

‘Shopping on social’ hasn’t found the traction to match the hype, but we are slowly seeing

major investment from particularly Instagram recently integrating a ‘BUY’ button in the feed

next to images.

As consumers, outsourcing the purchasing of your routined and

essential products to technology that understands you and your

tastes will be more common. Things such as toilet paper, milk and

bread will be things that conveniently appear in your delivery box.

This has major implications for brands in this space as their efforts to

influence the human consumer with brand messaging will be rendered

useless because their personal AI shopper chooses on behalf of them.

A very real challenge brands face is ‘how do you market to an AI?’

Brands adopting absolute transparency in sustainable, ethical and social

practice will be critical in winning the hearts and minds of consumers.

Every detail from where you source and manufacture your products,

to how you adhere to factors of equality internally will need to be up

in lights for all to see. This is not a PR exercise, this needs to be an operational mandate. The

consumer’s radar for what is authentic, and what is an obvious attempt at a brand being ‘good’,

will be picked up and called out in real time.

All of these insights show a universal fact that consumers don’t care what shop front they buy from

(on Instagram, in a bricks-and-mortar store, or on Amazon, etc), if you present a product when they

are compelled to buy it - they most likely will.

“ Some online pureplay retailers are finding that it’s cheaper to open a brick and mortar store than to acquire new customers online” SHILPA SHAH COFOUNDER AND CXO, CUYANA

Bricks-and-mortar stores can, and do still thrive, and their connection and integration with the digital shopfront is getting stronger.

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2. Retail

2.4 Actions

ACTIONS FOR NOW

ACTIONS FOR SOON

ACTIONS FOR LATER

+ If your client in the retail

industry has bricks-and-

mortar spaces, develop

with them ways you can

connect the physical

world- make their offline

products online.

+ Take clues from leaders

in retail. Why does the

Apple Genius Bar elevate

the customer service

experience? How can we

start removing friction in

our checkout like Amazon

Go is doing in the USA?

How are we engaging the

customer before, during

and after the shopping

experience?

+ Find inspiration from other

industries outside of retail.

Often, there are clues in

how other industries attract

and retain customers that

you and your retail clients

can be inspired from.

+ Immerse you and your

client in communities

and events to learn and

connect with innovating

people and brands.

+ It’s important to define

and amplify the brand’s

narrative so the customer

can buy into, and be a part

of that story.

+ Develop a plan with

your client so they can

own their own digital

platform and data. If you

find scale on marketplaces

(Amazon, Alibaba, etc),

you run the risk of losing

control of the customers

and the revenue attached

to them. The nightmare

scenario is Amazon

sees your success and

in response, creates a

whitelabel look-a-like

product and out-promotes

you to the very customers

you helped build up

for them.

+ Monitor and report to

your client the progress

and adoption of crypto

currencies and blockchain

developments. This will

impact every transaction

and change the ways

currency moves through

the ecosystem.

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3. Hospitality

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3. Hospitality

3.1 How we got hereMaslow’s hierarchy of basic needs calls out food, water, and shelter as critical for our survival and

wellbeing. Hospitality is in a strong position to always be in demand, especially given it mostly

offers all three.

The experience you have inside the restaurant, coffee shop, bar or hotel is what takes a venue from

good to great. It’s not just about the coffee, the cheeseburger or the pillow softness, they all add up

to be the thing that makes your hospitality business sink or swim.

Everyone has a unique taste. Some like familiar experiences, and stay

in a hotel chain and eat a basic club sandwich, and others prefer the

unexpected, like eating fried insects in a loft listed on AirBNB while drinking

an IPA brewed in the South Pole. Some make choices based on ethical

and sustainable factors, others choose price, where some just default

to a premium experience.

One adventurous Newcastle eater ordered from 55

different restaurants through UberEats in 2018.

The experience you have inside the restaurant, coffee shop, bar or hotel is what takes a venue from good to great.

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3. Hospitality

3.2 Factors of ChangeThe internet and the smartphone have given us instant and effortless access to endless variety. We

can all have restaurant food delivered to our doors, and browse hotel rooms in 3D from the bus stop.

These technologies have an equally powerful negative side - if the experience doesn’t match

the expectation, the customer can bring down a brand in a single tweet.

With the principles the same as they have been for centuries, technologies have only increased

the upside and potential downside of building a business in the hospitality industry.

WHAT WILL CHANGE + When food is delivered by one ‘app’, restaurants and their food have the risk of having their

experience and brand commoditised given their restaurant component is removed. We have

already seen that ‘Dark Kitchens’ have opened up in Melbourne and Sydney in a desperate

need to accommodate the new orders.

+ How hospitality is packaged up will be totally flexible, with things like

toilets being available for rent for 15 minutes.

+ Hospitality options will continue to fragment into hotels, motels, and

sharing economy homes and rooms.

+ Marketplaces will grow, but inevitably each will reach a saturation point

and ultimately a monopoly where regulation will break them up.

WHAT WON’T CHANGE + Great product is as important as a great experience.

+ Provenance, story and brand will be the key drivers into ‘why’ you

are special and your customer will return.

+ The best venues will expand their experience before, during

and after the event.

88% of reservations on AirBNB are for 2 to 4 people

An automated service desk is far more commonplace across retail and hospitality.

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3. Hospitality

3.3 Looking forwardWe have broken down what the future looks like in food and beverage, and then accommodation.

With some similarities, the two industries are being affected in different ways given the way their

products are prepared, sold and experienced.

All businesses in the hospitality game need a strong brand story, combined with personalised

service and memorable product. The Digital Revolution has given businesses the ability to scale

these components of success, with virtually the same, or sometimes even less human resource.

Let’s take customer service - where data and sensors will allow an authentic, personalised

experience to occur at scale. As we continue to leave more data about ourselves and our behaviour,

stores will be able to recognise who we are and what we are likely to want - and service that need

in a proactive, automated way.

Access to food and beverage has increased with apps such as UberEats and Deliveroo. This has

some great short term benefits, such as additional revenue streams, but it comes at some big costs

if it’s not managed properly.

The power will be in the hands of the platform because they have

total access to the data that are the key factors of business. The

most valuable customer data is that which shows ‘who wants

what’, and ‘when they want it’. This information is so powerful, we

have seen this risk turn into a harsh reality with some businesses

on Amazon. Imagine this: independent battery brand sells their

products on Amazon, Amazon see high sales and margin, so they

produce Amazon batteries, and then undercut the competition

and out-promote every other supplier in the category.

With accommodation, we have seen AirBNB cast a shadow over the hotel industry, but demand

seems to be meeting the supply of both business models. The ones that continue to thrive are the

ones that create an experience that is unique, memorable and easily shared.

3.4 Actions

ACTIONS FOR NOW

ACTIONS FOR SOON

ACTIONS FOR LATER

+ Emphasise to your client

the need to define and

amplify their authentic

brand narrative so

customers can buy into

that story.

+ Support them in setting

up tech platforms so they

have the ability to capture

and own their data for the

long term.

+ Use technology to help

audit and remove friction

points in the customer

experience for your client.

+ Leverage data to

understand more about

their customers, and

explore customer retention

marketing (CRM) to help

activate it.

+ Encourage your clients to

automate as much of their

services and operations as

they possibly can, without

compromising the ‘sacred’

customer experience.

“ We’re trying to create entirely new segments of the hospitality industry that don’t exist that benefit the consumer” RADICAL INNOVATION HEAD JOHN HARDY CEO OF THE JOHN HARDY GROUP

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4. Trades

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4. Trades

4.1 How we got hereIt’s fair to say that trades are among the oldest and most stable of industries. Many have been

around for many hundreds of years, evidence of which is in our surnames. As far as technology is

concerned, trades were among the first to use new tools which eventuated from before the industrial

revolution. In some ways, trades are the ultimate future-proof career, as the tasks are difficult to

automate or replace with software and robotics. Tradespeople need to be extremely good problem-

solvers, have dexterity for multiple physical tasks, and be able to adapt to a variety of situations.

In the first phase of the technology revolution a couple of decades ago,

tradespeople were quick to adopt. Classic examples include their early

adoption of the mobile phone and the many trade focused apps such

using the device for finding exact levels, sharing images and videos

to help diagnose issues to remote teams, and getting parts and tools

delivered to the site with one tap.

As they rarely spend two days in the same place, doing the same task,

the tradie’s love of the smartphone will only get stronger.

Workplaces and jobs being unique every time means that the human

element of trade work is unlikely to be replaced by humanoid robotics

anytime soon. Rather, smart technology will usher in a new age of efficiency

for trades where more tasks can be done cheaper and faster due to smart

tech enhancing problem diagnostics, workflow preparations and ultimately,

the execution of the task.

Smart Home penetration in Australia

Unique workplaces and jobs mean the human element of trade work is unlikely to be replaced by humanoid robotics.

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4. Trades

4.2 Factors of ChangeTrades people have developed some ‘super powers’ with the rise of smart tools and capture

of vast amounts of valuable data.

The myriad of sensors packed in our phones are just the start of the

Internet of Things revolution - where everyday items and tools are

seamlessly connected to the internet and each other.

Smart cameras have the ability to review, record and provide visual

information of harder-to-get-to spots.

Real-time data feeds providing operational feedback of materials,

buildings and workspaces to enable tradespeople to assess what

needs to be done, before it needs to be done. This will usher in new

forms of preventative smart maintenance to reduce the bigger damage

before it escalates, and create a marketplace where broken parts can

book a trade visit for themselves.

WHAT WILL CHANGE + The number of tradespeople will increase - most of the current batch will remain, and many

new ones will emerge growing the total workforce.

+ Electricians in particular will be in demand, with Seek reporting a 66% increase in job ads

for them in 2018.

+ Everything will be digitised - especially the tools. Think ‘smart everything’.

+ New trades will continue to emerge in and around things like renewable energy, home batteries,

smart homes, cabling and sensors, smart agriculture, data support, to name a few.

+ Trades like ‘electrician’ will fragment into specialised sectors with specific new skills,

ie climate control engineers.

+ More tasks will be automated, but won’t make tradespeople entirely redundant.

+ The vulnerable trades will be the ones that are based on repetitive tasks, in single locations,

ie timber work in factories.

+ The tools will have more capabilities as hardware and connectivity increase.

WHAT WON’T CHANGE + Demand for trades will always be there, as everything breaks and will need improving eventually.

+ The human element will continue to be vital to trades, as no one job is the same, and robots

are not comfortable when faced with something they haven’t been programmed to solve.

+ The variety of locations and specifications will ensure robots can never do the task,

only provide the tools.

+ Trades will continue to be a popular career choice as working in front of a screen in an office

doesn’t appeal to our basic human nature. Using our hands, in the elements will always be

appealing to a budding workforce.

“ Heading towards 37 devices (in each home) will place serious demands and consideration on the way we approach and design smart homes” MARK JEISMAN CLIPSAL

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4. Trades

4.3 Looking forwardThe continuous growth in global population will enable trades to grow to support new and different

types of housing and workplace environments. The ageing population, de-centralised workplaces,

and the growth of ex-urbs will also mean a greater geographical spread of the demand for projects.

Building out of the new infrastructure that will facilitate innovations in energy, transport, smart

homes and smart buildings will give tradespeople a reason to constantly ‘go back’ to existing

projects and upgrade them.

When everything becomes electric and inevitably ‘smart’, large parts of a trade’s work will be

programming machinery and tools to do previously manual tasks.

More efficient processes for new jobs will emerge as technology will proactively isolate issues

before they scale into bigger, more expensive problems. When a project commences, the ‘brief’

will be prepared from a myriad of sensors on site; cameras, magnetic resonance and smart imaging

tools, etc, which can literally ‘see through walls’. As technology improves, we will see a transition

from electronics and robotics diagnosing issues, to actually implementing the solutions themselves.

Better tracking of work flows and budgets will give tradespeople greater visibility of their

income and potential efficiencies to be made. This will be facilitated both through smart

tracking of raw materials in an internet of things environment, and via the supply chain

working under a blockchain economy.

4.4 Actions

ACTIONS FOR NOW

ACTIONS FOR SOON

ACTIONS FOR LATER

+ Ensure your client’s

administration and

finances are all based in

the cloud.

+ Empower your client’s

team to leverage the

immense power of their

smartphones so they are

gateway into the day-to-day

running of the business (ie.

capture receipts, manage

invoices, etc)

+ Encourage them to

amplify the word-of-

mouth marketing from

their clients, ensuring their

best reputation is readily

available on the web

+ Embrace new technologies

and capture to find

efficiencies for them.

+ They should be constantly

updating their skill set

around new technologies,

particularly around the

basics of hardware and

software in their field.

+ Review the menial tasks that

take up valuable ‘human’ time

in their business that can be

outsourced to technology.

+ Help them understand and

become an expert in the

increasing range of materials

that become available in

coming years.

+ Leverage the ever-growing

pool of independent

contractors and specialists

to grow their team, one

project at a time.

+ Install smart hardware

(obviously abiding with

privacy laws and client

consent) that will send reports

directly to the business

when something is broken or

showing signs of inefficiency.

This will be a great source

of retained revenue for your

client’s business.

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5. Services

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5. Services

5.1 How we got hereThe unique and complex skills of humans make for an unexpected and ever changing economy.

Before the Digital Revolution, the roadmap of a ‘Service Agent’ was a case of we study, we learn,

we service.

Now technology has become our smart assistant, we can outsource the

mundane, repetitive and administrative tasks to technology.

Humans have a natural intuition and conscience that computing won’t be

able to master. We have inherited a very unique set of emotional skills that

lines of code will struggle to master. It is these skills which are the difference

between a good service operator and an exceptional one.

Leaders from previous generations in the service industry all had a combination

of knowledge, business nous, and emotional intelligence to earn the trust of

their clients. For example, lawyers who knew the law inside-out, had the ability

to earn the trust of their clients, and charge accordingly, were the ones that built

the firms that still stand today.

Knowledge can be replaced by technology. But having business acumen

and building the trust of clients with a level of empathy and emotional

intelligence, cannot.

Percentage of Australian Workforce that are in the

Service Industry.

Having business acumen and building the trust of clients cannot be replaced by technology.

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5. Services

5.2 Factors of ChangeThe Digital Revolution has tipped the exclusive knowledge previously held in the ivory towers

of service agents, to a current state-of-play where all the information has been democratised,

giving us all the chance to be experts.

The amount of information available on the web has become almost infinite. These statistics are

so big they lose their context, but every day, the amount of information on the web increases

by 2.5 trillion gigabytes. If you have an internet connection, and the will to learn, you can

discover all the knowledge you need to become an expert in any field.

Formal education has been completely democratised - with every

university offering an online course. In some cases, places as

reputable as Stanford University in California, and MIT in Boston,

offer their courses for free. It was only a decade ago these were

set aside exclusively for the wealthy and privileged.

Outside of law and medical related services, the barrier to entry has

dropped, and require little to no infrastructure. Think platforms such

as AirTasker, make anyone a candidate for the service industry.

WHAT WILL CHANGE + Elements of the customer experience in services will become automated. It’s a case of ‘everyone

wins’, as speed and costs will come down for consumers, and bandwidth and revenue will

increase for service agents. Companies such as GP2U are already offering video conferencing

appointments with your GP.

+ As video conferencing technology gets more advanced, the geo-distance when servicing global

clients will be irrelevant, with VR and super-connectivity making it feel like you are all in the room

together. In 2018 Zoom Video Communications achieved over 39 billion annualized meeting

minutes, totalling 135% user growth in 2018.

+ The amount of customer ratings and reviews that are published about you and your business

will grow. Managing this is a critical part of reputation management.

WHAT WON’T CHANGE + People will continue to do the ‘critical thinking’, with the menial tasks thankfully being outsourced

to technology.

+ The availability of information will always be there. You can even rely on it increasing exponentially.

+ The demand for a reputable, trusted specialist will remain a universal influence on choosing

a service provider.

“ Customers won’t care about any particular technology unless it solves a particular problem in a superior way.” PETER THIEL CO-FOUNDER – PAYPAL

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5. Services

5.3 Looking forwardIf you are the agent in the middle of a transaction - you either have, or inevitably will be impacted

by a form of intermediation. Software has proven to be a very effective connective tissue between

buyer and seller. It is faster, cheaper, smarter and more responsive than most human agents.

Call centres such as the ones that connect taxis and riders are all but irrelevant now we get a much

faster, more transparent service via an application on our phones. These platforms also get smarter,

and more personalised. This, which in the end tightens its grip on the growing manual, human

centred models.

But, there are exceptions to this rule, for example, now when we want to sell a house, we could

feasibly shoot photographs of the property, create the listing, and make it available to millions

of potential buyers by ourselves - yet we want to have the service from the experts. Have an

expert to hold out hands and guide us through the complex and high stakes decision making

process of selling or buying a property.

The field of Law is set for massive innovation, mainly around the automation of processes and

AI-driven decision making. There is an arms race going on in law and technology where billions

of dollars are being invested to create the first Lawyer AI. The vision is that clients can tell an

AI lawyer their story and it will be able to automatically prepare the framework of a case that

the human lawyer will simply check off.

All providers in the services industry will be impacted, regardless of whether you are a licensed

medical professional or a part time window cleaner on AirTasker. Below are some actions that

will help you survive and thrive in the ever changing landscape.

5.4 Actions

ACTIONS FOR NOW

ACTIONS FOR SOON

ACTIONS FOR LATER

+ Ensure your client’s quality

reputation are available on

the web for new people to

discover.

+ Help them carve out some

of their billable time to

develop their skills as an

expert in their field. The

risk is, they’ll keep the

same level of expertise

without creating the time

devoted to becoming a

being a better consultant.

+ Consider reframing their

pricing to be based on the

outcome of the project, not

the time spent achieving

that outcome.

+ Scale their availability

beyond their immediate

geographical area now we

can connect face-to-face

via video conferencing.

+ Build authenticity by

building their personal

brand and self publish

frequently.

+ Take tasks that your client

does well and often, and

turn them into software.

If you can replicate what

makes your client’s service

special using technology,

you can make them money

while you all sleep.

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6. Manufacturing

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6. Manufacturing

6.1 How we got hereThe modern economy was built on the innovations born from manufacturing at the dawn of the

Industrial Revolution. Much of what we make, see, and do, have revolved around the factory ethic

for the past 250 years. Factories didn’t just make things affordable, they were the backbone of the

modern industrial economy. Factories gave people jobs, and built communities, towns and cities

around them. Services, distribution systems, governance, transport, retail and media all fed on our

capability to produce things en masse. They even shaped our modern education system so that we

could ensure our children would be ready for life in an industrialised economy.

Manufacturing has always been about efficiency. The simple doctrine

enshrined was one of being able to make things cheaper than last year.

The constant effort to make them incrementally better, and extract more

output from less resources.

This race for efficiency, combined with an era of globalisation, lead to tough

times for manufacturing. High-cost labour markets like Australia, USA, and

Western Europe found it increasingly difficult to compete with the emerging

economies whose cost of infrastructure was an unbeatable advantage.

Over time, developed markets evolved into service economies, while we

witnessed industry after industry shut its factory doors locally and move

to continental Asia’s cheaper and faster workforce.

But, just when Asian factories seemed they had ended old-world local

manufacturing, new forms of technology ushered in a new era, where

reshoring manufacturing has quickly come back on the table as a very

viable option.

The percentage of manufacturers who have not yet set a specific goal for reducing new product

development cycle times.

Factories were the backbone of the modern industrial economy.

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27

6. Manufacturing

6.2 Factors of ChangeAs powerful software and hardware become more accessible, intelligent and efficient,

manufacturing will find its way back to markets it once left. Automation is reducing the

cost of production to be the same - regardless of where things are made.

Even a labour-intensive process like warehouse packing can be highly automated. Delicate

processes that require significant finger dexterity, such as making tiny components or sewing

miniscule stitches, can be made with a higher level of consistency and craft by robots.

Small scale manufacturing no longer needs to be expensive as 3D printers are now the

cost of a 2D printer. We can already 3D print in more than 300 materials, and create

multi-part electronic computing from one machine.

WHAT WILL CHANGE + There will be an Increase in the breadth of products available.

+ Products will be more customisable and personalised.

+ There will be an emergence of digital craftspeople and designers who create bespoke

digital things on demand for a global market.

+ Manufacturing on demand will be more streamlined from local production facilities.

Just like Nike did with their iterated and optimising the design of their breakthrough

football boot - the Vapor HyperAgility Cleat.

+ We will see manufacturing return to Australia. Automation will squash the advantage

the low cost labour markets have commanded, as the expensive time and cost of shipping

products around the world will be eliminated.

+ In the year 2000, America was seeing an annual net loss of 220,000

manufacturing jobs through offshoring. Then, in 2015 it broke even,

with a net positive of 77,000 the year after, then 171,000 in 2017.

In 2017, nine-tenths of all new manufacturing jobs were from reshoring.

+ Apple, Boeing, General Motors and Ford have all reshored thousands

from China in 2018.

+ Desktop manufacturing via 3D printers will emerge in the same way

that desktop publishing did, creating entirely new markets and platforms

for ‘makers’.

+ Smart materials will change what is possible and what can be made

on a small scale. Super materials like graphene will become common.

+ Blockchain technology will support the supply chain and allow

for various forms of IP management.

WHAT WON’T CHANGE + Making things faster, cheaper and better will apply to a growing manufacturing strategy.

+ There will still be centralised production for high volume manufacturing.

+ The demand for unique, artisanally crafted products will be universal and constant.

Desktop manufacturing via 3D printers will emerge in the same way that desktop publishing did, creating entirely new markets and platforms for ‘makers’.

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6. Manufacturing

6.3 Looking forwardDigitisation has had just as bigger impact on the real world as it has the screen. This revolution

has gone from one-size-fits-all in the Industrial factory era, to one-size-fits-one in the current digital

era. It does this through a variety of factors; automated manufacturing, software created design,

3D printing, and smart materials, to name a few.

But the biggest shift of all is that you no longer need to own manufacturing

facilities (or factories) to create a product. The connection economy has

provided the means for anyone to produce anything locally or overseas.

In this economy, access is greater than ownership. In fact, ownership

can be a distinct cost disadvantage. The core shift we’ve seen is that

manufacturers increasingly outsource their manufacturing. One of the world’s

biggest producers of electronic goods, Apple, doesn’t operate a single

manufacturing factory. Digitisation now enables us to design, access and

output everything without owning the expensive factors of production.

A new era of co-creation will emerge in manufacturing across digital platforms like we have seen

with media. User-generated content will evolve into user-generated design. Makers will contribute

their artistry to the design and manufacturing of all manner of goods and sell their wares via an

emerging platform economy.

6.4 Actions

ACTIONS FOR NOW

ACTIONS FOR SOON

ACTIONS FOR LATER

+ Audit each step in your

client’s manufacturing

process, and see what

can be automated for

efficiency.

+ Investigate and report to

your client the 3D printing

design marketplaces

for a glimpse into how

manufacturing in the

future will work.

+ Encourage your client

to buy a 3D printer so

they can experiment with

printing a pieces of their

product they create today.

+ See how your client can

remove constraints in

logistics by digitising

their product through

the supply chain.

+ Connect them with

suppliers of innovative

materials so they

understand the benefits of

each, and are constantly

looking at how this can be

applied to their current and

future product lines.

+ Plan around the modern

labour force localising

again, now automation

brings down production

costs, and your client can

eliminate long distance

logistics.

“ If you always do what you always did, you’ll always get what you’ve always got.” HENRY FORD

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As we created this third edition of MYOB’s Radar Report, we were aware of multiple overlapping of technologies and their impact across industries. We conclude that all technology has the potential to effect everything. Nothing is immune to the digital revolution.As Charles Darwin said “It is not the strongest of the species that survives, nor the most

intelligent that survives. It is the one that is most adaptable to change.”

Every client of an Accountant and Bookkeeper is in the same position - we are all experiencing

the same turbulence. This edition of the Radar Report hopefully reminds Accountants and

Bookkeepers that they are a critical team member to usher in the change, and advise and

direct their clients beyond simply financials, and evolve into a holistic business advisory role.

The core message we want to leave you with is, the role of the most successful

Accountants and Bookkeepers will need to grow their service offering. Artificial

Intelligence will continue to automate chunks of the daily Accountancy practice,

in a phenomenon best articulated by Netscape Founder and famed VC,

Marc Andressen: ‘software is eating the world’.

We created this report to spark curiosity and insight, which will help you navigate the changes

that are inevitable as we embrace the digital revolution. With the right mindset, we believe,

this era will be looked back on as the golden age of business, we hope, driven by you.

Conclusion

MYOB Radar Report

“ Software is eating the world.” MARC ANDRESSEN NETSCAPE FOUNDER