Future Trend Report for Accountants & Bookkeepers · ‘smart transport’. 1.2 Factors of Change...
Transcript of Future Trend Report for Accountants & Bookkeepers · ‘smart transport’. 1.2 Factors of Change...
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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1.3 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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2.2 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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2.3 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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2.4 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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3.2 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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3.3 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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4.2 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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4.3 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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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