Lars Backhans, Esri Sweden managing director, discusses where the demand for GEO apps is headed for business applications.
00:02 So, I’m here to talk to you about what I believe is the...
00:07 ...the biggest growth opportunity that we have, we in the GIS market.
00:13 And it’s really not where we are today. It’s not in the GIS-centric place of the market...
00:18 ...but rather in what we sometimes refer to as geoenabled.
00:22 So, and why do I think so? Well, Gardner calls this the consumerization of IT.
00:30 And what they mean is, our user behavior out on the Internet will drive demand for change in internal IT solutions.
00:39 If we believe this, then we should look at what we do on the Internet to see where demand is going to happen.
00:47 On the top 10 social media transfer 2011, number one is location-based marketing.
00:54 Now why is this? Well, social media needs revenue, and the only way to get revenue is advertising.
01:02 And it needs to be relevant, therefore location-based marketing.
01:10 What’s the third most used application on the iPhone? Mapping.
01:16 What’s the most used application on Android? Mapping.
01:21 What’s the second most service...used service on the Google network? Mapping.
01:27 I happen to know through local contacts that, for Google, mapping is one of their top five priorities for the future.
01:35 Now you can reflect on that.
01:40 Now, if they start to use Geo out there on the Internet...
01:44 ...and they want to see Geo added to their internal IT solution, where’s that demand going to happen?
01:50 Well, then we have to look at the IT market.
01:54 Dean said looking at IT spent.
01:57 This is a survey from Sweden and it says 45 percent of all organizations have ability to procure ERP.
02:04 It says 31 percent have ability to procure enterprise content management or information management.
02:11 And 24 percent have the budget to invest in mobility.
02:15 Now what...I think this is relevant for all of Western Europe, all the material markets...
02:20 ...USA, including Australia and New Zealand.
02:23 What does it mean? Well it means, if you meet 10 customers...
02:28 ...2½ of them want to know what your mobility offering is.
02:32 And you saw the mobility stuff this morning. Goose bumps I promise you.
02:39 So, what of those 10 prioritized areas in this IT market do you think will benefit from the addition of Geo?
02:49 I would argue all of them.
02:51 I can’t see one example where Geo would not make sense or wouldn't add to the benefit of these applications.
03:01 So, we’re going to go and talk to them about these business solutions and how to add the Geo.
03:08 How can we make ourselves understood?
03:10 I’ve been with Esri Sweden since October and I’ve understood that we all speak a language called G-IS, or something like that.
03:19 So I looked at the Internet in Sweden. I looked in the website called IDG.se.
03:26 I searched their article database, and for the last few years actually, I found 13 articles that mention the word GIS.
03:36 I found 66 that mentioned business intelligence, and 75 that mentioned customer relationship management.
03:44 I went to DI.se. This is the biggest Swedish daily newspaper. It’s our equivalence of the Wall Street Journal.
03:54 I searched for GIS in their article database. I found three. I searched for ERP. I found 253 articles.
04:03 Just for the fun of it, I searched for the text string profit warning, and I found over 2,000 articles last year.
04:10 I went to knuff.se which is a site that keeps track of the blogging community in Sweden.
04:16 I searched for GIS. I found one blog entry, a guy who knew someone who worked in a GIS company.
04:23 I searched for ERP. I found six blogs.
04:26 Searched for mapping, Google Maps, and just for the fun of it, I searched for fashion...
04:31 ...and of course, that’s very common in the blogging world.
04:37 So are we in the right place?
04:42 So we know that we have to go and talk to customers about these business solutions...
04:46 ...and how to add that geographical dimension.
04:49 But are we in the right market segment?
04:53 Then again, we have to look at IT spend.
04:55 Where’s IT spend at? What verticals spend the most IT money out there?
05:01 Well in the Swedish market, manufacturing consumes 21.5 percent of the total IT market. It’s a huge vertical.
05:11 The retails is 18.4, and as you see, services is 9.8.
05:16 The three top verticals in Sweden, they sum up to 49 percent of the total IT spend.
05:24 And we, in the GIS business, we kind of slap them all together and call them commercial.
05:32 Now I believe for us to go and capture that revenue opportunity, we have to move outside our comfort zone.
05:39 We have to learn to talk to IT decision makers.
05:42 We have to learn to talk to business decision makers.
05:47 We have to learn to talk to the web heads.
05:50 We have to learn to talk to new fast moving companies that do smartphone development.
05:58 And we have to learn how to present our solutions for what Chris calls the young information workers.
06:08 If we do that, if we manage to learn to speak that language and present what we can do to them...
06:19 ...I think we have an amazing opportunity to add that geographical dimension to just about any business application.
06:27 And it’s a fantastic growth opportunity.
06:30 And you know what? If we don’t do it, someone else will.
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