00:02So, 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.
00:13And 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.
00:22So, and why do I think so? Well, Gardner calls this the consumerization of IT.
00:30And what they mean is, our user behavior out on the Internet will drive demand for change in internal IT solutions.
00:39If we believe this, then we should look at what we do on the Internet to see where demand is going to happen.
00:47On the top 10 social media transfer 2011, number one is location-based marketing.
00:54Now why is this? Well, social media needs revenue, and the only way to get revenue is advertising.
01:02And it needs to be relevant, therefore location-based marketing.
01:10What’s the third most used application on the iPhone? Mapping.
01:16What’s the most used application on Android? Mapping.
01:21What’s the second most service...used service on the Google network? Mapping.
01:27I happen to know through local contacts that, for Google, mapping is one of their top five priorities for the future.
01:35Now you can reflect on that.
01:40Now, 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?
01:50Well, then we have to look at the IT market.
01:54Dean said looking at IT spent.
01:57This is a survey from Sweden and it says 45 percent of all organizations have ability to procure ERP.
02:04It says 31 percent have ability to procure enterprise content management or information management.
02:11And 24 percent have the budget to invest in mobility.
02:15Now what...I think this is relevant for all of Western Europe, all the material markets...
02:20...USA, including Australia and New Zealand.
02:23What does it mean? Well it means, if you meet 10 customers...
02:28...2½ of them want to know what your mobility offering is.
02:32And you saw the mobility stuff this morning. Goose bumps I promise you.
02:39So, what of those 10 prioritized areas in this IT market do you think will benefit from the addition of Geo?
02:49I would argue all of them.
02:51I can’t see one example where Geo would not make sense or wouldn't add to the benefit of these applications.
03:01So, we’re going to go and talk to them about these business solutions and how to add the Geo.
03:08How can we make ourselves understood?
03:10I’ve been with Esri Sweden since October and I’ve understood that we all speak a language called G-IS, or something like that.
03:19So I looked at the Internet in Sweden. I looked in the website called IDG.se.
03:26I searched their article database, and for the last few years actually, I found 13 articles that mention the word GIS.
03:36I found 66 that mentioned business intelligence, and 75 that mentioned customer relationship management.
03:44I went to DI.se. This is the biggest Swedish daily newspaper. It’s our equivalence of the Wall Street Journal.
03:54I searched for GIS in their article database. I found three. I searched for ERP. I found 253 articles.
04:03Just for the fun of it, I searched for the text string profit warning, and I found over 2,000 articles last year.
04:10I went to knuff.se which is a site that keeps track of the blogging community in Sweden.
04:16I searched for GIS. I found one blog entry, a guy who knew someone who worked in a GIS company.
04:23I searched for ERP. I found six blogs.
04:26Searched 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.
04:37So are we in the right place?
04:42So we know that we have to go and talk to customers about these business solutions...
04:46...and how to add that geographical dimension.
04:49But are we in the right market segment?
04:53Then again, we have to look at IT spend.
04:55Where’s IT spend at? What verticals spend the most IT money out there?
05:01Well in the Swedish market, manufacturing consumes 21.5 percent of the total IT market. It’s a huge vertical.
05:11The retails is 18.4, and as you see, services is 9.8.
05:16The three top verticals in Sweden, they sum up to 49 percent of the total IT spend.
05:24And we, in the GIS business, we kind of slap them all together and call them commercial.
05:32Now I believe for us to go and capture that revenue opportunity, we have to move outside our comfort zone.
05:39We have to learn to talk to IT decision makers.
05:42We have to learn to talk to business decision makers.
05:47We have to learn to talk to the web heads.
05:50We have to learn to talk to new fast moving companies that do smartphone development.
05:58And we have to learn how to present our solutions for what Chris calls the young information workers.
06:08If 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.
06:27And it’s a fantastic growth opportunity.
06:30And you know what? If we don’t do it, someone else will.
Where is the Business Market Demand?
Lars Backhans, Esri Sweden managing director, discusses where the demand for GEO apps is headed for business applications.
- Recorded: Mar 6th, 2011
- Runtime: 06:36
- Views: 11415
- Published: Mar 31st, 2011
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