Australian Tablet sales flat as replacement cycles grow beyond 3 years

Converged ‘smart displays’ create new opportunities

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 Tuesday, February 26th 2019

SYDNEY, AUSTRALIA – Australian tablet sales fell in the past six months due to a continued decline in the Android market and a slowing in growth of the maturing 2-in-1 segment, according to new research from Australian emerging technology analyst firm, Telsyte.

Telsyte estimates around 1.6 million tablets were sold in the second half of 2018, down 2.1 per cent from the same period a year earlier. Apple remained the leader in tablet sales share (iOS: 49.6%, Windows: 29.9%, Android: 19.3%, and Chrome: 1.2%) with the new iPad 9.7 inch (2018) once again the most popular model due to its price point, which appealed to upgraders.

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Both Apple (up 5.1%) and Windows-based (up 2.1%) devices experience growth during the half, but the big mover was Android-based devices, with sales down 21 per cent.

 The top three vendors were Apple, Samsung, and Microsoft, with combined shares accounting for more than 75 per cent of total sales during the half.

 Apple remained the leader in repeat purchase intention in the tablet category, followed by Samsung (more than 80% and 50% respectively).

 Telsyte research found the 2-in-1 device category has passed its early growth phase with around 3.5 million Australians now using one, of which more than 70 per cent are Windows-based.*

 Tablet sales are expected to continue to face challenges due to longer overall replacement cycles as consumers hold onto their chosen device longer. The average replacement cycle of tablets has increased to around 3.1 years (up 0.6 years from 2017), a faster rate compared to smartphones, according to Telsyte research.

 Telsyte estimates around 15.7 million Australians had access to a tablet at the end of 2018 making it a highly mature segment.

 While Australians are replacing their tablets less frequently, tablet users are still spending around two hours per day on their slate devices, which is similar to previous years.

 With technologies such as 5G, eSIMs and larger shared mobile data plans, there is still huge potential for more connected tablets and 2-in-1s to be realised.

 Telsyte estimates around two million tablets were connected to mobile networks at the end of 2018.

 “The arrival of 5G will likely spur further interest for connected tablets, potentially amongst gamers due to lower latency,” Telsyte Senior Analyst, Alvin Lee, says.

 Gaming one of the key cornerstones driving tablet usage

 Interactive gaming is a critical application for tablets according to Telsyte research, and interactive gaming on tablets will continue to fuel tablet replacements and upgrades, as well as more spending on the Android and Apple app stores in 2019.

 Telsyte research has consistently shown more than half of app revenue comes from games.

 Furthermore, the mobile market is ripe for a gaming subscription service (i.e. “the Netflix for games”) due to strong growth in free-to-play (with in-game purchases) and casual players.

 Some two million Australians spent money on tablet games in 2018, of which around half made in-game purchases for free-to-play games such as Fortnite, Pokémon Go and Clash of Clans.

 In addition to interactive gaming, education is expected to be another key segment driving tablet usage in Australia.

 Telsyte research found more than 60 per cent of children (under 18) had access to a tablet at the end of 2018. Among children with access to a tablet, the majority (81%) are using it at least a few times a week, averaging two hours a day.

 “More cost effective 2-in-1 devices designed for the education market are likely to be popular in coming years,” Lee says.

 Converging tablet and smart speakers a new opportunity

 Telsyte research indicates the fast-growing smart speaker market presents opportunities for tablet vendors tapping into the growing IoT@Home (smart home) market.

 Telsyte estimate that 16 per cent (1.6 million) of households were using at least one smart speaker at the end of 2018. Among these households a growing share (currently below 5%) are using smart speakers with displays (also known as smart displays), such as Google Home Hub, Amazon Echo Spot and Lenovo Smart Display.

 While Australians are increasingly comfortable with voice commands, additional touch interfaces will help with navigation for more advanced smart home applications and for visual information display.

 Australians have been using their tablets as rudimentary ‘smart displays’, such as for reading recipes and playing videos in the kitchen.

 Telsyte estimates up to 40 per cent of smart speakers sold could have a display within the next two years as the categories converge.

  For further information on the study or media enquiries contact:

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

Alvin Lee
Senior Analyst
Tel: +61 2 9235 5890
Email: alee@telsyte.com.au

 The Telsyte Tablet Computer Market Study 2019 is a comprehensive study which provides subscribers with:

  •  Market sizing, platform and vendor market shares and forecasts

  • End user trends across devices, application usage, platforms, channels and accessories

  • Tablet and computer purchase intentions and loyalty

  • Tablet audience estimates

  • Strategic analysis of market trends and issues

In preparing this study, Telsyte used:

  • An online survey conducted in November and December 2018 with a representative sample of 1,025 respondents, 16 years and older.

  • Interviews conducted with executives from service providers, network operators, manufacturers, retailers, financial analysts and channel partners.

  • Financial reports released by service providers and manufacturers.

  • On-going monitoring of local and global market and vendor trends.

  • Analyst reviews of leading tablet devices.


Editor’s note:
Tablet definition:  A computer device consisting of a 7 inch or larger touch screen that can be used in a slate format (not requiring keyboard or mouse). Telsyte’s definitions includes 2-in-1 devices with detachable or foldable keyboard, and tabletop, or reclinable desktop screens that provide a tablet form factor experience.

 2-in-1 definition: Primarily refers to laptops that have a touch screen and detachable keyboards or foldable form factors to provide a pure tablet-like experience. Tablets that are known for their versatility and mimic laptop-like experience with keyboards or type covers are also considered as 2-in-1s. E.g. Microsoft Surface tablets, apple iPad Pro, Samsung Galaxy Book, HP Spectre x360, Asus Chromebook Flip 2, or Lenovo Yoga 730.

 *Please note Telsyte measures Apple iPad Pro models as 2-in-1s for comparison reasons, due to having a specifically designed Apple keyboard which is typically sold together.

 Telsyte measures sales of devices (“sell out”), not shipments or sales to retailers or carriers (sometimes called “sell-in”). Telsyte believes this is a more accurate measure of performance of products in a marketplace. Telsyte does not rely on disclosure from vendors or general assumptions made for large multinational companies that do not release local market data. Telsyte uses a comprehensive methodology that includes surveys of consumers, discussions with vendors, carriers and their partners, retailers, and financial analysts. In addition, public financial results from manufacturers and carriers are used.  Telsyte tests a wide range of products in real life usage scenarios and conducts satisfaction and repeat purchase surveys with large and representative samples of Australian smart device users. Telsyte is a pioneer in measuring and reporting smart device sales in Australia and has been providing insights on mobile technologies since 2006.

 About Telsyte
Telsyte is Australia’s leading emerging technology analyst firm. Telsyte analysts deliver market research, insights and advisory into enterprise and consumer technologies. Telsyte is an independent business unit of DXC.technology. For more information visit www.telsyte.com.au

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

 

iPhone sales slow as cost of smartphones start to bite

Smartwatch and smart speaker sales boom as consumers look beyond handsets

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Tuesday, February 5th 2019

SYDNEY, AUSTRALIA – The high cost of new smartphones is holding back market growth in Australia with Apple losing share to Android rivals, according to new research from Australian emerging technology analyst firm, Telsyte.

The Telsyte Australian Smartphone & Wearable Devices Market Study 2019 found the timing and availability of 5G handset releases will be critical to lifting overall smartphone sales in 2019.

Some 4.6 million smartphones were sold in the second half of 2018, down 3 per cent from the same period in 2017, as consumers held onto their handsets longer and look to 5G models amidst surging prices of new models.

Telsyte research found the average selling price (ASP) of smartphones went up by 13 per cent between 2017 and 2018, impacting consumer demand.

As many as 1 in 4 (24%) consumers are also holding off buying a new smartphone until 5G becomes available.

A further 1 in 3 (33%) Australians indicated 5G capability is important when choosing a smartphone.

 Telsyte forecasts some 9 million smartphones will be sold in 2019 (up just 1 per cent compared to 2018), as only a handful of Android vendors are expected release 5G smartphones in 2019.

However, If Apple releases a 5G iPhone at its usual timeframe in 2019, Telsyte forecasts this could lift total sales to 9.4 million, putting growth closer to 6 per cent.

“There is a clear imperative for carriers to bring 5G handsets to market as soon as possible given the lengthening of the replacement cycle” Telsyte Managing Director, Foad Fadaghi, says.

Despite 5G mobile services not yet available currently in Australia, Telsyte believes consumers are considering ‘futureproofing’ their next purchase, given they anticipate using the same handset for the next three years or longer.

In the Android smartphone market, the top three vendors were Samsung, Oppo and Huawei.

Apple maintains the highest repeat purchase intention rate (greater than 85%), with the next highest being Samsung at around 70 per cent.

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Sales decline, but smartphones usage growing

 Despite the cost increases and flat sales, more Australians are now using a smartphone with around 9.1 million active primary iPhone users compared to 11 million Android users at the end of 2018, up from 8.6 and 10.3 million at the end of 2017, respectively.

 Smartphone dependency is at all-time high. More than half (54%) of premium smartphone users, defined as handsets costing greater than $600, claim that their smartphone is their main digital device.

 A fast-growing area of smartphone usage has been mobile payments, with nearly half of all mobile payment users claiming to use it ‘regularly’ (more than 75% of the time) to pay for goods and services whenever possible, according to Telsyte’s research.

 Following this trend, Telsyte research shows, 1 in 8 (13%) Australians aged 16 to 34 (‘millennials’) have changed or joined a new banking provider due to the lack of mobile payments support, and 14 per cent of Apple Watch users have also done so.

 Telsyte research also shows nearly half (46%) of e-commerce market revenue in 2018 was transacted through mobile devices (including smartphones and tablets). The ‘m-commerce’ market in Australia was worth $15.2b in 2018, up from $12.0b in 2017.

 
Smartwatches and smart speaker sales accelerate as consumers look to other gadgets

 Telsyte estimates 3.5 million smartwatches were in use at the end of 2018 as consumer behaviour increasingly shifts to new devices that work alongside smartphones and apps.

 A total of 1.1 million smart wrist wearable devices (combined smartwatch and smart bands) were sold in the second half of 2018 (up 30 per cent from 2H17) and sales of smartwatches continued to lead the category (65 per cent smartwatch vs. 35 per cent smart wristbands).

 Apple remained the leading vendor in smart wrist wearables sales in 2H18, followed by Fitbit and Garmin.

 In addition to the growth in wearables, Telsyte estimates 1.6 million, or 16 per cent, of Australian households were using smart speakers (such as Google Home, Amazon echo and Apple HomePod) at the end of December 2018, up from 538,000 (or 6% of households) in 2017).

 In Australia, Google is leading the smart speaker market with 72 per cent share of main smart speaker in use in Australian households. Promotions over the holiday period underpinned the strong uptake which Telsyte predicts will continue into 2019.

 For further information on the study or media enquiries contact:

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

Alvin Lee
Senior Analyst
Tel: +61 2 9235 5890
Email: alee@telsyte.com.au

The Telsyte Australian Smartphone & Wearable Devices Market Study 2019 is a comprehensive study which provides subscribers with:

  •  Smartphone market sizing estimates, platform and vendor market shares and forecasts

  • Smart wrist-based wearables market sizing estimates, platform and vendor market shares and forecasts

  • End user trends across devices, application usage, platforms and operators

  • Purchase intentions and acquisition channels

  • Strategic analysis of market trends and issues

  • Device profiles and Telsyte analyst ratings of tested devices

Telsyte measures smart wearable devices in the Telsyte Australian Smartphone & Wearable Devices Market Study 2019 as computing accessories worn on a user’s wrist typically paired and controlled via a smartphone. Examples includes products from Adidas, Apple, Asus, Fitbit, Garmin, Huawei, Jawbone, LG, Microsoft, Motorola, Nike, Pebble, Samsung, Sony, TomTom and others.

In preparing this study, Telsyte used:

  •  Telsyte’s consumer survey conducted in December 2018 with a representative sample of 1,025 respondents, 16 years and older

  • Interviews conducted with executives from service providers, network operators, manufacturers, retailers, financial analysts and channel partners.

  • Financial reports released by service providers and manufacturers.

  • On-going monitoring of local and global market and vendor trends.

  • Analyst reviews of leading smartphone and wearable devices.

 Editor’s note:

Telsyte measures sales of devices (“sell out”), not shipments or sales to retailers or carriers (sometimes called “sell-in”). Telsyte believes this is a more accurate measure of performance of products in a marketplace. Telsyte does not rely on disclosure from vendors or general assumptions made for large multinational companies that do not release local market data. Telsyte uses a comprehensive methodology that includes surveys of consumers, discussions with vendors, carriers and their partners, retailers, and financial analysts. In addition, public financial results from manufacturers and carriers are used.  Telsyte tests a wide range of products in real life usage scenarios and conducts satisfaction and repeat purchase surveys with large and representative samples of Australian smart device users. Telsyte is a pioneer in measuring and reporting smartphone sales in Australia and has been providing insights on mobile technologies since 2006.

 About Telsyte

Telsyte is Australia’s leading emerging technology analyst firm. Telsyte analysts deliver market research, insights and advisory into enterprise and consumer technologies. Telsyte is an independent business unit of DXC.technology. For more information visit www.telsyte.com.au

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

Video games driving Australian VR headset sales

Enterprises eye AR for customer facing apps and location services

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SYDNEY, AUSTRALIA – The Australian VR (Virtual Reality) headset market grew 40 per cent in 2017 to reach 302,000 devices sold, according to new research from emerging technology analyst firm Telsyte.

The Telsyte Australian VR & AR Market Study 2018 found that despite the growth in sales, adoption remains constrained by high device costs, the rapid pace of innovation and lack of clear market winners.

“Australian consumers and developers are taking a wait and see approach to virtual reality” Telsyte Managing Director, Foad Fadaghi says.

Telsyte forecasts that 2.2 million households will have a VR headset in use by 2021, with the main applications being in entertainment. VR headset annual revenue is expected to grow to more than $200 million by 2020, up from $79 million in 2017.

The market leader in VR headsets was Sony PlayStation, which benefited from selling VR as an accessory for the PlayStation 4, and its ability to attract leading games publishers. Sony PlayStation has announced over 50 new VR games titles for 2018.

As awareness has advanced, health concerns surrounding VR has plummeted, with only 5 per cent of survey respondents concerned about negative health implications of VR, down from 36 per cent in 2016.

 Augmented reality gets smartphone boost

 Telsyte believes with more use cases and higher levels of accessibility, augmented realty (AR) – or the overlaying of computer-generated digital images over a camera feed of the real world on devices such as smartphones, tablets, and headsets  is expected to gain broader adoption than VR. The popular AR apps such as Pokémon GO and Snapchat photo filers have helped rocket AR into the mainstream, with 1 in 3 of Australians saying they have tried AR applications.

Telsyte research shows that 67 per cent of iPhones used in Australia are ARKit compatible (Apple’s AR development platform), and 23 per cent of Android phones are AR core compatible (Google’s AR development platform).

While most AR applications are currently being developed for smartphones and tablets, Telsyte forecasts that consumer AR headsets and smart glasses will be commercially available towards the end of 2020, some combining AR and VR functionality.

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Training and design ripe for Enterprise VR

Around one third of organisations interviewed by Telsyte indicated they are either investigating or implementing VR applications. Driving this intention was applications in education & training (40%) and product design & engineering (38%). 

Interest in VR applications for education and training is most prevalent in the professional, scientific and technical services organisations.

Lack of knowledge in VR and lack of skills in app development are key barriers to enterprise adoption, which is further complicated by the numerous VR platforms currently battling for dominance.

 Enterprise AR set to boom

Enterprise interest in AR is higher than VR with 46 percent of organisations currently investigating or implementing AR applications. Customer facing applications (40%), location-based services (38%) and project management (37%) are the main applications being developed.

Most organisations building AR apps are developing for the iPhone (74%), followed by iPad (64%) and Android smartphones (64%).

Like VR, lack of skills and technology maturity are the key barriers for AR with almost 1 in 3 organisations identifying both as barriers.

“With a large established installed base of AR capable smartphones and tablets, AR is becoming the go to option for businesses that are experimenting with immersive technologies” Fadaghi says.

For further information on the report or media enquiries contact:

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

Telsyte’s Australian VR & AR Market Study 2018 is the fourth edition in a comprehensive study which provides subscribers:

  • Market sizing and forecasts of the Australian virtual reality market

  • Australians attitudes to VR & AR software and hardware

  • Enterprise VR & AR adoption and use cases in Australian organisations

  • Analysis of current offerings in the market, and strategic issues for developers

  • End-user trends and intentions.

In preparing this study, Telsyte used:

  • Interviews conducted with executives from VR/AR vendors, retailers, software developers, game publishers and channel partners.

  • An online survey of a representative sample of Australians 16+ years of age conducted with 1,162 respondents in November 2017.

  • An online survey of a representative sample of technology decision makers across Australian organisations with greater than 20 employees, around half in companies with greater than 200 employees

  • On-going monitoring of local and global market and vendor trends.

  • Financial reports released by hardware and software vendors .

About Telsyte

Telsyte is Australia’s leading emerging technology analyst firm. Telsyte analysts deliver market research, insights and advisory into enterprise and consumer technologies. Telsyte is an independent business unit of DXC.technology. For more information visit www.telsyte.com.au

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

 

Mobile allowances boom as consumers seek unlimited fixed and mobile data

More than 10 million 5G mobile connections expected in Australia by 2022

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SYDNEY, AUSTRALIA – The Australian mobile services market is expected to enter the realm of 5G in 2019, quickly changing the current market dynamic driven by price competition, according to new research from emerging technology analyst firm Telsyte.

The Telsyte Australian Mobile Services Market Study 2018 found 616,000 new SIO (Services In Operation) were added during the 6 months to December 2017, ending the period with a total of 34.2 million SIO.

The market collectively achieved similar net growth compared to the same period in 2016 (593k), with handsets being the main driver followed by machine-to-machine (M2M) connections and mobile broadband. Telstra and Mobile Virtual Network Operators (MVNOs) combined had the largest growth, contributing more than 70 per cent of the total net SIOs additions.

Telsyte estimates the number of 5G connections will reach over 10 million by the end of FY2022 and at least one network operator will begin shutting down 3G services by 2020. The arrival of 5G is set to enable further innovation in mobile services plans and bundled services, helping create differentiation in the market for MNOs.

The study also found competition in the BYO handset market is intensifying and consumers are benefiting from much better deals across the board compared to a year ago. Mobile Network Operators (MNOs) have substantially increased mobile data inclusions on their BYO contract plans, putting pressure on MVNOs.

The average data allowance on mobile plans grew by more than 100 per cent in 2017 while average data usage on smartphones only grew by 49 per cent. Consequently, Telsyte found that around half of the average data allowance per user was utilised in 2017, down from 67 per cent in 2016.

Telsyte research shows, 1 in 3 (32%) still feel they are paying too much for their current mobile services. Those that have exceeded their monthly data allowance at least once during 2017 were twice as likely to intend to change their service provider than the average.

Staying connected now critical for consumers

Mobile connectivity is now critical to most Australians. More than 1 in 4 Australians were forced to tether to their mobile connection in the last 12 months due to a slow, or non-working, fixed broadband connection at home or work. Amongst those forced to tether, 32 per cent said they are likely to upgrade their mobile data limit.

However, despite this behaviour the consumption of fixed broadband data showed no sign of slowing down with usage expected to continue to grow at around 40 per cent per annum.

Two-thirds of Australian smartphone users with fixed broadband at home claim that they would use their fixed broadband just as much, even if they had access to unlimited (or very large) mobile data. Only 11 per cent say they will decrease their fixed line usage by more than 50 per cent or stop using it altogether.

Telsyte believes a simple unlimited “any connection” option will be popular going forward as consumers become increasingly dependent on their digital devices, regardless of whether it connects via the mobile network, or a fixed line network.

“The market is conditioning people to consider and pay for different access technologies separately, but ultimately consumers just want their Internet to work, anywhere at any given time, on all their digital devices,” Telsyte Senior Analyst Alvin Lee says.

Telsyte believes more personal and household devices will be connected to the mobile networks when consumers are introduced with the “easy to connect” methods, such as those based on eSIMs.

eSIMs the catalyst for disruption

eSIMs are integrated SIMs in digital devices such as smartphones, wearables, tablets and other Internet-connected devices. Devices with eSIMs can be connected to supporting cellular networks with a simplified process and without requiring a physical SIM card. They also can reduce the internal space required, a critical advantage for smaller devices such as wearables. Currently the Apple Watch Series 3 LTE is the main device utilising this technology.

Telsyte’s research shows eSIMs are more likely to encourage Australians to connect additional devices to mobile networks. With the current low levels of data utilisation on mobile services, nearly 1 in 2 Australians (45%) are interested in connecting their personal and household devices to mobile networks if they are eSIM enabled. The most immediate opportunities are with laptops and tablets where around a third of Australians are interested in connecting via an eSIM.

While eSIMs present opportunities for carriers, they also have the potential to increase churn with most operators cautiously adopting this technology.

For further information on the report or media enquiries contact:

Alvin Lee
Senior Analyst
Tel: +61 2 9235 5890
Email: alee@telsyte.com.au

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

  • Editors please note, Telsyte will not be publicly supplying individual service provider estimates.

Telsyte’s Australian Mobile Services Market Study 2018 is a comprehensive study which provides subscribers with:

  • Market sizing and forecasts of the Australian mobile services market

  • Analysis of current offerings in the market

  • Carrier performance and review

  • End-user trends and strategic discussions

  • Mobile services market KPI

In preparing this study, Telsyte used:

  • Interviews conducted with executives from service providers, mobile operators, device manufacturers and channel partners.

  • An online survey of a representative sample of Australians 16+ years of age conducted with 1,162 respondents in November 2017.

  • Financial reports released by service providers.

  • On-going monitoring of local and global market and vendor trends.

About Telsyte

Telsyte is Australia’s leading emerging technology analyst firm. Telsyte analysts deliver market research, insights and advisory into enterprise and consumer technologies. Telsyte is an independent business unit of DXC.technology. For more information visit www.telsyte.com.au

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

Australian organisations struggling to keep up with big data privacy challenges

4 in 10 companies unsure they are not ‘being creepy’ using customer data

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SYDNEY, AUSTRALIA – The benefits of big data analytics have been too good to resist for most Australian organisations; however, many are struggling with privacy implications and the ethical use of data, according to new research from emerging technology analyst firm Telsyte.

The Telsyte Big Data and Analytics Study 2018 found around 80 per cent of organisations in Australia with more than 20 employees have a big data strategy, although many are in the embryonic stages with pilot programs and exploratory projects.

Despite this growing wave of investment in big data, only 61 per cent of businesses were conscious of privacy and regulatory concerns around big data, even with the Notifiable Data Breaches (NDB) scheme coming into effect in February 2018, and the European Union's (EU) General Data Protection Regulation (GDPR) coming into play in May.

Furthermore, many (38%) are struggling with the ethical use of customer data and are unsure if they are being “careful not to be creepy”. Concerns include handling of sensitive data which customers might have shared without understanding what they had consented to, such as during the installation of mobile apps or signing up to free web-based services (e.g. social media sites and email services).

“There is a huge temptation to highly target and customise offers to individuals, but also predict behaviours which generate profits,” Telsyte Managing Director, Foad Fadaghi, says.

“However, many have had to draw the line at how sensitive customer data, such as location movements, or passively scraped data is used to target customers,” Fadaghi says.

Despite self-imposed regulation, nearly two thirds (65%) of organisations claim they protect data like other assets (e.g. physical or IP assets) and around half (53%) are willing to share data if there is tangible benefit to their organisation.

Overall, 84 per cent of business and technology leaders saw an improvement to their organisation by using big data analytics. Productivity and improved decision making were rated highly, as was the ability to improve customer intelligence, and control operating costs.

CEOs and chief data leaders becoming critical for big data success

The CEO and CDO (Chief Data officer, sometime called Chief Data Scientist) are becoming the main sponsors of big data strategies in Australian companies.

About 1 in 3 (35%) organisations have the CEO leading big data strategies, as the decision-making role of the CEO is becoming less about ‘gut feel’, but rather about data-driven and an informed process that can be reviewed by the board.

Telsyte research shows that companies with CDOs or CEOs spearheading efforts are much more likely to have an organisation-wide digital strategy, or the ability to break down silos of data that might sit across various business units.

This addresses the fastest growing challenge relating to the adoption of, and use of, big data - the lack of a standard, organisation wide approach (28%). This is a challenge which is cited by twice as many companies than it was in 2016 (14%).

Other challenges include the cost of big data software or services (31%) and lack of in-house skills (25%)

The main drivers for big data analytics adoption include digital transformation (58%), customer behaviour measurement (44%) and e-commerce applications (36%).

Security and fraud detection is growing in popularity amongst organisations with a big data strategy and is now in use by over 40 percent of organisations.

MSPs and training running hot as customers seek skills

With a lack of skills and high cost of entry holding some organisations back, Telsyte research shows service providers are the big winners for delivering big data analytics capability.

Around a third of companies with a big data strategy are using a big data managed service provider (or outsourcers) compared to around a quarter a year ago, which is ideal for companies struggling to acquire big data skills.

To plug the capability gaps, over one-third of businesses are investing in big data training for staff, which has seen a mini-boom during the last two years.

 For further information on the study or media enquiries contact:

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

Telsyte’s Big Data and Analytics Study 2018 is a comprehensive study 45-page study that provides subscribers with:

  • The adoption and maturity model of big data in Australian organisations

  • Australian organisations’ IT priorities and spending relating to big data and analytics

  • The increasing role of CEOs and CDOs in big data strategy

  • Big data user trends across usage models, vendors used, and the drivers and challenges of big data

  • Demand for different big data use cases

  • Industry sector analysis and trends in big data

  • Industry sector analysis includes retail, healthcare, banking & finance, Information communications & media and public sector & government

In preparing this study, Telsyte used:

  • Telsyte’s technology decision maker survey with a representative sample of 319 respondents across Australian organisations with greater than 20 employees.

  • Sampling was conducted on a company size by number of employees weighting basis, with around half of respondents coming from organisations with greater than 200 employees.

  • Interviews with Telsyte’s extensive network of big data service providers, big data analytic vendors, and cloud providers

  • On-going monitoring of local and global market and vendor trends.

  • Financial reports released by public big data vendors and their partners

 About Telsyte

Telsyte is Australia’s leading emerging technology analyst firm. Telsyte analysts deliver market research, insights and advisory into enterprise and consumer technologies. Telsyte is an independent business unit of DXC.technology. For more information visit www.telsyte.com.au

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