According to Goldman Sachs, virtual reality will be bigger than television by 2025. Four mega trends have the potential to disrupt the corporate landscape of Australia over the next few decades. These trends include virtual reality, wearables, big data and the Internet of Everything. Based on the estimations of US IT giant Cisco Systems, the Internet of Everything will maximize the corporate profits of America by 21% for the next 8 years and create about $14.4 trillion in value.
If the Internet of Everything will be applied to Australia it can translate into $20 billion in profit. However, the problem is Australia’s slow adoption to technology in spite of the high standards of living and education. The reason is the lack of pressure on Australian companies to adapt to technology. If this trend continues in corporate Australia, 4.6 million jobs will face obsolescence in the coming years. Australia has to prepare its workforce for the digital age because everything changes with technology.
The Turnball government has actually launched a $1.2 billion innovation program but there remains a relative inertia on Australian businesses. First of all, there is a relatively high cost to access technology and the market is dominated by a few key players. This is the reason why Australia ranked 7th globally in terms of internet penetration and 49th in affordability. Australia’s internet is overly regulated with slow speeds including high consumption taxes on ICT products.
Many industries will face significant digital disruptions from the Internet of Everything particularly healthcare and utilities. The century-old electric industry of Australia is undergoing structural changes due to the rapid development of renewable energy but the Internet of Everything will improve the utilization of assets and increase system flexibility. Consumers will enjoy real time information to enable a change in consumption patterns and new commercial offers. As industries are impacted by technology, many changes are expected to occur.
Virtual reality will thrive and industries have to adapt to technology including construction, engineering, real estate and retail. First Home Owners Centre has started to adapt to technology by displaying new homes through virtual reality before actually walking through it.