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According to the World Economic Forum, over the coming years, the employment landscape will be deeply impacted, by the disruptive changes to today's commonly accepted business models.
However, opportunity abounds for those industries, enterprises and individuals, who effectively adapt and transform. That said, the middle aged geospatial sector is now facing a crisis, - a perfect storm of advancements in technology infrastructure, market sustainability and geospatial information commodities.
Together, these critical elements present a change force, whose energy source is relentless innovation. It is challenging market exclusivities and the business models of every industry including journalism, taxis, accommodation and travel which have recently, been irrevocably changed.
A nascent technology, the Internet of Things (IOT) promises to enhance our physical environment and the geo-specific data generated in real time by the IOT, will reveal how the physical world is shaping human activity, - and vice versa. Within a decade, IDC predicts, that 30 billion geo-located things will be connected and this ecosystem will generate a revenue of $1.7 trillion. In 2007 the estimated information content of all human knowledge was 279 Exabytes growing to 35 Zetabytes by 2020.
Big data is disrupting the enterprise, data processing methods and usage and for the enterprise to effectively work with vast volumes of data at speed, new enterprise architectures will be required. People, processes and systems help the enterprise turn raw data into useful information and informed action and with big data talent in short supply, successful users source skills wherever they can find them, leaning heavily on external, experienced resources. Furthermore, well-defined user needs, functional requirements, and application specifications are essential for the success of any enterprise system, be it geospatial or otherwise.
The Big Data explosion is also “driving strong growth in big data-related infrastructure (21.7% CAGR), software (26.2% CAGR), and services (22.7% CAGR),” according to a report from IDC in late 2015, while the US Bureau of Labor Statistics, has forecast a higher than average 17% growth in demand for software developers, between 2014 and 2024.
A Turning Point
The AGI Foresight Report 2020, from 2015 highlights the fact, that the geospatial industry is at an existential point in its history. Industry change will only be driven, through the recognition of the latent possibilities of data and data value-add services, and this requires a fundamental and deep understanding of the relationship with digital data. At this time, the inability of the industry to succinctly explain the usefulness or value of their data, tools or services coupled with a perception of an “inner sanctum of GIS” are holding the industry back. To “ditch this image” and change from seeing itself as a data provider and become a data service will present the geospatial industry, with the greatest of untapped opportunities.
As the industry struggles to take advantage of this data El Dorado, other industry sectors are reaping rewards. A recent survey of leaders in the Australian spatial sector “found that 95% believe spatial services are either not achieving growth potential, or that the growth is being captured by other industry sectors.” In a global geoservices market with anticipated annual growth of 30%, ideas have to be actualised faster and more cost-effectively, otherwise competitive market forces will eat the associated opportunity and those ideas will never reach fruition.
"... demand for enterprise application development is
set to significantly outstrip supply in the short term..."
The uniqueness of geospatial technology, lies in its use of geography as its common framework to integrate many different interests, within which the range of innovative use cases, is growing rapidly. Ubiquitous geospatial technology flows into opportunity spaces and enables innovation in many sectors and opportunity for the geospatial industry, lies in collaboration with those sectors which consume geospatial data.
For example Drone technology is now feeding the demand for high quality data and enhancing data processing and accessibility and it is predicted that Unmanned Aerial Vehicles (UAV's) will replace conventional ways of collecting remotely sensed data.
A practical use case for this innovation is the support being provided in Kathmandhu for the humanitarian efforts, following the devastating Nepal earthquakes. Another is conservation and environmental protection, such as analysing glacier dynamics in the Himalayas.
Software's Growing Market Influence
'Preparing for the Software Future', written earlier this year by Sparx Systems, focused on the pervasive influence of software on the future, specifically in terms of those innovative business solutions, in every sector of industry, (including geospatial) which are disrupting long accepted and protected models. The post noted, that success for a growing number of companies, lay in embracing the rising strategic importance of software and in viewing software development, as a crucial competitive battlefield.
The US government also acknowledges this fact. In April the Washington Post reported that leading companies, like Walmart and AT&T, along with the likes of Facebook and Apple and a bipartisan coalition of 27 governors, have called on Congress “arguing that the United States needs far more students who are literate in the technologies that are transforming nearly every industry.”
The demand for enterprise application development is set to significantly outstrip supply in the short term and given these market dynamics, platforms that reduce hand coding and enable rapid delivery of business applications are essential technology. By freeing businesses of this overhead, these development platforms significantly reduce the costs associated with traditional development solutions while addressing the challenges of future enterprise application development and legacy modernization.
Geospatial Services Demand
Oxera published a report on behalf of Google back in January 2013 showing a geospatial services market revenues at between $150-270B per year and according to Technavio, the global GIS market will experience “a CAGR of more than 10% by 2020.” Analysts have estimated the software segment to account for a market share of more than 48% during the forecast period.
Digital disruption will create many new cross-functional roles for which employees will need both technical, social and analytical skills. An article by Forbes reporting on the skills demand being generated by big data shows that between 2014 and 2015, the highest growth was for software and application developers. This is corroborated by the Geospatial Technology Competency Model from the US Employment and Training Administration (ETA).
Software based demand for business applications, coupled with well documented shortages of developers , is giving rise to the 'citizen developer', a new role description, that is increasingly turning up in social media. According to the Gartner glossary, this emergent user, is one who “creates new business applications for consumption by others, using development and runtime environments, sanctioned by corporate IT.” While it is likely that citizen developers such as a GIS-savvy geographers with limited programming skills, could eventually become developers, coding is less that 20% of the application development lifecycle. When it comes to developing a concise, correct, consistent, and mutually understandable design, software system requirements and designs, must be easily analysed, developed and managed in a coordinated manner.
Amidst myriad communication barriers and team pressures, constantly changing system requirements, increasing complexity and shrinking design cycles, the right automation tools are essential to ensure that the right system is built, with the right quality and performance characteristics, within budget and on schedule.
The ability to universally share maps in the cloud, makes them available across many mobile devices. These can be programmed and customized by outside developers and users, through application programming interfaces, or APIs. With the introduction of the Sparx Systems Enterprise Architect ArcGIS profile, the information gap between different domains is bridged, allowing geospatial components to be linked to requirements, system and business models. Geospatial experts are equipped with the modeling tools, to create and work with geodatabases, re-engineer spatial legacy data and integrate their work with others.
As experiences are gathered from initial commercial applications of a new technology, the range of functionalities and their adaption are increased, for each specific technology use case. The geospatial industry recognises, that its specialists “are no longer representative of the typical user of many of the technologies (they) are developing.” Innovation is driven and supported by collaboration between different stakeholders with shared aims. The collective intellectual effort of academic institutions, start-ups and large corporations, propels the progress of new technologies.
Collaboration is becoming a new enterprise standard and it enables industry and enterprise to synergise the strengths of all their parts, while creating a shared awareness of issues. It encourages trust and builds confidence in group stakeholders and promotes interoperability and collective problem resolution. Because collaboration reduces or eliminates process overlap and resource redundancy, creative energy is harnessed and the chance of success is increased. This makes practical sense, as the combined data sets are too large for any one industry or enterprise to analyse. With a documented history of working collaboratively with many industries including the geospatial industry, Sparx Systems standards based technology, is used by these industries, to assist their adaption to the challenges of disruption.
Innovation often occurs by bringing different approaches to problem solving, together in a business. Many industries have worked hard over the last decade to define shared meta-models that are specific to their industry and which support a standardized structure for systems communications. It is these models which now form the basis for contractual information sharing across organizations and across geographic borders.
However, when information is shared between organizations, it is frequently the case that only a subset of the full meta-model is required, but it is essential, that what is shared conforms precisely to the agreed meta-model. In this case, the Schema Composer is the perfect tool for deriving contractual schema based on sub-sets and restricted data sets that take a 'slice' through the meta-model as a whole.
"Collaboration is becoming a new enterprise standard and it enables
industry and enterprise to synergise the strengths of all their parts..."
Role of Academia
The World Economic Forum report “The Future of Jobs 2016”, notes that education systems are providing siloed training and continuing practices from last century that are hindering progress in addressing the current labor market and talent issues. The Report recommends that businesses and education providers, government and others collaborate as this can result in higher quality across the talent pool, lower costs and increased social benefits.
Similarly the United Nations Initiative on Global Geospatial Information Management (UN-GGIM) report “Future Trends in Geospatial Information Management: the five to ten year vision”, commenting on extracting value from big data, notes that “will place a premium on highly skilled data modellers.” The report also notes that “The development of these skill bases will be delivered through a wide range of professional, academic and in business approaches, as recognition grows of the need for a managed process of skills development and capacity building.”
Support for the Geospatial sector and Academia
Sparx Systems has an education outreach function that delivers flexible licensing options for academic institutions and individuals, through in our Academic Licencing Program. Access to Non Commercial and low cost licences of the popular visual modeling platform, Enterprise Architect is made available to those education institutions who are interested in offering education programs that address the challenges presented by big data. We have also worked closely with 50+ global industry domains including government, providing licences through our support program for Standards Development and have instituted awards to encourage universities and institutions to develop model based solutions for industry. Two of these awards have been offered in the health and geospatial communities and were awarded through HL7 and the EU INSPIRE.
As an organisation that has been recognised by CIOReview, for helping rapid adaption to new technology trends and improving operations across the enterprise lifecycle, we look forward to ongoing collaboration with industry, academia and government.
"Software is eating the world"
Marc Andreeson, Co-founder of Netscape
In those competitive business scenarios where most of the value is delivered by software, the value chains of established players are disrupted. The impact of this force will grow, with a voracious appetite for competition.
The software driven dynamic has been referred to as “unscaled” by Harvard Business Review and it makes incumbent industry players look listless. Immediate instances are Uber who have left the taxi industry stalled in their wake and agile AirBnB who have stolen a march on the sleeping accommodation sector.
Unscaling is neither upscaling or downscaling, it is small becoming the new big and it occurs when the global audience of the inexpensive Internet becomes exploited and a wide choice of modular services is accessed. It is nimble and quick and it is an innovator nirvana.
The newspaper and magazine industries have recently seen significant disruption as print circulation continues a global freefall, while the number of readers getting their news via smart phone or tablet rises rapidly. According to a report “US Smartphone Use in 2015”, published by the Pew Research Center, 64% of American adults now own a smartphone of some kind, up from 35% in the spring of 2011. A majority of these use their phone to follow along with breaking news, and to share and be informed about happenings in their local community.
This disruption is patently evident in many different industries over recent years. The disruption is not simply the move away from traditional media, but reflects a change in reader empowerment. Ordinary people now have the capability to be journalists and contribute to online conversations. All of this is facilitated by software that simplifies publishing, video production and live updates as global events happen.
Take one of the more recent developments in the manufacturing industry, that of 3D printers which are software controlled. This technology enables the rapid development and revision of products while bypassing costly traditional manufacturing processes.
However as the 3D printing revolution is gathers pace the technology is finding deployments in core manufacturing.
In 2013 a South African aircraft manufacturer Aerosud, an established supplier to major aircraft manufacturers Airbus and Boeing, started building a 3D printer capable of manufacturing aircraft components an order of magnitude faster and close to fifty times larger than any previous printer capable of making metal parts.
The average high end modern car has 100 million lines of code, creating a lower-cost entry point for non-automotive companies with fresh approaches. The trend toward hybrid and electric vehicles such as the Tesla, which is completely computer controlled will only accelerate the software shift. Software runs engines, controls safety features, entertains passengers, guides drivers to destinations and connects each car to mobile, satellite and GPS networks. The automobile is shifting from mechanical to electrical and software controls.
The degree of software control and complexity in cars and is growing and according to the Economist in January 2016, technology firms may be better placed than car makers to develop and profit from the software that will underpin both automated driving and vehicle-sharing.
Some of these firms may even manufacture cars of their own. Local Motors has produced the first of a range of road-ready, 3D printed vehicles. The Low Speed Electric Vehicles (LSEV) will debut in Q1 2016. A highway-ready version will be released in late 2016.
Uber is innovating at the intersection of lifestyle and logistics, connecting riders with safe, reliable, convenient transportation providers at a variety of price-points in cities around the world. The company owns no cars and is disrupting the global taxi industry while focusing on new logistics sectors. Just before the recent consumer electronics show in Las Vegas, GM announced a $500m investment in Lyft, US based nationwide ride-sharing service. Lyft started in 2012 and is currently valued at US$2.5B
According to research from the Global Center for Digital Business Transformation (DBT Center), 47 percent of retail executives believe that disruption could put them out of business. The combination of on-line, in-store, call center and mobile is creating a new retail customer experience called omnichannel that is managed to ensure that it is seamless, integrated and consistent across all channels. The decision as to how service will be delivered is becoming the prerogative of the digitally empowered customer rather than that of the retailer.
Managing the Crisis
While digital disruption of traditional business value chains is a fact, the disruption itself can be seen as a positive, not only because competition sparks innovation, but because it delivers greater value, particularly for the customer and those other actors who drive the success of the business, by consistently realising the resulting digital value.
In a McKinsey article, on the perils of ignoring software development, the article includes a statement that “Despite the mission-critical nature of software, it gets surprisingly little attention in the C-suite.” Further to this they add that as digital technologies continue reshaping markets, the keys to success for a growing number of companies are, embracing the rising strategic importance of software, and viewing software development as a crucial competitive battlefield.
In many instances it is not a single technology, but different technologies that merge which cause digital disruption in the value chain. Once again, change agility needs technology support. These new process demands are growing in many business sectors and because successful transition to the maximum utilisation of strategic information technology is a priority for many organisations, enterprise-class BPM principles are being hard wired into operations. Tools such as Sparx Systems Enterprise Architect and standards including Business Process Modeling are essential.
Approximately 2.3 million lines of code run the International Space Station and it is imperative that it continues to function as expected. The development of software that is mission critical or essential to the survival of business today, necessitates the use of fit for purpose, industrial strength technology.
Sparx Systems Enterprise Architect delivers revolutionary architecture to meet the challenges of the digital revolution, separating exploratory areas of the business, from those that are well established, while supporting collaborative agile development, based on the business direction, strategy and vision. It allows the organisation to revise existing enterprise architecture to support the ongoing process of business transformation.
To accept risk and get comfortable with a pace of change that is very different from the current IT operational models, it is essential to leverage technologies that have been designed to mitigate risk and that are built to support industry best practice and standards for industry.
This agile enterprise architecture platform fosters innovation, by enabling continuous building and refactoring, to facilitate the emerging and vanguard technologies. Simultaneously in a disruptive business environment where continuity is the highest priority, Enterprise Architect supports the consolidation of legacy capabilities.
Sparx Systems Enterprise Architect is the popular, powerful and affordable visual modeling platform, capable of meeting the exacting demands of enterprise IT and Business.
To manage change in a hyper changing world, organisational leaders are now selecting reliable, scalable solutions that have been extensively road tested, by many hundred of thousands of users.
In a period of global industry disruption such as is currently being experienced, it is essential to choose the right, standards based platform with the lowest maintenance overhead, to meet the challenges of predictive change management, collaboration and interoperability.