1. The Finance Function In a Digital Economy Sara Watts, CFO IBM Australia/New Zealand

2. Ages Of Economic Progress GDP @ Constant F2011 Prices Australia 1788-2012 and onwards GDP $ billion Industrial Age Hunting Age Agrarian Age Infotronics Age Industrial Age Year, ended June IBISWorld 09/10/12 An Industrial Age is when Manufacturing and Construction dominate the economy (c. 30-50%+ of GDP) Agriculture, Mining, Banking, Commerce Transport the major utility Quaternary service industries Hunting, trapping, fishing, crafts, religion Enlightenment Age ? Quinary service industries Imbedded intelligence, neural network Programs. More electronic “guardian angels” and other new technologies Electricity, gas & water, and telephony IC&T

3. 1800 1820 1840 1860 1880 1900 1920 1940 1960 1980 2000 2020 2050 Importance of Industries Shares of GDP by Industry Division, 1800-2050 1800 1820 1840 1860 1880 1900 1920 1940 1960 1980 2000 2020 2050 Agriculture Mining Manufacturing Utilities Construction W’Sale Trade Retail Trade Transport, Postal Media & Telecom Finance & Insurance Rental, Hiring. R Estate Dwelling O’Ship Prof & Tech Services Admin Services Public Admin/Safety Ind taxes less subsidies Education Hospitality Health & Social Assist Arts & Recreation Personal & Other Serv Primary Sector Secondary Sector Tertiary Sector Quaternary Sector Quinary Sector

4. Australia’s Industry Mix Shares of GDP in constant F2010 price terms Year 2011 ABS 5206-26 IBISWorld 08/03/12 Agriculture 2.2% Utilities 2.1% 5.1% Transport GDP $1335 billion (constant F2010 prices) Finance & Ins. 4.2% W’Saling Mining 7.3% Govt. Adm. 5.0 % O’Ship Dwells. 8.0% 4.4% Retailing 7.9% Construction 3.2% 9.7% Info Media & Communications Prof. & Tech Serv 6.6% Education 4.5% Health 5.9% Cult & Rec. Serv. 0.9% 1.7% Pers. & Other Serv. Hospitality 8.2% Manufacturing Sectors Primary Secondary Tertiary Quaternary Quinary Ind. Taxes 1 6.4 % Admin. & Support Services Includes postal, warehousing Note 1 : includes stat. discrepancy (-0.3%) Rental, Hiring & Real Estate 2.3%

5. Fastest Growing Industry Themes New Age 1965-2040s Multi-media services Database and analytics Outsourcing “as a Service”

6. Australia’s Industry Mix Shares of GDP in constant price terms Forecast 2050 ABS 5206-26 IBISWorld 22/11/11 Agriculture 3.7% Utilities 2.6% 4.6% Transport GDP $ 5.3 trillion (constant 2012 prices) 8.0% Finance & Ins. 3.9% Wholesaling Govt. Adm. 5.2 % O’Ship of Dwells. 7.0% 3.1% Retailing 6.5% Construction 4.4% Media & Telecom Education 5.2% Health 8.3% Cult & Rec. Serv. 1.2% 3.8% Pers. & Other Serv. Hospitality 3.5% 5.4% Manufacturing Sectors Primary Secondary Tertiary Quaternary Quinary Ind. Taxes 1 8.0 % Rental/Hiring & Real Estate Includes Postal Note 1 : includes stat. discrepancy (-0.3%) Prof. & Tech Services Admin. & Support Services 2.8% 3.2% Mining 4.4%

7. Projected outcomes are … 509 - 15 +$1 trillion 46% Natural resources  Developed resources

8. The changing role of the Finance function   Data to insight   Lifting productivity   Efficacy   Managing volatility   Transformation Source: IBISWorld 02/10/02

9. “The times they are a-changin” Bob Dylan   Digital disruption   Global competitiveness   New business models   C-suite collaboration   Proactive transformation

10. Q&A Copies of “A Snapshot of Australia’s digital Future to 2050” can be found here: www.ibm.com/ibm/au/digitalfuture And “Reinventing Australian enterprises for the digital economy” can be found here: www.ibm.com/au/eraofsmart