Keynote Address at 6th ISPIM Innovation Symposium – Innovation in the Asian Century The International Society for Professional Innovation Management. Melbourne, Australia. http://symposium.ispim.org/ ====================================== Unstoppable Rise of Online Services Digitisation of Industries Global networking of Industries What’s ahead Distinctive Economics of Online Online Gravity En Masse Self Service Data science and online innovation

1. Online Rising
And what it means for you.
Innovation for Business Stream
@PauleMcCarthy

2. What’s in this talk
Unstoppable Rise of Online Services
● Digitisation of Industries
● Global networking of Industries
● What’s ahead
Distinctive Economics of Online
● Online Gravity
● En Masse
● Self Service
Data science and online innovation

3. The Digitisation Tsunami Continues

4. As Global Social Graphs expand...

5. Software is eating industries...
• Online leaders are consuming the place held
by traditional leaders in a range of industries
o Video: Neflix & Blockbuster
o Encyclopedia: Wikipedia & Encyclopaedia Britannica
o Photography: Instagram v Kodak
o Retail: Amazon vs Border
o Health is next...

6. Software is eating industries...

7. IBM is now a software company...
IBM's A Software Company Now!
http://www.businessinsider.com/ibm-software-company-2012-8

8. Future here but distributed unevenly

9. Future here but distributed unevenly

10. Rise of digital and online

11. Digitisation precursor to online
Online music

12. Health is next...
80% of doctors can be replaced by machines.
- Vinod Khosla @vkhosla.

13. Australia is renowned for health care

14. Digital health technology strengths
Health Informatics
● Cochlear (Public, ASX:COH 2291 Employees)
● iSoft (Acquired by CSC 2011)
● Resmed (Public, NYSE:RMD 3700 Employees)

15. And education...

16. Global Export Education Rising

17. Digitisation and Quality of life

18. Distinctive Economics of Online
Ecosystems and Dynamics of Online
● Online Gravity
● En Masse
● Self Service

22. The Ecosystem
● Are there winning patterns?
● Certain traits or strategies work and
lead to new stories being created
● Beginning, middle and end
● These are common to digital & analogue

23. Online Gravity

24. 100 years of competition in cola market from same three competitors.
Leader, challenger & niche - dominant form of traditional markets.

25. However this is not the case in Online markets.
...they tend toward monopolies.

26. Increasing returns due to platform-lock in and benefits of network effects.

27. Goodbye Jaguar Jobs.

28. Value of En Masse CollectionsValue of En Masse Collections

29. Would you choose?
Joseph Bank’s Diaries 100 years SMH
Or
Cost to digitise = $1m Cost to digitise = $1m

30. Public En Masse Data Collections
● Google Books and Culturomics
- All books ever published
● Internet Archive
- History of the Web etc
● Trove’s Newspaper Australia
- Australia’s Newspaper Archive

31. Culturomics at Harvard University

32. From Worst to Best in class.
Value of Self-Service Tools
DELTA and Commonwealth Bank

33. Value of Self-Service Tools

34. Academics like self-service too...
Qualtrics rapid expansion to 5000 customers
including 96 of Top 100 Global Business Schools

35. Data Science
Online’s Third Wave.

36. Data Science is the new wave
Statistics now overtaken
Economics as the
most popular course
at Harvard University.
Stats has seen a 10x
Growth in the last
Five years at Harvard.

37. Universities: Berkeley, Stanford, Waikato
Research Institutes: NICTA, MIRI,
Enterprise: IBM, Microsoft & Wolfram.
NGOs: Mozilla, Internet Archive, R Foundation.
Startups: Trifacta, Kaggle & DataElite (VC).
Todays Frontiers in Data Science

38. View from SF “The Aussies are slowly but
surely taking over...
Australia’s Online Scene Growing

39. Who now follows Australian Tech closely?
A: The Kings of Global Technology Finance.
Paul GrahamNaval Ravikant Dave McCLure Rich Wong
Australia’s Tech Cred on the Rise

40. Sydney
● #1 City in the World
for Data-Driven
Startups. Nov 2012

42. Future Directions
Next Generation Online Services

43. The 10,000 hour rule
● Greatness requires 10,000
hours of deliberate practice
○ The Beatles "Hamburg
Years" 1200 performances
1960-1964
○ Bill Gates: 10,000 hours
programming
Based on studies by Dr. K. Anders Ericsson and popularised by
Malcolm Gladwell in his book Outliers.

44. The Beatles "Hamburg Years" 1200 performances 1960-1964

45. Hacking the 10,000 hour rule
"An Australian racer
qualified for the Olympics
just 18 months after she
first saw a sled. Amazingly,
she had completed only 220
runs before qualifying.
A typical US skeleton racer
makes upwards of 2,000
runs before appearing in the
Olympics.
- Wired, June 2012 Michelle Steele, Surf life saver turned
Australian Winter Olympian.

46. The Knowledge Economy Institute aims to have
Xerox PARC like impact in Data Science.

47. Impact of Xerox Parc
● Apple
(GUI, Mouse,
Ethernet,
postscript, Laser
printers)
● Microsoft
(Windows interface
Mouse & GUI)
● HP (Laser Printers)
● Adobe (Postscript)

48. Center for Research in Securities Prices (CRSP)
World's first comprehensive data set of historic share data
"Chicago-effect"
CRSP
est 1960
1970-2010
25 Nobel Laureates in Economics

49. Chicago
Three of the largest global
derivatives exchanges
● CME, CBOE, CBOT

50. More Jobs...
Finance & Business: Now Chicago's Largest Employer

51. Highly-paid jobs...
Chicago: Finance highest wage industry & US premium

52. Chicago-effect
● Higher disposable Income

53. Chicago-effect
● Higher tax base

54. Knowledge
Economy Institute
Visualisations:GaryOverton/Aedis,Bristol2010.
Advancing
Australia's
Global
Lead
in Data
Science.

55. Melbourne
Funds &
Super
Sydney
Banking
Insurance
Markets
Wollongong
Funds Admin
& Tech
Australia’s strengths in Finance

56. Tourism and Travel
Innovation Lab
Tourism Analytics
Campus based in
Wollongong
Australia’s Strengths in Tourism
Tourism and Travel
Innovation Lab
HQ in Sydney.

57. Sensor Platform Lab
Sensor Pre-Analytics
Lab in Sydney
Australia’s Strengths in Agriculture
Statewide Sensor
Network
HQ in Hobart.

58. Paul McCarthy,
Director of Strategy and Innovation,
SIRCA Limited
@paulemccarthy
Paul.McCarthy@sirca.org.au
Online Rising