Online RisingAnd what it means for you.

Innovation for Business Stream@PauleMcCarthy

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

The Digitisation Tsunami Continues

As Global Social Graphs expand...

Software is eating industries...

• Online leaders are consuming the place held by traditional leaders in a range of industrieso Video: Neflix & Blockbustero Encyclopedia: Wikipedia & Encyclopaedia Britannicao Photography: Instagram v Kodako Retail: Amazon vs Bordero Health is next...

Software is eating industries...

IBM is now a software company...

IBM's A Software Company Now!

http://www.businessinsider.com/ibm-software-company-2012-8

Future here but distributed unevenly

Future here but distributed unevenly

Rise of digital and online

Digitisation precursor to online

Online music

Health is next...80% of doctors can be replaced by machines.

- Vinod Khosla @vkhosla.

Australia is renowned for health care

Digital health technology strengths

Health Informatics ● Cochlear (Public, ASX:COH 2291 Employees)● iSoft (Acquired by CSC 2011)● Resmed (Public, NYSE:RMD 3700 Employees)

And education...

Global Export Education Rising

Digitisation and Quality of life

Distinctive Economics of OnlineEcosystems and Dynamics of Online

● Online Gravity● En Masse● Self Service

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

Online Gravity

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

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

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

Goodbye Jaguar Jobs.

Value of En Masse CollectionsValue of En Masse Collections

Would you choose?

Joseph Bank’s Diaries 100 years SMH

Or

Cost to digitise = $1m Cost to digitise = $1m

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

Culturomics at Harvard University

From Worst to Best in class.

Value of Self-Service Tools

DELTA and Commonwealth Bank

Value of Self-Service Tools

Academics like self-service too...

Qualtrics rapid expansion to 5000 customers including 96 of Top 100 Global Business Schools

Data ScienceOnline’s Third Wave.

Data Science is the new wave

Statistics now overtakenEconomics as the most popular courseat Harvard University.

Stats has seen a 10x Growth in the lastFive years at Harvard.

Universities: Berkeley, Stanford, WaikatoResearch Institutes: NICTA, MIRI, Enterprise: IBM, Microsoft & Wolfram.NGOs: Mozilla, Internet Archive, R Foundation.Startups: Trifacta, Kaggle & DataElite (VC).

Todays Frontiers in Data Science

Berkeley

View from SF “The Aussies are slowly but surely taking over...

Australia’s Online Scene Growing

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

Sydney● #1 City in the World

for Data-Driven Startups. Nov 2012

Future Directions

Next Generation Online Services

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.

The Beatles "Hamburg Years" 1200 performances 1960-1964

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.

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

Impact of Xerox Parc

● Apple(GUI, Mouse, Ethernet, postscript, Laser printers)

● Microsoft(Windows interfaceMouse & GUI)

● HP (Laser Printers)● Adobe (Postscript)

Center for Research in Securities Prices (CRSP)

World's first comprehensive data set of historic share data

"Chicago-effect"

CRSP est 1960

1970-201025 Nobel Laureates in Economics

Chicago

Three of the largest global derivatives exchanges

● CME, CBOE, CBOT

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

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

Chicago-effect

● Higher disposable Income

Chicago-effect

● Higher tax base

Knowledge Economy Institute

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AdvancingAustralia'sGlobal Leadin Data Science.

MelbourneFunds &Super

SydneyBanking

InsuranceMarkets

WollongongFunds Admin

& Tech

Australia’s strengths in Finance

Tourism and Travel Innovation Lab

Tourism Analytics Campus based in

Wollongong

Australia’s Strengths in Tourism

Tourism and Travel Innovation Lab

HQ in Sydney.

Sensor Platform Lab

Sensor Pre-Analytics Lab in Sydney

Australia’s Strengths in Agriculture

Statewide Sensor Network

HQ in Hobart.

Paul McCarthy, Director of Strategy and Innovation,

SIRCA Limited@paulemccarthy

Paul.McCarthy@sirca.org.au

Online Rising