BRW – Big data: Knowledge might be power, but data is money

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Recently I’ve become fascinated by the topic of Big Data – essentially how new technologies and techniques are allowing the near-real time analysis of massive volumes of data to uncover useful insights. It is a field that is evolving rapidly, and no doubt is somewhat over-hyped, but story after story tells how new analysis techniques are yielding genuine advantage for the organisations wielding them.

The brilliant thing about Big Data is that it allows organisations to get an additional advantage out of an asset that they already own – one which can be augmented by taking data that is freely available, such as from Web traffic and data logs, to deliver new insights.

I’ll be posting a lot more on Big Data this year, but if you want to get a sense of what’s possible, check out this article I recently wrote for BRWk.

Sky News – Technology Behind Business appearance

Sky NewsLate last year I was invited on to Sky New’s Technology Behind Business program as part of a panel discussion with Ross Dawson and Marc Pesce to discuss trends in tech for 2013. You can check it out by clicking here.

I spent a lot of last year speaking to various groups, many of them in regional Australia, about the impact of broadband technology and digital services. With digital technology policy set to be a key issue in the 2013 election, it seems I’ll be having another busy year …

News.com.au – IPscape riding a cloud into Asia

 

 

I’ve been watching for some time the growth of cloud computing, and particularly the model of delivering software as a service (SaaS). But despite the name, in reality it is not software that is being delivered at all,  but a business service. Unfortunately ‘service-as-a-service’ doesn’t really make that much sense …

If you look at what SaaS customers are buying, it is not software. Salesforce.com customers are buying a better way to manage their customers. NetSuite clients are buying a better way to manage their overall organisations. And so on, right down the line of SaaS companies. Very few purchasers have any desire to buy software at all – indeed, that is one of the benefits of the ( unfortunately named) SaaS model.

For services businesses then, it is important that they start looking at what they really offer, and which components can be delivered in a SaaS model. Because if they don’t, someone else will. In many cases of course a service still requires a physical delivery – waiters that bring your food in a catering service, etc. But for many others, like call centres, the real value is in the underlying systems that make them work – everything else is just a matter of training and monitoring. Even a catering firm these days is reliant on software systems for customer management, staffing, ordering, invoicing etc.

This is what IPscape realised when it developed its SaaS-based call centre application. It delivers the call centre across the Internet – all its clients need is a web connection and a trained call centre agent.

The beauty of the model is that it is easy to sell and support into foreign markets. There is no product to ship, and as the software is centrally hosted it is easy to maintain. Indeed, the cloud model is a service exporter’s dream.

The model is especially relevant in fast-growing Asian markets, where there is less baggage to be overcome in terms of client’s familiarity with older models of computing. As Internet speeds across Asia improve it is likely that many companies will leapfrog a generation of technology and go straight to the cloud.

That presents a massive opportunity for companies like IPscape, or any service provider which realises that its future lies in the cloud. IPScape has also chosen to work with Telstra to accelerate its Asian strategy, as I described in this story for The Australian published late last year.

SMH IT Pro – Half-billion more to connect to the internet

Google Billion 2Late last year I was invited up to Singapore to hear about Google’s vision for connecting the next 1 billion people to the Internet. One third of the world’s population is now online, but Google expects there is plenty of scope for growth as services become cheaper and more far reaching.

The needs of the next billion Internet users may be very different from those of existing users, creating opportunities for new service providers who can meet those needs in low-cost, innovative ways.

In this story for the SMH IT Pro website I look at Google’s ambitions, and the opportunities that might exist for Australian entrepreneurs to create services for people in emerging online markets. It follows on from a theme I’ve explored in other stories – that Australian entrepreneurs must look to more markets than just North America is they are to maximize the opportunities that are out there, especially as the balance of economic power migrates west across the Pacific Ocean. Australasia’s prosperity is already tied to our north west neighbours when it comes to minerals and energy- the same may also be true for our information and services sector.

CIO Australia – The rise of the machines

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Along with the massive explosion that is taking place in global data volumes, a similar explosion is being witnessed in terms of the proliferation of devices that create that data. This goes beyond the rapid spread of smartphones and tablets, toinclude the tens of thousands of sensors of every imaginable kind that are being connected to the Internet every day, that take and report readings on an ongoing basis, usually unattended by humans.

Smart electricity meters are one visible example, but increasingly we are hearing about numerous types of environmental sensors that are being connected up, including at the Sydney bakery Brasserie Bread.

We call this evolving network the Internet of Things, and the underlying technology is described as machine-to-machine communication (m2m), and it was the subject of my cover story for the final edition of CIO Australia magazine for 2012.

SMH IT Pro – Full speed ahead down in-memory lane

Billions and billions of ones and zeros may not seem all the interesting, but when those bits of data contain information that might help someone make money, they become very valuable indeed. Crunching these billions of bits of data has come to be known by the term ‘Big Data‘ and it is a rapidly growing segment of the IT industry. The tools that are being used to analyse stores of Big Data are evolving rapidly also, and one of them – a technology known as in-memory computing – was the subject for my final story for 2012 for the SMH IT Pro website. It was a fitting topic, as investigations and explanations of data in all its forms will be a significant area of activity for me in 2012.

The beauty of Big Data is that its analysis can yield impressive results – in theory, at least. Theories and examples abound of how analysing Big Data  might yield information  on the progression of an epidemic. It can also be used to get personal – analysing large volumes of data relating to a single person (such as their purchasing habits) might yield great insights into their future behaviours  such as the programme run by Target in the US that could determine that a young woman was pregnant.

We are only at the very beginnings of a Big Data revolution. As we become more adept at wielding Big Data tools you can expect to see more and more examples emerge – particularly by marketing organisations, but also by governments to monitor their populations. Perhaps this is why the technology analyst firm IDC predicts that Big Data is a market that will be worth US$24 billion by 2016 – not bad for an activity that no one was talking about just five years ago.

A big week – SEGRA, The Australian and a front page spot in the SMH

It has been a very long time since I updated this blog, and a lot of happened in the last six months – which is probably the main reason why I’ve not been putting time into updating this blog.

I’ll add more details later, but recent highlights have included being invited as one of the 40 or so attendees of the Prime Minister’s Forum on the Digital Economy, delivering  keynote addresses for Symantec and Hewlett-Packard and a host of others, and writing a string of articles for publications including The Australian, Sydney Morning Herald, CIO Australia and many more.

In the past six months I’ve also been traveling extensively, hitting locations including Longreach, Bundaberg, Mandurah, Mt Gambier, Ballarat, Bendigo, Shepparton, and even Maffra in Eastern Victoria, as well as most of the capital cities, to deliver presentation on digital transformation.

This week was a particularly big week however. On Tuesday I delivered a keynote address at the Sustainable Economic Growth for Regional Australia (SEGRA) 2012 conference in Terrigal, where I stressed the importance for regional communities to move more quickly in developing their digital strategies. That same day the latest special report on Cloud Computing appeared in The Australian, which included close to two broadsheet pages of content from me. Then on Wednesday the SMH IT Pro site carried my story on the emerging technology of adaptive web content.

That caught the interest of the editors at the SMH newspaper, and led to me writing this story which appeared on the front page of the weekend edition – the first time I can recall cracking the front page.

Like I said, it’s been a big week.

My speech to the Founders Institute Sydney – The need for urgency

Last week I was honoured to be asked to give the keynote speech at an event that marked the graduation of the first batch of companies to complete the globally-recognised Founders Institute program in Sydney. You can read more about that program elsewhere, but I thought it might be worth sharing the content of my presentation with this forum.

The first message was that there has never been a better time to start a business – particularly a services-type business, especially if you are starting it online. For starters, thanks to the technologies of open source and cloud computing and the global outsourcing industry, it costs little to start a company compared to what it did years ago. We have refined this process into what Eric Ries has defined as the Lean Startup, which is represented in the concepts of ‘failing fast’ and the ‘minimum viable product’. To this effect, you can now get a services company up and running – and potentially profitable – in just months, and for just thousands of dollars.

Secondly, there is also a far wider range of technologies to work with, including 3D printing, machine-to-machine communication (also known as the Internet of Things), augmented reality, artificial intelligence and so many more. Most of these are available at little cost today.

And thirdly, the opportunity is so much greater now. The Internet has torn down the barriers of geography, and if we look beyond the English speaking world we find markets such as Indonesia, with 200 million mobile subscribers and 55 million Internet users (ahead of South Korea with 40.3 million) and set to double over three years (according to Boston Consulting Group (thanks to Shinta Dhanuwardoyo and her presentation at X Media Lab in Sydney a couple of months back for the inspiration and stats). Certainly there are huge opportunities for globally-oriented services businesses.
But when thinking about the future of our services sector, it is worth doing so with a sense of urgency.

Firstly, starting companies is not culturally specific. The same tools that enable Australians to start a business cheaply are available to anyone anywhere in the world. It is likely that the computer programmer in the Philippines doing work for an Australian employer one day dreams of being the employer themselves. Entrepreneurship is also not culturally-specific, and we are seeing a wave of Asian-born globally-oriented start-ups, particularly coming out of India. And that market alone produces roughly 750,000 engineering graduates each year. That is a massive amount of potential for the Next Big Thing. That means there will be a lot more companies out there competing in the global services industry.

The other factor that we need to contend with is that the same economics that have decimated Australia’s manufacturing sector are set to play out across other industries. Shifting market dynamics driven by low-cost offshoring options and revamped logistics chains will see the repricing of a wide range of services – we’ve seen it with software development, it is now happening with design and secretarial services. These trends will also further erode the sustainability of even bricks-and-mortar industries such as retail.

The upshot is that the job losses seen in manufacturing will be insignificant compared to what we could see should large segments of our service industry shift into lower-cost markets. IBM’s A Snapshot of Australia’s Digital Future to 2050 report has already predicted the demise of 15 industries including, Free-to-Air Television Broadcasting, Newspaper Publishing and Motion Picture Exhibition. And they are just the obvious ones. Respected US futurist and author Dr Thomas Frey (who is speaking at the forthcoming Creative Innovation 2012 conference in Melbourne) has also predicted 2 billion jobs will disappear by 2030. The upshot is the possible hollowing out of Australia’s middle class.

We need to start replacing those jobs today – a task made all the more difficult by the skills of many of those displaced workers being unsuited to the needs of entrepreneurial start-ups.

Australia faces a crisis, and it is one that I suspect few people have considered. If we are to succeed as a services-based economy over the next 20 years we need to start investing today in building up both the capacity of our workforce to adapt to that future, while giving encouragement to the entrepreneurs who will create it.

We need to invest in vibrant new businesses, to create employment and redistribute wealth and enable subsequent investment in round after round of new ventures. And we need to infuse technological capability and entrepreneurial concepts into existing businesses to enable them to innovate and expand.

We need this to be happening here, we need this to be happening now. Because if we don’t make it happen, someone somewhere else will. And who wants to tell their children to prepare for a lower standard of living?

Corporate data centres join the endangered species list

First it was the mainframe that was put on the endangered list. Now it is the entire data centre that is threatened with extinction – or at least eviction from the corporate campus. Running a data centre was once a necessary component of running a fair-sized IT organisation. It was the keep at the centre of the IT manager’s castle. But the rise of more pragmatic thinking within business has increasingly seen the question asked ‘why are we running this thing’. Failure to find a compelling answer quickly leads to a discussion about outsourcing the data centre.

That decision is made somewhat easier by the proliferation of well-qualified data centre operators – many of whom offer security and service that the corporate data centre manager might only dream off.

A couple of weeks back now The Australian published three articles that I had written on the topic of data centres. The first was based around an interview with newly-appointed CEO of the data centre operator NextDC, Craig Scroggie, who talked about that company’s ambitious growth plans. You can read that one by clicking here. Another of the stories looked at the criteria that companies use when selecting a data centre operator (you can read that one here) while the third was a profile of the engineering company Downer Group and its decision to relocate its various data centres to Hewlett-Packard’s newly-opened Aurora data centre, west of Sydney (you can read that one here).

In each instance they show that the trend of data centre outsourcing is alive and well in Australia.

Live from X|Media|Lab Sydney – Warren Coleman @warrencoleman, Arvind Ethan David @arvd & Shinta Dhanuwardoyo @shintabubu

The first speaker after lunch was actor, writing and director Warren Coleman (@warrencoleman), who’s presentation discussed the need for play in storytelling. He discussed the process of co-writing Happy Feet and its sequel, and how playful activity often generates some of the best outcomes.

Warren was followed by Malaysian-born London-based filmmaker Arvind Ethan David (@arvd) from Slingshot Studios, who confessed to starting a film company to find out why film companies always lost money. His talk focused on the impact of digital on film making, such as the unexpected rise of user-generated content, and the emergence of programs such as The Guild or Dr Horrible’s Sing-Along Blog. His advice is to bake globalism into every project.

The final presenter for the session was Indonesian digital entrepreneur and partner at Nusantara Ventures Shinta Dhanuwardoyo (@shintabubu). She talked about Indonesia’s mobile subscriber penetration as now reaching 200 million out of the 240 million population, with 60 million mobile Internet users – and that is set to triple by 2015. Everything is done using the mobile phone, and it is the number one market in Asia for Foursquare, Twitter (19 million accounts) and Facebook (fourth globally). Interestingly, in Indonesia local phone makers are beating Apple, with user-tailored feature phones dominating. Blackberry is also a big success in Indonesia. She also talked about a campaign that her agency ran for Unilever brand Axe featuring a phone number squirted into a hotdog, which received more than 76 million calls.