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.

 

Live from X|Media|Lab Sydney – Michael Naimark @Naimark, Helen Chen @cmodabeijing, Rajiv Prakash @rajivprakash & Bonnie Shaw @bon_zai #XMediaLab

The second session at X|Media|Lab Sydney kicked off with a presentation from digital researcher and artist Michael Naimark (@naimark), who took the audience through three projects that he is working on. The first relates to live web streaming, and the idea of instantly matching content to viewers. Hence liiive.tv, takes the idea of live mediated simultaneity where operators can communicate and coordinate streams, allowing potentially hundreds of streams to be aggregated. His second project, Viewfinder, looks at spatial seamlessness, starting with a project that emulated Google Maps with Street View but 30 years earlier. His idea is that aligning content within context is critical to the appreciation of that image, such as how images can be fed into Google Earth. His third project examines the statistical similarity between different regions of the world, such as that between Africa and Georgia, as well as other bizarre cultural correlations, and the work of Alan Lomax and his Global Jukebox.

The second speaker of the session was Helen Chen, founder and CEO of China’s Museum of Digital Arts (@cmodabeijing). which is China’s first museum for digital art, which opened in December 2011. She discussed how digital consumption in China is booming, and asked the question of whether China can make the transition from its manufacturing economy to one more focus on digital content. She detailed a number of projects, including a 3D printing project. The museum’s aim is to become an exchange platform between digital creative artists.

The third speaker of the session was entrepreneur Rajiv Prakash (@rajivprakash) who discussed the start-up scene in India. He talked about aspiration, and the belief that Indians have that what they are born with is not what they must live with. The entrepreneur is India’s new role model, which has been reflected in successful Bollywood movies, and start-ups are emerging across a diverse set of sectors – and now contribute US$140 billion, or 15 percent, of total marketing capitalisation in India. Domestic consumption in India will grow by US$1 trillion over the next 10 years, which will double India’s current GDP. A lot of this growth is likely to be digitally mediated. He also talked about the model of frugal innovation, known as Jugaad innovation, where the entrepreneur starts with extreme constraints such as limited inputs and the need to work with a low-wealth customer base. It was this thinking that led to the creation of the Tata Nano car, which costs less than US$2000. Start-ups to emerge from India include Slideshare, inMobi and Zoho. Rajiv also talked about how many of the start-ups in India are social in nature, and designed to tackle India’s 40 per cent poverty rate. Developing markets can become laboratories for product innovation and export.

The final speaker before lunch was Bonnie Shaw, serial social innovator from iStrategyLabs in Washington DC. Shaw talked about collaborative applications such as Feastly, and also about the impact of putting computing power into our hands through smartphones. She discussed some of her company’s projects, including the Honest Cities campaign which melded online and offline interactions. Its Grandstand platform transforms online activities into offline interactions.

Live from X|Media|Lab Sydney – Ian Charles Stewart, Corvida Raven @corvida & Steve Baty @docbaty #XMediaLab

The second presentation at X|Media|Lab Sydney was delivered by venture investor Ian Charles Stewart, co-founder of Wired Magazine. Stewart talked about his early career as a photographer and how that led to the creation of Wired, and its foundation as a means for communicating cool ideas, rather than making money. Stewart discussed personal evolution to become an entrepreneur focused on doing things that are good and fun, including a project to help yak farmers in a remote part of China. His goal now is to bring wheelchairs to China, with a business that sells lightweight chairs in the West and uses the profits to supply the same chairs to children in China.

His final message was: “It’s possible to do cool things, it’s possible to have fun, and it’s possible to make money.”

The third presentation for the morning was from Corvida Raven (@corvida), founder of SheGeeks.net. Raven based her presentation on the concept of listening, and discussed her life as a blogger and speaker on topics related to social media, including her work with Chrysler and TED. Her cache is based on the alternative views that she can bring, and how she uses her blog to connect audiences to companies. Her current project is to create a place where others can bring their own voices from the edge and have them heard in the centre of society. When you build on connections, listening happens.

The final speaker in the first segment of X|Media|Lab Sydney was user experience specialist Steve Baty (@docbaty) who discussed the concept of interaction design. He started with the invention of the mouse, and its evolution through the age to the wheel-based interface on the first Apple iPod, such as how we have moved from asking people to fill in forms to the creation of online services that are much more about action and reaction becoming a much less conscious component of the interaction. We have now moved to behavioural models, rather than fixed interaction models, which means removing barriers. Baty also gave the example of bicycle hire schemes, and how different cities have tried different models, many of which have not worked – but those that have have done so as a result of small behavioural observations. Baty’s company Meld Studios has applied similar thinking to the design of superannuation forms.

His message was that to understand people, and we can’t make assumptions, and we need to get out of our chairs and interact with people where they are in order to understand who they are and what their motivations are.

 

Live from X Media Lab Sydney – Ken Hertz @kenhertz #XMediaLab

I’ve lost track of how many X | Media | Lab events I’ve now attended, and each has been remarkable for the quality of speakers that it has assembled. This year’s event in Sydney promises to be no different. After a Welcome to Country address by Gumaroy Newman and further welcome by NSW Deputy Premier Andrew Stoner MP the program kicked off with a presentation by Hollywood entertainment and new media lawyer Ken Hertz (@kenhertz), who is also a principal with memBrain.

Herrtz’ represents performers for a living, and his presentation titled Music, Marketing & Money – A Case for Curation started by posing the question of why Kodak – the 100 year old company that built the personal photographic industry and filed for bankruptcy protection earlier this year  – didn’t create Instagram, the company that was bought by Facebook for US$1 billion. He asked why, given the angst the digitization bought to the music industry, did no one feel the same way about Kodak? He discussed the decline of revenue in the recorded music industry, and amongst his observations were that selling music is not a business, but music is the best way to sell other stuff. The reason there was little outcry about the fate of Kodak was that while people will fall in love with recording artists, no one falls in love with a can of photographic film. He also criticised the music industry’s response to digitisastion, likening it to the way that the railway companies lobbied the US government to ban the internal combustion engine and curb public highway development funds 100 years ago. He also talked about artists are being uncovered in unusual ways, and how they are now using services such as KickStarter to fund their productions.

His final message – thanks to the Cloud, we now have access to all the music that we want, when we want. But in a friction-free world, friction is where the money is.

SMH – Health in the third dimension

3D virtual reality has long held promise as a new medium for interaction, but outside of the world of gaming few implementations have delivered strong results. That all appears set to change however as 3D makes a strong comeback in the world of simulated training, and Australian companies including VastPark and Simmersion are poised to cash in.

In this story for the Sydney Morning Herald’s IT Pro site I had a chance to look at two implementations of 3D in training in the health sector, and it seems that these are only the tip of the iceberg.

As broadband speeds improve and processing power gets cheaper, you can expect further developments that will see the virtual environment begin to more closely mirror the the real.

SMH – Bolder, coherent and cool: the new SAP?

I’ve been writing about the German enterprise software company SAP for as long as I’ve been writing articles about the technology industry – a good 18 years now. In that time SAP has built a reputation for being solid and reliable, but also somewhat clunky and inflexible.

Recently however the company seems to have learned a lesson from more nimble peers such as Amazon and Google, embracing a culture of innovation to drive it back into the game where some had written it off. And while SAP is still struggling to assert an offering in cloud computing, it is moving in the right direction.

In any technology revolution there are two kinds of winners – those who grow up in the new paradigm (sorry, gratuitous use of a buzzword there) and those that adapt to it. As we shift further to broad adoption of cloud computing, SAP is certainly striving to the latter kind of company, and you can read more about its transformation in this story for the Sydney Morning Herald’s IT Pro website.