TIETOVARANNOT MURROKSEN MAHDOLLISTAJANA Reijo Paajanen CEO Tieto ja viestintäteollisuuden tutkimus TIVIT Oy

Transcription

1 TIETOVARANNOT MURROKSEN MAHDOLLISTAJANA Reijo Paajanen CEO Tieto ja viestintäteollisuuden tutkimus TIVIT Oy

2 SHOK* NETWORK IN FINLAND 2010 Research institutes, Universities Industry Energy and environment (CLEEN Oy) Built environment (RYM SHOK Oy) National funding Forest cluster (Forestcluster Ltd ) Metal products and mechanical engineering (FIMECC Oy) Information and communication industry and services (TIVIT Oy) Health and well being (SALWE Oy) Shareholders Center for Science, Technology and Innovation in the area of ICT: Established in 2008 Owned by industry, universities and smaller Finnish innovation network players * SHOK = Center for Science, Technology and Innovation 2

3 MISSION TIVIT creates ICT based business ecosystems to enable new global growth business for TIVIT s owners and partners Services include: Cooperative national and international research programs to create new technological and business innovations Facilitation of business concept creation to explore new business opportunities in Finland but aiming to global markets Success factors: Focusing on selected breakthrough opportunities and results Continuous benchmarking and dynamic adjustment of activities Fast flow of results from research to business utilization based on the latest innovation theories and models inside programs Core theme : Enabling real time society

4 New digital paradigm! RESEARCH PORTFOLIO EVOLUTION Cooperative Traffic Next Media Cooperative Traffic Next Media Next Media Services in Real Time Economy Flexible Services Flexible Services Cooperative Traffic Flexible Services Future Internet Future Internet Future Internet Future Internet From Data to Intelligence Cloud Software Cloud Software Cloud Software Device and Interoperability Device and Interoperability Device and Interoperability Device and Interoperability

5 FINNISH ICT COMPETENCE BUILDING DATA RESERVES Next Media Expanding competence base Future Internet Services in Real Time Economy From Data to Intelligence Cloud Software Leap frog to new paradigms Device and Interoperability

6 FINNISH ICT COMPETENCE BUILDING ICT Business DATA RESERVES Next Media Expanding competence base Future Internet Services in Real Time Economy From Data to Intelligence Cloud Software Leap frog to new paradigms Device and Interoperability 2009 Basic competences

7 FINNISH ICT COMPETENCE BUILDING ICT Business DATA RESERVES Next Media Expanding competence base Future Internet Services in Real Time Economy From Data to Intelligence Cloud Software Leap frog to new paradigms Device and Interoperability 2009 Basic competences

8 TIVIT ENABLING THE ICT BASED GROWTH Next Media Services in Real Time Economy Future Internet From Data to Intelligence Cloud Software ICT leadership Device and Interoperability Digital service business based on data reserves!

9 DATA DRIVING THE INDUSTRIAL CHANGE 9

10 EXPANSION OF DIGITAL DATA >>> CREATION OF HUGE DATA RESERVES

11 The Zettabyte Scale 1 Petabyte 1,000 Terabytes or 250,000 DVDs 1 Exabyte 1,000 Petabytes or 250 million DVDs 1 Zettabyte 1,000 Exabytes or 250 billion DVDs 1 Yottabyte 1,000 Zettabytes or 250 trillion DVDs 200 Terabytes A digital library of all books ever written in any language 100 Petabytes The amount of data produced in a single minute by the new particle collider at CERN 5 Exabytes A transcript of all words ever spoken 100 Exabytes A video recording of the all the meetings that took place last year across the world 150 Exabytes The amount of data that has traversed the Internet since its creation 175 Exabytes The amount of data that will cross the Internet in 2010 alone 66 Zettabytes The amount of visual information conveyed from the eyes to the brain of the entire human race in a single year 20 Yottabytes A holographic snapshot of the earth s surface Source: Cisco Source: Visual Cisco Networking Visual Networking Index Forecast, Index Forecast,

12 The World is Getting Smarter As we build better service systems SSME* educates people about complex systems that serve customers about a diverse ecology of types of service systems that all interact Smart traffic systems Intelligent oil field technologies Smart food systems Smart healthcare Smart energy grids Smart retail Data is the basement for every smart and green industry! Smart water management Smart supply chains Global University Programs Smart countries Smart weather *Service Science, Management and Engineering Smart regions Smart cities 2009 IBM Corporation

13 We're entering a new world in which data may be more important than software. Tim O'Reilly Tim O'Reilly is the founder of O'Reilly Media and a supporter of the free software and open source movements

14 GROWTH OF COMPUTING POWER The New Era of Tera scale Computing Source: Intel

15 Case: Microsoft Mega Datacenter Dublin (Green Field) Microsoft Dublin Part of Microsoft s Azure Cloud infrastructure Capacity in the beginning 5,5MW (n m2) Can be expanded to 22,2MW (n m2) PUE* value 1.25 Air cooling Employment load during the building phase: 600 man years * Power usage effectiveness (PUE) is a metric used to determine the energy efficiency of a data center.

16 CLOUD COMPUTING Cloud computing is Internet based computing, whereby shared resources, software, and information are provided to computers and other devices on demand, like the electricity grid

17 HORIZONTALIZATION STARTED 100 YEARS AGO What is happening to computing today is a revolution, the biggest upheaval since the invention of the PC in the 1970s. But it is not without precedent. It bears a close resemblance to what happened to mechanical power 100 years ago. Until the end of the 19th century, businesses had to run their own power generating facilities, producing all the energy required to run their machinery. Like data processing today, power generation was assumed to be an intrinsic part of doing business. But with the invention of the alternating current electric grid at the turn of the century, that assumption was overturned. Suddenly, manufacturers did not have to be in the power generation business. They could run machines with electric current generated in distant power plants by big utilities and fed to their factories over a network of wires. With remarkable speed, the new utilities took over the supply of industrial power. Story of private power stations was over. Now the very same is happening in computing! => On demand computing! One analyst estimates that Google can carry out a computing task for one tenth of what it costs a typical company. Industry horizontalization continues! Source: FT A revolution is taking shape By Nicholas Carr, Published: January :10 17

18 HORIZONTALIZATION ILLUSTRATION Value chain approach Value net approach Cloud computing Computing network Power grid Power grid

19 SPEED OF DIGITAL BUSINESS

20 SPEED OF DIGITAL BUSINESS Facebook says future is chat not November 15, :45pm by Chris Nuttall Facebook founder Mark Zuckerberg said the future of messaging was online conversations not , as he unveiled an upgraded browser based and messaging service at a news conference in San Francisco on Monday. With more than half a billion members, such a service could turn Facebook into a serious webmail challenger to Microsoft, Yahoo and Google overnight. Source: gets webmail live newsconference/

21 BUSINESS TRANSITION Physical business: R&D phase > production facility > logistics > distribution network > customer service > maintenance New business/product creation requires changes in every part of the chain This is extremely slow, complex and expensive process Digital business: R&D phase > run the global service in the cloud Global coverage over night, expense depends on the real usage >>> Digital business performance is overwhelming >>> Mega n business transition

22 Mega n business transition illustration Physical business Digital business R&D Production Logistics Distribution ICT ICT ICT Customer service Maintenance ICT ICT ICT Computers have been used to help and to increase the productivity in the physical business Digital/Data value chain New paradigm: 1. Design first the digital business 2. Build necessary physical elements

23 BUSINESS ENVIRONMENT MEGATRENDS Sustainability and new regulations ( e.g. waste mgt, energy) Scarce natural resources (oil & energy, raw materials, water ) Population growth & urbanization Greater consumer awareness and knowledge, increased product and service customization, increased supply chain insight, increased customer involvement in product/service development Digitalization Internet from year 2002 to year 2012 : 75 times larger Smart devices from 60 billion /2010 to 200 billion / 2020 => Embedded digitalization Services are accessible any time, anywhere and by anyone Global flow of goods, capital and information ( McKinsey) From production era to service and solution society and to information and knowledge society SUMMARY The growth in physical business is getting harder The growth in digital business is getting easier and is accelerating

24 Service Worlds: Economics and Social Science Global change in what people do and how value is created Ten Nations Total 50% of World Wide Labor A = Agriculture, G = Goods, S = Services PC Age Nation Labor % A % G % S % Service Growth China % India % U.S % Indonesia % Brazil % Russia % Japan % US Employment History & Trends United States (A) Agriculture: Value from harvesting nature (G) Goods: Value from making products (S) Services: Value from enhancing the capabilities of things (customizing, distributing, etc.) and interactions between things Nigeria % Bangladesh % Germany % International Labor Organization Digital services can be operated globally from any corner of the world The largest labor force migration in human history is underway, driven by global communications, business and technology growth, urbanization and low cost labor Service Research and Innovation Service Science Management Engineering and Design 2009 IBM Corporation 2005 IBM Corporation

25 DOMINATING TRENDS AND POTENTIAL DISCONTINUITIES TRENDS DISCONTINUITIES 2 Growth 4 Horizontal layers 1 Building verticals Service Access Digital Photos Books Payments 3 Silos integrating

26 LINKED OPEN DATA

27 SMART CITY is a systemic change! Guidelines Service computing part of the energy system Focus on digital services outsource physical operations Horizontal solutions only sustainable way Simplify use powerful volume solutions e.g.: Money do not build city currency based systems GPS do not build physical gateways Certificate profession, location, user rights Few opportunity examples New digital library for data reserve age >>> one city library for every city in Finland Digital school Certification center for every city service horizontalization of access City user interface virtual mainly + physical convenience/certification Broadband social interaction Powered by data reserves and digital services!

28 Define city transition towards digital city! Physical business Digital business R&D Production Logistics Distribution Customer service Value elements of the old physical city Maintenance ICT ICT ICT ICT ICT ICT Computers have been used to help and to increase the productivity in the physical business Digital city value chain New paradigm: 1. Design first the digital city 2. Build only the necessary physical elements

29 TIVIT ENABLING THE ICT BASED GROWTH