Disruptive Innovation Shaping Qatar s Digital Future. The Euromoney Qatar Conference 9-10 Dec 2015

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1 Disruptive Innovation Shaping Qatar s Digital Future The Euromoney Qatar Conference 9-10 Dec 2015

2 Digital Qatar Background While Qatar has made great strides in growing digital industries there are ways this growth can be accelerated to support diversification of the economy Situation Qatar has been developing and enabling its digital capabilities >500 Million USD National high speed broadband investment* 4 Smart City Initiatives, for example Lusail and Msheireb Ranked 23 rd Globally On the Network Readiness Index** Strategic Questions in Scope key questions need to be answered to accelerate the impact of digital capabilities on economic growth.. How can we build upon existing ICT investment and market momentum to catalyse Digital growth? E-Government Large projects to enable the digital government services over the last five years Doubled GDP Contribution between 2010 and 2013*** **Global Information & Technology Report 2014 ***Qatar Information Exchange 2

3 Digital Trend Analysis Technology Innovation Seven foundational technology innovations provide longevity and agility to digital ecosystem development Technology innovation Social and business model innovation Industry disruption Foundational technology innovations are: Networking and Communications Sensing Infinite Computing AI and Machine Learning Exponential: Having in price and doubling in power every months Building blocks: which converge to underpin digital trends today (e.g. IoT) and tomorrow Future proof: Re-shaping industries and markets over the next 10+ years Advanced Robotics 3D Printing Bioinformatics and Synthetic Biology 3

4 Digital Trend Analysis Social & Business Innovation Social and business model innovations are combining with technology innovation to create entirely new business opportunities Technology innovation Social and business model innovation Industry disruption Social and business model innovations are: Open platform ecosystems Outcome economy Crowdsourcing Crowdfunding Sharing economy Providing a platform to engage, connect and influence more people than ever before Creating more incentives for openness and ecosystem collaboration Fundamentally changing the way industries deliver services Creating new ways to monetize services Expanding access to talent, capital and solutions * Note: Indicative, not exhaustive 4

5 Digital Trend Analysis Industry Disruption The pace and magnitude of technology, social and business innovation is disrupting established ways of creating value, interacting and doing business Technology innovation Social and business model innovation Industry disruption The pace of change Fortune 500 tenure years years 2015 < 18 years The Kodak moment Year: 1996 Employees: 140,000 Market Cap: $28 bn Year: 2012 Employees: 17,000 Market Cap: Bankrupt Founded: 2010 Sold: 2012 Employees: 13 Market Cap : $1bn Industry disruption: New digital first market entrants displacing incumbent providers A blurring of traditionally well defined industry boundaries in new digitally contestable markets Shark-fin business lifecycles with rapid scaling and decline Source: Accenture Technology Vision

6 Digital Trend Analysis Landscape Foundational technologies are the building blocks which underpin the digital mega trends of today and tomorrow, providing on-going ecosystem agility Current Focus Trends Future Focus Trends Internet of Things Mobility Big Data Cyber security Augmented Workers Decentralised Production Biological OS Networking and Communications Sensing Infinite Computing AI and Machine Learning Advanced Robotics 3D Printing Bioinformatics and Synthetic Biology Foundational technology innovations that underpin a future-proof digital ecosystem 6

7 Disruptive Industry Trends The key intersections between technology and industry where the greatest opportunities for digital transformation lie Foundational Technology Innovations 7

8 Disruptive Industry Trends Financial Services Robot staffing in Japanese bank Artificial intelligence in supporting trading decisions Social media listening Real time market risk management Dark web scanning and machine learning helping protect from cyber attacks Automated investing Social media market tracking Halifax is trialling using heart beat sensors to secure online banking Advanced cyber security Advanced risk management Robotic customer assistance Bank of Things Mobile wallet Payment revolution Cryptocurrencies Digital peer-topeer currencies Bank as a Platform Banking commoditisation Open source communities Crowd- Funding ventures Free stock broking Social investment network Crowd funding investments Open bank APIs to facilitate ecosystem growth Implications for Qatar Establishing a nationwide mobile payment capability has potential for a significant multiplier effect on other industries (e.g. retail) Technology innovation could enable quick and low cost solutions to satisfy a growing demand in the region for online banking services Crowd-funding offers significant opportunity to bridge the missing middle in financing but has significant challenges to overcome to fit within the local cultural context Primary technology innovation Example social and business model innovations Industry digital trends Example application 8

9 WEF have identified six important themes that cut across functions and touch multiple clusters of innovation Streamlined Infrastructure- Emerging platforms provide new ways to aggregate and analyse information, improving connectivity and reducing the marginal costs of accessing information and participating in financial activities Automation of High-Value Activities - Many emerging innovations leverage advanced algorithms and computing power to automate activities that were once highly manual, allowing them to offer cheaper, faster, and more scalable alternative products and services Reduced Intermediation - Emerging innovations are streamlining or eliminating traditional institutions role as intermediaries, and offering lower prices and / or higher returns to customers The Strategic Role of Data - Emerging innovations allow financial institutions to access new data sets, such as social data, that enable new ways of understanding customers and markets Niche, Specialised Products - New entrants with deep specialisations are creating highly targeted products and services, increasing competition in these areas and creating pressure for the traditional end-to-end financial services model to unbundle Customer Empowerment - Emerging innovations give customers access to previously restricted assets and services, more visibility into products, and control over choices, as well as the tools to become prosumers The Future of Financial Services, WEF June