2. 2
The Digital Economy has Evolved
Author Don Tapscott coined the term Digital Economy in his
1995 best seller:
The Digital Economy:
Promise and Peril in the Age of Networked Intelligence.
Tapscott focused on the impact that the internet was/would
have on how companies operated and innovated. This exciting
technology delivered tools and information that had previously
been out of reach for most of us and especially for enterprise
companies.
3. The Digital Economy has Delivered the Data
Devices play are driving the digital economy forward, the Internet of things (IoT)
will account for a significant part of this growth. Research firm Business Insider
predicts there will be 34 billion devices connected to the internet by 2020, up
from 10 billion in 2015. IoT devices will account for 24 billion, while traditional
computing devices (e.g. smartphones, tablets, smart watches, etc.) will comprise
10 billion.
4. 4
But its not just about the data
In the end data has its place but the innovation and action are derived
through the analytic insight and action taken.
Shawn’s 10 V’s of Big Data –
Vast, Volumes of Vigorously, Vexingly, Variable, Verbose yet Valuable,
Visualized high Velocity data from Silicon Valley.
5. 5• Gartner Symposium 2015 in Barcelona, Peter Sondergaard, senior vice president and head of research at the analyst house
"Data is inherently dumb, it doesn't actually do
anything unless you know how to use it and
how to act on it, because algorithms are where
the real value lies; algorithms define action,”
6. Companies are Purchasing Their Way to Success
Campbell Soup recently announced the formation of a 125
million dollar venture capital fund that allows the company to
search out and invest in innovation within its industry. Campbell
is looking for ways to fast track innovation and they are willing to
invest in companies to ride their agile innovation arc.
Ford recently led an investment of 253 million in Pivotal. Ford and
Pivotal have already been working together on a technology
partnership to build out the FordPass mobile application that is
deployed on Cloud Foundry a Pivotal technology. Clearly Ford and its
investment partner Microsoft see and advantage to be more closely
tied to analytic centric companies.
Tractor maker Deere & CO. agreed in Sept. 2017 to pay $305
million to buy Blue River Technology, a startup developing tractor-
towed robots that can analyze crops and apply fertilizer and
pesticides plant-by-plant.
7. Shifting From the Digital Economy to the Algorithm
Economy
Gartner predicts that by 2020 75% of large and midsize organizations will
compete using advanced analytics and proprietary algorithms. The
combination of technology that arrived with the digital economy and the
avalanche of data that followed and continues to grow and is the fuel for the next
economic shift, the Algorithm Economy.
Gartner Business Intelligence, Analytics & Information Management Summit Sydney 2016
9. 99
Creating Value with Insights
• IoT Sensor Driven
• Solar Powered
• Trash Compactor – 5X Capacity
• Wireless Communication and
Messaging
• Google Map Integration with Alerts
• Analytic Dashboards
• CLEAN Management Console
• 112,119,235 Gallons of Trash last 12
Months
• 5,985,727 Bin Collections Globally last
12 Months
Big Belly Reinvents
the Trash Can with IoT
10. 10
Business need
• Differentiate a commoditized business and
product to enhance margins and react to an
offshore competitor seizing market share.
Solution and results
• Aligning social sentiment with equipment
performance for higher quality
• Differentiated value proposition
• Higher margins
• Predictive performance and service
Data required for analysis
• Historical Equipment data - performance
• IoT sensor data – temperature, maintenance
• Real time social data- Sentiment data
analysis
• Geospatial data – Lat/Long position data
Creating Value with a Social
French Fryer and IoT
15. 1515
Concentric Analytics for IoT
• Execute Analytics at the Edge
• Agile Flexibility
• Simple to Comprehensive
• Diverse Data Landscapes
• Mashing up data and leveraging
API’s
17. 17
• Company A – set pricing algorithm to maintain
1.270589 times that of their closest competitor.
• Company B on the other hand was using a similar
algorithm but had theirs set to maintain a 0.9983
price as compared to Company A.
• The book "The Making of a Fly: The Genetics of
Animal Design." Was normally priced around
$70.00 In the end the algorithms hopscotched the
price all the way to 23.5 Million dollars.
• Brought the price back down to $106.23 and a
$134.97 respectively. The biggest impact here
was to the area of trust and how it reflected on
the Amazon brand.
23.5 Million Dollar Book