Is the current economic and financial paradigm being transformed into something new? If so, what are the implications?

1. The Emerging Shape of the
Global Economy –
and what it means for SIX and for you
Prabhu Guptara
prabhusguptara@gmail.com

3. Looking at the past, present and possible futures:
three different standpoints:
• Technology
• Producer
• Consumer

4. The Generations of Technology
(moving from “craft” technology)
•Automate existing processes

5. The Generations of Modern Technology
• Automates existing processes (up to Artificial Intelligence)
•Builds bridges between parts of a
corporation that had little to do with
each other

6. The Generations of Modern Technology
• Automates existing processes
• Builds bridges between parts of a corporation that had little to do
with each other
•Cancels traditional divisions and
creates entirely new ways in which
you can organise a company

7. The Generations of Modern Technology
• Automates existing processes
• Builds bridges between parts of a corporation that had little to
do with each other
• Cancels traditional divisions and creates entirely new divisions
in the way you can organise a company
•Destroys the walls between an
organisation’s internal divisions

8. The Generations of Modern Technology
• Automates existing processes
• Builds bridges between parts of a corporation that had little to do with each
other
• Cancels traditional divisions and creates entirely new divisions in the way you can
organise a company
• Destroys the walls between an organisation’s internal divisions
•Eliminates boundaries between
industries, time & space

9. The Generations of Modern Technology
• Automates existing processes
• Builds bridges between parts of a corporation that had
little to do with each other
• Cancels traditional divisions and creates entirely new
divisions in the way you can organise a company
• Destroys the walls between an organisation’s internal
divisions
• Eliminates boundaries between industries, time & space
• Fosters the illusion of OMNISCIENCE
(Google Glasses, Big Data, Quantum
Computing…)

10. The Generations of Modern Technology
• Automates existing processes
• Builds bridges between parts of a corporation that had little to do with each other
• Cancels traditional divisions and creates entirely new divisions in the way you can organise a
company
• Destroys the walls between an organisation’s internal divisions
• Eliminates boundaries between industries, time & space
• Fosters the illusion of omniscience
•Generating the Internet’s peer-to-peer
economic & social practices,
just extending FROM music, publishing etc.
TO energy, logistics, and manufacturing

11. The Generations of Modern Technology
• Automates existing processes
• Builds bridges between parts of a corporation that had little to do with each other
• Cancels traditional divisions and creates entirely new divisions in the way you can organise a
company
• Destroys the walls between an organisation’s internal divisions
• Eliminates boundaries between industries, time & space
• Fosters the illusion of omniscience
• Generating the Internet’s peer-to-peer economic & social practices, just extending FROM
music, publishing etc. TO energy, logistics, and material fabrication
(a Collaborative Commons
displacing industrial capitalism?)

12. Three different standpoints:
•Technology
•Producer
•Consumer

13. The *Producer’s* Perspective/
Production of goods/ services
•Artisanal: individual producer dependent on
friends/family for all necessary support:
purchasing, production, sales, delivery….

14. Production of goods/ services
• Artisanal:
•Industrial: based on ownership of
capital, land, and other resources -
including “loyal full-time employees”
– for MASS MANUFACTURE of
standardised goods

15. Production of goods/ services
• Artisanal:
• Industrial: mass manufacture
•“Manufacturing for one” ( or “custom-
manufacturing”): customers interface with existing
production system to “assemble” a product or
service from pre-existing choices

16. Production of goods/ services
• Artisanal
• Industrial
• “Manufacturing for one” ( or “custom-manufactured”)
•All the above are dependent
on the model:
production-sales

17. Production of goods/ services
• Artisanal
• Industrial
• “Manufacturing for one” ( or “custom-manufactured”)
• All dependent on the model: production-sales
•Assumption: knowledge, expertise, technique
reside with the producer

18. Three different standpoints:
•Technology
•Company
•Consumer

19. The *consumer* perspective
•End of WWII reveals a world of scarcity:
the problem was simply:
• not enough product!!!

21. Meanwhile, customers… - 1
• From around 2000 AD:
•Education and ever more user-friendly
technology helps the public to become
increasingly knowledgeable, experienced
and savvy

22. • From around 2000 AD:
• Education and technology-user-friendliness lead to increasingly
knowledgeable, experienced and savvy “customers”
•Falling technological, regulatory and
financial barriers to entry mean that
these customers may just organise
things for themselves!
Meanwhile, customers… -2

23. • From around 2000 AD:
• Education and technology-user-friendliness lead to increasingly
knowledgeable, experienced and savvy “customers”
• Falling technological, regulatory and financial barriers to entry mean that
these customers may just produce things for themselves…
•…and could even become competitors!
Meanwhile, customers… -3

24. Meanwhile, customers… - 4
• From around 2000 AD:
• Education and technology-user-friendliness lead to increasingly
knowledgeable, experienced and savvy “customers”
• Falling technological, regulatory and financial barriers to entry mean that
these customers may just produce things for themselves – and even
become competitors!
•Companies began to respond
by re-configuring their entire
business model

25. Meanwhile, customers… - 5
• From around 2000 AD:
• Education and technology-user-friendliness lead to increasingly knowledgeable, experienced and savvy
“customers”
• Falling technological, regulatory and financial barriers to entry mean that these customers may just produce
things for themselves – and even become competitors!
• Companies began to respond by re-configuring their entire
structure:
•Engaging in dialogue with customers
•Creating/mobilising customer-communities
•Co-creating the content of their experience

26. In the world of information/content:
Blogs, discussion forums, posts,
chats, tweets, podcasting, pins,
digital images, video files,
audio files, etc.
created by users

27. But what are the implications of “open access”?
• Cost-free access to content, e.g. in peer-reviewed/academic internet
journals … but which are, in print, (still!) extremely expensive
• Their subscription prices have risen at triple the rate of inflation for
the past three decades (Harvard Magazine, issue 1, 2015)
• In 2014, the most expensive journals subscribed by Harvard libraries
were
• the monthly Journal of Comparative Neurology (John Wiley) at $28,787
• and
• the weekly Science (American Association for the Advancement of Science) at
$26,675

28. Open Content - examples
“Open Textbooks”: easily updatable, can be modified
according to a teacher's needs

29. Open Collaboration
• e.g. Wikipedia

30. In the world of Information Technology
itself
OPEN-SOURCE SOFTWARE .
• users have full access to the source code, e.g. for the purpose of
study
• Can make their own changes and improvements to the source code,
and
• Distribute the software to anyone and for any purpose!

31. We have “user-innovation” even in manufacturing

32. Nike has given customers online tools to
design their own sneakers

33. Open Advertisement/ PR/ Marketing

40. Implications for SIX
•Strategy: Niche?, Global?, Regional?, National?

41. Implications for SIX
• Strategy: Niche?, Global?, Regional?, National?
•So, the current Challenges:
• Lowering costs
• expanding the product and service offering
• extending data and technology leadership
• Increasing geographic range/ acquiring new customer groups

42. Implications for SIX
• Strategy: Global?, regional?, national?, niche?
• Current Challenges:
• expanding the product and service offering
• extending data and technology leadership
• Increasing geographic range/ acquiring new customer groups
•Return of merger mania/ hostile takeovers?: Due to
oversupply of exchanges in the world and/or greater
availability of capital for the purpose?
• What if value chains are reconfigured by e.g. FX being put on
exchanges?

43. Implications for SIX
• Strategy: Global?, regional?, national?, niche?
• Current Challenges:
• expanding the product and service offering
• extending data and technology leadership
• Increasing geographic range/ acquiring new customer groups
• Return of merger mania/ hostile takeovers?: Due to oversupply of exchanges in the world and/or greater availability of
capital for the purpose? FX on exchanges?
•Direct financing?: New developments (bitcoins?,
abolition of IP legislation?, loss of licence to operate
for companies?…) may mean an entirely new global
financial architecture?
• ……..

44. Implications for you, professionally:
•Improve our skills…
•Upgrade our skills…
•Take on entirely new skill-sets/ responsibilities…
….AND we need to be T-shaped!!!

45. For us personally, the most important questions are
much more fundamental:
•What is the purpose for which my life was created?
•What sort of character ought I to develop – and to
encourage in others?
•What is a good lifestyle – what should determine my
choices?
•What is a good society - and how to nurture it?