Big Data revolution is the latest of a series of historical technology shifts that will support institutions and conduct of trade. Trade increases prosperity and, with global payments processing being a key component of global trading operations, the Big Data revolution will transform global payments industry and the global economy

1. The age of information has only begun. Industrial boundaries and
economic structure in 2025 will bear little resemblance to the
economic ecosystem of 2014. These are big challenges and big
opportunities for cities and states that are trade portals .
How will Georgia’s fintech and payments processing communities
respond?
School of Economics
Making Sense of Dollars and
Cents:
Strategic Boundaries, Big Data and Global Trends
in the Economics of Payment Processing
Dr. Christine Ries
Professor

3. People
Trade Finance
Data
The
Global
Economy
ASupersystem
Connecting
People, Data,
Trade and
Finance

4. Systems Thinking
Connected
Interactive – Feedback
Symbiotic - synergistic
Antagonistic
Pathways – chains – multipliers – ripples
Exponential
Mitigating – stabilizing - sustainable
Systems Thinking + BIG DATA
=
Fourth Industrial Revolution (at least)

5. Unimaginable Economic Growth and Prosperity
“All prosperity comes from…….”
People connect to people (find each other)
Exchange goods for goods
Goods for money for goods
Goods for credit for money for credit for goods
Subsystems
Goods - trade
People
Money/Payments/Credit
Data

6. People
Trade Finance
Data
The Global
Economy
ASupersystem
Connecting
People, Data,
Trade and
Finance

7. People
Trade Finance
Data
The Global
Economy
ASupersystem
Connecting
People, Data,
Trade and
Finance

8. Exchange BASICS – Specialization, Exchange, and Value Creation
2 + 2 = 5 Similar Producers
2 + 2 = 7 Different Producers
2 + 2 = 20 Venus and Mars
(Developed and Emerging Market Countries)
Trade transactions $26 trillion today; $85 trillion in 2025
Value created? Similar Producers of Venus and Mars?
Emerging Markets
Urbanization

9. MARKETS
Putting Exchange, Specialization and
Value Creation on Steroids
Potential Buyers Potential Sellers

10. MARKETS
Putting Exchange, Specialization and
Value Creation on Steroids
Potential Buyer Potential Seller
Information Costs – finding each other
Economies of Scale; Scale Up; Platform;
Centralization

11. MARKETS
Putting Exchange, Specialization and
Value Creation on Steroids
Potential Buyer Potential Seller
Information Costs – finding each other
Transportation Costs

13. MARKETS
Putting Exchange, Specialization and
Value Creation on Steroids
Potential Buyer Potential Seller
Information Costs – finding each other
Transportation Costs
Economies of Scale; scalable; platform;
centralization

14. MARKETS
Putting Exchange, Specialization and
Value Creation on Steroids
Potential Buyer Potential Seller
Information Costs – finding each other
Transportation Costs
Transactions Costs

15. People
Trade Finance
Data
The Global
Economy
ASupersystem
Connecting
People, Data,
Trade and
Finance

16. What is BIG DATA?
Lots of data?
Data that isn’t ‘data’ - datafication
Connecting or merging data sets?
Massive computational capabilities
Unstructured Data

17. What is BIG DATA?
LOTS of
Unstructured Data
Extract Information
(Data scientists)
Advancing Science
(patterns proven sustainable)

18. BIG DATA and Production Efficiencies
Deliver Information ‘News’ in custom form
to high-value decision makers
Enterprise Systems
Enterprise Resource Planning
Enterprise Risk Management

19. People
Trade Finance
Data
The Global
Economy
ASupersystem
Connecting
People, Data,
Trade and
Finance

20. People
Trade Finance
Data
The Global
Economy
ASupersystem
Connecting
People, Data,
Trade and
Finance

21. Economics of Scale Come From Platforms
Capital; Scale up
Challenge!

22. 22
Healthcare
SoS Case
Study [Lane
2009]
Implemented
Using SysML
Building
Blocks: DNA
Signature
View
Healthcare SoS Effort Model (a top-level SoS)
Size Drivers of
SoS Capability Reqs
Cost Drivers of
SoS Capability Reqs
Pharmacy System
Effort Model
(a constituent system)
Healthcare IT Network
Effort Model
(an infrastructure component;
a primitive system; )
Full model

23. Economics of Scale Come From Platforms
Capital; Scale up
Opportunity!!

26. Economics of Scale Come From Platforms
Capital; Scale up
How will a complete trading platform emerge?
What will it eventually look like?
Who will build the platform?
Who will own the platform?
Who will control the platform?

27. Economics of Scale Come From Platforms
Capital; Scale up
Opportunity!!
Private Enterprise Sector
Government/Public Sector
Payments Processing Sector with ‘Enhancements’?
Georgia??