Collaboraton Across Digital Industries Competition - Maurizio Pilu, TSB

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The Technology Strategy Board's (TSB) Maurizio Pilu's presentation covering the £18m Collaboration Across Digital Industries competition. …

The Technology Strategy Board's (TSB) Maurizio Pilu's presentation covering the £18m Collaboration Across Digital Industries competition.

The presentation gives an overview of the tensions the competition is addressing and sheds light on the scope and scale of proposals.

More information about this competition is available

This was originally presented at the Partnering for Innovation 2010 event in Glasgow.

More in: Business , Technology
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  • Our strategy focuses on three areas:The innovation climateChallenge-led innovationTechnology-inspired innovationWe intend to shift the focus of our funding over the next three years to increase our support for Challenge–Led innovation and driving the Innovation Climate.There is not enough time in this talk to cover the Innovation climate, but let me just say that it is a vital part of our the role in catalysing and connecting our partners, and fostering a national confidence in the power of innovation. Our main instruments to foster the innovation climate are the Knowledge Transfer Networks and Knowledge Partnerships.
  • Tension is a beautiful thing, but it’s bad for marketsISPs versus Creative IndustriesTalkTalk's Andrew Heaney labelled it ‘appalling’ in the press last weekSimon Gunter said BBC should contributeFCC/Comcast
  • As we know, demand forbandwitdth has incraesed beyond all expectations.The phenomenal rise of iplayer and other bandwidth intensive services has put pressure on the infrastructure, creating both challenges and opportunities.The UK is however ranking low internationally on headline broadband speed.Can the infrastructure satisfy all this demand?Source 1 – other TSB presentationSource 2: BBC, data for Nov 09Source 3 – OECD advertised speed of incumbents – this case UK
  • Another challenge, and a recent one is the raise of mobility as an essential component of our digital life.Our cellular infrastructure was not built for high data throughput and coping with future expected demand is a challenge.What is show here is the increase in both data and skype minutes on 3’s network.More generally, usage is expected to grow from 273Mbytes month to x40 times that by 2015.Can this demand be satisfied? What is the opportunity cost of not doing so?============Source:UK Data rates: ThreeUK Skype minutes: ThereSource for data: The Economist
  • And here a challenge of a different, softer kind – the challenge faced by our creative industry.No mistakes here – we are the best in the world – at least on a per-capital level. Nearly 2m people are employed by it, and its contribution to the economy is 6.4%.But technology and the internet has created tremendous opportunities, but also disrupting the industry with unprecended scale.Emerging countries are also increasingly competitive, witness the slipping of the UK games’ industry down world ranking in recent years.How can the UK capitalize on the phenomenal talent it has and can attract in this new brave digital world?========This slides from Sian, slightly changed by MP
  • The significant factor here is not the 20/30% share taken by the operator but that many app stores (Apple/Palm) are closed and the operator controls the app format/metadata/ecosystem.
  • Inclusion is a big challenge for every country.In the UK 10 millions adults never used the internetSaving that they each could achieve, together with better job prospectsPlus total benefit to the economy, £20bThe Digital Britain report stated that it is a government objective to start a “Digital Switchover” Figure on money saved etc: Martha Lane Fox’s report Economic Case for Digital InclusionIncome vs Internet use: Oxford Internet Institute (2009)Quote: Digital Britain report
  • Data deluge – big issuesKeeps going up and up, 50% a year.So much that does not even get stored anymore (growing 50% faster than storage)And getting more disaggregated, with information containers growing 50% faster than data itselfIt’s coming from all over the place Sensors, Media, Scientific Simulation=========Sources: Tesco: IDC, IBM


  • 1. Driving Innovation
    Collaboration Across Digital IndustriesDr. Maurizio Pilu, Technology Strategy BoardC.I. KTN and D.C. KTN Partnering for Innovation Event
    Glasgow, 8June 2010
  • 2. Technology Strategy Board
    UK’s Innovation Agency
    Set up to invest in business innovation
    We come from business (and the public sector)
    We work across business, universities and government
    We are investing £1bn over the current 3 years
  • 3. Trends shape markets
  • 4. Challenges & opportunitiesinform our strategies…
    For instance …..
    And several more strategies have been published….
  • 5. ... which underpin our investments
    £1 billioninvestment over 3 years
    The innovation climate
    Challenge-led innovation
  • 6. Global opportunities, UK benefit
    Address systemic issues & barriers, market failures, societal challenges
    Our mission is for the UK to benefit from emerging opportunities by:
    Accelerating adoption & demand
    Fostering development of UK capacity
    Influencing policy and public procurement
  • 7. Tensions
    (aka what’s the problem with Digital?)
    Photo: kaibara
  • 8. UK Digital “Pipes”
    12.5 GBytes per second
    70 million requests
    Will the UK digital infrastructure able to satify this growing demand?
  • 9. Mobility
    Mobile skype minutes on 3’s network
    UK mobile data on 3’s network
    Usage of mobile Data exploding
    Usage of Average monthly usage per user:
    2009: 273Mbytes
    2015 (forecast) = x40 times higher
  • 10. UK’s Creative Industry value chain
    • Employs 1.98 million ~ 6.78% of the working population
    • 11. Contributes6.4% GVA
    • 12. Internet and converging technologies are opening up new possibilities
    • 13. but disrupting value chains on an unprecedented scale
    • 14. E.g.66% of UK’s online advertising budget (£3b/y) flows out of the UK
    • 15. Legal music download growing at 25% year
    • 16. But 95% of it still illegal
    • 17. 6.5 million illegal file-sharers in the UK
    • 18. 70% of all digital music sales are througha proprietary platform (Itunes)
  • Mobile Applications
    $3bn, 2009
    $15bn, 2014
    Source: Gizmondo
  • 19. UK’s Digital Inclusion
    10 million adults never used the
    internet (4m socially excluded)
    Missing out on economic benefits
    £270-£500year in savings (£1b / year)
    and better chances to find jobs
    and better chances to find better jobs
    Estimated value of bringing everyone on line: £20b
    A challenge to the Government ambition to deliver public service digitally
    Digital Britain Report, 2009
  • 20. Information explosion
    [Even if] “The Economy is Bad, Data Does Dot Care” (IBM)
    Data: 281 billion Gigabytes, 45Gb per head
    Growth: >50% CAGR
    Disimpersonation: 50% of data now unrelated to individual action
    Disaggregation: info containers growing 50% faster than data
    Usage: Information growing 50% faster than storage
    Business: Tesco: 12 million purchases per week, 5b data items
    Generated by sensors: RFID Tags: 2005: 1.3b, 2009: 33 Billion
    Media: YouTube data = all world medical data imaging
    Scientific: World Climate Simulation Project: 1m datasets, 10 PBs
    Far exceeding our capacity of creating value from it
  • 21. Incumbent Business Models
    Struggling to Adapt …
    “Guardian Asks UK Gov't To Investigate Google News”
    “Pageviews do not pay salaries [Trinity]”
    “BT throttling IPlayer traffic”
    “Behavioral targeting: EU asks UK Government to take action to protect consumers' privacy”
    “70 separate licencing agreements to launch the iplayer”
    “Pirate Bay P2P Trial Begins In Sweden”
    “No incentives to invest in rural NGA”
    “IPlayer mobile: please use you Wi-FI connection” [BBC Iplayer]
    “Tiscali and BBC quarrel over IPlayer”
    “beeTV Raises $8 Million For Stunning Personal TV Recommendation System”
    From the news, about a year ago
  • 22. .. and fundamental market tensions are poorly addressed....
    If you build it (the network) they will come vs cost of building it
    What people are prepared to pay for bandwidth vs true cost
    Open standards vs Closed standards
    Wired vs wireless
    Content vs technology
    Data push vs info overload
    Network vs What goes over it
    Net Neutrality vs. Control
    ISP vs Content owners
    Old business models vs new reality
    Free content vs protecting rights
    Privacy vs targeted advertising
    Bandwidth vs inclusion
    Availability/usability vs security
  • 23. Our guiding vision ..
    For all participants in the Digital ecosystem
    to benefit fairly
    from the creation, distribution and consumption
    of digital content
  • 24. Strategic framework
    Economics of content and services
    Business models and tools to create value
    Economics of the network & distribution
    New models, sustainability, resolving tensions
    Access, protection & empowerment
    Security, privacy, trust and usability
    for the consumer
  • 25. Working together: part of the challenge, part of the solution
  • 26. Collaboration Across Digital Industries
    Photo: orinrobertjohn,
  • 27. Competition: Key facts
    Up to £10m investment for Collaboration Across Digital Industries
    Must address 2 or 3 of the key challenge areas together
    Part of a larger digital investment programme
    Business-led collaborative projects
    Application through a competitive process
    Watch out website:
  • 28. The 3 challenge areas
    Deploy new infrastructure cost-effectively
    Create economic and social benefit from increasing volumes of information
    Enable a sustainable marketplace for intellectual property
    Protect privacy and security of users
    Proposals must address two or three of the challenge areas together in order to be in scope
  • 29. Outcomes
    Support the development of a secure, trusted, inclusive, quality, experience for users
    Strengthen the case for investment in services based on digital content and information
    Strengthen the case for investment in hardware or software infrastructure
  • 30. Competition formats & dates
    Trials R&D
    Fast Track
  • 31. R&D vs Trials
    R&D“increases and integrates technology capabilities, and progresses in stages towards marketable products”
    Trials“investigate users’ responses to prototype products and extract market intelligence that can be used to build business confidence”
  • 32. Getting scope right is KEY
  • 33. What’s the challenge
    [Generalize your specific problem]
    Is it an important Digital challenge/tension?
    Does it credibly address 2/3 of Pipes, Poems, People?
    Who do you need to partner with?
    What the impact in the industry and can you make the case for it?
    How would you exploit it?
  • 34. Meeting the challenge
    Consortium / proposal
  • 35. Consortia & Collaboration: key actors
    Content and service providers
    Information providers
    Infrastructure/ISPs players looking for new business models
    Software middleware or distribution platforms
    Technology providers
    End users (Business, Consumer or public sectors)
    User studies, socio economics, HCI
    Trust, security, privacy,
  • 36. Strategic alignment
    Consortia with the following interests might find a good strategic fit in this initiative
    New services, applications, business models
    “Seedbed” and “Living Lab” approach to innovation
    Play a central role in high profile trials
  • 37. Testbed
    Digital competitionsSummer / Autumn2010
    Network Services Demonstrators
    £2mcloses 22/6/10
    Collaboration across Digital Industries
    Fasttrack closes 22/7/10 (CR&D 19/8/10)
    closes 21/10/10
    Trusted Services
    Fasttrack closes 10/09/10
    (CR&D 17/06/10)
  • 38. Network Services Demonstrators
    £2m to fund network services demonstrators
    National ‘hotspots’ for trials and innovation
    in business models, applications and services
    that centre on advanced network infrastructure and service enablers
    Making site available for other trials
  • 39. Questions?