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 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.

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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
  • Collaboraton Across Digital Industries Competition - Maurizio Pilu, TSB

    1. 1. Driving Innovation<br />Collaboration Across Digital IndustriesDr. Maurizio Pilu, Technology Strategy BoardC.I. KTN and D.C. KTN Partnering for Innovation Event<br />Glasgow, 8June 2010<br />
    2. 2. Technology Strategy Board<br />UK’s Innovation Agency<br />Set up to invest in business innovation<br />We come from business (and the public sector)<br />We work across business, universities and government<br />We are investing £1bn over the current 3 years<br />
    3. 3. Trends shape markets<br />
    4. 4. Challenges & opportunitiesinform our strategies…<br />For instance ….. <br />And several more strategies have been published….<br />
    5. 5. ... which underpin our investments<br />£1 billioninvestment over 3 years<br />2008-9<br />2010-11<br />The innovation climate<br />Challenge-led innovation<br />Technology-inspiredinnovation<br />
    6. 6. Global opportunities, UK benefit<br />Address systemic issues & barriers, market failures, societal challenges<br />Our mission is for the UK to benefit from emerging opportunities by:<br />Accelerating adoption & demand<br />Fostering development of UK capacity<br />Influencing policy and public procurement<br />
    7. 7. Tensions <br />(aka what’s the problem with Digital?)<br />Photo: kaibara<br />
    8. 8. UK Digital “Pipes”<br /> 7PB/month<br />12.5 GBytes per second<br />70 million requests<br />Will the UK digital infrastructure able to satify this growing demand?<br />
    9. 9. Mobility<br />Mobile skype minutes on 3’s network<br />UK mobile data on 3’s network<br />Usage of mobile Data exploding<br />Usage of Average monthly usage per user:<br /> 2009: 273Mbytes <br /> 2015 (forecast) = x40 times higher<br />
    10. 10. UK’s Creative Industry value chain<br /><ul><li>Employs 1.98 million ~ 6.78% of the working population
    11. 11. Contributes6.4% GVA
    12. 12. Internet and converging technologies are opening up new possibilities
    13. 13. but disrupting value chains on an unprecedented scale
    14. 14. E.g.66% of UK’s online advertising budget (£3b/y) flows out of the UK
    15. 15. Legal music download growing at 25% year
    16. 16. But 95% of it still illegal
    17. 17. 6.5 million illegal file-sharers in the UK
    18. 18. 70% of all digital music sales are througha proprietary platform (Itunes)</li></li></ul><li>Mobile Applications<br />$3bn, 2009<br />$15bn, 2014<br />Source: Gizmondo<br />
    19. 19. UK’s Digital Inclusion<br />10 million adults never used the<br /> internet (4m socially excluded)<br />Missing out on economic benefits<br /> £270-£500year in savings (£1b / year)<br />and better chances to find jobs<br />and better chances to find better jobs<br />Estimated value of bringing everyone on line: £20b<br />A challenge to the Government ambition to deliver public service digitally<br />Digital Britain Report, 2009<br />
    20. 20. Information explosion<br />[Even if] “The Economy is Bad, Data Does Dot Care” (IBM)<br />Data: 281 billion Gigabytes, 45Gb per head<br />Growth: >50% CAGR <br />Disimpersonation: 50% of data now unrelated to individual action<br />Disaggregation: info containers growing 50% faster than data<br />Usage: Information growing 50% faster than storage<br />Examples:<br /> Business: Tesco: 12 million purchases per week, 5b data items<br /> Generated by sensors: RFID Tags: 2005: 1.3b, 2009: 33 Billion<br /> Media: YouTube data = all world medical data imaging<br /> Scientific: World Climate Simulation Project: 1m datasets, 10 PBs<br />Far exceeding our capacity of creating value from it<br />
    21. 21. Incumbent Business Models <br />Struggling to Adapt …<br />“Guardian Asks UK Gov't To Investigate Google News” <br />“Pageviews do not pay salaries [Trinity]”<br /> “BT throttling IPlayer traffic” <br />“Behavioral targeting: EU asks UK Government to take action to protect consumers' privacy”<br />“70 separate licencing agreements to launch the iplayer”<br />“Pirate Bay P2P Trial Begins In Sweden” <br />“No incentives to invest in rural NGA”<br />“IPlayer mobile: please use you Wi-FI connection” [BBC Iplayer]<br />“Tiscali and BBC quarrel over IPlayer”<br />“beeTV Raises $8 Million For Stunning Personal TV Recommendation System” <br />From the news, about a year ago <br />
    22. 22. .. and fundamental market tensions are poorly addressed....<br />If you build it (the network) they will come vs cost of building it<br />What people are prepared to pay for bandwidth vs true cost<br />Open standards vs Closed standards<br />Wired vs wireless<br />Content vs technology<br />Data push vs info overload<br />Network vs What goes over it<br />Net Neutrality vs. Control<br />ISP vs Content owners <br />Old business models vs new reality<br />Free content vs protecting rights<br />Privacy vs targeted advertising<br />Bandwidth vs inclusion<br />Availability/usability vs security<br />
    23. 23. Our guiding vision ..<br />For all participants in the Digital ecosystem<br />to benefit fairly<br />from the creation, distribution and consumption <br />of digital content<br />
    24. 24. Strategic framework <br />Economics of content and services<br />Business models and tools to create value<br />Economics of the network & distribution<br />New models, sustainability, resolving tensions<br />Access, protection & empowerment<br />Security, privacy, trust and usability <br />for the consumer<br />
    25. 25. Working together: part of the challenge, part of the solution <br />
    26. 26. Collaboration Across Digital Industries<br />Photo: orinrobertjohn,<br />
    27. 27. Competition: Key facts<br />Up to £10m investment for Collaboration Across Digital Industries<br />Must address 2 or 3 of the key challenge areas together<br />Part of a larger digital investment programme<br />Business-led collaborative projects<br />Application through a competitive process<br />Watch out website:<br />
    28. 28. The 3 challenge areas<br />Deploy new infrastructure cost-effectively<br />Create economic and social benefit from increasing volumes of information<br />PIPES<br />POEMS<br />PRIORITY<br />Enable a sustainable marketplace for intellectual property<br />Protect privacy and security of users<br />PEOPLE<br />Proposals must address two or three of the challenge areas together in order to be in scope<br />
    29. 29. Outcomes<br />Support the development of a secure, trusted, inclusive, quality, experience for users<br />Strengthen the case for investment in services based on digital content and information<br />Strengthen the case for investment in hardware or software infrastructure<br />
    30. 30. Competition formats & dates<br />Trials R&D<br />Fast Track<br />“Mainstream”<br />
    31. 31. R&D vs Trials<br />R&D“increases and integrates technology capabilities, and progresses in stages towards marketable products”<br />Trials“investigate users’ responses to prototype products and extract market intelligence that can be used to build business confidence”<br />
    32. 32. Getting scope right is KEY<br />
    33. 33. What’s the challenge<br />[Generalize your specific problem]<br />Is it an important Digital challenge/tension?<br />Does it credibly address 2/3 of Pipes, Poems, People? <br />Who do you need to partner with?<br />What the impact in the industry and can you make the case for it?<br />How would you exploit it? <br />
    34. 34. Meeting the challenge<br />PIPES<br />POEMS<br />PRIORITY<br />challenge<br />PEOPLE<br />Consortium / proposal<br />
    35. 35. Consortia & Collaboration: key actors<br />“POEMS” <br />Content and service providers<br />Information providers<br />.....<br />“PIPES” <br />Infrastructure/ISPs players looking for new business models<br />Software middleware or distribution platforms<br />Technology providers<br />.....<br />“PEOPLE”<br />End users (Business, Consumer or public sectors)<br />User studies, socio economics, HCI<br />Trust, security, privacy,<br />.... <br />
    36. 36. Strategic alignment<br />Consortia with the following interests might find a good strategic fit in this initiative<br />Innovation <br />New services, applications, business models<br />“Seedbed” and “Living Lab” approach to innovation<br />Play a central role in high profile trials<br />...<br />
    37. 37. Testbed<br />Digital competitionsSummer / Autumn2010<br />Network Services Demonstrators<br />£2mcloses 22/6/10<br />Collaboration across Digital Industries<br />£18m<br />Fasttrack closes 22/7/10 (CR&D 19/8/10)<br />Metadata<br />£5m<br />closes 21/10/10<br />Trusted Services<br />£5m<br />Fasttrack closes 10/09/10<br />(CR&D 17/06/10)<br />
    38. 38. Network Services Demonstrators<br />£2m to fund network services demonstrators<br />National ‘hotspots’ for trials and innovation <br />in business models, applications and services <br />that centre on advanced network infrastructure and service enablers<br />Making site available for other trials<br />
    39. 39. Questions?<br />