LINK TO VIDEO: https://youtu.be/IRqq2fwwJEs This video is a final exercise for Stanford University. Prepared for the chapter: "Building your Business Model". It´s based on a new Algortihmic Marketplace: "algo2you"

1. Miguel Ángel Morcuende
STANFORD INNOVATION AND ENTREPRENEURSHIP CERTIFICATE
The main objective for the
"algo2you.com" will be to
disrupt software industry and
evangelize in the usage of
algorithms within mass market

2. 2Miguel Angel Morcuende miguelangel@morcuende.eu
MARKET SIZE
Some examples of algorithms today:
(1) Source: https://es.slideshare.net/MiguelMorcuende/algoconomy-el-futuro-que-te-espera
(2) Source: https://www.gartner.com/newsroom/id/3811363
Market Size: $1,3B
GDP WW = $75,4 T
[TAM]Algo Market Size (1)= $6,1 T
[300 different references, with over 50 economic sectors and
algorithms considered, which provides an economic value of 6.7
trillion dollars, of which 90 percent include algorithms]
Global IT Market (2)= $6,1 T
[SAM]: IT Services + Ent. Software=1,3B

3. 3Miguel Angel Morcuende miguelangel@morcuende.eu
WHY NOW?
Today we have the confluence of 3 trends
unprecedented data volumes
massively increased processing power new analytical tools
3 trends are creating a "tipping point" beyond which differential algorithms become the new center of
competence. Economy metabolism is accelerating, led by a new generation of newly democratized
exponential technologies.

4. 4Miguel Angel Morcuende miguelangel@morcuende.eu
WHY NOW?
The IoT (Internet of Things) will have a great impact on the economy by transforming many enterprises into
digital businesses and facilitating new business models, improving efficiency and increasing employee and
customer engagement.
We expect to see 20 billion internet-connected things by 2020. By 2020, Gartner estimates internet-
connected things will outnumber humans 4-to-1, creating new dynamics for marketing, sales and customer
service.
These “things” are not general-purpose devices, such as smartphones and PCs, but dedicated-function
objects, such as vending machines, jet engines, connected cars and a myriad of other examples.
Through 2020, lack of data science specialists will inhibit 75% of organizations from achieving the full
potential of the IoT
Source: https://www.gartner.com/imagesrv/books/iot/iotEbook_digital.pdf

5. 5Miguel Angel Morcuende miguelangel@morcuende.eu
VISION
The main objective for the
"algo2you.com" will be to disrupt
software industry and evangelize in the
usage of algorithms within mass market

6. 6Miguel Angel Morcuende miguelangel@morcuende.eu
ALGO2YOU.COM
“algo2you.com” connect developers with consumers that need a
function or functionality (instead a complete package of Software)
Example: Imagine you want to control your house´s access, you may
acquire a sensor (IoT) and then connect this sensor with your mobile
phone to have a register about when the main door is open and close.
You´ll need an algorithm to translate the sensor information into hours
and minutes in your smartphone screen. And this functionality needs to
be at low cost.

7. 7Miguel Angel Morcuende miguelangel@morcuende.eu
ALGO2YOU.COM
“algo2you.com” is similar to the mobile app stores that created the “app
economy” but for the “algorithmic economy”
Algorithms are an important part of software and will be relevant for
Internet of Things (IoT) that could be used as building blocks within
tailored solutions. Software today allow only whole products to be
commercialized (based on B2B or B2C economy), algorithms could
provide “functions” or “feature” for B2B, B2C, B2B2C and X2X (any
“thing” to any “thing”, better oriented for IoT).
Algorithms are flexible, and easily reused and reconfigured to provide
value in a variety of circumstances.

8. 8Miguel Angel Morcuende miguelangel@morcuende.eu
Developer
Consumer/Buyer
ALGO2YOU.COM CONNECT TO DEVELOPERS WITH
CONSUMER/BUYER IN A SEAMLESS WAY
(WITH NO INTERMEDIARIES)
b2b
b2c
b2b2c
m2c
m2b
m2m
x2x

9. 9Miguel Angel Morcuende miguelangel@morcuende.eu
ECONOMIC ADVANTAGE (BOTH PARTS)
Developer Consumer/Buyer
• More revenues
• Provide specific “functions” or “feature” (not available
today because you need to purchase a complete
software program)
• Those “functions” or “feature” could be updated
immediately with new versions, which produces a
continuous improvement model and efficient one for the
marketplace
• Connection to Long Tail Consumers
• More visibility in other markets
• Better Branding for developers
• Developer could sell algorithms to consumer, business,
machines, or inclusive “things” (IoT)
• Host their algorithm into marketplace
• Bring algorithm to citizens (commoditize)
• Organizations can expand and complement their in-house
capabilities by leveraging algorithm marketplaces.
• Cheaper cost to pieces of software (algorithms).
Instead of having to acquire complete software
packages they will have easy access to software
solutions (functionalities)
• Benefit from more advanced software functionality
(reducing dramatically the barrier to entry into cutting-
edge software functionalities or functions)
• Broader algorithm catalog
• Professional services with low cost access (network
effect)
• Access to best of breeds algorithm
• Easy access (Seamless Search)
• Generalize the consumption of software functions
(similar to the App Store for smartphones)

10. 10Miguel Angel Morcuende miguelangel@morcuende.eu
ACCESS TO SOFTWARE PIECES THAT ARE NOT ABLE TODAY
Today algorithms give companies (and citizens) a competitive advantage. Today’s most important
technology companies all have algorithmic intelligence built into the core of their product: Google
Search, Facebook News Feed, Amazon’s and Netflix’s recommendation engines.
• algo2you.com will provide “functions” or “feature” through algorithms instead of purchase a
complete software. Those “functions” or “feature” could be updated immediately with new
versions, which produces a continuous improvement model and efficient one. And obviously
produced at lower cost than a complete software package developed traditionally.
• Will be proper for students, owners of small business, mid and large companies and inclusive for
“things”. This will shorten the time for any development team to go from concept, to prototype, to
production-ready app.
• Collaboration mechanisms can create higher levels of testing and easier quality assessment for end
users.
• Consumer ratings will improve algorithm developments
• algo2you.com will boost the unknown talent
• Broader list of algorithms
• Recommendation engines for Consumers
• Algorithm Marketplaces will inevitably result in standardization from the bottom up.

11. 11Miguel Angel Morcuende miguelangel@morcuende.eu
COMPETITION

12. 12Miguel Angel Morcuende miguelangel@morcuende.eu
CLOSING
Growing cities will boost up the use of new technology and algorithm
Source: MGI_Urban_world_Rise_of_the_consuming_class_Full_report (McKinsey)

13. 13Miguel Angel Morcuende miguelangel@morcuende.eu
CLOSING
• Do you want to know more about our
Business Model and Go To Market
Strategy?

14. Miguel Ángel
Morcuende
miguelangel@morcuende.eu
628555327
#mmcuende
www.linkedin.com/in/miguelangelmorcuende
www.facebook.com/miguel.morcuende
http://es.slideshare.net/MiguelMorcuende