Transcript The information economy: what is it?

The Information Economy: What is it?
Patrick Callioni
National Office for the Information Economy
Sydney 24 October 2001
Nothing new under the sun….
“The old tendencies of human nature, suspicion, jealousy,
particularism, and belligerency, were incompatible with the
monstrous destructive power of the new appliances the
inhuman logic of science had produced. The equilibrium
could be restored only by civilisation destroying itself
down to a level at which modern apparatus could no longer
be produced, or by human nature adapting itself in its
institutions to the new conditions.”
(H.G. Wells, The World Set free)
Today’s World

Computers outnumber people

Smart devices and appliances
proliferate

General motors produces
more computing power than
IBM

Old economy vs new
economy
ICT - driving growth and industry transformation
Sector
1990
$b
%
ASX market capitalisation
2000
$b
140
%
671
Manufacturing
51
36
131
19
Resources
53
38
95
14
Finance/insurance
22
16
246
37
Other services (media, telco) 14
10
199
30
Australia

Australia faces many of the challenges confronting
advanced economies around the world

But we have the added disadvantage of distance from
many large markets

We have only about 19 million people, but the third
largest ICT market in the asian region, behind Japan
and China

A great user of technology, but not a major producer
Drivers of Change

Acceleration - ever faster change

Interconnectedness - no one is an island

Digitisation - remember “The Matrix”?

Consumerism- tomorrow’s consumers will not be like
today’s consumers

Value chain redesign - the rules will keep changing
Acceleration
Pager
Phone

More innovation
Cable TV

“Ultra real-time”
Fax

New intermediaries
VCR

Moore’s law

Not only “faster”, but “smaller
and cheaper”

The ability to do things not
done before - or even thought
before
Cellphone
PC
CD-ROM
WDS
Netscape
PS2
0
10
20
30
40
50
Interconnectedness

The extended enterprise

New work scenario

The web is just part of the internet

The internet is just the beginning

Next generation hula hoops

Exposing the enterprise to
customers and business partners

And vice-versa
Digitisation

The world is moving from analog to digital

The world is moving from computers to embedded
devices

As computers become invisible, so does the interface

We will directly interface with digitised objects…

Can you cope with a talking fridge? Will it cope with
you?
Consumerism - changing expectations

Trust

Customers want to manage by exception

Customers will resist doing the mundane work

They will ultimately deal with the organisation that is
easiest to deal with

Mass customisation increases

Target market of one - the consumer of tomorrow
End Customer
Value chain redesign
Distribution

What are you best at?

Who can you align with for
best of breed?
Selling

Collaboration to build a better
value chain
Marketing

The stock market favours
specialisation - for the time
being

Aggregators and resellers
breaking down the model
Product
Development
R&D
Tomorrow’s world

Ubiquitous bandwidth

Net-centric computing

Smart environments

Tagging

Knowledge management


Higher performance
computing
Digital money &
micropayments

Privacy, security and
information survivability

Human-computer
connection

Biotechnology

Nanotechnology
Ubiquitous computing
Network Traffic, 2001

Anytime, anywhere

Always on

The wireless/wired capability

Remote operations, virtual
employees

Network based organisations

The “open source” phenonomen

But... around 60% of the world
has no phone access
Data
43%
Voice
16%
WWW
41%
Smart environments

Homes, offices and everyday objects will become
networked and intelligent

Smart means conditional responses, within context

TAN and bluetooth

Smart ink, smart paper

Digital tattoos

Expanding requirement for bandwidth
Knowledge management - it is not a fad

Corporate knowledge will become a tangible asset

Community of interest knowledge will follow, and quickly

Dispersed workforce will operate in a knowledge
management environment

Expert networks
Higher performance computing

High performance computers will model reality and allow
us to question them - remember hal and 2001?

Mine massive data - and prosper from it

Simulate complex business processes

Understand the results - data visualisation and “new
realities”
Net-centric computing

The internet (or its successor) permeates all systems,
spawning new products, applications and services

Imarkets

Netsourcing

Optimised devices

Agents

The end of fixed prices
Digital money and micropayments

Programmable currency will reshape how we buy and sell

Customised cash

Micropayments

Televend

“A la carte” products, services and information

Consumer reluctance
Tagging

80% of online purchases will be made with reference to
meta-information by 2003 (Gartner)

The web provides a vehicle for the vox pop

What happens when their opinion is as available as your
marketing (and more credible)?
Biotechnology

We will be in the biotech age
by the end of the decade

Biology is the fastest growing
area of human knowledge

Fundamental change to
society

Not just limited to human
beings
Human-computer connection

Communicate naturally and
effortlessly

Manipulate objects directly

The computer will become
invisible, so will the interface

The advent of appliances

Communicate using all your
senses

See me, feel me, touch me…

Generational differences
Nanotechnology

Nanotechnology is building things
one atom or molecule at a time

Self-assembling consumer goods

Computers billions of times faster

Medical nano... virtual end to
illness, aging, and perhaps, death

Molecular food syntheses... end
of famine and starvation
Privacy

Secret secrets

Fail-safe business processes

Privacy is the casualty of the information age

A matter of trust

Consumer backlash

How do you protect an appliance?
So what, you say

Tomorrow’s world will not be like today’s

Tomorrow’s customers will not be like today’s customers

There will still be money…and the need for it

Do you see a lot of blacksmiths around?

No one can predict the future

We should learn from the past

Be ready for change
Preparing for change: what does NOIE do?

The Information Economy: creating an environment for
confident, innovative and productive use of IT, of
information and of knowledge.

The Information Industries: promoting investment and
innovation in IT and in information management.

Government Online: “walking the talk” and increasing
the network effect.
[email protected]
www.noie.gov.au