 Mae'r ddag o ddysgu o'i ddysgu yn ddysgu i ddysgu, a'r ddysgu o'n ddysgu'r ddysgu'r cyhoffordd yn ffordd a ffugoriaeth. Mae'n ddysgu'r eventau yng Nghymru yn ysgrifennu'r ddysgu'r ddysgu'r ddysgu'r ddysgu'r ddysgu'r ddysgu'r ddysgu, ac mae'r adroddau â'r ddysgu sydd yn cael ei bod hynny yn rhaid i'r ddau, ArOOK fel hyn maen nhw'n fath i'r Y acaba ni yn yma'n drawer empresas ynws bush working teuluerell yng ndoedd. Diolch yn myth iddynt cŷnol yng Ngfry BUR phryddon lle ffawr helyt ond Caesdydd Cymru. Ar Wyth c rated o'r jener wedi'i menyn wrth eich cyfawr yn teuluerell wedi cysylltu tri bwerl ac mae hyn ddim yn in AGAC a'r cyce nhw'n gweithio yn unig Hawddor yn unigrwyddol yn erbyn sy'n ddweud i'r ddweud i'r cyngorol, ac yn y dweud i'r ddechrau, sy'n ddweud i'r ddweud i'r ddweud i'r ddweud i'r ddweud, mae'n ffordd yn y gweithio i gyd yn y ddweud ar y ddweud. Mae'n rhan o'r ffawr 5 o'n bwg yn ddefnyddio gael y dyfodol, ac rwy'n dweud i'r ddweud i'r ddweud i ddweud i'r ddweud i'r ddweud. Ac efallai rwy'n wedi'n gwneud, ychydig yng Nghymru ym Mhheithfyrr yng nghymru yng Nghymru Aberthog, gyda'r effeithio ar gyfer y ddefnyddio tîm yn ymdweithio ar gyfer y Gwyrddon ym Mheithfyrr. Martin, rym ni'n gwybod i'r peth o'r gwaith, ac hynny'n ddod i'ch fawr yn ddau'r cyflawn. Great. Thank you, Joyce. Thanks for the kind words I can't live up to that filling. and thanks to Neil and Jill for the invite and also Adrian and I think the summit next week I think is going to be a very important event. so I'm delighted to be here, I have a lot of slides so I always believe Picture Hotel a thousand words, so I'll do digital revolution happening very fast so this literally will be a drive by shooting of what I think is going on, if there are couple of ideas that land with you that in the future will be the promise i'w gwahb yn dweud yn ymdanol, ac dyna'r ystafell mwy o gyfloedd yma, fe ydych chi'n adrodd cyfeirio argylliannol a gyda'r cynnwys, ac mae genny'n gyntaf o'rонn yn cael ei wneud gwahanol i gyflwymonu'r amser. Mae gennych gysylltiad o unwedig mwy o'r cyflwymonu mewn etylo, dechrau o'i perthyniad o'i dod, yna sy'n galw i'r mwy o'r hyn syddau arnod. Mae ni'n gilydd Mae'n cyflwymonu mewn enthaelog, sy'n meddwl a'r berthynas, a'r berthynas yw allan o bobl yn cyfnodig yn gweithio. Felly mae'n gofyn i gwybod eich oeddaf yn ei gynhyrchu i gael ei gynhyrchu, ond yw arweithio gyda phethol, ac i'r hynny'n gweithio cyrraedd yn ymgyrch. Mae'r ddod o'r cyfrifau gyda'r ffordd, ac ond, ond yn fan i'w ddod i'r deddau, mae'r ddod i'n ddod i'n ddod i'r ddod i'r newid oedd. Mae'n gweithio'r cyfan sy'n dwylo'n gwybod mor i gweithio'r cyfan. Felly mae'n gweithio'r parlylen europei yn y gweithio ar gyfer gweithio'r newid ym MEP dros yr emysg gyda'r cymysgau cymysgol ar gweithio'r cyfan. Mae'n gweithio'r cyfan, yn fawr, yn ymgyrch. Mae'r cyfan yn ymgyrch, yn ymgyrch ymgyrch, yn y ddaeth 21 oed. Yr cyfan yn ymgyrch ar gyfer gwyn, mae'n gweithio'r cyfan, sy'n ei amddangos i'n gweithio'r cyfan. On我們 we will talk a little bit about that. It is about the hack that we argue is, how do we harness a digital disruption, and how do we shape and co-create a better world? Y obyth ag divides across the world, and this is a big statement, and I might be 20 or 200% right right but arguably we see some of the biggest shifts that has ever happened in the history of the planet. The reason I say that is that in the past we might've had one disruptive technology show up. yw gweld y cymryd ymweld, y dyfodol yn y cyfosidol yma, oedd yn gweld y cynhyrchu'r cyfrannu, oherwydd amser yn y cyfosidol yna, a'r cyfosidol yn y cyfrannu cyfosidol o'r cyfrannu cyfrannu cyfrannu ac amryrfa yn gweithio ymweld, ac yn gweld cyfosidol. Ond nid i'n edrych yn cyfosidol yn gweld a'r cyfrannu cyfrannu cyfrannu yn yw'r cyfrannu cyfrannu ac mae'n gwerthio'n cael ei gafodd cyfosidol, mae'n gwybodaeth yma yn gwybodaeth. Ie, y dyfod yr amser, rydw i'n sgwch am ddysgu'n 40 oed, os wedi bod gan y gwirionedd dynamiad yn y industry hyn yn 7 oed, mae'r gweithio bwrdd, mae'r gweithio i'r flwyddyn yn y mediau socialau, mae'r rhaid i'n mynd i'r ffordd o gweithio difbyrdy a'r holl ar y dyfodol, maen nhw ym mwynhau hynny, mae'r bobl ar arigach, mae hynny'n mynd i ddysgu'n mynd i'n mynd i'n unrhyw watrymol. Roedd ysgrifennid pethonol sy'n gwirionedd bod yn gyfweld. But if you are not part of it you get left behind. Then we also have something like blockchain show up. Don Tapscott talks about this as the most fundamental innovation in computer science that has ever happened to serve it in peer-to-peer ledger. Now this is going to take some time. But it will change the world of commerce as we know it. It will change the world of trust. A dyna'r commercial o'r dda i'n gwaith o'r newydd oedd y newydd. Rwyf yn flinio, mae'n gwneud yn ei ddechrau. Dwi'n sgriffe i chi'n gweithio. Yr mwyaf o'r newydd o'r newydd sy'n defnyddio bod rhobit yn bwyllt, ond mae hynny, bydd wedi gynghwyllt arweinydd. Mae Ylgrifred Diolch yn ysgolol o'r creu tyngwydau rhan, bydd nesaf y cymdeithasol yng Nghymru ac sy'n allan i'r lwyddoedd. ac niferio'r llyfr yn yma o'r llyfr yn eu Llyfrgell, i'r hunain yn y Llyfrgell yma i'r llyfr yn eu Llyfrgell yma yn y rhan o'r ddeunydd. Mae'n fydd yma yn unrhyw unrhyw gyda'n siŵr. Felly Brannan yn oed yn rhaid bod yn hynny oedd ei gwrth oherwydd i ddim yn gwneud o'r bwysig, sydd wedi bod gwrtho'r gweld awl o'r gweithio, oherwydd i ddim yn gwneud o'r gweld ffarnwysu'n gweld, ac mae'r cyfnodd yn dweud o'r ddysgu cyfnodd y byddai cyfnodd yn bwrdd. Y cyfnodd arall y ddysgu yn y cyfnodd yma yn y cyfnodd yn y cyfnodd gweithio'n gweithio'n cyfnodd. Ar y dyfodd, oes chi'n gweithio ym 10 yma, y cwmwysig yn ei wneud yn y ffactor yw'r 40 o'r ffordd. Oes chi'n gweithio'r cyfnodd yn y ffordd yn y ffordd yn 30, Mae gwybod, mae'r mh bekwyd ddiogel ei ffordd yn gynnwys llai i'r teimlo bwysig, a'r twch eich ddechrau a'r twch i dechrau a chyfligio. Yn gyfrwyr yna yw'r gwelwch yn nanol reactionau neu rhanwyddu, mae'r wath o'r ddymarfer yn y bwysig. Felly mae hyn yn gweld wedi'u gyrthwyr yn gweld i'r ddefnyddio y nid oedd y gael. A'r pethau... ...bloddau'r bywyd yn gweithio y nid yw y gwaith ym lŵr Ynysgrfylliam yn rhoi ei mighterion, Onw, ond oeddech chi wedi cael y ddweud i'r ysgol, a gofyn i'r byw, i ddechrau, i'r transbort. Ond oeddwn ni'n cael oses cael ei wneud o'r ysgol sy'n ei ddechrau. Ond oeddwn ni'n gweithio pwysig o'r ysgol. Ond oeddwn ni'n cael ei ddechrau i'n ddechrau, a'r dweud o'r ddau wedi'i cynnig o'r ddau, a rheswm yn rhoi cyhoedul cyfyrdd o cyfyrddol ac rhefawr yn cael ari ac ynnw'n cyfyrdd y gallu i fath o ymryg argynlais a'r cyfyrdd a ademfodol, ac roedd yn cael i cefyrdd o'r cyfyrdd o'r cyfyrddau cyfyrdd o'r cyfyrdd o'r cyfyrdd o'r cyfyrdd o'r cyfyrdd, ac roedd yn cael i ei ddweud o'r cyfyrdd o'r cyfyrdd o'r cyfrdd. Diolch chi'n ysgrifennu cyrchwledig yn osion yn gynhyrchu oedd angen mewn gwirio sydd wedi gwirio mae'r cyd-dweud cyntaf wedi gael ffilm gynnig ar dweud ei wneud, ac mae'r bwrthgen gwion yn eu cynnwys iawn i'w ei bod yn cynnwys ffwrdd, a'r commonig yn cael ei wneud yn y bwyl. A yr hynny ddim yn ei gwneud, mae'r cydydd wedi bod yn cyffredinol. Mae'r cyd-dweud yn cyd-dweud yn cyd-dweud i chi'n cyllid y dyfodol wedi'u gwrth, ac yn y samest mae'r cyd-dweud yn cyfgledog honno 11, yn Instagram u'r cyfle o'r ysgol iawn ddwyf yn 19. Llywodraeth yr unrhyw gwrthio'r cyfwrdd yn y cyfwrdd gyda'r cyfwyr, ac rydw i am gynnalu i fynd i'ch gweithio'r cyfrifu ar y llun o'r reisart o Mark Perry yn Ysgrifes Cymru. Yn ymgyrchaf Llywodraeth Cymru, rydw i'n ddiddorol ym 4, 500, a 75% o'r cyfwyr ar y cyfwyr yn ddiddorol ym 4, 500 o'r cyfwyr yn teimlo i'r 10 oed. While that's a phenomenal rate of change-in-household names. There's a 75% risk that an intel, a Microsoft, a salvar won't be there. Of course there's data as well, more data coming out that the companies that are digital leaders are more profitable, let's not forget borders. You know, household name, we probably all had a cup of coffee, they were a bottle of oak there. People today, I have a French colleague that works for me, he's never heard of borders. ...y'r llawd yn ymweld i'r rhaid. Yn ymdweud o'r ddwylliant yma, yw ymdweud yma yng Nghymru, honno, Niels Bohr, y dystyngrosfysigau... ...y'r ddweud ymddiadau sy'n ymdweud ymddiadau... ...y ffasilydd ymddiadau. A'r ddweud yma, ymddiadau sy'n ymddiadau... ...y'r ddweud am y gallu ymddiadau... ...i'r ddweud ymddiadau Westco... ...y Alain Cay... ...y'r ddweud ymddiadau Niels Bohr... a'r handlesfridol yn y gynhyrchu grafnigol armwyr. Mae'n fwrdd i'n meddwl ychydig i'r llei'r gwaith i ffarnodgol, o'r bwysig i'r pwysig o'i hunain, dyma chi oeddemaeth ystod, i chi ddim bwysig i fynd i gyd. Ond mae'n biad o'r prif hwn o bwysig i'r ffrwyr o hyn, o'r hyd o'r ffllwch i hynny. Mae'n rydyn ni'n wneud oeddenig. Mae'u rhai rhiwch ymlaen, a'r pwynt i'r sjêl yddylliannol, It's enabled by digital, and actually the mechanisms of knowledge and energy transfer and of actually building in this new primordial soup are all digital, so it's a virtuous service. So in this primordial soup we have governments, we have universities, we have companies, start-ups, big and large, and we have citizens and users. I think the whole app economy and I'll talk about that very briefly is a very good example of that. This is an industry that barely existed 10 years ago, and now is close to 50 billion by 2020, projections will be 100 billion. So digital is connecting us all in a way that completely wasn't possible, and I want to share a couple of different patterns of disruption, and patterns are a core piece of what I want to talk about today. How does digital innovation happen, and how can we increase the probability of success? So I think this is the new world, and the green dots are users and citizens that are engaged in the innovation process, and the red dots are citizens or users that aren't yet engaged would have the potential to be engaged. Last year I was delighted to be approached by nature to write a piece on open innovation 2.0, what are some of the core principles, and that was quite well received. I want to share some of those principles in the talk now. I don't know if anybody knows who this gentleman is, but it's a younger looking Gordon Moore, and I had a privilege when I was at Intel many years ago as promoted on to what we call the extended EOSM. My very first meeting actually was a privilege, Mark Andreson, who was the father of Mosaic. He was the guest speaker, and he was actually probably the inventor of the first cloud computing company. I'll talk about Mark later on. He spoke there, but I was kind of, you know, young, and I was just sitting down to have my lunch on my own, brown bag lunch, and Gordon Moore just wandered over to me, and we started to chat, and we talked about my new role. We talked about the Intel strategy in industry and incredibly genuine, incredibly non-ego. He's the antithesis of kind of the Silicon Valley, you know, a sort of big ego, and a very, very generous man. He wrote a paper in 1965, which turned out to be very salinones, about crowning more transistors on to integrated circuits, and that became, it became known as Moore's Law, but in fact it is actually a pet of challenge, and everybody in the semiconductor industry basically lines up the suppliers, you know, the Intel's, the AMD's, the universities, to actually make Moore's Law happen, and that's, you know, the transistor density is doubled every 18 months, and that's delivered at lesser eco costs. And there's been, you know, incredible sort of consequences of that, and of course there were other laws around that. Gilder's Law talks about young bandwidth tripling every 12 or 18 months, but if we sum up all the impacts, I think something has fundamentally changed. The unit of competition has changed, so first it's changed from the organisation to the ecosystem, so it's no longer how good Microsoft is, or Google, or Intel, or Massacart. It's how good our collective ecosystem is. It's no longer about the product, it's about the platform, and platform defining do we have a set of standard components that other people can build on and co-innovate, and why Apple have been so successful, and Android has been so successful as a whole ecosystem of developers around them. And we've gone from a linear to a non-linear world. I mentioned earlier that we'll see 40 years of change in the next seven years because of the ecosystem dynamics. And just in software development, you know, we've gone from a waterfall model to agile. So I think, you know, the unit of competition has fundamentally changed, and companies, or even institutions that aren't thinking like this, I think will become part of Mark Perry's statistics, they won't exist in the future. So I mentioned in my introduction the idea that innovation, open innovation 2.0, was a little bit different in that it actually was an innovation methodology with a purpose. And the purpose is a fabulous slide from UNEP, which talks about the ability to not just find innovations that drive economic success, but also improve our quality of life, but reduce environmental impact, and decouple of resources from growth. And I think this was aspirational in the past, but I think this is now potentially a reality. EF Schumacher, he wrote a book many years ago called Small is Beautiful, and I think that really fits actually the whole metaphor. So we use two quotes from Peter Diamandus of the Singularity University, and this is a very powerful quote, I think. It says, when something is digitised, it begins to behave like an information technology. So if you digitise an organisation, you digitise an asset, you digitise a country, you start to see exponential behaviours, so you could actually have exponential growth and potentially just linear consumption of resources, or linear growth of headcount. And similarly, he says, and I think this is written with Peter Kotler as well, technology is a resource-liberating mechanism. It can make a one-scurse to now abundant. I think both of those statements are really powerful, and I think underpin what's going to be possible in the future. Design patterns. Seneca is a stoic Roman philosopher. He said many, many years ago, he said, the way is long if you follow rules, the way is short if you follow patterns. And as I think about digital disruption, if you're an organisation, an institution, a country, you can't wait around to follow the rules. You actually have to take the shortcuts and the patterns, and we're starting to see a very strong signal emerge from the noise. There are well-defined patterns of digital disruption, and the winners will be the organisations that actually follow those patterns. So I want to share some of those patterns, we call them design patterns. So that's something that's an 80% generally reusable solution, that then is 20% customisable for a particular environment. Arguably, innovation is about to give up its secrets, and innovation is not well-defined like mechanical engineering, or civil engineering, or even medicine, where it's well-codified, and innovation is still very much a black art. But I think we're getting close to the threshold moment where some of the core patterns are emerging, and we're starting to talk about pattern language for Open Innovation 2.0, and next week, in Cluj, we have the fifth Open Innovation 2.0 conference. It's in Transylvania, and we'll start to share in a little bit more detail what are some of the core patterns, or the core, the first words, or the first vocabulary of this new pattern language. Let's define digital then, if we're going to look at the patterns. So this is the definition that we have used in the new then, in our MasterCard advisers. So it's innovation with and the use of information and technology, and we split information and technology to improve human organization, ecosystem, and arguably societal performance and quality of life. So it's about information and technology, not sort of as a composite, but separately and together, to improve performance and quality of life, and encouraging the synergies of information economics, silicon economics, software economics, network economics. All of these are powerful on their own, but when they're combined together, they're very, very powerful. So this is a slide that Hank van Houten from. He's the CTO of Philips used to explain the pathways of the digital revolution, and these pathways are still being explored, but I think it's really seminal in terms of the changes that happen. First you have a shift from analog to physical, then you go from a single function to integrated multifunction, and then you go from a single system to systems of systems, and the example that Hank uses to illustrate this is what happened in photography when from analog to digital. I really feel sorry for the manufacturers of these small digital cameras. Exquisite engineering, really, really beautiful, and all of a sudden they're eclipsed because somebody figures out how to put a high quality camera onto a phone. Then we have this whole ecosystem of digital proposition that emerges when we talked earlier about Facebook acquiring Instagram for a billion when Kodak were shutting down. I think this really describes what can happen and where the value is migrating to in a particular ecosystem. Fundamentally, at the Open Innovation 2.0, it's about in terms of actually trying to create a shared vision. So we talked about shared purpose. You start with a shared vision, and you try and articulate what might be the shared value. Over lunch we talked about the quadruple helix innovation that when you get government, industry, academia, and particularly citizens aligned around a core vision, you can drive structural change far beyond the scope of what you can do on your own. So if you can articulate a shared vision, you then can figure out what the shared value is. I want to give one example of this at work. You're well on the way to driving stakeholder value and shared value. There's an enormous amount of stored value. There's latent potential in an ecosystem. You have to figure out how you can knock that. Shared value at risk. And of course you need to have shared values. Everybody coming to the table actually has to have shared values. I'm thinking win-win mindset rather than win-lose. The best example I can think of of a shared vision is John F. Kennedy saying, we'll put a man on the moon and bring it back safely. The whole country aligned around that. There's a famous story about the janitor that said, when he was asked, well, what's your job? He said, well, I'm working to put a man on the moon. Very powerful. Michael Porter has been talking about the idea of shared value for a number of years, particularly in the context of healthcare systems. So the idea we could reconceive the intersection of corporate performance and societal value. So here's a real-time case study. It's one that's happening in Ireland. These changes don't happen overnight. This is something that's probably about four years into a 10-year transition. It's a group of companies and organisations that came together in Ireland to see how Ireland could be the leader of something called the internet in demand response systems. Here's the idea of the shared vision, a worldly demand response capability developed and demonstrated on the island of Ireland and exported globally. This is an idea that Bob Metcalf, who is the CEO of Tricon, is the inventor of the internet. He popularized the US, but he really got fatigued with he could get no traction. So I called Sean O'Driscoll in Grand Iplex when I was at Intel, Sean. I think we potentially should have a goal at this and actually contacted Bob Metcalf. He's very gracious, very supportive. I'm all behind it. If you guys can make a success of it, you can put my name behind it. So five or six companies came together in Ireland in 2013 and we had all of the constituents that are sort of part of the energy grid. We had the transition system operator, distribution system operator, one of the big utilities, Intel and Blend Implex, which is the world's largest electrical heating company. We got behind it. Every six or seven weeks, we had the CEOs and general managers meet. This is one of our meetings at Intel Labs Europe. We got behind this big idea. We had to work together to actually figure out what's the shared value. This is a tool from Alexander Osterwalder, at Osterwalder campus. We had a couple of working sessions and we were able to figure out a model how could we create shared value for everybody, for the users, for the DSO, the TSO. We were able to articulate a vision of how that might happen. We came up with a narrative. It's very important that you have a narrative associated with. Unfortunately, we don't have time to go into the narrative. What we've been able to do is steadily scale this. Today, we went from an initial pilot of two homes. We had seven electric vehicles in Roebuck Downs in Clonski. Today, there are about 1,250 homes in Germany, Latvia and Ireland that are actually trialling this technology. The user is really at the centre of this. We have all parts of the Crudupil Helix and UCD are now heavily involved with this. This is probably four years into a decade-long journey. But this solution developed in Ireland actually is quite a good candidate to become the dominant design for the future grid in Europe. This is kind of what the technical solution looks like. Let's talk about what are some of the common patterns of digital disruption. Here are six of them. There are many others, but these are six that I think are very common. Disintermediation, distribution, which I think is incredibly powerful and totally underrated. Democratisation, dematerialisation, deceptive displacement and demonitisation. I'll just give you some quick examples of this before we go in and talk about data. I came here by Uber. They made things very simple. I talked to the taxi driver. He loves it. It's very efficient. In the past, there were six steps. Getting a taxi is now done to three and it's just convenient and it's cheaper. Why wouldn't you use it? I'm still a fan, actually, of paper books, but many people really like what Amazon have done with Kindle. Again, six steps have gone to three and it's instant and real-time. This is a very good example of disintermediation. Distribution, incredibly powerful. In the past, independent software vendors, their big issue was distribution. How could they scale? They might have great products. Now, there are a couple of really well-known platforms where they can put their products up and if they're good enough, they'll actually scale globally. Here are some of the statistics. Four million apps, five million app developers, more than 25 billion in revenues. As I said earlier, on track to be 100 billion industry by 2020. Another example, Airbnb. Biggest accommodation provider in the world and yet they own no rooms. Fantastic example of the sharing economy. It's another pattern of digital distribution. Tesla, a phenomenal story. A tiny fraction of the car, the amount of cars that GM sells every quarter and they have a bigger market cap. But one particular story, last year, there was a recall. They had a problem with a plug and they were able to do, no physical recalls were needed and they did 25,000 upgrades over the year to the car. So, distribution has changed. A couple of years ago, Henry, or no, Bill Ford, he was one of the keynote speakers and he said the car was part of the network. I thought that was very fundamental. Deceptive displacement change initially happens very slowly and then all of a sudden when you look at a decade, so you know, Expedia, YouTube, et cetera, the shift from physical to digital value capture and all these industries, after 10 years each year it's 1-6% change but that becomes cumulative and by the end of the decade 50% of the value has shifted. Today 50% of e-commerce in the US is on Amazon so I work in the financial services industry and we're just at the beginning of this journey but we're starting to see some of the changes. In terms of democratisation some data from Microsoft it's a little bit old where it's from 2010 but a couple of things that are interesting here they estimated in 2010 the worldwide power consumption of servers was almost equivalent to the energy output of Poland but if actually those servers had been in a cloud massive reduction in energy so thinking about the green economy there's a massive opportunity but their analysis for small agencies and departments it's 40 times cheaper to provision a buyer service from the cloud and actually provision it yourself and for larger agencies it's 10x but this just shows how everything has been democratised and compute power communications so that only the large companies could afford or large governments could afford is now available to everybody and here's some data from Amazon the numbers are staggering in terms of if you use AWS what are the typical type of returns you might expect on your investments and then dematerialisation and the best example I can think of is I don't want to be a product but Cisco's telepresence and the imitators and a number of years ago we were able to have a call with John Chambers using telepresence and it was like being in the room and I would have willingly hopped on a plane gone to Silicon Valley for an hour to meet John Chambers but we were able to have the meeting and he said in the meeting this is my fourth call around the world I've just been on to India and I think it's a very good example of dematerialisation at work this is incredibly powerful in terms of demonetisation and by demonetisation I mean two things things are getting really cheap much cheaper than they were almost there's an app for everything and it costs a dollar and under demonetisation in Mastercard in particular we have an agenda around the world beyond cash and it's around your digital money but it's also about financial inclusion I think this is a staggering piece of data looking at sort of then sequencing costs are actually dramatically outstripping Moore's law so we're really on the cusp of a near of precision medicine now there is a gap between in terms of what does that mean you have the information translating that into a prescriptive remedy but this is incredibly exciting so demonetisation things that used to be prohibitively cost are much cheaper and available to everybody so as we think about the world I think there are these patterns and we can look at an ecosystem and say well what pattern applies here is a disintermediation are we going to the change distribution is about demonetisation so some attributes of digital and this is based on some work by Nicholas Winsabrock from Belgium a professor that I've added in actually digital is so potent because it's programmable it's becoming thinking as we think about machine learning and artificial intelligence at some point we're going to approach the singularity which is that point in time where human intelligence and machine intelligence are equivalent and some machine will pass the turing test and the turing test essentially is you'll be interacting with something on the internet and you won't know whether it's a human and some of the bot technology is approaching that and I think actually at the last event here somebody said on the internet nobody knows you're a fridge that's right but digital is exponential it's interactive it's becoming ubiquitous and it's totally malleable I think this is really powerful so building like this it's very difficult to repurpose it but digital it's so small and with virtualisation you can shift workloads all around the world actually so if you have a data centre and the wind is blowing or the sun is shining in Alaska you can move the workload to there so I think there are some attributes of digital that are quite unique and make it really potent so this is the science bit of the slide here are some of the six of the core patterns that we see are emerging in terms of what are the inner workings of this new digital innovation this is based on six or seven years work at the open innovation strategy policy group where we've been surveying best practice around the world so I'll call them out first you need a platform you need an ecosystem you need to think about designing for adoption Michael Shraves has a beautiful code he's a fellow at MIT he says innovation isn't innovators innovating it's customers adopting so it's all about adoption so thinking about adoption and I have one or two examples of this agile production everybody is talking about agile of course it's hugely important it's not rocket science but it is hard to do see me to have agile production mechanisms in place increasingly every product is digital and so a car it's more than 40% digital and software Tesla is way higher of course industrial innovation providing the context and a vision for strategic innovation actually thinking about innovation as a manufacturing capability is hugely important and I think there's some very simple things you can do to actually achieve that and then I'll see and we're going to talk about data driven innovation and the output of course is hopefully more profit and more progress which you can never guarantee success I heard a talk from Jim McGinnis once at a CIO talk, the ex-Donning Hall manager he gave a great talk and the point I took away was actually you can't guarantee success but what you can guarantee is the higher probability of success if you practice, practice practice when that ball comes and it's a man-on-man or woman-on-man challenge you might have the aid so what we're saying in Open Innovation 2.0 is we can't guarantee success we can increase the probability of success and if you look at these patterns so each of these patterns has six different elements so there's at least 36 different components that actually need to work together to actually have successful innovation so there's actually lots of room to fail but actually when you get successful it's completely multiplicative, it's not additive it actually you get synergy so we'll talk very briefly about some of these patterns and then I'll finish so the economist recently, this is the cover of the world's most valuable resource and you know, Needy Krusa, Data's the New Gold I mentioned your commissioner, Gagan Quinn and Knowledge is the Crude Oil of the 21st century in 2009 actually Eamon, you helped to launch this book in the Royal Irish Academy I wrote a book with Professor Thomas Anderson from Sweden and Pierrot from Michael from Italy it was about knowledge driven entrepreneurship and the central thesis of this book is that in the 20th century much of the wealth came from electrification and carbonisation but in the 21st century most of the wealth creation is going to come from from managing knowledge flows if you look at Google, Amazon Apple, Facebook, Twitter I think this is coming through and you could an interesting infographic here too small to read but how the tech giants make their billions and of course Apple have got to design Amazon have brute force and a lot of courage but it's all about the ecosystem and particularly the data monetising data so what we're seeing is smartphones are continuing to grow but actually the interest in the year and year rate is declining this is a really nice infographic about our expanding information universe I think there's some parallels between the expanding physical universe and the expanding information universe that we see every year what's happening in an internet minute 500 hours of video uploaded on YouTube compared to 300 a couple of years ago similarly on WhatsApp and I think the comparison between WhatsApp and Vodafone is really staggering in terms of revenue per employee and reach etc so I think the message is that smartphones are going to grow and it's known what minimal more information being created and the output is by 2020 6.1 million smartphones Vodafone will be drawn off by 26 billion connected devices so right now humans have a big source of data generation but in the future it's going to be drawn off by machine to machine so here's the pattern it looks at and data-driven innovation I just want to give some so really simple examples but some of the core patterns that we're seeing so just simply generated insights from data that already existed so there I'm actually using some tools to actually figure out some value now all the many products that generate data digitising assets increasing the information in terms of your products so I'm going to do a bit of a Tesla or even a Jaguar Land Rover as more stuff is playing to the power there's more we can do and we're not too far away off from autonomous driving combining data and working across industries imagining being able to take Tesco's database of what's having a public health database and just smashing it together I think we're moving incredibly in the sights in terms of the impact of nutrition on public health and then of course trade data which has been very topical right at the moment and then lastly we have closer control systems I mentioned earlier if you have say micro-climbing data air quality data and don't want to use huge RNAs if you're talking about what you can do but let's see just a couple of examples one of the earliest examples are just creating value from the faircast two values in Seattle I think it was 2008 they would give the airline data and actually figured out the patterns when would be the best time to buy a ticket if you're traveling from Seattle to Chicago Microsoft bought it for 12 million and those kinds of work were happier and today everybody has this kind of it's a very simple example of two smart providers a lot of data and actually generally value for users and a lot of value for them at the same time I'd like to cycle this I think it's another simple example we have a bike we put a digital autometer on it we actually code useful but then we actually combine it with a phone on its own use or ecosystem of human propositions and that's great here's an example that's 50 years old a road trust in the last year celebrated 50 years of power by the hour and it was initially invented by by the idea because the engine is sold instrumented instead of selling the aircraft engine to a cash truck airline to sell hours of both time and it's turned out to be very popular this is data from the economists up to 2010 where you can see that services that you've grown from being relatively small probably it's now more than 50% of the revenues of roads and then using it to change your business model I think the great thing is this technology is only available to a road trust and GE this kind of technology is available to everyone thinking about innovation for adoption there's a pattern for adoption so too often many new products actually fail these tests so it's going to be weaker this as it uses a bit of what seems experience like utility what's the uniqueness and is it designed for use so I don't think anybody would argue actually the smartphones would probably be sophisticated but this is a historic example when I worked at Intel we shot down our industry player factory two weeks before Apple launched the iPhone so we were there two years before which had all the same ideas but Apple were successful so Intel it looks actually pretty crappy to be honest this is the Intel market which was by 28 megabytes built in memory for 10,000 songs in your pocket so I don't think it's going to tell us the story here's some examples from Dolan the concept of living maps and how many users involved in the innovation process is hugely important when I was at Intel we used to run on London as living maps so we've got these devices you might recognize this system like Trinity College and we put these devices into the streets looking at sensing, air quality, microclimate but what we found is they were robust enough to withstand winter storms and also there wasn't enough sunlight to power these devices so in March these devices they worked very well fine in September but they don't really work very well so we learnt and we reiterated and this is a lot of the city of Borough and Field used to see new gates a number of years ago and this is probably the type of device we replaced this device with this small device on the wall here and they actually had a big air quality problem they only had three of these devices in the borough but for the second cross we put about 100 of these devices in the borough these devices are all fine and they would have real time air quality and it could make much better planning decisions etc now the interesting twist in this story you tell a quote productise this but in the spirit of all the innovation it doesn't fit with the business model etc it was a very large germinal and now we're sure to know where these products are going to work I'm going to finish with a few slides Mark Andreson he was the founder of Moise so that he owned a common browser he famously wrote that software is eating the world and I think there's a very good way of describing that how a world's law is colliding basically with every discipline but API's application program until about six months ago these were just able to domain off the software developer but increasingly this would be going over discussion and in the future arguably everything without an API this table without an API is a little bit far from how many it is but API's are going to be the scale of the digital world particularly when we have machine to machine collaboration and it's really important to talk about the user experience for users but the user experience actually for developers will be very important in terms of the adoption of API's so I think as we think about digital disruption API's are going to be a massive piece of API's for services API's for data particularly when it's for digital identity and last couple slides we had a discussion over a lunch on this a question of data app our government's created the iPhone and this is a research from Marianna and it was a gallery recently and it still says DCI Britain thinks it works it does analysis of all the core features so governments may darken some of the US agencies but also some some genius and some courage but most of the fundamental work for the iPhone actually came from going in front of work and Marianna argues that government really is the hero of innovation and I think it's a little piece of evidence that versus who's seen in the future we need to put your review of this government industry, academia and citizens working together around shared freedom so the knowledge economy is beautiful from where you get around and so you passed away and you're asocious of the knowledge economy it's another, having more it's about being more we talked about the experience economy so really it's about self-actualisation amplifying the human kind of intelligence in a way that's environmentally sustainable economically equitable and socially responsible this is a quote from the economist in 1996 so about 20 years ago and it still holds true that the economic theory has not moved forward and the problem of knowledge seems to define a basic economic principle of scarcity, the more you use it in Macedonia the more it proliferates and it seems to be very responsible what is scarcity in the economy is the ability to understand the use of knowledge and 20 years on nothing really has changed if you look at Google you can only explain 15% of Google's market cap by physicists that stay out of that and the cap procedures actually don't have an explanation and the economics of this have led them to actually hurry up and bring it over to a key place and by the way to finish the digital moment in relation to how we could this opportunity to create a new future one that will be totally sustainable more equitable more environmentally friendly and I wanted to finish with that a quote that's 45 years old if you're going to read it it was true then but it's even true today it's one of the books that I wrote from Daneson and he said man possesses for a small moment in time and this powerful combination of knowledge tools and resources that the world has ever known he's ordered it's physically necessary to create a totally new form of human society one of the built answer generations and this ingredients are obviously the long term law or shared vision and Daneson I would say to the technology it's almost it's not the only soft food show technology is still fragile it's not fully sustainable it's all the work we've been doing at the new thing university and the innovation value institute it's building capability and maturity frameworks and I understand that we look up as a type of role and say world class IT for an organisation like BAA there are we've had about 35 critical capabilities that need to be managed all very well just three or four of them actually are both managing the technology the rest is around governance around enterprise architecture risk management so this is complex so not only does economics there's no economics in people but IT management actually needs to keep up so we can harness this great opportunity so I think we have an incredible opportunity and the risks man versus machine is not at that debate we have to have that but I think we can be successful if we can take charge and create a vision of society that we want to live in and have children and their children so thank you for your time