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 http://chinwag.com/events/pfi This was originally presented at the Partnering for Innovation 2010 event in Glasgow.

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 2008-9 2010-11 The innovation climate Challenge-led innovation Technology-inspiredinnovation

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 flickr.com/photos/kaibara/4481583340/

8. UK Digital “Pipes” 7PB/month 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

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

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 Examples: 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, flickr.com/photos/orinrobertjohn/1795685457/

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: www.innovateuk.org

28. The 3 challenge areas Deploy new infrastructure cost-effectively Create economic and social benefit from increasing volumes of information PIPES POEMS PRIORITY Enable a sustainable marketplace for intellectual property Protect privacy and security of users PEOPLE 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 “Mainstream”

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 PIPES POEMS PRIORITY challenge PEOPLE Consortium / proposal

35. Consortia & Collaboration: key actors “POEMS” Content and service providers Information providers ..... “PIPES” Infrastructure/ISPs players looking for new business models Software middleware or distribution platforms Technology providers ..... “PEOPLE” 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 Innovation 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 £18m Fasttrack closes 22/7/10 (CR&D 19/8/10) Metadata £5m closes 21/10/10 Trusted Services £5m 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?