Why broadband matters
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A presentation designed for local business and community groups discussing how society and commerce are changing in the connected world.
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Why broadband matters
- 1. Why Broadband matters How the digital economy will change your business
- 2. • Connections are skyrocketing • Knowledge is becoming commoditised • Manufacturing went offshore • Now white collar jobs are leaving • This is commoditising most of our econonomy • Avoiding commoditisition is our greatiest challence • Customers are online • Business is faster and more flexible the connected economy
- 3. • Sydney in 1920 • Great change • Motor car has become established • Still dealing with change Sydney 1920
- 4. • Globalised • Localised • Communities today's economy flickr/laihiu
- 5. • Review sites • LinkedIn • Twitter and Facebook • Crowdsourcing and outsourcing sites they’re talking
- 6. –IT is like a pyramid, at the pointy end we have the applications, below those we have the servers. –pyramids are big, expensive and difficult to move –online services reduce the size of pyramid –this pyramid is 1500 years old –move your systems online, onto the dismantling the edifice
- 7. –the days of dominant players are over –age of commoditisation –an age of great opportunities –but also challenges –some of your competitors don't exist ye –you can't anticipate where competitors, challenges and opportunities will next co from. –your team needs to be nimble and agile barriers are falling
- 8. • Aging population • Asia becoming richer • Service economy evolving • Increased energy prices • Less consumer credit society is changing
- 9. •Today’s needs are not enough •The 6 lane highways of tomorrow •Today’s excess capacity is meeting tomorrow’s needs
- 10. Australian Internet growth Australian Bureau of Statistics 8153.0, December 2009
- 11. • Moving onto cloud • Ease of payment and sales • International markets and workforce • localisation • Be open to new products and trends • Allow your staff to experiment • Trust your staff and customers • Investigate cost savings • Watch your competitors • Follow international trends the opportunities
- 12. • Links to sites we’ve discussed • Further information on topics www.paulwallbank.com
Notes de l'éditeur
- Thank you very much it’s good to be here on the lectern I want to talk today about how business is changing; the challenges, the opportunities and the potential in the new connected economy. And the threats. We are at the beginning of a revolution and every revolution sees some people on the guillotine. Today’s presentation is about helping your business benefit from this revolution and not be one of the victims. Who here would consider themselves technology experts? And who would consider themselves dummies? The dirty secret is that it doesn’t matter. These tools aren’t about understanding LTE mobile technologies, TCP/IP packets or HTML coding, it’s about applying them to your business. Over the last few years we’ve been somewhat blinded by the idea that the “digital natives”, those born after 1985 who’ve grown up with computers in the home and school, have an advantage in a computerised society. Nothing could be further than the reality. I’m one of the television generation, as Talking Heads sang “I was born in a house with a television always on” yet, I have little idea of how the things work, the art of producing television programs or even how to work the remote control. All of us here have been born and raised in the era of the motor vehicle, yet few of us have any idea of what goes on under the bonnet these days. This doesn’t stop of from using them or thinking we’re pretty good at driving the things. The same is true for the digital natives; while they are born and bred on computers and mobile phones they have no more a monopoly on understanding how we use them in our society than we do over our grandparents when it comes to using a TV. We’re only in the early days of change, there’s still much to be done. It’s a difficult time to be in business; we have a whole nest of conflcting demands from staff, customers, investors, family members, not to mention the requirement our governments put upon us.
- The connected economy is changing the very fabric of our society and economy. It’s part of a longer time trend where we’ve seen manufacturing go offshore and now white collar jobs are leaving. Customers are moving online as are small and large business. This is commoditizing most of our economy with Knowledge becoming commoditized, so it’s no longer manufacturing workers being thrown out of work, it’s happening in the service industires. Avoiding commoditization is our greatest challenges. We have to try to position ourselves at the premium end of the commodity curve. Dell and Apple are a good example of this battle. Apple are doing a great job of defining their own markets in this era. The iPod wasn’t the first MP3 player, iPhone wasn’t the first smartphone and the iPad isn’t the first tablet computer. Dell on the other hand decided to follow the bulk of the market on price and found themselves chasing a spiral of price cutting which resulted in lower margins, which required cost costs that in turn reduced quality that forced them further down market and hurt them in many ways that we’ll look at later. Business is faster and more flexible
- By 1920 motor car is creeping in and slowly beginning to change the economy. Few people actually driving those cars and have no inkling of how those motor cars are going to radically change society applying the methods of the tram and steam driven economy to the motor car economy are failing Society is just beginning some rapid changes that will radically reshape this landscape and the people who live in it. Just as the business owner of the 1920s was only just beginning to understand how the motor car affects their operations, so too are we only understanding how the digital economy changes our enterprises. The way we share documents is a 19th Century way of working. The movie industry is a good way to see how the industry has morphed.
- <number> we're beginning to understand how digital online tools change the way we work Google Wave, collobarative tools Cloud computing. Economies are coming online Societies we perceive as being backward are catching up. Friedman: the world is flat, Florida: It's actually quite lumpy There’s a number of contradictory trends at work. Partly globalised, partly localised Power structures are built around access to data and knowledge but knowledge is no longer power in the Google economy.
- Qantas A380 Our customers: Eatability, Tripadvisor, The old gatekeepers are gone. You had to be a really bad business and also very unlucky to get an ACA or Today Tonight reporter chasing you up the street. Today any upset customer can start a forum thread, a Twitter hashtag, Facebook page or a dedicated website detailing your evil deeds. But it’s not just
- <number> For computers and web browsers to just work, it takes a dedicated IT department. Like many things in life; it takes a lot of hard work to make sure computers and the Internet work when you want them. It’s fashionable to knock IT teams as the blockers and a massive cost centre, but they work under difficult, unrewarding and unrecognised conditions. IT Teams have to deal with the fast changing and challenging world of security and the time intensive and stressful areas of back up and data recovery, they also have to deal with the mundane tasks of our losing our passwords and leaving our Blackberry in taxis, not to mention the Managing Director pestering them to set up his kids’ WII on the weekend. As a consequence they often struggle to keep up with security and disaster recovery issues. Just a few weeks ago one of the major software companies warned their security patches have to be installed immediately as the hackers and crooks will be using those advisories to target computers that haven’t been patched Cloud based services take all of that work off you. If we think of IT being like a pyramid, we have the applications, the stuff we work on at the sharp end, below those we have the servers, the networks, the operating systems, the devices, etc. Pyramids are a big edifice and big structures are expensive to build, maintain and they are very difficult to move when market conditions change. Exactly what you don’t want in today’s world. The cloud takes most of those layers away where others do the work for you. Online services reduce the size of that pyramid by taking most of the levels out of your hands and letting businesses get back to focusing on how they add value.
- <number> As the costs of accessing global markets and releasing products is plummeting, it is easy to enter many markets. So the barriers that protected businesses are falling away. The days of a big marketing budgets or dominant market position are coming to an end as cheap, easy to use and effective tools are becoming available. So we’re in a time of great opportunity, we can get products to our customers quicker, we can respond to changed market conditions fast, we know quickly when a problem arises and we can respond fast. But there are challenges, these same tools are available to your competitors, some of whom don’t even exist yet. Your team needs to be be using these tools to be nimble and aglie. If your organisation isn’t delivering someone else will.
- Demographic bubble, change in spending and employment patterns Workforce will be increasingly sourced from Middle East and Africa Telecommuting and remote working will be the norm. Politicians are going to find themselves increasingly accountable, just like those of us in business. We will have our own media channels.
- <number> When the Sydney Harbour Bridge was built there were six traffic lanes. Unthinkable in a city where most people didn't own a car. Within 30 years the tram lanes were removed to increase road capacity and a second road crossing was being built downstream. 40 years plans were being drawn up to duplicate the crossing. The growth of the motor car wasn’t obvious in 1920, the growth of the Internet is today. at present most of australia's connections come in on sydney's Northern beaches will allow build outs from other locations data is growing exponentially
- <number> Growth is exponential and is increasing as people and business start using the Internet. LOL Cats
- Be open to new products and trends Allow your staff to experiment Trust your staff and customers Investigate cost savings Watch your competitors Follow international trends
- Many of the sites we discussed today are listed on my website. There’s also details of other presentations and services I offer as well.