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Presentation on a range of issues relating to the development of the digital economy.
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All Things Digital Ideas for today and tomorrow Randeep Sudan Global Lead, Digital Strategy and Government Analytics World Bank
Storyline • Digital economy • Some leapfrog ideas for Thailand • Digital government • Country examples – Estonia and the UK • Importance of Strategic Foresight • Agile policy making
Digital EconomySource: The Digital Spillover: Measuring the True Impact of the Digital Economy, Oxford Economics (forthcoming) • Digital economy is worth $11.5 trillion globally equivalent to 15.5 percent of global GDP • Singapore (nearly 35%), Malaysia (nearly 20%), Thailand (about 7%) • Size and contribution of the technology sectors (i.e. high-tech manufacturing and ICT services) • Value of services flowing from digital assets (including some classified as current expenditure) as a share of GDP • Digital spillovers (difference between impact on the overall economy with impacts felt by individual companies investing in digital assets)
Thailand International Rankings
Thailand’s Rank on International Rankings • 82 out of 175 countries on ITU’s ICT Development Index (IDI) 2016. • 62 out of 139 countries as per the World Economic Forum’s (WEF’s) Networked Readiness Index (NRI) 2016 • 77 out of 193 countries on the United Nations E-Government Survey 2016 • 21 out of 65 countries on Waseda University’s 2017 digital government rankings • 46 out of 190 countries on Ease of Doing Business 2017 • 34 out of 98 countries on the Global Competitiveness Index for 2016-17 • 6 our of 55 countries on AT Kearney’s Global Services Location Index (2016) • 17 out of 58 countries on Affordability of the Internet, Affordability Drivers Index 2017 Broadly Thailand has performed better in terms of affordability and usage of mobile services, as well as financial attractiveness as an investment destination; but has not performed as well on skills and regulatory environment.
The importance of Focus Keystone habits
Keystone Habits • Alcoa CEO/Chairman: 1987 to 2000 • Annual net income increase from $200 million to $1.484 billion • Market cap from $3 billion to $27.53 billion
City Services Through the Prism of Health Source: Health in All Policies Report, City of Richmond California
Prioritizing where to begin Spotting Leapfrog Opportunities
Gartner’s Top 10 Strategic Technology Trends for 2017 • Artificial Intelligence & Advanced Machine Learning • Intelligent Apps • Intelligent Things • Virtual Reality and Augmented Reality • Digital Twins • Blockchains and Distributed Ledgers • Conversational Systems • Mesh App and Service Architecture • Digital Technology Platforms • Adaptive Security Architecture
Most disruptive technologiesDr. John E. Kelly Senior Vice President Cognitive Solutions and Research IBM (Armonk – NY) • Artificial Intelligence • Blockchain • Quantum computing
Exponential growth of data • According to McKinsey estimates, the volume of data flows has multiplied by a factor of 45 since 2005. • Cisco (Visual Networking Index) estimates that annual global IP traffic reached 1.1 ZB per year by the end of 2016 and will grow at a compound annual growth rate (CAGR) of 22 percent till 2020. • A zettabyte is equal to one sextillion (1021) or 270 bytes. • By 2014 cross-border data flows accounted for $2.3 trillion in economic value (McKinsey) • Need for a National Policy/Strategy on Data
“As Chief Data Scientist, DJ will help shape policies and practices to help the U.S. remain a leader in technology and innovation, foster partnerships to help responsibly maximize the nation’s return on its investment in data, and help to recruit and retain the best minds in data science to join us in serving the public”.
Duties: Chief Data Officer (US Department of Transportation) • Manage the open government data effort, including coordinating how we offer APIs and create public data products. • Increase the effectiveness in efficiency in managing data, analyzing the public value of the data we have, and collaborating across the Department to share data. • Improve how the agency collects, uses, manages, and publishes data. • Lead the agency efforts to track data collections, data purchases, databases, physical data models, and linkages between datasets. • Improve data quality and how we measure data quality Source: USA Jobs
The data continuum • Generation • Capture • Transmission • Storage • Security • Sharing and Pooling • Analytics • Cognification • Legal, regulatory and institutional
South Korea Mid-to Long-Term Master Plan in Preparation for the Intelligent Information Society: Managing the Fourth Industrial Revolution
Data goals Source: Mid-to Long-Term Master Plan in Preparation for the Intelligent Information Society Managing the Fourth Industrial Revolution (South Korea)
Source: Mid-to Long-Term Master Plan in Preparation for the Intelligent Information Society Managing the Fourth Industrial Revolution (South Korea)
Source: Mid-to Long-Term Master Plan in Preparation for the Intelligent Information Society Managing the Fourth Industrial Revolution (South Korea)
Source: Mid-to Long-Term Master Plan in Preparation for the Intelligent Information Society Managing the Fourth Industrial Revolution (South Korea)
EU’s General Data Protection Regulation (GDPR) • Will strengthen and unify data protection for all individuals within the EU • The GDPR will give citizens and residents control of their personal data and will simplify the regulatory environment for international business by unifying the regulation within the EU • The regulation was adopted on 27 April 2016 and will apply from 25 May 2018
Germany: White Paper on Digital Platforms • Creating a legal framework to prevent exclusivity rights to data which hamper competition. • Access to data is to be strengthened by using cartel law and also by way of sector-specific regulations. • European General Data Protection Regulation creates a good foundation for more data sovereignty and portability as well as providing the right incentives for the anonymization and pseudonymization of data. • Companies must also provide information about the commercial use of personal data so that users are made more aware that seemingly free services are funded by the sale of data.
Cyber risk insurance • AIG reports that requests for cyber insurance policies jumped by 87 per cent in Asia year on year compared to the same period following WannaCry. Requests for the same policies globally were up 38 per cent: Financial Times, August 9, 2017 • WannaCry affected organizations in 150 countries, including Britain’s National Health Service, FedEx, Renault and Telefónica. • 2015 OECD Council Recommendation on Digital Security Risk Management for Economic and Social Prosperity: National strategies could include incentives for businesses to measure and manage their exposure to cyber risk. Source: Cyber insurance market expected to grow after WannaCry attack FT, May 16, 2017
Keystone Initiative on Cyber Risk Insurance • Encourage taking stock of data, assign value to data and secure data assets. • Market mechanism to ensure data security • Check high valuations of data as inflated valuations would result in inflated premiums. • Better information on data and data valuations would help creation of data markets, and better regulation of data flows. • Develop cyber-risk assessment skills in Thailand promoted largely by the private sector. • Thailand would emerge as one of the most secure data locations internationally. • Thailand could potentially become a test bed and learning platform for global insurance companies in cyber-risk insurance. • The initiative could provide opportunities for the development of blockchain based insurance models that track data assets thereby lowering costs of insurance and supporting innovations in Thailand.
Bandwidth • 8K TV: 300 Mbps • Pacific Light Cable Network (Google, Facebook, TE SubCom and Pacific Light Data Communication) • HK to Los Angeles: 120 Tbps • Marea (Facebook) • Virginia Beach to Bilbao: 160 Tbps • Akamai’s Q1 report for 2017 ranks Thailand at #8 internationally with peak data speeds of 106.6 Mbps (Singapore #1 184.5 Mbps). Thailand ranked 21 in terms of average data speeds (16 Mbps) as compared to South Korea at #1 (28.6 Mbps). • Thailand’s current international bandwidth is about 4 Tbps • Network slicing: European Union financing $8.9 million for 5G
Digital Twins • “A digital twin is a dynamic software model of a physical thing or system that relies on sensor data to understand the state of the thing or system, respond to change, improve operations, and add value” (Gartner). Source: Siemens
Singapore’s 3D Smart Nation Map Source: SLA’s 3D Smart Nation map debuts on the world stage, ESRI
Minecraft Source: How 'Minecraft' is Transforming Developing Cities Around the World, Mashable Asia
Business Operating Systems The term business operating system (BOS) refers to standard, enterprise-wide collection of business processes used in many diversified industrial companies. The definition has also been extended to include the common structure, principles and practices necessary to drive the organization. (Wikipedia)
A Digital Twin Initiative in Thailand • Building Information Modeling requirements • 3D spatial depiction – new eco cities in the EEC • Business Operating System – ease of doing business processes • 360 capture of new eco-tourism sites • Helping SMEs to digitize products and processes – knock on benefits for eCommerce and for 3D printing • Capturing data from IoT deployments