you ain’t seen nothing yet

YOU AIN’T SEEN NOTHING YET

by

Daniel Petre AO

Welcome to the presentation of

Disruption

Everything is changing.Change is accelerating.

“We ain’t seen nothing yet”

• Mobile Expansion• Increased line speed• Social Network Power• Internet of Things• Machine Learning• Advanced Robotics• 3D Manufacturing• Big Data• Network Effect• Global Platforms

How things have Already Changed

Re-Imagination of Computing Devices

THEN(Desktops / Notebooks)

NOW(Tablets / Smartphones)

6Source: KPCB Internet Trends Mary Meeker 12/3/2012

Re-Imagination of Connectivity

THEN NOW

7Source: KPCB Internet Trends Mary Meeker 12/3/2012

Re-Imagination of News + Information Flow

THEN

Delayed / Dedicated Reporters + Cameramen / Regional or National Reach

NOW(Twitter)

Real-Time / Citizen Reporting via Mobile Devices / Global Reach

8Source: KPCB Internet Trends Mary Meeker 12/3/2012

Re-Imagination of Magazines

THEN

Piles of Print Copies

NOW(Flipboard)

More Content / Always Up-To-Date / Personalized / Access Everywhere / Interactive (Video + Audio) / Share

9Source: KPCB Internet Trends Mary Meeker 12/3/2012

Re-Imagination of Books

THEN NOW(Amazon Kindle / Apple iBooks)

10Source: KPCB Internet Trends Mary Meeker 12/3/2012

THEN

Buy Albums + CDs in Stores / Playback via Dedicated Players

NOW(Spotify)

Discovery of Music Through Friends + Experts / Instant On-Demand Streaming on

Internet- Enabled Devices

Re-Imagination of Music

11Source: KPCB Internet Trends Mary Meeker 12/3/2012

Re-Imagination of Video

THEN

Physical Retail / Rental Stores

NOW(YouTube / Netflix)

On-Demand / Instant Streaming / Accessible Everywhere

12Source: KPCB Internet Trends Mary Meeker 12/3/2012

Re-Imagination of Yellow Pages

THEN

Big Heavy Printed Business Listings / No Reviews / No Easy Search Feature

NOW(Yelp)

User Reviews / Pictures / Recommendations / Location-Aware / Easily

Searchable

13Source: KPCB Internet Trends Mary Meeker 12/3/2012

THEN

Linear Programming / Pre-Set Channels / Little Control Over Content

NOW(YouTube Channels / Bleacher Team

Stream)On Demand Personalized Content on Big Screen

Re-Imagination of TV

14Source: KPCB Internet Trends Mary Meeker 12/3/2012

Re-Imagination of Navigation + Live Traffic Info

THEN

Physical Copies of Map in Car / TV, Radio Reporting of Traffic Info

NOW(Waze)

User-Generated Digital Map / Live Crowd-Sourced Traffic Data

15Source: KPCB Internet Trends Mary Meeker 12/3/2012

Re-Imagination of Calling a Cab

THEN

Long Lines During Rush Hours / Rain / Some Areas May Not Have

Taxis Roaming on Streets

NOW(Uber)

One-Tap Taxi Call / Location-Aware / Electronic Payment

16Source: KPCB Internet Trends Mary Meeker 12/3/2012

Re-Imagination of Coupons + Local Services

THEN

Non-Personalized / Smaller Discounts / Easily Lost or Forgotten

NOW(Groupon )

Personalized / Location-Aware / Instant Deals / Group-buying Discount

60Source: KPCB Internet Trends Mary Meeker 12/3/2012

Re-Imagination of Cash Registers THEN

Big + Odd Looking Machines / Receipt Printers Cash Drawers

NOW(Square)

Simple + Elegant Tablet + Square Reader / Email Receipts / Touch Signing

18Source: KPCB Internet Trends Mary Meeker 12/3/2012

Re-Imagination of Marketplaces

THEN

Tent + Pickup Truck @ Street Fairs

NOW(Etsy)

Integrated Platform For Listings / Advertising / Payment / Inventory

Management

19Source: KPCB Internet Trends Mary Meeker 12/3/2012

Re-Imagination of Idea Building / Funding

THEN

Flyers / Loudspeakers / Dinners / Checks

NOW(KickStarter)

Online / Social Distribution / Real-Time Progress

20Source: KPCB Internet Trends Mary Meeker 12/3/2012

Re-Imagination of Personal Borrowing / Lending

THEN

Borrowers – Paper Application / Lengthy Approval Process / High Interest Rates

Investors – Little Access For Retail Investors / No Customization Based on Risk

Tolerance

NOW(Lending Club)

Borrowers – Online Application / Funded in Days / Lower Interest Rates

Investors – Easy Customization / Diversification / Better Returns

21Source: KPCB Internet Trends Mary Meeker 12/3/2012

Re-Imagination of Healthcare Access

THEN

Call to Make Appointments / Days or Weeks to See Doctors

NOW(ZocDoc / Teladoc)

On-Demand Access to Doctors in Minutes or Same Day / In Person or Via Phone Video Call

22Source: KPCB Internet Trends Mary Meeker 12/3/2012

Re-Imagination of Government Subsidies

THEN

Gather in Town / Wait in Line to Receive Subsidies

NOW

200MM+ Farmers in India Receive Government Subsidies Via Mobile Devices*

79Source: KPCB Internet Trends Mary Meeker 12/3/2012

Re-Imagination of Learning

From learning by listening to learning by doing Education and learning will become as much fun as videogames. And we call it ‘full body learning’.

Bing Gordon Partner, KPCB

THEN NOW

24Source: KPCB Internet Trends Mary Meeker 12/3/2012

Summary Snapshot –Current Drivers of Change

• Continued Device innovation

– Wearable computers, Internet of things

• Shift to mobile as the dominant device for all

consumer services (Tablet and Phone)

• Nearly ubiquitous high-speed wireless access

• Impact of massive data and better algorithms

• Machine Learning and Robotics

Source: KPCB Internet Trends Mary Meeker 12/3/2012

Internet of Things

Internet of Things – Home/ Consumer

Internet of Things – Smart PaverPavegen

Internet of Things – Smart Inhaler

Internet of Things – Smart Dispenser Adheretech

Internet of Things – Smart city

Internet of Things – Smart AgricultureSilent Herdsman

Summary Snapshot – Current Drivers of Change

• Consumers want all content/information everywhere

and at any time

• Social Graph becomes the platform for

curation/recommendation/sourcing

• Social emerging as starting distribution point for

content

• Global Service/Content Providers able to reach

millions of new users in record (& accelerating) time

• Truly Global markets

Source: KPCB Internet Trends Mary Meeker 12/3/2012

State of Play

Nearly 3 billion people online

About half left to go!

(But most of the money is already online)

Wearables are beginning to take off…

Eyeballs are moving to digital, especially mobile

Newspaper ad revenue has collapsed

“Over-the-top” video is real and growing fast.

TV may be next

Value (and power) are still very concentrated

$1081 Market Value

**Market cap the week of October 14

“New media” dwarfs “old media” in market value

**Market cap the week of October 14

11 billion WhatsApp messages sent each day

758 million pictures shared each day

350 million Snapchat pictures sent a day

SOCIAL

1/7th of the world’s population use Facebook

MOBILE

PCs are now small share of connected devices…

And will soon dwarf them

We are here

E-COMMERCE

E-Commerce continues to take share…

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013

Sal

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%)

Australian Retail Sales 1983 - 2013

Australian Retail Performance

Ecommerce –Where is Australia ?

• Slow to react

– Challenges the status quo

– Disruption(Myers, DJs, Retail, Real Estate play)

• International presence

– Price, range, CRM, logistics

– Ebay, Amazon, ASOS, long tail

• Opportunities

– Nordstrom example

– Logistics, Infrastructure

Source: KPCB Internet Trends Mary Meeker 12/3/2012

Education

• Two threats

• The US has woken up• Aggressive pursuit of Chinese Students• Local campus affiliations

• Our share will naturally decline to more normalised levels

• MOOCS & Adaptive Learning Platforms• See the best lecturer• Personalised Learning Tools• Accreditation control (Universities) is under

threat

McKinsey & Co

Education

The Economist

• Mobile Internet • Automation of knowledge work • The Internet of Things • Cloud technology • Advanced robotics • Autonomous and near-autonomous vehicles • Next-generation genomics • Energy storage • 3D printing • Advanced materials • Advanced oil and gas exploration and recovery • Renewable energy

McKinsey & Co

What are the coming disruptive Technologies

So what?

It is all aboutJobs

&

Investment

Destruction/Disruption

Skills and Jobs

Investment

Text

• The world is one global market• Scale matters• Change driven by Technology is accelerating

• Technology is the underlying catalyst• Business is becoming more complex

• Requiring higher levels of IQ• Requiring an understanding of Tech platforms

75

Summary

• We are generally not a scale or global player• Multi-nationals not paying their way

• We are not priming the engine of the future• We do not have a viable VC industry• We do not fund enough Research• We need more STEM students• We need our companies to do REAL R&D

• The future can’t be just about Mining and Agriculture

76

Summary

Appendix

Ten markers

• % of Australian Households on the Net• Hours of Internet use per day• Balance of Trade on Australia’s Information Account• Number of Australian Online sistes with > 500K users• Number of students graduating from Online

Media/Computing Programmes• Number of Boards with Online specialists• Electronic Commerce in Australia’s largest Companies• Government commitment to online services• Use of computers in Australian Schools

Questions

On behalf of

The Hon. Mal Brough MP and

The Sunshine Coast Business Community

THANK YOU DANIEL