The 2nd Biennial Conference Scientific Research Council

& The 3rd International Conference Caribbean WELCOME Project

Theme: Science & Technology Driving Development: Competitive Edge for Caribbean

The Digital Entrepreneur: Finding your Niche in the Emerging Digital Ecosphere

Phillip Jackson

(pcjackson@gov.vc; phillip.c.jackson@gmail.com Government of St. Vincent & the Grenadines and CCST

The Grand Ballroom, Jamaica Pegasus Hotel, Kingston

November 7 -8, 2012

Link to Lyrics: http://www.azlyrics.com/lyrics/damianmarley/setupshop.html

Entrepreneurship me say!

Click to Play

It pays to watch TV – other news on Nov 6th 2012

Halo has earned $3 billion for Microsoft in the past decade. 2011 Total Consumer Spend On All Games Content In The U.S. Estimated Between $16.3 To $16.6 Billion http://uk.news.yahoo.com/halo-4-game-predicted-to-earn-more-than-james-bond.html https://www.npd.com/wps/portal/npd/us/news/press-releases/pr_120116/

Sorry Americans NO Voting on your Laptops nor Smartphones just Yet. But that was before Obama said of long voting lines: “We have to fix that!” http://www.huffingtonpost.com/2012/11/07/obama-long-lines-polls_n_2086291.html http://www.kctv5.com/story/20012374/why-you-can39t-vote-online-yet?utm_source=twitterfeed&utm_medium=twitter#.UJlIi2fTyKo.facebook http://www.digitaltrends.com/mobile/its-the-21st-century-why-arent-we-voting-online/

The Opportunity… Key statistical highlights: ITU data as at the end of 2011 - released June 2012 Mobile cellular:

Total mobile‐cellular subscriptions almost 6 billion = global penetration of 86%.

Developing countries, accounted for more than 80% of the 660 million new

additions

105 countries with more subscriptions than Inhabitants.

Mobile broadband:

>1 billion mobile‐broadband subscriptions worldwide.

Most dynamic ICT service reaching a 40% annual subscription growth in 2011.

Mobile‐broadband penetration: developing (8%) and the developed world (51%).

144 million mobile‐broadband subscriptions were added in the BRICS (Brazil, the Russian Federation, India, China and South Africa), accounting for 45% of the world’s total subscriptions added in 2011. Internet: 2.3 billion people were online. 70% of the total households in developed countries had Internet, whereas only 20% of households in developing countries had Internet access. Total international Internet bandwidth increased seven‐fold over the last five years reaching 76’000 Gbit/s by end 2011. This equates to 34’000 bit/s per Internet user worldwide. On average, a user in Europe enjoys 25 times as much international Internet capacity as a user in Africa. Source: ITU World Telecommunication/ICT Indicators Database.

© 2012 International Telecommunication Union, All Rights Reserved. Available at: http://www.itu.int/ITU-D/ict/statistics/material/pdf/2011%20Statistical%20highlights_June_2012.pdf See also: http://www.itu.int/ITU-D/ict/facts/2011/material/ICTFactsFigures2011.pdf

J.P. Morgan expects business-to-consumer e-commerce (excluding travel) to jump from $572 billion in 2010 to over $1 trillion by 2014. The size of total worldwide e-commerce, when global business-to-business and consumer transactions are added together, will equate to $16 trillion in 2013 – IDI. The global market for digital products and service estimated at $4.4 trillion in 2013 - IDate, Total size of digital economy is estimated at $20.4 trillion, equivalent to roughly 13.8% of all sales flowing through the world economy. The United States remains the world’s single biggest e-commerce market, IMRG says, followed by the United Kingdom and Japan but it is only a matter of time before China, the Asian giant, becomes the single largest market in the world.

Source: Engman 2010 Exporting Information Technology Services: In the Footsteps of India Chapter 7 of http://ipc.umich.edu/books-monographs/pdfs/stern-international-trade-services-developing-countries.pdf

The Mobile Market

With smartphones and tablets providing new platforms for software developers, an entire new class of software entrepreneurs has emerged. In April 2011, Forrester projected the mobile application market size to be $54 billion by 2015. Of this, $17 billion was for mobile application development services. Research conducted by ACT and Microsoft's TechNet shows that the app economy has created between 400,000 and 600,000 jobs. In fact, the majority (78 percent) of U.S. mobile app companies are small businesses, according to a survey conducted by the Association for Competitive Technology (ACT.

The Rationale

2B+ Internet users worldwide

Internet accounts for 3.4% of GDP

21% of GDP growth in the last 5 years

2.6 jobs created for 1 job lost

75% of Internet impact arises from traditional industries

10% increase in productivity for small and

medium businesses from internet usage

They grow and export 2x as much as others

Up to €20 per internet user per month of consumer surplus

Source: McKinsey and Company http://www.mckinsey.com/features/sizing_the_internet_economy

Name of Index - Source Year Current Rankings / Previous Rankings

Jamaica St. Lucia Trinidad and

Tobago

ICT Development Index - ITU 2011 89 (3.49)

84 (3.42)

64 (4.49)

61 (4.36)

61 (4.57)

60 (4.42)

Digital Economy Index - EIU 2010 44 (5.21) - 48 (4.98)

Networked Readiness

Index - WEF

2012 74 (3.86)

73 (3.78)

- 60 (3.98)

63 (3.83)

E-Government

Development Index - UNDESA

2012 108 (0.4552)

89 (0.4467)

90 (0.5122)

88 (0.4471)

67 (0.5731)

67 (0.4806)

Digital Opportunity

Index - ITU

2007 55 (0.51)

52 (0.47)

73 (0.46)

68 (0.43)

59 (0.50)

57 (0.45)

Our ICT Standing in the World? – We are loosing ground!

Source: Compiled by Author from following sources EIU: http://www-935.ibm.com/services/us/gbs/bus/pdf/eiu_digital-economy-rankings-2010_final_web.pdf ITU: http://www.itu.int/ITU-D/ict/publications/idi/material/2012/MIS2012_without_Annex_4.pdf http://www.itu.int/osg/spu/publications/worldinformationsociety/2007/WISR07_full-free.pdf http://www.itu.int/osg/spu/publications/worldinformationsociety/2006/world.pdf WEF: http://www3.weforum.org/docs/Global_IT_Report_2012.pdf

Figure 1: The Evolved Networked Readiness Index structure

Source: WEF: http://www3.weforum.org/docs/Global_IT_Report_2012.pdf

Source:WEF: http://www3.weforum.org/docs/Global_IT_Report_2012.pdf

Snapshot

The Digital Economy and the Digital Entrepreneur The digital economy is the global network of economic and social activities that are enabled by platforms such as the internet, mobile and sensor networks. —Executive Summary, Australia's Digital Economy: Future Directions. Digital Entrepreneurship encompasses the diverse opportunities generated by the Internet, World Wide Web, mobile technologies, and new media, such as: dot-com companies [that boomed then busted after the Internet was opened for business]; the fluid army of “ebay entrepreneurs”[and now “Qbidders” who traffic their goods] with little overhead cost by using the digital infrastructure…; the wave of “web 2.0” initiatives where companies or individuals develop new business models based upon the growth of social networks and mobile technologies; and, the development of weblogs (“blogs”) that have credibly begun to rival traditional media firms. http://www.dbcde.gov.au/__data/assets/pdf_file/0006/117681/DIGITAL_ECONOMY_FUTURE_DIRECTIONS_FINAL_REPORT.pdf http://www.hicss.hawaii.edu/bp43/IN6.pdf

The Possibilities Matrix

The State as Entrepreneur How governments can facilitate ICT convergence: • Reform policies to promote competition and remove investment barriers: —remove restrictions on foreign ownership of licenses; —adopt rules to provide for infrastructure sharing of towers, ducts, and support facilities; —add mechanisms for managing radio-frequency spectrum; —encourage wireless broadband providers to enter small local service areas; —streamline the process for accessing rights of way and pole attachments; and —monitor dominant operators. • Provide government incentives to firms that deploy advanced ICT services, such as: —interest-free credit; —subsidies, attractive loans to compensate providers who deploy networks in unprofitable areas; and —preferential tax rates. • Invest in infrastructure and services: —fund the construction of open-access fiber optic networks; —fund digital education initiatives; —include network conduits in road projects or incorporate cable arrays in new electrical grids; and —support local community initiatives to provide broad-band access. - The Global Information Technology Report 2012 The Australian Government recognised the need for action to position Australia as a global digital leader. Their National Digital Economy Strategy is worth a study. http://www.dbcde.gov.au/digital_economy/what_is_the_digital_economy http://www3.weforum.org/docs/GITR/2012/GITR_Chapter1.2_2012.pdf

Further Insights

Only strong internet ecosystems can capture maximum value. The best performers focus on four critical areas: Promote human capital Ease access to financial capital Develop infrastructure Create an attractive business environment Public decision makers should act as a catalyst to unleash the internet’s growth potential All business leaders should put the Internet at the top of their strategic agenda All stakeholders should take part in a fact-based, public-private dialogue - Internet Matters: McKinsey and Company

http://www.mckinsey.com/insights/mgi/research/technology_and_innovation/internet_matters

Three Critical Areas for Policy Focus INFRASTRUCTURE LEGISLATION AND REGULATIONS SKILLS DEVELOPMENT

Ideas Factory – some possible ideas for the digital entrepreneur

The whole gamut : From Webpage Developers and Facebook Managers to Virtual Tourism – Hikes, Bike Rides, Jogging, usain bolt country training ground – virtual run Mobile Payment NAMIS + - National Agricultural Marketing Information system GFNF – mFisheries – success story in TnT Emergency Recovery Data Centre – Trinidad – traditionally outside hurricane belt, cheap energy to power data centres, very good broadband infrastructure, capacity to train himan resource Preventative health app – broadcast daily reminders and tips that encourages healt-related actions based on health profile of user: exercise tips; food suggestions; water breaks; medication reminders, doctors and dentists appointments, healthy recipes; health programme schedules (on in 15 minutes) etc Caribbean Itunes – music and lyrics

Welectricity – energy conservation meets social networking Fundraising agencies via SMS Caribbean crowdfunding for locals and Diaspora News and Entertainment App for Caribbean Diasporas Pay per View Cable Channel for local content providers and producers Moko Jumbie and the Young Bob Marley Music Show for kids Video on Demand Dance Classes Virtual Steel Pan and Band SMS Tests for evaluation of uptake of learning objectives of media campaigns All sorts of games from SMS-based to fully immersive virtual environment experiences Animations – Caribbean tales – music, cricket etc

Conclusion

The Digital Economy presents tremendous opportunities for the digital entrepreneur to exploit. The emerging paradigm may be described as Society 3.0: Digital Democracy and the Rise of the Mobile Majority. From enhanced web presence and e-commerce; e-government and m-government; to software, mobile apps and virtual experiences – there is a gamut of products and services with the potential for multiple iterations serving an increasing number of sophisticated, diversified and segmented consumers. The individual, project teams, businesses and governments should and must conceptualize and equip themselves as entrepreneurs in this multi-dimensional digital economy. The new I-Entrepreneur would be competent, connected, collaborative and co-creative. The challenge to the various types of entrepreneurs, including governments, is to acquire and enhance the various technical and business skills that allow them to sustainably exploit the emerging possibilities while at the same time identify the best niches for exploitation. The most interesting thing about the digital enterprise is that not only are there opportunities to satisfy current and emerging needs and desires but the real potential also exist in satisfying latent desires and more importantly create products and services that persons do not know they wanted.

Thank You!

Set up Shop! Digital Shop