Tag Archives: Oracle

2020 Challenge: Completely re-invent how we process data (or grow our brains 30x!)

matrix-200pxOn Friday, Russell Garland of the WSJ wrote about the “Data Tsunami” that is coming due to increased volumes of data being generated from everything from the Facebook Social Graph, the next Interest Graph and genomics (just to name the most obvious growth driver). “Tsunami” is probably too small of a word (unless you are talking about Jupiter-scale growth). Take a look at these interesting numbers:

  • The average human brain can take in and remember about one byte per second (two gigabytes over an average life time, including sleep)[1]
  • The amount of data storage in the world in 2000 was rough 300,000 terabytes—about 0.03 “brains’ worth” of storage for every person on Earth[1,2]
  • This amount grew at to approximately 1,200,000 terabytes by 2010—about 90 “brains’ worth” of storage for every person on Earth.[2,3] No wonder we feel so over-loaded with data!
  • By 2020, this will get even more outlandish. We will have 36,000,000,000 terabytes of data—about 2,400 “brains’ worth” of storage for every person on Earth.[2,3]

Managing storage of this volume data will be an interesting challenge for companies like EMC, IBM and Oracle (one aided greatly by Moore’s Law). However, being able to understand it will require complete reinvention of how we process, explore and analyze data.

These new technologies will be as advanced when compared to today’s data warehousing and reporting technologies as the spreadsheet was when compared to manual ledgers. They will use non-linear rule engines and artificial intelligence to find trends and determine which data are most important. They will use new data visualization techniques, leveraging everything from 3D to augmented reality (AR) technology to enable human-scale brains to explore results and conduct analyses. This, in turn, will drive new physical interfaces from the desktop to mobile to even wearables.

It should be a very interesting ride!

Notes:
[1] “How Much Information is there in the World?”, Michael Lesk
[2] “World Population”, Wikipedia
[3] EMC-sponsored IDC study, “The Digital Universe Decade – Are You Ready?”

The risk of NOT innovating

We are at that time of the year when many of us are working on next year’s strategic plans. A question that often arises is, “What is the risk of [doing something new]?” What is asked less often is, “What is the risk of not doing something new or distinctive?”

‘Innovation = life’ when you court early adopters

In newly emerging markets—be they as high-tech as augmented reality or as low-tech as fashion—the answer is obvious. Innovation is occurring all around you; those who so not innovate enough will be left behind. The challenge here is to stay ahead of everyone else (instead of copying the innovation of others).

Examples:

  • Facebook out-innovated MySpace, Friendster, and everyone else
  • Can you name three competitors of Amazon from the late 90s?
  • FourSquare crushed Gowalla (and is standing up to Facebook)

Innovation allows you to ‘cross the chasm’

When you are entering the tornado, (i.e., when demand takes off and the top leaders are established), the speed of change requires innovation to shift from creation to speeding and scaling execution. You need to be able to out-market, out-deliver and out-support the competition. If not you will find yourself as Chimp (or worse).

Examples:

  • AOL out-ran all other ISPs—including a buy-or-break challenge by Microsoft
  • McDonalds’ innovations in franchising has enable it to serve billions
  • Ford’s Model T made cars affordable for the masses

Innovation keeps leaders on top

When you are the leader, everyone is aiming to displace you. Innovation in marketing and promotion will keep demand for your product fresh. Innovation in partnerships and distribution will create barriers to block you competition. The challenge is ensuring your teams know they have to keep innovating once they have reached the top.

Examples:

  • Intel is still the worlds largest chip maker (in a world with Moore’s Law)
  • GE is the only original Dow Jones stock still independently trading
  • Nike has been the top provider of sporting equipment for decades

Innovation is the only way to disrupt the leader

The familiarity and market share of leaders gives them enormous advantages in terms of cost of sales, speed of sale, distribution, etc. If you are smaller, you cannot disrupt a market leader by being playing “me-too” (unless the leader makes a big mistake). You need to “change the market” by meeting needs your customers did not realise they had or delivering in ways established “leaders” cannot match.

Examples:

  • Salesforce is worth nearly 3x what Siebel was when it sold to Oracle
  • RedBull has wings
  • President Obama’s campaign managers used social media, mobile, and CRM software to raise more money than more-established opponents

Innovation is the only way to ensure life in the future

Clayton Christensen has written volumes on need the foster disruptive innovation to ensure your remain a leader in the future (see my notes below). If you do not invent the future, someone else will—moving your market to a place where they lead (and you do not). If you want to avoid this, you have two option (ones that need not be mutually exclusive): 1) create incubation teams to innovate the future or 2) acquire proven innovators (this can be expensive).

Examples:

  • Apple continuously invents the “next big thing”
  • Amazon is selling more books on Kindle than in print
  • IBM went from typewriters to computers to services (and acquisition of many business information infrastructure innovators)

So what is the risk of not innovating?: your entire future

Notes: This post draws on two of my favorite books, “The Innovator’s Dilemma” and “Crossing the Chasm.” If you like this post, I encourage you to read “iPad’s Climb Up the Disruptive Innovation Cycle” by Hutch Carpenter and “Social Networking Sites, Market Segmentation and the Innovation Cycle” by Digvijay Singh.