Image sources: alleywatch.com; govtech.com; eoi.es

How Entrepreneurial Networks are

Changing the Landscape of

Business across the World: Big

and Open Data and SME

Competitiveness

Jay Mitra, Professor,

International Centre for Entrepreneurship

Research, Essex Business School

University of Essex, UK

Source: adapted from cnets.indiana.edu

Network Formation & Development

Shape and Meaning

……Technologies & Industries to ….

Until 1985

1986-1990

1991-1995

1996-2000

2001-2002

Cambridge

University

Acorn Hermann

Hauser

Acquired by

Olivetti

Olivetti

Research Lab Andy Hopper

Adaptive

Broadband

Cambridge

Broadband Acquired by American

Microwave

Acquired by

Western

Multiplex

Corp

Andy Hopper

Peter Warton

IPV (Telemedia

Systems)

Andy Hopper

Virata(ATML)

Hermann Hauser

Andy Hopper

Merged with

Globespan

Acquired by AT &T

RealVNC

Virtual Network

Computing Level5Network Andy Hopper

ANT Alex van Someren

Nicko van Someren

nCipher Alex van Someren

Nicko van Someren

Netchannel Hermann Hauser

Jack Lang

Acquired by

NTL

ARM Element 14

Stan Boland

Simon Knowles

Acquired by

Broadcom

Amadeus Capital Partners Hermann Hauser

IQ Bio Hermann Hauser, Chris Keightley

Part of DAKO

Diagnostics DakoCytomation -

Merged with

Cytomation Inc

CDT

Richard Friend

Richard Friend Plastic Logic

Analysys

David Cleevely

Cambridge

Network

David Cleevely

Hermann Hauser

Alec Broers

Cambridge

3G

David Cleevely

CPS Peter Duffett-Smith

Polight

Technologies

Stephen Elliott

Pavel Krecmer

ART

Daniel Hall

Pilgrim Beart ActiveRF

Pilgrim Beart

Antenova

Zeus

Technology

Adam Twiss

David Reeves

Cambridge

Semiconductor

Gehan Amaratunga

Florin Udrea

Muscat John Snyder

Martin Porter Enterprise

Accelerator John Snyder

John Snyder Webtop

Smartlogik

Acquired by Dialog

Small

World

Richard Green

Authur Chance

Dick Newell

CAD

Shape Data Charles Lang

Acquired by

GE

Tensails Richard Green

VBN

online

TerraPrise

Ubisense

Andy Hopper

Steve Pope

Andy Hopper

Andy Ward

Pete

Steggles

Simon Elliott

David Cleevely

Electronic Share

Information Acquired by

E* Trade

Hermann Hauser

Jack Lang

Top

express Jack Lang

Splashpower

Lily Chang

James Hay

Saviso Group

Adam Twiss

Bryan Amesbury

Innovia

Collin Ager

Garraint Davies

Cambridge Interactive Systems

Hermann Hauser

Mike Muller

Tudor Brown

Jamie Urquhart

Dick Newell, Tom Sancha

Figure 1 - The hi-tech start-ups associated with the Cambridge University

Stan Boland

Simon Knowles

Icera

Laser-Scan R. O. Frisch

M-Spatial

Adrian Cuthbert

Jon Billing

Source: courtesy of Alan Barrell

2003

…t o People +

Institutions to

Globalization - Flattening (?) at Speed

• Lower Trade Barriers, lower Transportation, technology Costs

• Freer movement of information

• Lower the barriers to collaboration

• Forms of collaboration become mobile and more widely distributed

Digital,

Mobile

Personal,

Virtual

Skype

Wireless

Netscape

20001492

Berlin Wall

Falls Google

iTuneBlogs

Windowsi

1800

Countries Companies Individuals

Time

Globalization

The Evolution of Global Networking

Note the shrinking role of countries/nation states & their governments in influencing

networks and the growth in individual empowerment. In reality individuals working with

highly networked enterprises are making the difference in the patterns of networking.

The world is becoming more

specialized, and all economic

regions need to get ready for

this new kind of competition

Source:Mateja Dermastia, Anteja ECG d.o.o

Increasing the possibility of new opportunities

At the heart of it is Big and Open Data

Types of Data Sets Size in Terabytes

Business emails sent p.a 2,986,100

Content uploaded to Facebook, p.a 182,500

Google’s search index 97,656

Kaiser Permanete’s digital health records 30,720

Large Hadron Collider’s annual data output 15,360

Videos uploaded to YouTube p.a 15,000

US National Climatic Data Centre database 6,144

US Library of Congress digital collection 5,120

US census Bureau data 3,789

Nasdaq stock market database 3,072

Tweets sent in 2012 19

1993

Collection and storage of digital information ; 2.8 zettabytes = 1 sextiillion bytes = 24 quintillion tweets created or replicated in 2012

2013

Data source: Wired, UK ed. June 2013

The New economy (1) • The Big Data Economy is the

Networked Economy

• The network economy is a part of the “new economy”, which is characterised by developments in ICT (information technologies)

• Transformation from industrial to an information mode of development (Castells, 1996)

• Generating new entrepreneurial outcomes

An Agenda

• Understanding Big Data and its Open Components

• The Open Configuration

• Open Data, SMEs and Competitiveness

• The Unknown Future?!

Understanding Big Data

Volumes of Data Created

• Exponential increases in data

11

There is a need

to throw away the

data due to

limited storage

space.

90% of all data

generated

in last two years

Only meaning is in

openness of/ access

to / & using data

The Open Configuration

Open Source

Open Data

Open Innovation

The ‘Open’ Configuration

Big = ‘lots of….

Big = connected

diversity &

synergy

Big = out of control

Open

People

(social

networks),

Technologies

(convergence),

Firms

(networks of

production,

large & small)

Governments

(local, national,

International)

Society (

citizen,

consumer,

Individual,

community)

Connectivity

• What is it?

Open Source = software with source code easily available for change & revisions.

Opportunity for developers to customise programmes for own needs

Distributed under Open Source License

Benefits

Evolution - 1application first written & distributed in 2003

can “travel” around the world many times and turn from a

mite to a giant; all this is free. Software evolves,

develops, & upgrades with enormous speed, + it is

debugged on every step of the way; discourages

computer piracy free distribution

Data source: Sample essay on Benefits of Open Source Software for

Developing Countries — «NeWavEssays»

Costs

C=E+P+A+S+D. E = hardware purchase of equipment -

S

P = actual price of the software - 0

A = internal system administration

costs - S

S = external support - 0

D = downtime costs in times when the

system is unavailable –V

Open Source

Strict 10 rules

Free distribution, actual source code,

derived works, integrity of authors’ source code, no

discrimination against groups or fields of endeavours,

distribution of license, license being static/constant,

not restricting other software, and being technology-

neutral

Open Source Outcomes

• Public utility space for software developers

• Private but open entrepreneurial space – no proprietary lock in, government subsidies, financial capital, distribution systems

• Access to resources

• Creating an Ecosystem

$10,800,000, 000 would be needed if conventional software development method was used to create Linux in its entirety

$50,000,000,000

– c size of Linux economy (inc. Linux related hardware, consumer electronics & related services Bigger than GDP of Costa Rica, Lebanon, Bolivia)

The Prolific Linux Community

10,923 lines of code

= 300 page book, every day Written by worldwide open sourced community of people over 4 years = 1,460 books

Same team removes 5,547 lines of redundant code & modify 2,243 Open source software programming supply chain -

2,700,000 lines

of code to Linux

C $ 0 – cost to start up Linux C 1 – person to start Linux 5,000 developers + Large Ecosystem

Data Source: Tapscott , D. & A.D. Williams (2010) ‘MacroWikinomics: Rebooting Business And The World’ London, Atlantic Books ’

Creating a Linux Ecosystem

Smallest consumer electronics

to largest semi conductors

»

» From nuclear plants to BMWs

> 500m users of set top cable boxes, TiVo, Android phones + home appliances

> 1.5 bn indirectly by accessing Google, Yahoo, etc.

Image s

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log.B

loom

botix

.com

What is it? A philosophy and practice Date made available to the public, without restrictions from copyright, patents or other mechanisms of control For free and in a machine readable format.

Rationale Make government open, accessible & transparent Encourage more participation in government. Greater efficiency of public resources

Benefits Transparency, accountability, innovation

Free access to data in a usable/re-usable format

Creates opportunity to use data in new and innovative ways

Contributes to the strength and vibrancy of the digital media economy within the City

Ideas, Technologies, Democratisation, Governance, Opportunity Creation

Open Data

Ideas, Technologies, People, Ecosystem, Democratisation, Governance, Opportunity Creation, Innovation

The Data Ecosystem

Government Data Citizen Data

Business Data

Supplies data to

Uses data to deliver to Source: adapted from Deloitte LLP, 2012, ‘Open Data: Driving Growth, Ingenuity and Innovation

Open Data and Economic Competiveness

Jobs Progressive Policy Institute,: employment in the App Economy now comes to

752,000 jobs, up roughly 40% over the past year (in USA)

Auto companies are hiring software developers and testers to turn their vehicles

into highly connected data platforms.

Drugstores are going online to let their customers know when prescriptions are

ready.

Hospitals are ramping up their employment of clinical data managers to help handle

shift to electronic health records.

Bed and breakfasts have shifted their entire booking operations online, driven by

digital ads.

Data is fastest-growing component of trade.between US and Europe: telecom providers

have doubled transatlantic cable capacity over past 5 Years (Telegeography.

But imports and exports of goods and services between the two are barely above

pre-recession peaks.

Most of the growth of data domestically is not counted in the economic statistics

either. Fixed broadband traffic in North America rose by 39% in the first half of 2013

over a year earlier (Sandvine, a Canadian-based network management company.

This number does not show up in any official measures.

Source: Michael Mandel, The Atlantic July 25, 2013

Open Data, SMEs and Competitiveness

Five Fundamental Tests:

• Do SMEs have networking room within the ecosystem?

• Can new firms be created with new products/services?

• Can SMEs grow through innovation?

• Can innovative capability help SMEs to go global

• Will local markets for SMEs grow ?

Source: from Mitra, J (2012) ‘Entrepreneurship, Innovation and Regional Development’ Abingdon, Routledge

Test 1: Do SMEs have networking room within the ecosystem?

Device to track activity + digital tools = framework for all Nike as part of connected system

Individuals comparing levels with others -measuring physical activity performing tracking to masses not just specific sport for elite athletes

1. With R/GA – designed & built wrist device tracking daily activity in 2. With X Box Kinect Training – full body sensor & tracking technology Digital experience 3. With AKQA – creating consumer experience - 4. Across smartphones, PCs & social media. Synced to FUEL device with data visualisations

Nike’s unit of measurement - FUEL, Personal goals, increased activity, & rewards Relationships with athletes & everyday users

New patterns of activity & fitness Brings digital personal trainer into people’s personal homes

Companion app tracking progress (body motion to the millimetre, more precisely than human eye),

Sets challenge reminders, lets users earn FUEL; Users connect with friends & measure performance

Data source: Creative Review, May 2013

You and Me, Nike and Small Firms

Test 2: Can new firms be created with

new products/services?

Jetpac - free ipad app - turns friends photos to

customised travel magazine. Sponsored competition

to find users’ best images. Using ‘Kaggle’ – platform

for data science competitions. 3 weeks, 3 teams

and 85% accuracy in finding photos. Solution to

photo quality problem

Powerhouse Factories ( c 50 employees)

helping consumers to use brands - used Tableau a

business analytics firm. Showed client data detailing

problems with queuing in checkout lines + show client

how Facebook messages affected sales & customer

engagement “Small businesses not starving for data

…they’re starving for the insights”

Farmstead Table – farm to table restaurant near

Boston

Uses on-line services Swipley to process credit card

payments & collect customer data (birthdays,

anniversaries, what they eat, when they come in.

Also shows how social media activity + weather

affects daily sales

Data

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With a Little Help From My Friends

Massimo Banzi helped invent the Arduino, a tiny, easy-to-use open-source microcontroller that's inspired thousands of people around the world to make the coolest things they can imagine -- from toys to satellite gear.

"You don't need anyone's permission to make something ”

Super Awesome Sylvia (11 yrs old) builds 2 different super simple Arduino Projects: The "Randomly Influenced Finger Flute", or R.I.F.F., and an Adjustable Strobe! For these easy projects, all you need are a computer, an Arduino, and one or two other common

parts.

Data source: Ardunio.cc

Auduino - The Arduino synthesiser:

http://www.youtube.com/watch?v=1LKmtJHSLF0

Test 3:

Can SMEs start and Grow through Open Innovation ?

Local Motors Case Study: 1/2

June 2010 – Launch of

Rally Fighter $ 50,000

off-road racer

Prototyped in workshop

at back of Wareham

office, Mass.

Manufacturing from

Factory Five Racing –

a kit car company.

Overcame problem of

kit car design

(lawsuits licence fees

because they copy

famous cars)

by going for totally

original design (

re-imagine what

a car may be?)

Crowd sourced design

Community of volunteers –

engineers, designers,

car hobbyists equipped with

3D design software &

photorealistic rendering

technology, entering a

competition) technology

Design released under

share-friendly Creative

Commons Licence

Customers encouraged to

improve design & produce

own components

Source: adapted Anderson, C. ‘Atoms are the New Bits: Wired 3.10 077-085

Motivated by refusal to design car for mass-market/

environmental issues

Selection of off-shelf components; Chassis, engine,

transmission designed/selected by LM & relationships;

With firms which helped to source dashboard dials,

new BMW clean diesel engine; Final assembly by

customers - “build experience”

Sketch to market in 18 months model

The Local Motor Story- 2/2 Sourc

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Poole: Sun, Sea and Electronics !

Test 4 :Can innovative capability help SMEs to go global?

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Air Spindles

Printed Circuit Boards

Electronic Gadgets

Drilling machines

China

Japan

Poole, in rural southern coast of England – balmy climate, scenic harbour &

centre in global electronics industry

Westwind & Air Bearings – world’s biggest producer of air-bearing spindles (80% of

$100m global market)

Air Spindles = small electric motor whose shaft rotates on air bearing ( a thin film

of compressed air . Made out of 100 metal parts packed into a steel tube about

half –used roll of kitchen tissue (sell for + $500)

Why spindles? Linked to miniaturisation & improved production efficiencies

Application in printed circuit boards (plastic base for microchips & capacitators)

Air spindles are used in drilling machines that make holes in PCBs

In Poole – R&D + manufacturing

Air Bearings - One factory

Westwind - one factory in Poole + plant in China (Suzhou)

The Air Spindles Story

Source: adapted from, Marsh, P. (2012) The New Industrial Revolution: consumers,

globalisation & the end of mass production, (slides 27-29)

Air spindles sold to manufacturers of drilling machines:

Germany – Schmoll & Lenz

Taiwan – Tong-Tai & Takisawa

China – Han’s Laser

Drilling machines to large makers of PCBs :

Japan - Meiko & Ibiden

Taiwan – Unimcorn & Tripod

PCBs to producers of electronic equipment through several

more layers of suppliers

Test 5:

Will local markets for SMEs grow ?

Location Based Services

Collaborative Consumption

Location based Social Network

Local Information Search & Listings

Keeping in touch

with friends &

meeting strangers

Phone nos; addresses

websites & online maps

Open Table

Subscription of $199 + $1

for web site related seats

Tracks user’s movement

28% booking from mobile

devices

Yelp – lists and reviews

local businesses

25% information sourced

by mobile website

7,m users per month

Local Market Opportunities

Services provided

online according to

location of user Blablacar

Connects drivers &

passengers

making same intercity

journeys

Airnb

Rent out spare rooms,

beds

Sharing of private property

for a price

Foursquare

Check in at café/bars to

Let people know about

their movements

Nextdoor

5,000 neighbourhood

networks in 48 US cities

in 1 year

Sharing information and

interests

Allows househunters to

search

For properties on line

Use finger to draw around

preferred area

on touchscreen

Compare crime rates

And the future?

Mobile, Fixed

Global, Local,

Digital, Physical

Mobile Subscriptions (bn)

3.1 2.7 2.2 1.7 1.2 0.9 0.6 0.4 0.2

2008/9 10 11 12 13 14 15 16

17

Mobile Broadband Subscriptions (bn) 0.1 5.0

Mobile traffic (monthly exabytes)

3.6 4.4

Voice Mobile phones Mobile PCs & tablets7

0.1 0.17 0.2

= 2011 = 2017

0.08 0.5 0.7

Is the Future Going Mobile?

• People are on line wherever they go – connected at ever higher speeds

• Computers as smart phones or tablets continually updated

• Vol of mobile traffic > 21 times than in 2011 / no. of mobile broadband subscriptions

• will jump from 900m to 5bn (Ericsson)

• By 2020 50bn devices of various kinds will be connected ( now only 0.2%)

• Gradual development of a central nervous system of Earth (tiny cheap, tough

detectors that will see, hear, feel (by detecting vibrations), & smell & taste (by

analysing chemistry of surroundings)

• Most data generated in cities (concentration of phones, cars, buildings & infrastructure)

Smart because of proximity of people)

• While more & more digital information stored in “clouds” remote servers making up

cloud are resolutely earthbound because of physical climate, existing infrastructure &

tax regime

Data source: The Economist, Oct. 27, 2012; ‘Technology and Geography: Special Report’

Concluding Observations

Big, open data:

provides the basis of networks, networking & networked

enterprises ;

is the basis of connected technologies

affects all countries, governments, and firms;

currently generates more jobs than firms providing traditional

goods & services;

opens up huge entrepreneurial opportunities

requires all the element s of good networking – trust, good social capital,

governance

Contact

Professor Jay Mitra

Director International Centre for Entrepreneurship Research

Essex Business School University of Essex, 10 Elmer Approach, Southend-on-Sea Essex SS1 1LW, UK T: +44 (0) 1702 328390 / 385 /200 F: +44 (0) 1702 328387 E: jmitra@essex.ac.uk W: http://www.essex.ac.uk/ebs/research/cer