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Big Data revolution is the latest of a series of historical technology shifts that will support institutions and conduct of trade. Trade increases prosperity and, with global payments processing being a key component of global trading operations, the Big Data revolution will transform global payments industry and the global economy
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The age of information has only begun. Industrial boundaries and economic structure in 2025 will bear little resemblance to the
economic ecosystem of 2014. These are big challenges and big opportunities for cities and states that are trade portals .
How will Georgia’s fintech and payments processing communities respond?
School of Economics
Making Sense of Dollars and Cents:
Strategic Boundaries, Big Data and Global Trends in the Economics of Payment Processing
Dr. Christine RiesProfessor
People
Trade Finance
Data
The Global
Economy ASupersystem
Connecting People, Data,
Trade and Finance
Systems ThinkingConnectedInteractive – Feedback
Symbiotic - synergisticAntagonistic
Pathways – chains – multipliers – ripplesExponentialMitigating – stabilizing - sustainable
Systems Thinking + BIG DATA =
Fourth Industrial Revolution (at least)
Unimaginable Economic Growth and Prosperity
“All prosperity comes from…….”People connect to people (find each other)
Exchange goods for goodsGoods for money for goodsGoods for credit for money for credit for goods
Subsystems Goods - trade
PeopleMoney/Payments/Credit
Data
People
Trade Finance
Data
The Global Economy
ASupersystem Connecting People,
Data, Trade and Finance
People
Trade Finance
Data
The Global Economy
ASupersystem Connecting People,
Data, Trade and Finance
Exchange BASICS – Specialization, Exchange, and Value Creation
2 + 2 = 5 Similar Producers 2 + 2 = 7 Different Producers2 + 2 = 20 Venus and Mars
(Developed and Emerging Market Countries)
Trade transactions $26 trillion today; $85 trillion in 2025
Value created? Similar Producers of Venus and Mars?Emerging MarketsUrbanization
Add BIG DATA? Fourth Industrial Revolution?
MARKETSPutting Exchange, Specialization and
Value Creation on Steroids
Potential Buyers Potential Sellers
MARKETSPutting Exchange, Specialization and
Value Creation on Steroids
Potential Buyer Potential Seller
Information Costs – finding each otherEconomies of Scale; Scale Up; Platform;
Centralization
MARKETSPutting Exchange, Specialization and
Value Creation on Steroids
Potential Buyer Potential Seller
Information Costs – finding each other
Transportation Costs
MARKETSPutting Exchange, Specialization and
Value Creation on Steroids
Potential Buyer Potential Seller
Information Costs – finding each other
Transportation CostsEconomies of Scale; scalable; platform;
centralization
MARKETSPutting Exchange, Specialization and
Value Creation on Steroids
Potential Buyer Potential Seller
Information Costs – finding each otherTransportation Costs
Transactions Costs
People
Trade Finance
Data
The Global Economy
ASupersystem Connecting People,
Data, Trade and Finance
What is BIG DATA?
Lots of data?
Data that isn’t ‘data’ - datafication
Connecting or merging data sets?
Massive computational capabilities
Unstructured Data
What is BIG DATA?
LOTS ofUnstructured Data
Extract Information(Data scientists)
Advancing Science (patterns proven sustainable)
BIG DATA and Production Efficiencies
Deliver Information ‘News’ in custom form to high-value decision makers
Enterprise SystemsEnterprise Resource PlanningEnterprise Risk Management
People
Trade Finance
Data
The Global Economy
ASupersystem Connecting People,
Data, Trade and Finance
People
Trade Finance
Data
The Global Economy
ASupersystem Connecting People,
Data, Trade and Finance
Economics of Scale Come From PlatformsCapital; Scale up
Challenge!
22
Healthcare SoS Case Study [Lane 2009] Implemented Using SysML Building Blocks: DNA Signature View
Healthcare SoS Effort Model (a top-level SoS)
Size Drivers ofSoS Capability Reqs
Cost Drivers ofSoS Capability Reqs
Pharmacy System Effort Model
(a constituent system)
Healthcare IT Network Effort Model
(an infrastructure component;a primitive system; )
Full model
Economics of Scale Come From PlatformsCapital; Scale up
Opportunity!!
Economics of Scale Come From PlatformsCapital; Scale up
How will a complete trading platform emerge?What will it eventually look like?
Who will build the platform?Who will own the platform?
Who will control the platform?
Economics of Scale Come From PlatformsCapital; Scale up
Opportunity!!
Private Enterprise SectorGovernment/Public Sector
Payments Processing Sector with ‘Enhancements’?
Georgia??
