New Reality: Technology Trends for Belarus to Apply

IBA Group
Daria Kovalevskaya

On September 30 and October 1, the IPM Business School organized a technology conference in Minsk, Belarus. The conference titled A New Reality: Challenges for Belarus explored the modern trends in technology and how they are applied in the world and, particularly, in Belarus.

The first part of the conference was dedicated to crowdfunding. Speakers highlighted the advantages of crowd economy not only for small businesses and startups but for bigger companies and enterprises as well.

Crowdfunding allows for shaping the entire industries according to what consumers want to see and buy. If they want to read a book by a particular author, see a play with a particular cast of actors, or even buy a chewable ice maker, it’s up to them now to finance it. At the same time, campaign creators are able to validate their ideas (to see if the world is actually interested in what they have to offer) and create relationship with potential clients.

Indiegogo Co-Founder Slava Rubin Talks About Crowdfunding

At the second part of the conference, speakers presented the Internet of Things, drones, and chat bots. The most exciting part was the presentation of Smart Cities, a project by Philips, which uses recent advances in communication and data analysis to make big cities more livable and sustainable. Small sensors and devices work together to collect information that can be used later to save energy and help citizens feel safer.

Advantages of drones and chat bots were also mentioned. The potential of drones cannot be underestimated, as the drone market has recently hit $127 billion. While mostly used in the entertainment area (photography and video shooting), drones operate in construction, agriculture, transport, and security. They can cover areas that are either unreachable or unsafe for humans and substantially reduce the human factor risks. The only stepping stumbling block for drones is the government and rigid drone registration policies.

Chat bots are presented as alternatives to mobile apps. Similar to AI assistants like Siri or Allo, bots provide instant information. The main advantages of bots are multiplatform usage (opposed to mobile apps, bots don’t require different coding for each operating system) and low prices for their development.

The last trend discussed at the conference was Blockchain, a technology that allows for making and verifying transactions instantaneously without a central authority. A great example of Mycella, a company created by singer Imogene Heap, shows benefits of using the blockchain technology. Artists could release their music themselves, gaining control over their earnings and additional information about their songs.

Countries like Belarus may easily adapt to these technologies if they accept them and introduce changes to their institutes.  Crowdfunding is already a triumph here, with the biggest Belarusian platform, Ulej, funding over 40% of successful campaigns since its launch in 2015.

New reality has already made its way into the modern life. Customers, creators, and mechanisms of interaction between them are changing, and those who will be the first to embrace these changes will gain the biggest benefit.

Is There A Downside to The Internet of Things?

IBA Group
Mark Hillary

I have often written here about the Internet of Things (IoT) and the promise it holds for various industries. Moving on from the cliché of the fridge that knows when you are running out of food, the IoT holds enormous promise for offering the ability for objects and systems to make pre-emptive decisions.

The car is a great example. We have long had warning lights on cars to indicate particular problems such as low oil or a high engine temperature, but by gathering data and having the ability to analyse it as a whole, cars are getting far more intelligent and able to self-diagnose before problems become serious. This becomes even more critical when public or commercial vehicles can perform this kind of self-diagnosis. For example a Boeing 777 can generate twenty terabytes of data per engine per hour – a fantastic resource for monitoring that all systems are functioning normally.

Personal fitness is another excellent example, and being a runner I really like the ability to be able to look back at previous runs. I can see not only the distance covered, but also the weather, the location, and the hills I tackled. I can use this information without additional processing just to plan new runs or I can crunch the data to get a great insight on my own performance.

But is there a downside to all this data collection and could it cause individuals to reject certain products or services?

Facebook Local Awareness advertising allows businesses – especially retailers – to advertise to Facebook users that are geographically close. The business creates an advert and targets it to a particular demographic – a specific age group or people who like certain products – then Facebook takes care of ensuring that when suitable people are geographically close to the business they are served an ad on their phone.

To some people this sounds great. If I’m the kind of person who likes shopping for fashionable clothes and as I walk past a boutique they send a 25% off voucher, but only with validity for the next hour, then I might stop by and buy something. To other people this is going to feel like an enormous invasion of privacy. Not only is a social network – in this case Facebook – monitoring what I like and dislike to build up a profile of me as a consumer, but now they are monitoring where I am too.

A recent feature by Irish technology expert Maria Farrell in The Guardian argued that by 2020 over 100 billion individual devices would be connected to the Internet. With around 7 billion people on the planet that’s around 14 online devices for every person. If anything, I believe that is a conservative estimate given the rate of change.

The implications for this are clear. Even if you don’t agree with the way that an organisation is using your data – perhaps like the retailer example – most people believe that there is nothing they can do. We have accepted so many services as ‘free’ knowing that we pay for them with our data and now that we have come this far there is almost nothing that can be done to reverse the situation.

In The Guardian, Farrell argues:

“The unholy alliance of CCTV, face recognition, mobile phones, fitness trackers and other wearable technologies, data brokerage and analytics, private ownership and control of previously public spaces like city squares, and increasingly wide-ranging policing powers mean we live in an urban world of ambient surveillance we never voted for. We are no longer citizens enjoying civic space; we are crops to be harvested, we are potential risks to be controlled. The internet of things does all that for us and more.”

The implication is that data will not always be used in the way we assume it might be. Health trackers that monitor runs might be informing health insurers about how you are looking after yourself. Cars might not just be self-diagnosing problems, but also telling your insurer if you drive aggressively. Credit scoring agencies might be building up a picture of your likes, dislikes, and habits in addition to spending patterns. Employers may be monitoring your every arrival, departure, and keystroke at the office.

Only the powerful can argue against this. The people who need a job or need to drive a regular or need a health insurer cannot refuse the terms and conditions that are demanded. If a health insurer demands that you offer information on your health habits in return for insurance cover then what can the average person possibly do to protest?

The Internet of Things has many clear benefits to society, but it is this question of data use and privacy that will cause many doubts to surface. Some have rejected social networks because they want to avoid sharing too much information about their life, but when information sharing becomes a condition of employment or insurance, it will be impossible to avoid.

Can we handle the implications of a world where everything is known about you as a person or is there still time to preserve some privacy?

Business Intelligence is Being Led by Data Intelligence

IBA Group
Mark Hillary

The analyst firm Gartner recently published some fascinating data trends in Forbes magazine. They summarised how important Big Data is becoming for business intelligence in three clear trends:

1. By 2020, information will be used to reinvent, digitalize or eliminate 80% of business processes and products from a decade earlier.

2. By 2017, more than 30% of enterprise access to broadly based big data will be via intermediary data broker services, serving context to business decisions.

3. By 2017, more than 20% of customer-facing analytic deployments will provide product tracking information leveraging the IoT.

These trends are exciting because what they point to is how communication is changing between individuals and how this is now affecting the way that companies do business.

Mobile, social, cloud, and shared information are all forces that have really only grown in importance over the past 5-6 years. Many company leaders have not realised how all these factors will change the way that companies do business and how decisions from new products to choosing a partner company will all be data-led.

The Gartner predictions are point at corporate behaviours just 18 months in the future. Have you explored how your own organisation is using data today and if not then can you be sure that your competitors will not be making better business decisions a year from now?

Internet of Things

IBA Group
Mark Hillary

I have written recently about Business Analytics (BA). What is BA? How does it affect your IT strategy and your business in general? I have also observed that there is a relationship between BA and Big Data (BD) – they are related concepts.

To clear up any confusion, I would say that BA is related to taking a set of data, performing a modelling operation, and using the model to predict some kind of future state – what-if calculations. BD is more of a continuous analysis of very large-scale business information.

But the business concept that is driving forward the importance of both Business Analytics and Big Data is really The Internet of Things (IoT).

Even for a fairly short blog post, this is already starting to fill up with three-letter-acronyms so let’s define what the IoT really is. More and more devices are capable of communication using the existing Internet infrastructure. It used to be computers that we would connect to the Internet, then laptops, then smart phones. Now it is tablets, ebooks, televisions, and every corporate electronic system you can think of – from security systems to electricity meters to photocopiers.

This revolution in making almost every device connect to the Internet is the starting point for the IoT. The classic consumer example is usually the connected fridge that can recommend a dinner based on what is inside, though a more useful example might be your car diagnosing a problem and communicating with the service centre without your own interaction.

In 1999, about 250mb of data per person was created each year. By 2012 ten times this amount of data per person was being generated. Data creation is increasing and the speed of increase is accelerating. Every day people are generating data with their smart phones without doing anything – just by switching it on, connecting to the Internet and allowing applications to work in the background.

This change in both the consumer and corporate environment is driving both the need for continuous Big Data analysis and also the ability to predict what may happen next based on Business Analytic tools.