TIVIT AND DATA RESERVES

Reijo Paajanen

CEO

Tieto- ja viestintäteollisuuden tutkimus TIVIT Oy

ROADMAP TO WANTED POSITION

5.10.2010

S W

O T

2009

2011

2010

ICT leadership

Portfolio with6 programs!

Data reserves!

2TIVIT Confidential

FINNISH ICT “COMPETENCE BUILDING”

5.10.2010 3

Tele

com

Co

mp

uta

tio

nal

Basic competences

Business

Cloud Software

Next Media

Cooperative Traffic

Future Internet

Flexible Services

Device and Interoperability

DATA RESERVES

2009 2010

TIVIT Confidential

FINNISH ICT “COMPETENCE BUILDING”

5.10.2010 4

Tele

com

Co

mp

uta

tio

nal

Basic competences

Business DATA RESERVES

2009 2010

Cloud Software

Next Media

From Data to Intelligence

Future Internet

Services in Real Time Economy

Device and Interoperability

TIVIT Confidential

FINNISH ICT “COMPETENCE BUILDING”

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Tele

com

Co

mp

uta

tio

nal

Basic competences

Business DATA RESERVES

2009 2010

ICT

Cloud Software

Next Media

From Data to Intelligence

Future Internet

Services in Real Time Economy

Device and Interoperability

TIVIT Confidential

WHAT IS THE RIGHT DOOR?

5.10.2010 6TIVIT Confidential

Industries in 2010 – Summary

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http://www.economist.com/theworldin/forecasts/displayStory.cfm?story_id=14888205

Electronics, nanotechnology,

production technology

Automation,radio technology,

embedded

DATA RESERVES!

DATA RESERVES WHITE PAPER

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GROWTH OR EXPANSION

5.10.2010 9TIVIT Confidential

THE GROWTH OF DATA

• Information and knowledge society is reality. However, this development phase is still in its early phases.

• New work category – data and information work!

• Digitalization is turning our world towards the vision where anybody can have access to any service anywhere and anytime. And anything is recorded and more and more data is created.

• Media is today very much created in digital form first and files are getting bigger

• What is the sustainable memory

foot print / individual person?

5.10.2010 10TIVIT Confidential

MACHINE GENERATED DATA - SUMMARY

• Human data creation: documents by typing, photos taken one by one etc.

• Computers, phones and other digital devices and sensors are capable of collecting, store and transfer data automatically – with high speed

>>>

• Today most of the data in data reserves is created by machines and this portion is growing fastest

• Human processing of this data is not anymore possible but we need more computers for the control and better algorithms and applications for sense making

• The growth of data is not anymore limited by human capability but is accelerating exponentially and is machine driven

• How we can control and use data which is never seen by a human being?

5.10.2010 11TIVIT Confidential

EMAIL EXAMPLE

Source: The Diverse and Exploding Digital Universe, An IDC White Paper5.10.2010 12TIVIT Confidential

DATA CHAOS WITHOUT ORGANIZATION, ROLE OF ONTOLOGIES AND METADATA

• Currently nobody controls or manages the data storage from holistic point of view

• Data requires better organization - metadata

• Making sense out of the data requires ontology

• Data Governance refers to the operating discipline for managing data and information as a key enterprise asset.

• Most of the data is inactive and not used (Panasonic)

• What are the future tools and methods for

data management?

5.10.2010 13TIVIT Confidential

RANGE OF PROCESSING DEVICES• Continuously better computing and more and more different types of devices,

gadgets and applications which are connected and are contributing to the data gathering and sharing.

• Embedded devices can, e.g., measure and monitor everything

• Cloud computing will increase processing performance and bring a significant improvement in the cost-effective, elastic provisioning of IT services

• Power consumption is a central design consideration for wireless sensor networks - whether they are powered using batteries or energy harvesters – but also in server farms

• Data must move seamlessly between clouds >>> the high performance storage industry is applying distributed storage clustering approaches with great success

• >>> When combined with the increased need to communicate and manage data and its location in network securely we can define new needs for architectures and protocols: what should be done on the edge and what should be done in the core of network

• What are the architectures and data distribution methods in the future network?

5.10.2010 14TIVIT Confidential

VALUE ADDED APPLICATIONS BY DATAPROCESSING

• Sometimes the “manual” collection of free data can turn to valuable service as in Google’s case the collection of cellular base station data, which can be used in fast mobile location or as a second example the collection of street views.

• When there is available a meaningful seed data, then it will be easy to link more data to the same data base and this opens long lasting avenue to add value to the data and develop more intelligent algorithms to extract new findings of the data base or data reserves.

• When databases are growing over time, it will be more expensive to do the same starting from the scratch and if you do not have full access to the data reserves, it will be impossible to develop intelligent algorithms and applications over reserves and create new value adding services – spirals of success.

• The need to automate analysis >>> critical to invest in research to promote algorithmic advances >>>novel algorithms and techniques should be developed for improved extraction of structured information

• Where we in Finland can create for us free data environment to add value to data?

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SOME SPECIAL POINTS OF DATA

• Data ownership

– Today there are no good global rules for data ownership (actually ownership same way as ownership of physical objects is not possible as such, only temporary usage rights are protected legally) >>> the data reserve rush will happen in one or other way – early bird will get the worm

– Societies need to redefine ownership related rules, regulations and legislation.

• Data security and privacy are key issues in Cloud Computing environment

• Data is easily spoiled

– Data privacy cannot be recovered once compromised

– Unique data cannot be recovered once lost

– Integrity of data cannot be restored if written improperly

– Movement of data requires network resources and introduces latency if done on demand

– Processing and moving data requires always energy and is prone to errors; error prevention mechanisms increase bandwidth and processing needs

• What is the best legislation environment for fast data reserves business growth in Finland?

5.10.2010 16TIVIT Confidential

HORIZONTAL APPROACH

• The history of computing is the success story of general purpose technology approach, where the rapid technology development is reducing the cost and allowing high volume.

…

• Because the ICT development is so fast, proprietary approach in certain vertical is typically the right way to start and enter the game but always there is the risk that it is waste of time and money to develop proprietary solutions. Typically somebody else has also innovated the same opportunity and horizontalization is just the question of time and volume. New architectures as well as new business initiatives should be planned to be flexible to this development. The leaders in horizontalization will have good potential to be long time winners.

• Can we learn how to play efficiently with proprietary and horizontal phases of the development?

5.10.2010 17TIVIT Confidential

DATA RESERVES OF THE FUTURE

• The first phase of the “voyage of discovery” has started when players like Google (Internet and media data), Facebook (social data) and Youtube (video material) are collecting successfully their reserves for certain data categories. However only few necessary data categories are under active, visible collection now and many more are waiting to be discovered and to be turned to spirals of success.

• Huge portion of the data is now in silos: enterprise data, financial data, health data etc. These structures should be broken without endangering privacy etc. issues but even more important is to analyze, what is the content of those silos, because this is telling us, what the immediate potential data categories for horizontalisation activities are.

• Future data reserves are numerous: personal life log, life cycle data, updated traffic data, access data etc. etc. >>> Now it is important to start to collect and gain a position in certain categories of data reserves, which have important role in the future human society.

• In which data categories Finland has best potential to serve human society?

5.10.2010 18TIVIT Confidential

FINLAND AND DATA RESERVES BUSINESS (1/2)

• Finland is: – a small, safe country in the very center of the current western civilization– neutral and technically advanced country and has good or even leading position in some

global rankings– Physically like an island but in the Internet world we can build as many bridges as needed to

serve Europe, Russia, USA or China and any other global market– strong bedrock, empty facilities, clear water and secured energy availability etc.

• Finland has been focusing on mobile communication and mobile computing and gained the current ICT position via that focus– The strong mobile competence should and can be turned to the strength in this game as well

and data reserves can support the development of future mobile computing. – However, mobile computing is not the only or even main data reserves driver at the time

being and we cannot rely on the strong growth of mobile momentum here– the essence of the development will be strongly server or cloud computing driven not

terminal driven

• The Finnish industry’s main focus is not in the consumer business but is more focused in B2B (business to business)– this should be used as stepping stone when entering the data reserves business as quickly as

possible– industry verticalS should seek for global data reserves business opportunities immediately – Same time we should remember the horizontal approach and cooperation between industry

verticals should be welcomed: Data is data in every industry

5.10.2010 19TIVIT Confidential

FINLAND AND DATA RESERVES BUSINESS (2/2)

• Finland has:

– very strong and advanced banking system and

– other areas, where we have excellent current strengths, which can be turned from the current vertical focus towards horizontal data reserves business and services

– education system is one of the bests in the world

– the world’s most advanced ship tracking system on Baltic Sea, which offers huge ship tracking data reserves and operating opportunities on global level

>>> Let’s use our strengths fully and be innovative in opportunity identification

>>> Competition will be tough and the good set of niche markets should be appreciated.

• Finland - distributed architectures with advanced data roaming should be our competence spearhead.

– The mobile competence background is very good starting point e.g. roaming solutions are implemented in the cellular networks.

– Nordic cooperation between countries on similar development

• Existing innovation strategy and innovation competence should be applied actively in data reserves development and the new SHOK network should be used as a tool in this very wide competence and business development effort.

5.10.2010 20TIVIT Confidential

FINLAND - SUMMARY

• No single player is capable to take responsibility in the national data reserves rush, but we need innovative efforts on every level.

• One great move towards the leadership here would be the nomination of Minister of Data Reserves instead of Minister of Communications in the new government.

• Build the national momentum!

5.10.2010 21TIVIT Confidential

FINNISH DATA RESERVES ACT

5.10.2010

Finnish Data Reserves Act – Steering Group (initial)

Member Organization

Benson Yrjö Valtiovarainministeriö

Killström Ulla Elisa

Koski Kimmo CSC

Lamberg Irmeli Hermia

Lindberg Kaj-Erik UPM

Paajanen Reijo Tivit

Paasivirta Anssi Työ- ja elinkeinoministeriö

Pasanen Jari Sitra

Silvennoinen Eero Tekes

Suvanen Markku Opetus- ja kulttuuriministeriö

Terho Mikko Nokia

Viitasaari Jukka Teknologiateollisuus

Ängeslevä Jari Invest in Finland

5.10.2010 23TIVIT Confidential

Finnish Data Reserves Act – first actions

• Establishment of the steering group (next slide) for the Finnish Data Reserves Act

• First actions

– Connections: high performance international connections for industrial needs

– Brown field server farm: old industrial site converted to server farm

– Open source server farm: server farm concept and implementation based on open source components

– Scientific computing: state of the art scientific computing

– SWOT and current state: better understanding of the current state (ready by Jan 2011)

– Size of business: open view to the business potential; productivity and new business (ready by Jan 2011)

• Actions in pipeline:

– CSC: Kajaanin paperitehdas teki "googlet"

5.10.2010 24TIVIT Confidential

TIVIT – ENABLING THE ICT BASED GROWTH

www.tivit.fi

5.10.2010