discussion board

Attention Economy Professor Patrick Lynch

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Industry 4.0 Magnitude

Give me one grain of rice for the first square of the chessboard, two grains for the next square, four for the next, eight for the next and so on for all 64 squares, with each square having double the number of grains as the square before.

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Industry 4.0 Magnitude

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Industry 4.0 Magnitude

18,446,744,073,709,551,615 18 quintillion, 446 quadrillion, 744 trillion, 73 billion, 709 million, 551 thousand, and 615 in grains of rice, wheat (or currency).

Volume of ~1019 = ~Total Earth biomass

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The Legend of Sessa, Sessa Technologies, blog, 2014 The Amazing Chessboard Theory, by Sachin Kate, August 9, 2015 Wheat and chessboard problem, Wikipedia,

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Industry 4.0 Magnitude You are offered a job for 7 weeks. For your compensation you may choose either.

$100 for the first day, $200 for the second day, $300 for the third day. Each day you are paid $100 more than the day before.

1 cent for the first day, 2 cents for the second day, 4 cents for the third day. Each day you are paid double what you were paid the day before.

A B

$122,500 $5,629,499,534,213

The Rice And Chessboard Story: Learning How Doubling Makes Numbers Grow By Michael Hartley

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Industry 4.0 Magnitude

Processing Power

Moore’s Law: Processing power doubles every 18 months

Communication Speed

Butter’s Law: Communication speed doubles every 9 months

Storage Capacity

Kryder’s Law: Storage capacity doubles every 13 months

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10

15

20

25

30

35

40

2005 2008 2011 2014 2017 2020

D at

a vo

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B ill

io ns

o f T

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yt es

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Chart: conceptual estimates See original: Porche, Isaac R., et al. “Big Data: Challenges and Opportunities.” Data Flood: Helping the Navy Address the Rising Tide of Sensor Information, RAND Corporation, 2014, pp. 1–6. JSTOR, www.jstor.org/stable/10.7249/j.ctt6wq8rr.9. page 4. 7

“The world’s most valuable resource is no longer oil, but data”

--The Economist, May 6, 2017

Industrial Revolution 4.0

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Industry 4.0 Economics

● Exponential growth in tech capacity

● Exponential growth in data

● Scarcity governs economics: “precious resources”

● Therefore data alone is not the basis of Industry 4.0 economy

● Attention is intrinsically scarce ● Capturing attention and

delivering benefits through data creates value

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“Every business is an engine fueled by attention”

Industrial Revolution 4.0

--Tom Davenport & John Beck, The Attention Economy

T.H. Davenport and J.C. Beck, “The Attention Economy,” (Boston: Harvard Business School Press, 2001), 17-22.

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Industry 4.0: The Attention Economy

“The world’s most valuable resource is no longer oil, but data” ● Scarcity governs economics ● Attention is intrinsically scarce ● Capturing attention and delivering benefits through data

creates value

ResultsA B C Interpretations &

Actions

Attention

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Industry 4.0: The Attention Economy

“The world’s most valuable resource is no longer oil, but data” ● Scarcity governs economics ● Attention is intrinsically scarce ● Capturing attention and delivering benefits through data

creates value

Supply Demand

Attention Scarcity

Today

Time

Attention Quality

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Market-ready Products & Services

Vertical Innovation

Return on Knowledge

(Intellectual Property)

Return on Infrastructure

(Physical Assets) Raw Inputs

Suppliers

Producers

Distributors

Market-ready Products & Services

Network Innovation

Raw Inputs

Suppliers

Producers

Distributors

Industry 4.0: The Attention Economy

*Content providers like Microsoft, Google, Facebook and Amazon now own or lease more than half of the undersea bandwidth. Read more: How the Internet Travels Across Oceans By SATARIANO, New York Times, MARCH 10, 2019

Attention Economy: Innovation

Driven Relationships

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Vertical Innovation

Return on Knowledge

(Intellectual Property)

Return on Infrastructure

(Physical Assets) Raw Inputs

Suppliers

Producers

Distributors

Market-ready Products & Services

Network Innovation

Raw Inputs

Suppliers

Producers

Distributors

Market-ready Products & Services

Industry 4.0: The Attention Economy

*Content providers like Microsoft, Google, Facebook and Amazon now own or lease more than half of the undersea bandwidth. Read more: How the Internet Travels Across Oceans By SATARIANO, New York Times, MARCH 10, 2019

Telecommunication Companies*

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ANALYTICS

ANALYTICSANALYTICS

BUSINESS PROCESSES

BUSINESS PROCESSES

BUSINESS PROCESSES

BUSINESS PROCESSES

ANALYTICS

Analytics embedded in processes reshapes business.

See more: 2019 BI Trends Dan Sommer, Qlik Webinar 01-15-2019

Industry 4.0: The Attention Economy

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Industry 4.0: The Attention Economy

Largest companies by Market Cap grew from 1 in 2001 to 10 by 2018 Microsoft, Apple, Amazon, Alphabet, Facebook, Intel, Cisco, Oracle, Netflix; Alibaba; as of March 18, 2019; Some sources also include Tencent

2018

Apple, Alphabet, Microsoft, Amazon, Facebook

2016

Apple

2011

Microsoft

2006

Microsoft

2001 1

1

1

5

The Largest Companies by Market Cap Over 15 Years, Visualcapitalist.com; August 12, 2016 by Jeff Desjardins

Technology Defines the LARGEST

Companies by Market Cap

on Earth.

Visualizing The World’s 20 Largest Tech Giants, Visualcapitalist.com; July 6, 2018. The Biggest Tech Companies by Market Cap Over 23 Years, Visualcapitalist.com; March 18, 2019. Contrast this by REVENUE here: http://www.visualcapitalist.com/largest-50-companies-revenue-2016/

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Takeaway Summary

Computing capabilities and data are growing exponentially.

Attention is intrinsically scarce. Capturing attention and delivering benefits through analytics creates value.

Technologies enabling this value creation now dominate global markets.

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