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OBSERVATORY OF TRENDS

ISDI TRENDS 2013

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The MIB reviews the key factors in the evolution of the Internet over the coming months

The 2013 edition of the Digital Trends Barometer published by the MIB (Master’s course in Internet Business) includes the opinions of about 20 renowned specialists from leading institu-tions (such as Harvard, MIT or Cornell) about the challenges and trends that will define the digital activities in the near future.

Experts predict

dramatic changes

in the Internet:

disruptive innovation,

digital infrastructures

and the enhanced

role of the users

will be key for this

transformation. SOCIAL NETWORKS

MOBILE INTERNET

CONTENTSDIGITAL

BUSINESS ENVIRONMENT

TECHNOLOGY

METRICSONLINE ADVERTISING

E-COMMERCECREATIVITY

LEGAL ENVIRONMENT

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• 75 percent of the largest companies of the year 2020 don’t exist yet. Innovation, disruption, a global approach that goes beyond mere sales, and a mobile strategy are the key factors that will make these companies succeed, according to the conclusions of the 2nd edition of the Digital Trends Observatory published by the MIB (Máster en Internet Business).

• The Observatory provides a comprehensive overview of the trends that will define global digital business in the near future. These contents will be further analysed in the 5th edition of the MIB which begins on the 20th of September in Madrid and on the 18th of October in Barcelona.

EXPERTS PREDICT DRAMATIC CHANGES THAT WILL HAVE AN IMPACT ON BOTH COMPANIES AND USERS:

75 percent of the 500 largest companies of 2020 haven’t been founded yet. The success of new projects will be linked to disruptive innovation, as a shift of paradigm becomes necessary. Companies should no longer be sales-oriented. Instead, an ‘economy of the intentions’ must be embraced. This will allow companies to predict the behaviour of the customers as well as to transform complex or expensive products into simpler, cheaper ones.

These changes will equally affect the global market, the technology (40-60% will be outsourced) and services.

Users will play an increasingly important role, as crowdsourcing strategies will be more and more relevant in the innovation process.

Mobile devices will lead these transformations. China will take the lead in the innovation process.

MARKET TRENDS

Adopting new business models will be indispensable for succeeding in business. These models will have an impact on the market (which will become global), on technology (between 40 and 60 percent of the activities will be outsourced) and even on services (an example would be the American-based company Dashfire, which only works with companies during their first year in business, as their services can’t be of any help past this point).

Change must be fueled by innovation, but this innovation must be oriented to challenges instead of ideas, and aimed at getting disruptive results. New sofisticated technologies will transform complex products into simple, cheape ones. It’s not about changing the production methods, it’s about making things simpler and cheaper.

Crowdsourcing: new ideas and innovation from external sources could help when dealing with complex projects.

The ability to deal with the main social issues will increasingly depend on interoperability: a real challenge for design and innovation. Innovation will gradually be transferred to users.

The importance of intentions: customers connect to the Internet when they want to buy. Companies must be able to predict the client’s intentions and to offer customised products and services.

Being able to lead the innovation and technological creation processes depends on the infrastructures of each country. Governments cannot ignore this fact. China is planning to give access to optical fibre to 300 million users by 2015. This will attract innovation.

Two concepts: cities and mobiles; and two relevant figures: in 2030, nearly 5 billion people will live in cities. And there are currently 6 billion mobile phones in the world. Geolocation and the development of the mobile web are related to these facts.

The 2013 Observatory presents the experiences and opinions of David Weinberger y Doc Searls, two of the authors of ‘The Cluetrain Manifesto’, Colin MacLay, William Kerr, Urs Gasser, Soumitra Dutta, Carlos Osorio, Krzysztof Gajos, Susan Crawford, Ethan Zuckerman, Marta González, Joshua Benton, Christopher Bavitz, Marcela Escobari, Ben Fry, Karim Lakhani… around 20 renowned professionals and lecturers at the University of Harvard, MIT, Cornell… All of them are experts in digital issues such as entrepreneurship and business models, technology, mobiles, social media and digital society.

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CONSEQUENCES Consequences for users and consumers:

In the Internet, users play the leading role. They are in control, and they will participate more and more in the innovation processes. They will also be responsible for the success of the new projects.

The medium term future of many online businesses is uncertain, as their business models deal with two targets: Consumers and Clients. Usually, these two targets have conflicting interests. Consumers are users who access the Internet in order to fulfill a need. Clients are companies that pay money to get in touch with the Consumers, or to get information about them. Only those companies that focus exclusively on customers will succeed.

HOW THIS WILL AFFECT COMPANIES:

Companies need to understand that the Internet is a completely different challenge. It requires a different philosophy, a different structure and a different strategy of control. Sharing interests with users and predicting their interests and needs will be of key importance.

How to start an innovation process? 99 percent of the successful processes don’t start as ideas. Instead, they try to solve someone’s real problems. Also, in 66% of these processes, the original plan changes drastically as the project develops. Taking this into account, businesses must incorporate the innovation process to the philosophy of the company:

• A mentality open to innovation should be based on basic principles rather than on assumptions. The possibility of failing should be accepted.

• Proper innovation requires great economic investment. Even in periods of crisis, sufficient funding must be ensured.

• Innovative companies are open to multiple sources of external innovation: joint ventures, technological clusters, venture capital funds and open innovation schemes.

• Cultural diversity promotes innovation, as teams made up of people from different backgrounds tend to come up with more creative solutions.

Interoperability has become one of the key strategies for success, even ahead of IP strategies. A good interoperability strategy requires to go beyond technology and data. People and institutions must be taken into account.

As for mobile Internet, a greater development of tablets and advert monetising strategies will be the main challenges.

Most companies are still oriented to sales. The ‘economy of the intentions’ implies a new challenge: to offer services that predict the intentions of the consumers. The aim is to maximise the customisation of products.

The contents of the course are organised in 16 modules through which stu-dents will be able to thoroughly understand all the key factors involved in digi-tal business management. The course includes a one-week Harvard module: the International Digital Business Seminar at RCC at Harvard. The MIB is the Internet Master’s course with the most students and professors. Over 110 digital professio-nals teach the course. The fifth class of the course will start in Madrid on September the 20th; in Barcelona on October the 18th; and in Mexico D.F. on October the 22nd.

El MIB (Máster en Internet Business) is the leading training program for Internet professionals. The course is offered in Madrid, Barcelona and Mexico D.F. and over 400 students have attended the classes. The MIB is one of the leading sources of employment in the digital sector: 20 percent of our students launch their own startup less than a year after completing the course, and 59 percent find a job in the digital sector. Following the MIB’s pragmatic approach, students will develop the digitisation process of a real company over the course. The knowledge gained in the course will be immediately applied in several scenarios.

www.isdi.es

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