connecting to the internet...connecting to the internet a look at what’s changing in the...
TRANSCRIPT
Connecting to the InternetChristopher Hooton / March 2018
Connecting to the internet
A look at what’s changing in the technology industry and how it’s changing everything
• Sector• Process• Partnerships• Skills• Infrastructure• Trends
The only trade association that exclusively represents leading global internet companies on matters of public policy.
Sector
Total Membership 40+Total Average
Market Cap. & Valuation $2.9 trillion $66.5 billionAnnual Revenue $439 billion $10.2 billion Annual Profit $60.3 billion $1.4 billionDirect Employees ~ 750,000 ~ 17,500 Number of Users 10.5 billion 243.5 million
Sector
Sector
Sector
• 2007-2012: Internet employment % grew 7x faster
than next closest industry
• 2007-2014: Internet GDP doubled
• 2014: $1 trillion VA, 6% of GDP, 3 million employment
• 2017: 3-3.6 million employment, 24 million online
income positions
2.94
3.8
4.7
7.1
5.546
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% G
DP C
ON
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ANALYSIS YEAR
Internet Sector GDP Contribution Estimates by Year
United States EU G-20 13 Large Economies
Construction Sector Federal Gov. Sector Health Care & Social Assistance Linear (United States)
Sector
Connecting to the internet
More meaningful connections
Process.
Moving very fast
The internet is experiencing exponential growth as an economic sector.
Process
Moving very fast
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Internet Component Growth vs Traditional Growth Metrics
Nordhaus Computation Index Data Volume (Zettabyte) Gross Domestic Product per Capita Population IOT Devices
Process
Process is digital technology’s most important product.
Process
Process. Digital technology’s most important product.
Partnerships.
Partnerships
Some of the most high-tech industries aren’t ‘tech’ at all
The largest worldwide customers for IT goods and services over
the past several years have been:
• Manufacturing & Natural Resources Industry ~ $500 billion
• Banking and Securities Industry ~ $500 billion
• Government ~ $450 billion
• Communications: Media Services Industry ~ $450 billion
(Gartner, 2017)
Partnerships
Partnerships
Internet sector employment and productivity are less tied to population than traditional employment
Partnerships
AV technology combined with ridesharing systems could reduce vehicular traffic by 90% while moving the same volume of people. ~ OECD
PartnershipsThe costs of data breaches across all industries would grow from $5.5 billion per year (2006-2015) to over $3.4 trillion by 2020
Partnerships. Tech isn’t just for tech
Skills.
Skills
Labor skills to fill open positions
Technical skills of senior managers
PhD is the new MBA
Cloud and Distributed ComputingStatistical Analysis and Data Mining
Social Media MarketingMobile Development
Middleware and Integration SoftwareWeb Architecture and Development Framework
User Interface DesignSEO/SEM Marketing
Network and Information SecurityStorage Systems and Management
Perl/Python/RubyData Engineering and Data Warehousing
Marketing Campaign ManagementAlgorithm Design
Business IntelligenceData PresentationJava Development
Mac, Linux and Unix SystemsDigital and Online Marketing
RecruitingShell Scripting Languages
Software Revision Control SystemsDatabase Management and Software
VirtualizationSoftware QA and User Testing
EconomicsComputer Graphics and Animation
Electronic and Electrical EngineeringBusiness Development/Relationship Management
Channel MarketingRetail Payment and Information Systems
Web ProgrammingC/C++
SAP ERP SystemsPR and CommunicationsIntegrated Circuit Design
Software Engineering ManagementSoftware Modeling and Process Design
Information SecurityAutomotive Services, Parts and Design
Game DevelopmentCorporate Law and Governance
Skills
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1.00000
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Most Sought After Skills 2013-2017
2013 2014 2015 2016 2017
Statistical Analysis and Data Mining
Cloud and Distributed Computing
Middleware and Integration Software
0.00000
0.10000
0.20000
0.30000
0.40000
0.50000
0.60000
2013 2014 2015 2016 2017
Top 10 Skills 2013-2017
Statistical Analysis and Data Mining Cloud and Distributed Computing Social Media Marketing Mobile Development
Middleware and Integration Software Storage Systems and Management Perl/Python/Ruby User Interface Design
Business Intelligence Data Engineering and Data Warehousing
Skills. PhD is the new MBA
Infrastructure.
InfrastructureIA Ease of Doing Internet Business Rank State
CNBC Top States for
Business 2016
Forbes Best States for
Business Rank
NSF Science & Technology Assessment
CTA Innovation Scorecard*
1 Colorado 3 5 2 2
2 Washington 6 10 18 2
3 Utah 1 1 9 1
4 Maryland 30 33 4 2
5 Massachusetts 20 18 6 1
6 Delaware 37 17 1 1
7 Connecticut 43 39 17 3
8 New Jersey 34 41 5 3
10 California 32 32 7 3
*Scores are assigned based on 4 categories: 1 = Innovation Champion, 2 = Innovation Leader, 3 = Innovation Adopter, 4 = Modest Innovator
R² = 0.1848
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Stat
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P Pe
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ita ($
USD
)
EDIB Index (0 to 100; 100 = best)
Relationship of the Ease of Doing Internet Business and Economic Productivity
R² = 0.4293
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rnet
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DP P
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apita
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SD)
EDIB Index (0 to 100; 100 = best)
Relationship of the Ease of Doing Internet Business and Internet Sector Productivity
Infrastructure
Infrastructure
Infrastructure. First, you have to connect.
Trends.
Moving very fast
The internet sector, digital economy, technology sector, etc. are not formally measured or defined.
Trends
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Q12012
Q22012
Q32012
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Q12013
Q22013
Q32013
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Q12014
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Q32014
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Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
Q32016
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Q12017
Q22017
Q32017
Q1
2012
= 1Internet Sector - Total Revenue - Index
Q4 2012
Q4 2013
Q4 2014
Q4 2015
Q4 2016
1.5
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Q3 2012Q4 2012Q1 2013Q2 2013Q3 2013Q4 2013Q1 2014Q2 2014Q3 2014Q4 2014Q1 2015Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017
Q1
2012
= 1Internet Sector - Total Revenue - Index
-3
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Q12012
Q22012
Q32012
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Q12013
Q22013
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Q12014
Q22014
Q32014
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Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
Q32016
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Q32017
Internet Sector - Total Revenue % Change
Total Revenue % Change Moving Average
Trends. Trending…trending…
What’s changing in the technology industry?
1. Rapid shift to digital
2. New: Process, Partners, Skills, & Infrastructure
3. Scratching surface on understanding sector
Connecting to the InternetChristopher Hooton, Ph.D.www.internetassociation.org
@hooton_chris