Il posizionamento competitivo dell’Italia

nel nuovo paradigma della ricerca scientifica

Interesse nazionale

settembre 2017

Homo Sapiens Digitalis or Dataman? Humans in the digital age

conducted by: - Ludovico Ciferri (project leader), International University of Japan e Advanet - Maurizio Bussi, International Labour Organization - Marisa Roberto, The Scripps Research Institute - Massimiliano Spalazzi, Jumia.com - Piero Trivellato, Telia Sverige for Aspen Institute Italia

Piazza Navona, 114 00186 - Roma

Tel: +39 06 45.46.891 Fax: +39 06 67.96.377

Via Vincenzo Monti, 12

20123 - Milano Tel: +39 02 99.96.131

Fax: +39 02 99.96.13.50

www.aspeninstitute.it

National Interest Italian talent abroad

June 2019

Contents

Part 1 – Homo Sapiens Digitalis Part 2 – Humans in the digital age: empirical evidence

The ideas expressed in this document are the result of the authors' analyses and research and do not necessarily represent their respective organizations' viewpoints.

How much data do consumers produce?

• 2,400,000 Google searches every minute

• 300 million photos uploaded every day on FB

• 156 million emails sent every minute

• 2016-2018 generated 90% of all Data ever produced 2.5 Quintillion bytes / day A nursing robot, the Robear, has been developed in Japan to assist

with the constant lifting of elderly patients (The Guardian) 3

Which channels: Western Countries vs China

4

US and Europe are Data fragmented China is Closed Loop

• “BAT” Ecosystem Boost customer Big Data

• 55% of all online time spent by Chinese consumers is on Tencent ecosystem

Closed loop example: WeChat

A nursing robot, the Robear, has been developed in Japan to assist with the constant lifting of elderly patients (The Guardian) 5

Quantity vs Quality: importance of insights relevance While Big Data start to be abundant from SMEs to large corporations… One purchase online by one customer captures through laptop, mobile and voice:

• Time spent onsite • What viewed, what skipped • Location • Income • Purchase habits • etc.

Data Science expertise is still rare and expensive. It needs education, most of time best and scarce talent is attracted to Big Corporations.

“Owning a race car without the license to drive”

6

Data Dilemma: Ownership, Protection, Monetization From B2C.. • GDPR protects Consumer... But the consumer most

times does not value data and privacy enough • Data is bought by companies from online advertising

companies at big costs... And charged back to consumers No Win Win

.. To C2B: • Customer takes control of data sharing • Customer monetizes Data sharing monetization

drives education • Example: Weople

A nursing robot, the Robear, has been developed in Japan to assist with the constant lifting of elderly patients (The Guardian) 7

The example of AdTech: an entire industry built on personal data

Sources: Luma Partners LLC, The Economist

• Ad tech emerged because advertising is the internet’s default business model

• Targeted ads are more efficient yet require personal data (sites previously visited, searches in online stores and the like)

• “The GDPR would probably not

exist at all were it not for this collection of companies” (The Economist)

108 bn USD revenues in US only

9

The East/West divide on data privacy Recent news on facial recognition

• Chinese police have used facial recognition technology to locate and arrest a man who was among a crowd of 60,000 concert goers

• China is a world leader in facial recognition technology

• The country has over 170 million CCTV cameras, which it calls "the world's biggest camera surveillance network”

• The emerging technology will not be allowed to be used by local agencies, such as the city’s transport authority, or law enforcement

• Opponents of the measure said it will put people’s safety at risk and hinder efforts to fight crime

• Those in favor of the move said the technology as it exists today is unreliable

Chinese man caught by facial recognition at pop concert

San Francisco is the first US city to ban facial recognition

Sources: BBC News, April 2018, May 2019

Contents

Part 1 – Homo Sapiens Digitalis Part 2 – Humans in the digital age: empirical evidence

European authorities are stepping up their criticism towards the internet giants about Privacy

11 Source: The Economist, “Big tech faces competition and privacy concerns in Brussels - Europe’s beef with GAFA “, March 2019

• European Union’s competition chief says she mostly looks stuff up on Qwant, which prides itself on not tracking users in the manner its larger rival does

• Similarly for Google Maps, or Gmail, or any other product from the Alphabet stable: “I have better alternatives that provide me with more privacy”

• Ms Vestager says what seem to be free services are the ones for which you “pay with your life”

• Ms Vestager is hardly at the vanguard of a movement: even in its domestic French market, Qwant has less than 1% market share

• The premise for bringing together concerns about privacy and competition is that the tight grip which big tech companies have over user data is what has turned them into entrenched, and perhaps abusive, incumbents Margrethe Vestager (European

Commissioner for Competition), speaking at SXSW festival, Austin, Texas

12 Sources: Facebook Investor Presentation Q1 2019

A tougher stance on privacy might be far from consumers, who don’t seem to vote with their feet...

13

...while in selected cases the Corporate world has shown more sensitivity on the issue

"Prendiamo le questioni di business ed etica molto seriamente e abbiamo interrotto ogni interazione con Facebook perché non riteniamo che Facebook si stia comportando in modo appropriato ed etico. [...] Noi non dividiamo i nostri dati con altri" Jean Pierre Mustier, CEO Unicredit – Aug 2018

Sources:. La Repubblica, 7 August 2018; Unicredit Facebook Account, May 2019 May 2019

14

Now the optimistic lens: McKinsey has analysed the positive impact of data/AI on global well-being

• Technology is not intrinsically good or bad, but it can produce positive or negative outcomes

• The McKinsey Global Institute has evaluated ways in which new technologies could potentially enhance welfare and soften disruptive transitions in advanced economies

• It assessed 600 use cases of technology applications that contribute to well-being, especially in relation to key societal challenges such as job security, health, and equal opportunities

Technology revolution and Healthcare Advantages (1/2)

“Prevention rather than cure”

• Early diagnosis of a disease can significantly increase the chances of successful treatment, and genomics can detect a disease long before symptoms present themselves

Immunotherapy; Pharmacogenomic; Personalized medicine

3D printing

• Several applications of 3DP in medicine belong to personalized medicine

• Implants and prosthetics, medical models and medical devices are revolutionizing healthcare

• In progress: drug fabrication and delivery, as well as tissue and organ fabrication using cell printing

15

Technology revolution and Healthcare Advantages (2/2)

• Health Insurance Companies (e.g., Aetna and UnitedHealthcare) and Apple’s wearable devices offer wellness programs:

You can enable notifications from the Heart Rate app on your Apple Watch to alert you to high or low heart rates and irregular heart rhythms

• Is privacy a central focus of these program?

• Big Data: how to handle it?

• Artificial Intelligence: Companies like Cresta want to build artificial intelligence that makes people experts on the first day of their job

An excellent example is computer vision algorithms that can match the performance of a dermatologist and recognize skin cancer from images

16

Personalized audience discovery on social media can prove valuable to small businesses

• Social media can help small businesses to find audiences and market own products/services

• small budget advertising • powerful search function • geo-marketing opportunity • informal eCommerce (e.g.

Instagram)

Love in the age of Internet • Personal ads accounted for <1% of marriages in US. Today dating sites account for about 1/6

• Research has found that marriages in America between people who meet online are likely to last longer; such couples profess to be happier than those who met offline

Source: The Economist, “Modern Love”, August 2018 18

• The state allows commercial banks to provide official proof of personal identity on its behalf

• (Digital) transactions’ made simpler, more precise, more transparent

• Widespread social acceptance, following decades of privacy debate

19 Sources: www.bankid.com; Orszi Husz, “Bank Identity: Banks, ID Cards, and the Emergence of a Financial Identification Society in Sweden”, Cambridge University Press, 2018; Jacob Palme, 1998

The “financialization of daily life” is reality in Sweden

BankID, 2003 • BankID is the leading electronic identification in

Sweden, provided by a number of large banks • 8 million people (nearly the entire adult population in

Sweden) use BankID on a regular basis for digital identification on a wide variety of private and public services (from online banking to tax declaration or public healthcare)

“Personnummer” (Social Security Number, 1967) • Government organizations use it to link data to the

individual, e.g. tax authorities use it for employer tax payment or child tax deduction, medical organizations use it to store health information, etc.

• Private companies use it for information about individuals and their accounts, e.g. physical address, bank account details, credit check, etc.

20

Italy needs to increase its relevance in the tech scenario Private investments rounds in “deep tech”1, 2015-2018

1 Biotechnology, AI, Photonics/electronics, Drones and robotics, Blockchain, etc. Source: Boston Consulting Group, May 2019

Appendix

Sources

• https://www.youtube.com/watch?v=ec77S25kuVs

• https://hbr.org/2019/05/what-western-marketers-can-learn-from-china

• https://www.forbes.com/sites/bernardmarr/2018/05/21/how-much-data-do-we-create-every-day-the-mind-blowing-stats-everyone-should-read/#635a865060ba

• https://www.bernardmarr.com/default.asp?contentID=712

• https://hbr.org/2019/05/what-western-marketers-can-learn-from-china

• https://www.forbes.com/sites/bernardmarr/2018/05/21/how-much-data-do-we-create-every-day-the-mind-blowing-stats-everyone-should-read/#635a865060ba

• https://www.domo.com/learn/data-never-sleeps-5?aid=ogsm072517_1&sf100871281=1

• https://digital.hbs.edu/innovation-disruption/wechat%E2%80%8A-%E2%80%8Athe-one-app-rules/

• https://www.nytimes.com/2019/01/09/technology/personaltech/china-wechat.html