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Monday, 26 October 2015. NEW SPEAKER: Welcome to the Telstra 2015 Australian Digital
Summit. Monday, 26th October 2015. NEW SPEAKER: Good morning and
welcome to the 2015 Australian Digital Summit. Ladies and
gentlemen, please take your seats, we’re about to commence.
Thank you. NEW SPEAKER: Well, good morning,
everyone. Welcome, welcome, to our 2015 Australian Digital
Summit. On behalf of Telstra, I’d like to welcome you to the
event, which today we acknowledge we are meeting on
the traditional country of the Gadigal people of the Eora
Nation. We respect their cultural heritage, beliefs and
relationship with the land. When it comes to reconciliation,
Telstra’s purpose is to create a brilliant, connected future for
everyone. Our vision for reconciliation is to see our
purpose come to life for Aboriginal and Torres Strait
Islander people. Through Connection, we can create the
necessary social, economic and cultural change and achieve a
brilliant connected future for Australia. Well, today in the
room, we’ll have over 1,000 delegates joining us for our
fourth Digital Summit. And if 2014 was any guide, we’ll have
many thousands more joining us via live stream at and perhaps Sydney’s traffic this morning
might make that very convene on Telstra’s 4G network!
Our fourth summit is themed, no going back now – the
intersection of business, people and digitisisation. The
general ticket sales proceeds are contributed to our
foundation partner, the national centre of Digital excellence.
Prior to today, we’d raised over $30,000 for the foundation and
today we are hoping to add much more to that. Thank you very
much for your generosity and contribution. The event is also
supported by some of our corporate partners, Davidson, Accenture, and Deloittes
Digital. Thank you for your contribution to make today
possible. Without further ado, I would like to welcome to the
stage, Andrew Penn, Telstra CEO. Andy joined Telstra in January
2012, serving at Telstra’s chief financial officer and group
executive of Telstra International. Andy became CEO
in May 2015. Prior to joining Telstra, Andy was with AXA
Asia-Pacific for 20 years, where he held a number of different
positions. Please join me in welcoming to the stage Telstra CEO, Andrew Penn.
ANDREW PENN: Thank you very much, Monty, for that kind introduction, and
welcome, everybody. Senator Mitch Fifield, Minister for
Communications, also minister for the arts and minister assisting the promise —
minister assisting the Prime Minister where. And can I also
pay my tributes to the Gadigal people, on whose land we hold
this event this morning. Ladies and gentlemen, welcome to the
Telstra Summit. Who could have predicted the digital world in
which we live today? The speed of technology innovation has
surpassed even the most forward-thinking minds of
yesterday. Now, last week, if you were following it on
Twitter, as I’m sure many of you were, last week was an
important date, the 21st October 2015.
Because it was the date on which Doc Brown and Marty McFly
fictitiously went Back To The Future in the Doc’s 1980s-built
DeLorean. Now, in their 2015, the world comprised of automatic
service stations, transparent neck ties, dehydrated pizzas and
of course those very, very cool hoverboards. Also, 50
years ago, following the 1964 World Fair, Isaac Asimov, the
20th century science fiction writer, reflected in a New York
Times article on what the same fair would look like in 2014, 50
years later. Now, he predicted that work would have begun on
cars capable of automatically driving people around. To quote,
“Much effort will be put into designing vehicles with robot
brains, explaining that they could be set for a particular
destination and then left to proceed there without further inference”. So I’m not sure how
many of you were also following Twitter last week because there
was another important event and it marked a 57-hour journey of a Tesla
model S from LA to New York and the significance of that journey
was not so much that it was in Tesla’s very cool electric car,
but that it was actually on autopilot for the whole trip. Asimov’s predictions
were therefore uncannily accurate. Unfortunately, the
same could not be said for Back To The Future, where the
predictions were more about superficial things, flying cars
and hoverboards, that we haven’t solved for yet. Although, there
is an innovation being worked on at the moment called Hyperdp —
Hyperloop, that may get us there soon. But Asimov and Back To
The Future missed two very important developments –
smartphones and the internet. And both of those have changed
our world beyond comprehension. Because internet is the backbone
of the digital world in which we live today. And that is why the theme of our summit, which Monty just
announced this year, is digital – there is no going back. People
say that digitisation means the world is changing but I think
this misses the point. It has already changed – and changed
forever – and it will keep changing. In
fact, the change that we have seen to date is nothing compared
to what we are going to see in the months and years ahead.
Because the rate and pace of technology innovation is
accelerating today faster than at any time in the past. And at Telstra, we take this very
seriously. We understand the need to embrace technology and
innovation and make it work for us and our customers. That is
why our vision is to make Telstra a world-class technology
company that empowers people to connect. A world-class
technology company with world-class customer service,
world-class technology and world-class telecommunication
networks. This is what we are focused on delivering at Telstra
and these are the topics that I’m going to address this
morning. So, I wanted to start by reflecting that in a period
of incredible transformational change and technological change
and disruption, one thing remains more important than it
has ever done in the past. And that is customer service. At
Telstra, we have spent the last five years on a transformational
program designed to put the customer at the heart of
everything that we do. And while we have made some progress on
that journey, I know that we still have much more today. We
don’t deliver everything that we should and we still do not make
it as easy as we should do, and need to, for our customers to
be successful. Because technology plays a crucial role
in transformation. Like many large
companies, technology is both part of the problem and
the solution. The legacy systems of the past can be clunky and
slow whilst at the same time technology innovation can
transform customer experiences, and it is therefore crucial that
we embrace this. Because today, like many of you, we are not
being compared by our customers to our traditional competitors.
We are being compared to new competitors, new companies – new
companies that have been born only digital. New companies that
are challenging the old benchmarks, the old accepted
norms, of what constituted satisfactory customer service.
Take Uber as an example – and you are going to hear from the
chief executive of Uber Australia and New Zealand,
David, a little bit later on today, so forgive me, David, for
using you as an example and forgive me for what I’m about to
say – in that Uber is not a technology company. I say that
in the most complementary way in the sense that the technology
at Uber is not necessarily more complicated than exists in any
businesses today. What Uber has done, though, is identified a
very, very poor customer experience that we’ve all been
familiar with and transformed it. Let’s face it – in the old
world, taking a taxi was not much fun. Finding a taxi,
knowing when it was going to arrive, finding a clean one,
finding a driver who knew where they were going, finding one
that took cash and then, when you needed, finding one that
took a credit card. Just the worst experience ever. So Uber
and companies like Uber have transformed that customer
experience forever and even the traditional companies are having to catch up in that
regard. So think about, where does your customer service let
you down the most? What is the weakest link in the chain
that you have with your customers and find that and fix
it because that is welcome back disruption is going to arrive
first. Because, in a world where technology is accelerating and
digital needs to be at the company’s core, all of us need
to be responsive at providing digital solutions at even
greater speed because if we do not, somebody else will. Let
me move to the second topic I wanted to cover this morning,
and that is world-class technology. I’ve already spoken
about the dramatic change that we are seeing in our industry.
Change that we believe brings great opportunity. As a
technology optimist, I see great opportunity for those of us
that embrace that change – great
opportunity for those of us who embrace technology innovation.
Because Telstra is no longer simply just a telecommunications
company, a telephone company – technology pervades everything
that we do. And there are three significant trends
that are driving this. Firstly, the massive shift to mobile. 20
years ago, there were less than 100 million mobile devices in
the world. Today, there are more than 5
billion. Less than 10 years ago, only less than 10 years ago,
mobile phones were used for making voice calls and texting.
Today, they are our mobile office and a remote control for
so many aspects of our daily life. Today, in Asia,
more people are connecting to the internet from a mobile device than are from a desktop.
Indeed, many people in Asia will never even use a
desktop. Globally, mobile data grew by
nearly 70% in 2014 and an extra 1 billion people became mobile
internet users. By 2020, mobile data traffic is expected to
increase six-fold from where it is today, with video representing more than
three-quarters of that growth. Recent data out of the US shows
that 90% of 18-34 year olds are never without their smartphones,
day or night. They are connected 24/7, and not
unreasonably, expect to be able to get what they want, when they
want and with ease and speed. And of course the latest trend,
which I’m sure will get discussed over the next day or
so – the Internet of Things. Billions of connected devices
from aircraft engines to cars to engineering componentry to
agricultural equipment. In the future, almost everything that
can be connected will be connected. Conservative
estimates predict that by 2020, there will be up to 50 billion
connected devices in the world – all producing data to be processed and analysed.
Because in future, if a business is not mobile first and digital
to the core, if it does not present on an app or an icon on
a customer’s handset, then effectively it will simply
not exist. The second area driving significant and rapid change is
the Cloud. The continuing advances in Cloud and
virtualisation are driving major changes to businesses – in our ability to react quickly and
adapt and change. There was a time not so long ago when it
would have been almost unthinkable for large companies to outsource critical parts of
their IT. But how quickly things have changed. A recent study of
large Australian companies that showed 86% are now using the
Cloud in their production environment. But the most
complex aspect of Cloud computing isn’t running the data
centre or the software, it’s not a complex IT problem in a
conventional sense – the complexity is getting the
information in and out of the Cloud at speed and securely through a
network. As well as effectively operating the multiple Cloud
solutions, you need scale. And, of course, this is a
telecommunications challenge and this is why Telstra is the
leading provider of hybrid Cloud solutions in
Australia today. And it is why our Cloud business is one of the
fastest growing parts of our business, at 30% per annum compound growth. Our
differentiated Cloud capability is integrated with Telstra’s
next IP data network and leverages strategic partnerships
with some of the world global providers including Cisco,
VMware, Microsoft and Amazon. One of the crucial dynamics of
Cloud is it is bringing down the barriers of entry to
traditional businesses. Today, a start-up with a good idea has
access to much of the infrastructure, resources and
tools and computing capacity that was once only ever
available to larger companies. They can rent computer capacity on
demand. They can use affordable and very
capable Cloud-based enterprise resource planning systems. They
can use PayPal for prosecutions, market to millions of customers
using social media, and outsource the supply chain to FedEx or UPS. Because
start-ups are changing markets overnight, because they are
nimble, smart and able to challenge incumbent businesses
that are finding scale is no longer an advantage and Cloud is
playing a crucial role in this. And that’s the reality of our
digital world today and our digital future.
The third and perhaps most significant area of technology
innovation is in machine learning and artificial
intelligence. Advanced algorithms in conjunction with
the massive increase in computer power mean that computers can now see and hear better than
humans. They could also learn as we provide them with more data. Now, of course, some of the most
exciting innovations and applications are in the field of health diagnostics and
treatment analysis. Artificial intelligence is being used today
to ensure the right person is taking the right drug at the
right time. AI Cure, which is an American company, is using
mobile technology with facial recognition and advanced
algorithms to identify patients, the medication that they’re
taking and the process of that medication ingestion. We’re also
seeing artificial intelligence play a role in consumer
applications. Common examples such as Amazon’s Echo, which can
already follow many commands. Google Now, which learns about
your preferences and predicts your needs even before you have.
And of course, Apple Siri plays a role in this space, as well.
These technologies are still at their very early stage of
development. But ultimately, it is actually the combination of these three trends. ..that
is causing the innovation and acceleration in technology. A
massive shift to mobile, in conjunction with the cloud and
in conjunction with machine learning, together is what is providing the exponential
growth in innovation, because there is an exponential growth
in data, the ability to store it and access it when you need to
– and cheaply – and of course the compute capacity on an
affordable basis to process it to solve almost any problem that
you can think of. Which brings me to the final subject I wanted
to cover this morning. And that is telecommunications networks. Because ultimately, all
technology innovation depends on the quality of the underlying
network to which it is connected. There is virtually no
technology innovation that is happening today, no technology,
that is not connected to a network somewhere. And it is the
underlying network that makes possible our digital presence
— present and our digital future. And, of course, networks
are at our heart and soul. It is the heart and soul of
Telstra’s business. Because we are committed to having the best
networks in Australia with the broadest coverage. We’re already
investing billions of dollars – – and earlier this year, we
announced a further increase in that investment, in particular
into our mobile networks, increasing our total capital
investments to 15% of sales for the next two years. In
total, over the three years to June 2017, we expect to have
invested more than $5 billion in Telstra’s leading mobile
network. We will continue to expand our 4G footpatht to 99%
of the population. We will also continue with our LTE
technology, including voiceover LTE, LTE broadcast and the next
stage of L TE advanced, which delivering
download speeds of up to 600mb per second. Our
customers are clear about what they want – better coverage,
better call and speed reliability, fewer dropouts and,
most importantly today, faster downloads. And our commitment is
to make sure that they get it. So let me sum up by reiterating that this is an extraordinary
time. Digital technologies are changing all of our businesses.
They are changing our economy. They are changing our lives. But
the changes that we have seen to date – remarkable as they are
– are nothing compared to what we will see in the years
ahead. If Doc Brown and Isaac Asimov could miss the internet
and smartphones, what will we miss about the possibilities of
our future? This is such a time of opportunity, digital
innovation in products, services, processes and business
models offers opportunities that we simply cannot afford to miss. But in
the end, though, this is all really about our customers –
your customers and our customers. Technology is just
simply a way to make their lives easier, our lives easier, and
their businesses better and your businesses better. And that is
why we’re working to make Telstra a world-class technology
company that empowers people to connect. A world-class technology company
with world-class customer service, world-class technology and world-class
telecommunications networks. Thank you very much for coming
along this morning. Thank you for coming to this
Digital Summit. I hope you have a wonderful day. Enjoy it, and I
hope you get a lot from it. Thank you. (APPLAUSE) (APPLAUSE) NEW
SPEAKER: Thank you very much, some incredible insights there,
thank you very much, Telstra CEO, Andrew Penn. Three forces –
massive mobile shift, Cloud and AI machine learning – driving exponential growth. We’re now very privileged to
have with us Senator Mitch Fifield, Minister for
Communications, minister for the arts, minister assisting the
Prime Minister for digital Government, why we’re all here
today, of course, and Liberal Senator for Victoria. Mr Fifield
was sworn in as Senator for Victoria in the April parliament
in 2004, re-elected in 2007 and in the 2013 elections. Senator
Fifield was previously the Assistant Minister for Social Services with responsibilities
for disabilities and ageing. Senator Fifield was appointed
the Minister for Communications, Minister for Arts, and minister
assisting the Prime Minister for digital Government on 21st
September 2015. Please join me in welcoming to the stage, the Honourable Senator Mitch
thanks very much, Monty, and I don’t think any politician
really likes to hear the song, “When I used to rule…” but
thanks for that! (LAUGHTER). But it’s a real
privilege to be here in my relative new role, as Minister
for Communications and minister assisting the Prime Minister for
digital Government. I wanted to start by acknowledging Andrew
Penn, a fantastic presentation and for the great leadership
that he provides not only as Telstra but also in the digital
economy more broadly. So great to see you, Andy. (COUGHING) Sorry, I’ve got the
tail end of the flu, apologies for that. I do also want to
acknowledge the DJ this morning! He has managed
to give me, in some of his earlier choices, my daily fix of
80s music! It was particularly Spandau Ballet’s
“I know this much is true”, that I enjoyed today. Always good to get an 80s fix at the start of the
day! And on the subject of matters 80s, Andy mentioned that this is, of
course, the week, the 30th anniversary, of the first Back
To The Future movie, 1985. In 1985 I was in the first year of
uni, and that was a time when I went through all of school and
all of university without touching a computer. Without
touching a mobile phone. And obviously the internet didn’t
exist. There was no Twitter, there was no Facebook – it
really was a pre-digital world that I grew up in. And just to emphasise the point, at Sydney
University, the library catalogue was in three parts –
the bulk of it was on cardboard cards that you would flick
through. Some of the more recent acquisitions were on microfish,
for those of you who can remember that, and the last six
months or so acquisitions were on computers and they were these
screens with this funny orange writing. So that
was the world that I grew up in. And obviously, so, so much has
changed. The role I have as Minister for Communications, up
until 1975, that position was called “The Postmaster General”.
I kind of like it! So I might bring it back! I might petition
the Prime Minister! Minister for Communications and Postmaster
General. But that was the title of the minister with
responsibility for telephones and post. And there’s probably no better indicator of
digital disruption and change than Australia Post itself and
its declining mail volumes, which are literally going that way.
And the director is doing a masterful job in reinventing
Australia Post as an organisation. But that’s just, I
think, a salient example to look at, to see the pace of change and how it’s manifesting
itself. Now, disruption, clearly, is not
a new concept. It’s not new to this century. It’s always been
with us. But in different forms. As is often said, history
doesn’t repeat itself, but it does rhyme. We can look back to
the railway transport of the 1800s or mass industrial production in the early 20th
century. Since then, we’ve seen things like hard copy maps
replaced by GPS navigation devices and these in turn
transformeded by an inventive group of Sydneysiders with an
app called “Expedition” and today we can all know our world intimately, thanks to Google
Maps. We’ve seen computers that would fill a lounge room when I
was growing up give way to compact and affordable
micro-processing and now storage and processing has well and
truly moved into the Cloud, as Andy mentioned. Today, we just
need to look as far as our wrists, if we have anything on
our wrists at all, or pockets, to see the new wave of digital
disruption transforming industries around us. We can buy
music on Apple or Spotify – companies that haven’t produced
a single song. We pay for things with Pay Wave or PayPal, yet we
never see a physical note or a coin. And online job
marketplaces enable an army of freelancers to undertake a
variety of jobs without any employees. And if you are
looking to give way, an old couch to sell or a fridge to find a good home,
there is a sharing economy for that, too.
So moving, I guess, to my role as the minister assisting the
Prime Minister for digital Government, imagine, then, if
you never had to set foot into another government office – what
a joy that would be! And this government is serious about
harnessing the profound opportunities that we all know
to drive future productivity, to drive the digital economy, and in
government, as well. So, what is it that we can do to realise
the opportunities of the digital revelation? — revolution?
Well, digital platforms offer one of the greatest
opportunities for both business and government, not only to meet
the challenges of the digital era, but also to carve out new
niches. Innovation such as Cloud infrastructure and open source
software means that these systems are more accessible and
affordable than ever, linking different parts of the business
to a shared platform means less duplication and less expense.
And while this is critical for any business of scale, it’s especially
important for governments, which are made up of dozens – well,
let’s be honest, hundreds of departments and countless
smaller agencies, each traditionally managing their own
IT and duplicating a similar range of services. And perhaps
most importantly, digital platforms are inherently and infinitely scaleable. We’re
no longer talking about a single piece of hardware
occupying office space and with scale some affordability – a key
benefit for governments and business alike. And this becomes
an even more important proposition when we’re talking
about interactions with government. We simply can’t deny
that the best interactions with government are those that do
not require a visit to a government office. To achieve
this, we do need a strong pool of digital talent
and skills and the imagination of Australian companies, large
and small. Companies like Telstra and the
range of Australian banks, which have made massive investments
in technology to improve convenience for their customers and provide easy access to
accounts. We need to leverage tech expertise from outside
government and partner them with the digital transformation
office, which we’ve established in government and with other agencies. There are hundreds of
innovative tech businesses, start-ups and SMEs right across
Australia that would not normally partner with
government, due to prohibitive procurement costs. Our aim is to
make it easier and less costly for companies of all sizes to
partner with government and this is critical if we are to
innovate our own use of IT in the Australian government and
essential if we’re to deliver services that are simpler and
easier to use. Modelling from a report has found that almost 5
million Australian jobs, or around 40% of the workforce, are
at risk of being replaced by computers in the next 10-is a
years but there will be many, many new jobs and employment
opportunities created by this revolution. So it’s vital that,
as a nation, we adapt to take advantage of these
opportunities. We must become even more flexible, agile – as
you will have heard the Prime Minister say once or twice – to
make sure that we remain at the birthplace of fortune, as
Michael Fullerlove described in his recent lectures. The
government recognises there are profound opportunities to drive
Australia’s future productivity and growth. I think it would be
fair to say that the Prime Minister is the most tech-savvy
leader has had to date. He is close to innovation and the
advancement of the digital economy and puts it at the heart
of the agenda and he has outlined his vision, his agenda,
as to how Australia’s telecommunications industry, as
a key enabler of innovation, will be central to this. He has
set a clear mandate for this task, including in part the
establishment of the Digital Transformation Office earlier
this year and my appointment as the minister assisting him for
digital government. The government will also launch an
innovation package by Christmas to strengthen the nation’s innovation system. Measures will
focus on specific changes, such as improving collaboration
between business and the research sector. Increasing
investment in start-ups and ensuring that Australia has had
a larger pipeline of students capable of critical thinking and
problem-solving moving through the system. Exposing more students to, in particular,
computing at a younger age will be critical to our prosperity in
the years ahead and the government must also lead
through example, through initiatives such as the DTO. Our
mission is to overhaul the way the government delivers services
and to ensure that people can get the information they need
when they need it. We also, obviously, want to make
government more efficient, to better position Australia to
benefit from the opportunities that digitally smart businesses
of all sizes – from start-ups to major corporations – can offer. For example, in government, with
the guidance of the team at the Digital Transformation Office,
we’re looking for ways to embrace change and deliver
better products more quickly using an agile and multi-disciplinary approach. As
our Prime Minister stated recently, we need to become more
comfortable with disruption, uncertainty and change. Like
Christopher Pyne, we need to channel our inner revolutionary.
But with Christopher, I’ve got to say that didn’t take too much
encouragement! Our vision is that everyone who needs to use
government services should be able to find what they need
quickly and easily and, just last week, the DTO announced it
would develop a prototype for how the public can more
easily access government information and services and to
do so in just nine weeks. That is a tight timeline, but those
of you who work in business know that, when something needs to
be done, when a customer demands something, that is the impetus
for change and you’ve got to work quickly. We have been
unashamed about seeking influence from the private
sector in the way that we go about digital transformation and
as we work toward becoming the leading digital economy in the
world. We know that there is a global demand for talented
digital specialists and Australia wants to compete and
wants to make sure that we can harness those individuals and
get the best. So we’ll need skills and expertise from both
within the public and private sectors to meet this demand and
to ensure that we can capitalise on the opportunities ahead. And that’s why our close
collaboration and partnership with business will be critical. government, we don’t have
customers in the traditional sense. People don’t necessarily
have a choice about where they can apply for a licence or
register their business or access benefits and information.
However, I should add that postal services and some
broadcasting are notable exceptions. So although many
government services are not in a competitive marketplace, we are
judged by the standard of service that people experience
through the commercial sector in their everyday lives, and
rightly so. In any given month, more than half of the 2.5
million Australians who look up government information and
services online will experience a problem of some sort – and chances are, it’s happened to
everyone in this room. Many departments are working on their
services individually, but we can still improve our approach
to design and delivery overall, so that members of the public
can do what they need to do without having to navigate
multiple, difficult to traverse, and disparate websites. And
this cuts to the core of the digital transformation agenda and the Digital Transformation
Office’s reason for being and that is to find ways of
delivering services that are centered on the user.
So often when the government designs systems and processes
and programs it’s about what is convenient for government rather
than what suits the individual citizen. Now, this is not about
pointing the finger at any one service or department, although
I’m very happy to do so! It is about realising that Australians
do not distinguish between departments, or even between
tiers of government – they just want
what they need and to get it quickly and easily. Their expectations are high and they
should be. The DTO has announced that as one of its first
projects, there will be a collaborative effort between the
department of industry, innovation and Science, which is
Christopher’s department, the Australian Tax Office and
Service NSW, at the State Government level, to use online
services, streamline business registrations, improve
compliance, minimise errors and of course as a by-product reduce
frustration. There is another important piece of work being
undertaken by the DTO and that is the establishment of a common
digital identity, or online credential. This would be an
online ID which could be used to verify your identity across
different tiers of government, between MyGov federally and
state-level online service portals. This is an important
step to ensure that users can conduct prosecutions online
without being required to go to a physical office to provide ID,
saving users and government time and effort. So, in addition to
improving the quality of our services, digital transformation will offer substantial savings,
as well. The research shows that many users will try to
conduct their transactions online first, and that if it’s
too difficult, they’ll move to other channels such as the phone or
face-to-face interaction. And that means that by the time they reach government, they are
already very dissatisfied –
never mind the fact that obviously phone and face-to-face
services do come at a greater cost to government and hence
the taxpayer. And of the 800 million transactions with
government, every year, around 40% are still completed using
non-digital channels. According to a recent report from Deloitte
Access Economics, if that figure over the next ten years the
change would deliver around $17.9 billion in savings to
government through productivity efficiency and other
improvements and a further $8.7 billion in savings for consumers
through time, convenience and out of pocket expenses. So the potential cost savings available
through digital transformation are intrinsically linked to
improving the quality of the service. If we get one right, the other will inevitably
follow. Service transacted over the phone costs about 16 times
the digital equivalent through the post, about 32 times, and
face-to-face transactions is about 42 times. That said, it’s
important to note that embracing digital transformation is not
just about chasing savings for government – and I underline
again, when we say “Government”, we mean the taxpayer. Rather,
there is an incentive for government to utilise effective
digital technologies to create a quicker, easier, simpler
experience for the customer. If citizens embrace these improved
online services, just as they have with online banking and
online airline ticketing, amongst other things, then the
cost savings are obviously an additional benefit. On this
note, last week you may have noticed in the government’s
response to the financial system inquiry, that we will move to
ensure payments are technology-neural, which banning
merchants from imposing unfair card surcharges. So, in
conclusion, if we want to remain a prosperous economy, with all of the benefits that
go with that, digital transformation for government
and for business is not negotiable. We have made
some progress. We need to do more. We do need to be more
competitive, we do need to be more productive. We do need to be more innovative –
and, in fact, the Prime Minister has directed all ministers to
change their middle name by deed poll to “Innovative”!
(LAUGHTER). And for a lot of us, especially for
those of us in government, it really means just fundamentally
changing the way we do business. We do have to pick up the pace
in government, we do have to be more agile, to seize the
opportunities that are before us. We can no longer seek to
proof ourselves against the future. We must embrace the future. There is a spirit, I
think, of optimism abroad. There is a desire and an attitude to
do things. There is a willingness on the part of
government to change the way it does business. We can’t do that
alone. We need to draw upon the skills and expertise that is in the room today.
make sure that we in government can be what you are in your
work – relentlessly and remorselessly
customer-focused. Thanks very much.
(APPLAUSE) . much, Senator Fifield. The 80s,
Spandau Ballet, postmaster general, and digital government
in one speech – that is a new world-first! Putting us on the
map, thank you. And some seriously ambitious programs of
work there – an innovation package and a nine-week transformation work project in
the Digital Transformation Office. Thank you very much to
Senator Fifield and also to Andrew Penn. We will now change
tack slightly to bring out the first of our international
speakers to the stage. Our first international speaker will be
Kathryn Parsons, who is the co-founder and CEO of Decoded.
Kathryn founded Decoded in January 2011, teaching people to
code in a day, and pioneering a global effort around coding.
Decoded wants to empower anyone and everyone to work out what’s
happening behind the screen. She has taught thousands of
professionals across every industry and sector in over
40,000 cities worldwide and I understand that Sydney is now on
the map for Decoded. It has ranged from boards of
multi-nationals, graduates, schools, start-ups and executive
teams. Described as a woman on a major mission to change the
world for code, she has been recognised as one of the top 50
women in technology in Europe. Please join me – all the way
from sunny London – for a big Australian welcome – Kathryn
Parsons! (APPLAUSE) (APPLAUSE) . intro, it was so good, I feel
like I should get off stage and quit while I’m ahead! Thank you
so. I’ve been in Sydney for about a week and I’ve completely
fallen in love. Today I’m going to share with you a bit of my
personal journey in business and technology, but more
importantly, why I believe that the future is being written in
lines of code. I think everyone in this room can be part of that
future. I’m going to nick a little bit of
Andy’s and Mitch’s conversation, with a very obvious question –
how many people in this room have a smartphone in their
pockets? Every single hand has gone up! I
saw you all checking away! This is incredible – you have a
super-computer in the palm of your hand. It’s changing the way
that you shop, it’s changing the way that you bank, it’s
changing the way that you communicate, it’s changing the
way that you date. Tinder has 1 billion swipes every single day. Technology has a lot of things
to answer for! But globally, by about 2020, penetration is going
to be at about 80%. Technology is becoming ubiquitous. We
talked about driverless cars – this is the science fiction of
yesterday becoming a reality today. On the streets of
California. This is Tesla’s vision of our driverless car
future – it’s very romantic, isn’t it?! It’s reshaping not
just the roles that we do or don’t do but the faces we see
around us – we’re having to rethink it all. Do you recognise
this image in Minority Report? We were talking about machine
learning earlier – machine learning, artificial
intelligence are being used by security firms and government
today to predict when crime is going to happen and where and
who will commit that crime before it even happens. And who
in this incredibly technology-literate room has
experienced virtual reality? I expected a lot of hands. Some of
the latest virtual reality experiences which are coming out
– people are saying, this isn’t just virtual reality, this is actually better than
reality. I mean, what happens to society
when virtual reality is better than reality? We can all kind of
clock off, can’t we?! So there are some serious questions here,
really. The future work summit was hosted recently and it was debated that this poor
guy – I mean, he might get a job after this, who knows?! But up
to about 80% or two-thirds of graduates leaving higher
education were leaving feeling ill-equipped for the world of
work they were going into. A famous piece of research
globally recent predicted that up to 47% of jobs which exist
today could be easily replaced by machines. Did you see that?
Well, I thought I had take a little look at a piece of
research just a little bit deeper, because I think what jobs? What jobs aren’t
going to be replaced by machines? We need to know that,
don’t we? Well, apparently you have a choice of going into the
clergy or becoming a choreographer. How
confusing is that? Also, the highest rising jobs on linked in
with data scientists, which I can kind of understand, but also
becoming a zumba teacher. It is a very confusion moment in
time, I think. Technology is changing everything – every
single industry, every single economy, every single one of our
jobs and behaviours are being radically impacted by technology
and it’s this – it’s being driven by this. The 1s and 0s – the code.
The languages behind the screen sending instructions to
computers and powering this thing that’s affecting all of
us. Look at that – it looks kind of scary and impenetrable – you
always think of the hoodies hacker type guys doing this. So
how many people can confidently say they’ve felt empowered by
the technologies behind the screens? In this room, put your
hands up if you could confidently say yes to that
question. Lots of hands going up over here! Well, that’s good. I
ask that question a lot and I have a feeling that only 1% of
the world could confidently put their hands up to that question.
That’s a real disparity. That feels really wrong. So rewind to
2011, when I was kind of sitting in a grotty pub in what
is the east end of London, which eventually became the heart of
the technology scene, and I was thinking, “Well, what could you
do about this”? So we set ourselves a challenge. That was
it – we started with a mission. Could you take anyone – someone
who had no interest, no skills, no knowledge in technology – and
actually take them on a journey, an educational journey,
where they could actually learn so much about technology in a
short period of time that they could create something, maybe
even code an app in a day. How could you make technology
education amazing? But above and beyond that, turn people from
feeling that they are the passive observers of the digital
world into really active participants?
So that’s how it started. It started, really, just with a
challenge, with that kind of Mission Impossible. And I’m
going to share with you now some of the challenges that we faced
along the way and then kind of where we’ve come to today, which
is just so radically different. to make – I did not study computer science. I studied a
very different kind of code, which was Latin and Ancient
Greek. Debatable on how valuable that is! I was passionate about
languages, Latin, Ancient Greek, Japanese, Mandarin,
Italian. It was all about understanding cultures and
unpicking the language. So code to me is just another language
but it is the language of today, the language of billions and it
was the passion I wanted to learn. Of all the great
technologists I’ve come across in the last few years, yes, we
have people who studied nano-technology, physics and engineering, but you have
musicians, artists, people who studied Shakespeare, for
example, and they found technology and creative tools
enabled them to realise their ideas and ambitions. Never think
that creativity is different to technology –
they are one. So this kind of image brings to life a bit of a
pivotal moment in my kind of journey. And in 2011, it was
really hard to get anyone to kind of come and learn with us.
It was really challenging. So, I was invited to my first ever
technology conference to speak and I was absolutely terrified.
It was called the Dublin Web Summit, so I was in Dublin and I
got in the taxi and the taxi driver said to me, as taxi
drivers tend to, he said, “What do you do” and I said to him,
well, “I teach people code, I could teach you code in a day”.
And he looked really not interested, frankly, so I wasn’t
feeling too positive about that! And I thought, OK, I’m
going to convince this guy, and I said, “This is a skill that is
going to stay with you for the rest of your life. Not only are
you going to look at the world entirely differently, but the
world will begin to look at you very
differently, too”. So at the end of this journey,
it was incredible, because he actually wanted to learn. He was
passionate. I had converted him into someone who felt this was
something he needed. So I felt really pumped and I got out the
taxi, getting ready to, you know, speak on that first stage
and I suddenly realised that he thought I taught people how to make coats.
(LAUGHTER). So it was really awful! I thought, wait, there’s
a bigger market for coats than there is for code?! Maybe I
should just get the code thing because he really wanted to make
a coat, and I thought, “I’m going to have to teach him to
make a coat”. But we kind of exchanged details at that point
and it was pretty embarrassing! This was such a humbling moment
for me because I suddenly realised, nobody cares.
Nobody cares. And nobody even knew what the word “Code” meant.
What a big challenge. So, what did we have
to do? We suddenly realised that we had to become campaigners. We couldn’t just
become educators. We had to get off those technology stages and
get into government, classrooms and the media, and educate
people on why code isn’t just a nice-to-have, but it is an
absolute economic need-to-have. So if you have a campaign within
you, unleash it – there’s never been anything more powerful. So
this is the queue for the women’s loo at a technology
conference. Guess what I’m about to talk about! I mean, the
perks are pretty small, aren’t they?!
Now, the audience here looks pretty great in terms of
representation, but this is normal. How has this happened?
Technology is supposed to be for everyone. Now we know for
reasons of access that some people cannot get hold of it,
but even people with access to technology, for reasons of
permission, feel that they can’t be part of it. And one group
I’m very passionate about is women.
Women are opting out of technology in their droves, when
it comes to at school for some subjects but also as career
level. How has this happened when some of the earliest
pioneers in technology were female? I think a few days ago
it was Ada Lovelace – does everyone know her here? She was
a big gambler, as well, so I think if she was speaking at
this conference she would be at the slot machines! But she was
Lord Byron’s daughter and she invented the first algorithm. So
I think that there’s an issue with the issue of stereotypes
around technologies that really needs to be debunked and
something that I’ve heard a lot in my kind of journey and the
challenge that I’ve faced is, I’ve heard the phrase that,
“Women’s brains don’t work that way”. Oh, yes! I hear that a
lot. Can you imagine another subject where that would be
acceptable? There is a thought that, somehow, this is more a
subject that is towards the male mind. So, we’ve been very
lucky. We’ve had tens of thousands of people
walk through our doors and we capture a lot of data about
people and how they learn. 50% of them have been female. So
we thought, we’ll take a little look at this – is there a
difference between a man and a woman’s ability to
computationally think? Guess what? No! There’s no difference.
But there is a vast difference – up to 30% less confidence. Women
are up to 30% less confident that they will succeed. So does
it even matter? Who cares about this? At the same time, we’ve
been working with thousands of different businesses across the
world and we know what they’re looking for, what skills they
want within their business, that they will pay anything for. And
it’s not just digital skills, it’s digital literacy, it’s
digital confidence, it’s the ability to ask the right
questions. So for me, code is not just an economic issue – it
is also a feminist issue and I urge you, claim your digital
vote, because I believe that the future is being written in
lines of code and I want women to be a part
of that future. So, it has been – fast-forward to 2015 and how the world has
changed. We have gone to 45 different cities around the world, demystifying
dark arts – not just code, but data, cyber-security, the
Internet of Things, there is a lust and a passion of people to
actually understand the technological world around them.
I’m going to share with you some of the insights and
observations from across the world of business that I think
have been pretty common, but also we’re coming to Australia!
Woo! In January – I’m so excited – it’s going to be our first
home after London and New York. And for three, I think, really magical
reasons. Number one, there is a culture of creativity and
innovation here. It also marries with a passion for learning
that’s absolutely standout for us. And thirdly, digital is on the
agenda. As we heard earlier, this is on the government agenda
and this is on board agendas and that is so significant –
those three things have to come together for real digital
transformation. I know that my team would also say that a
really big plus point are the beaches and the brunches! I
mean, it’s definitely amazing here. It’s not hard to convince
anyone to move to Australia. In fact, I think I might lose most of the team to
Sydney! So the world has changed. Code has now become
this Zeitgeist and has been introduced to criticulums everywhere. I’m
proud to have been a part of UK’s campaign do put code on the
national curriculum. I know Annie Parker is here in the
audience and she is heading up koed Club here and it is
incredible to see how that work is creating sustainability for putting code
on the curriculum – actually empowering teachers with the
skills and information they need to put code into the classroom
agenda in every single subject. So the conversation has changed
– this is another Tesla image. Can you spot the human being in
this image? Not many! There are about 160 robots. I think they
have some of the biggest robots in the world and they’re all
named after XMen characters or
something. But the conversation in business has radically
changed in the last, I would say, year, even across the
world. I used to very regularly hear the phrase from business
leaders and boards and they would say to me, why do I need
to understand what’s under the car bonnet in order to drive the
car? And it was a very challenging conversation, you
have to challenge someone’s mindset. Well, how it has
changed. Today, the conversation is not just, “I need digital
transformation”, everyone is saying, “How do I do it? I know
I need it but how do I make it happen”? In fact, the
conversation has changed so much, that the conversation is
“How do I kill my business, how do I use disruptive technology
so much that I kill my business and reshape it from the ground
up”. So if I left you with one question to pose, I would say
what technology do you imagine could kill your business? What
technology do you think could replace your job? Because if you can imagine
it, it probably means someone has created it or will create it
and don’t you just want to be part of the change, rather than
have change happen to you? Something that we pose to ourselves a lot, as
well. There’s also a wealth of talent. So if this is — this is the cher unnic face
of that change. His name is Jordan Casey, he has been flown
around the world by Apple, he is speaking at the EU, he is a
self-taught coder and CEO of his own games company. I know!
Terrifying! So I think I have a list of about, you know, 100 or
200 of these types of incredible technical prodigies, all under
18 years old. When has there been a moment in time when a
14-year-old could potentially know more about technology than,
say, a 40-year-old, you know, CEO of a technology company? I
think that moment is now. That’s happened. So everyone is
wanting that talent but there is a fundamental red herring here,
I think, and that is that we can’t wait for this generation
to grow up to embrace change. I love framing technology for
people who feel like they can’t be part of it and going, “Are
you creative? Are you a good problem-solver? Are you quite
persistent”? If you can put your hands up and say yes to those
things, there’s a great technologist waiting to be
unleashed within you – unleash your 14-year-old developer! So,
this is actually Facebook’s hack-athon to celebrate their
IPO. How are we going to compete with these businesses? Look at
the Googles, they’ve got the astroturf, they’ve got pools and
food times infinity, and those salaries – there’s one
technology company just launched in London and they are poaching
people from their ᆪ60,000 job to ᆪ600,000. That’s very, very
competitive! Exactly! Yeah! Well, I think that I’ve seen
businesses embracing a culture of digital transformation – a
culture of innovation. Actually kind of embracing the mindset of
a technology company. For example, doing hack-athons,
incubators, like Telstra’s incubator – companies engaging
with government and creating their own hubs. That’s true
collaboration. New collaborative ways of working. Sell fast, be
lean, agile methodologies. Really what these companies are
doing is hanging a sign above their doors and they’re saying
technologists are welcome. This is a place where you can create,
this is a place where you can play. But, more importantly,
this is a place to understand you and we can speak the same
language. That is incredibly appealing to technologists. They
will take a pay cut for that kind of
environment. So finally, I would say we’ve been kind of a large
debate, where we’re not just living in a technology
revolution, I think we’re living in a bit of a renaissance and
we’re living in a learning renaissance. You can
learn anything online now – anything.
I’ve seen adults investing in their education to make
themselves relevant for an agile company. And we see businesses
learning not just as a corporate perk or away day, but it’s
actually shifting into something that’s core to the capabilities
and skills of that business – to ensure that they actually
exist in the next five to ten years – it’s exciting. And in the middle
of this renaissance is Plato and above Plato’s symposium’s
doors were the words “Let he who knows not geography not
enter”. And Tim Lee, who invented the worldwide web, said
“This is for everyone”. This is an inclusive
learning resolution. I will leave you with a quote – it’s
great to do the impossible. We face impossible challenges in
order to teach people the impossible. They’ve been the
most fun challenges to take on. But the great thing about
technology also is that everything is possible
using technology. It’s limitless. So ask yourself,
what’s your mission impossible? Embrace it, relish it and thank
you so much for having me here today. Wonderful, wonderful! What
absolutely wonderful insights. Thank you very much, Kathryn,
and when we talk about Australia’s role in a digital
economy, it’s fantastic that Decoded chose Sydney in
Australias a its third location to bring – I am looking for ward to
signing up. I will will negotiate a friendly discount.
Awesome to hear from you. Staying in the northern
hemisphere, but across the Atlantic, we are going to be joined – Robert Scoble. He troubles the world, looking at
the bleeding edge of technology. Looks at inVo excavators and
report what’s he learns on social media. I have been
followling his Facebook feed today. It is already alive and
well. His weekly newsletter – any subscribers? It isn’t to be
missed! Robert is followed by millions of people globally and
has written books on digital change, with another Shel Israel
who law you hear. He will share his insights on a topic that we
are now referring to as friction. Welcome to t he So lis Robert! Take it away!
UNKNOWN SPEAKER: The music you just heard was
The music you heard was picked by an Al go rim emat Spotify.
The team who runs the Al o rit exem, toll he has the best top
40 list in the world because he has three times more user than
Apple music. He has more data to pull from to figure out what
the most popular music is and Calvin Harris is close to the
top of the list. We are entering a post mobile
era. That’s a scary thing, to say to Telstra. We are
entering a world where we are going to change and devalue the
mobile phone screen. Today we are looking at that mobile phone
scene all day long. But, soon, thanks to the guys like this, we
are going to see the world in a new way. Let’s explore a bit
about this. First, just to ask, how many people here have posted
in the past week on Linked-In? Twitter? Facebook? These are
all social media junkies! Google Plus?
(LAUGHTER) There we go! We already know the world is
changing here. How many people use ways to get to work or get
to school? The traffic app? Come on! A few.
PshWe are heading into a world where the algorithm will control
our existence. She’s right. Coding is going to take over
everything. By the way, every time I come here, I have – this
is my fourth time at the summit, I meet incredible entrepreneurs
like Melanie Perkins who started camber. She just got $15
million or Jody Fox who started her company. You are coming to
a good place. Let’s look at what we are doing.
Shel and I wrote a book. You will hear from Shel later. It is
about how mobile and sensors and wearable computers and big
data, and location data are joining to make a new kind of
thing possible, Google now is a good example of that. But soon
we are going to not be staring at that screen. We are going to
be using something called Magic Leap or Microsoft Hollow Lens or
that mega glass you saw. How many people have heard of Magic
Leap? Google invested half a billion
dollars in this company and they are just about to announce
another half a billion dollar investment. Most of you haven’t
heard about it yet. Let’s talk about what it is. This is an
image shot through the magic leap glass. Note there is a
virtual image on top of the real world. It’s properly occluded
so that a fun thing is going to be — is going behind the table
leg. It interacts with the real word. The sensors in the glass
know where I am looking and know how I am moving around and I am
seeing a bright and sharp image.
Ted said 20th century Fox – the futurist at the movie company,
said this is Google’s first trillion dollar idea. Why would
he say something like that? Because we are going to
devalue… We are going to wear this and be entertained as we
walk around. We are going to be able to put a chessboard on our
table and play chess right there. We are going to be able
to walk around the world and see what’s happening in the world.
I will see the tweaks that are up on the screen — tweets on
the screen coming up in front of my eyes. It is already
happening! Let’s talk about this stadium.
Levy Stadium, where the Super Bowl will be played next
February. I know in Australia you play a day rent kind of
football. But the stadium is important here. As you – if you
go to the Super Bowl, if you are lucky enough to get one of
those tickets, the guy who sells you the ticket is going to know
where you are sitting when you boy that tick, because you will
put it on to the Levi Stadium app and it knows where you are.
It is going to know when you come to the parking lot, because
you are going to have to check in at the parking lot, and if El
Nino causes flooding in parking lot A, he can in real time tell
your mobile phone, “Don’t go to parking lot A. It is closed. Go
to parking lot D.” As you walk in to the stadium,
you are going to be met by one of these things, called a
Keyzar. An Internet of Things device. It is the name of the
first 49ers stadium. That thing has a bunch of sensors. As you
walk in the stadium, it is going to know you are there, and up
on the big screen, up at the entrance to the stadium, your
name is going to be there! Welcome, Monty Hamilton. You will stop
and take a selfie and you will think it is the coolest thing
ever, a stadium recognising when you are walking in the front
door, without you doing anything. It is going to have
ticketless entry, because your phone has a beacon in it.
We will talk about that in a second. Right here! A beacon.
People have a beacon on them, you know. A few people. They are
little radios, cost $10 or less.
They spit three numbers into the air every 30th of a second.
Your phone can tell how close it is to the beacon. So if I had
three or four of the beacons around here I would know exactly
where you are sitting. The stadium has 2,000 of these
beacons. It has 1200 Wi-Fi hotspots. It has 40 gigabytes of
internet, in and out. So it knows where sitting.
Where you are standing. And I had one audience member tell me,
“I am going to turn that shit off.” off the Bluetooth because I
don’t want the stadium to know where I am sitting. That is a
privacy infraction. I said, “No, you’re not, because you’re
going to get food delivered to you.”
(LAUGHTER) “If you keep it on.” There is a sensor – you talk
about the bathroom. There is a sensor in the bathroom to know
how long the lines are, and when you bull out your Levi Stadium
map and ask it where is the bathroom, it is going to route
you to the bathroom with the shortest line.
Because it knows where you are and where the bathroom is,
thanks to these beacons. You should know about this guy. On
the left. Daniel. The guy on the right is his dad, his dad
started Internet Things developer. Daniel has created an
app called Tupingo. Tap and go I call it. If you are at any
university in the USA, you are probably using Tapingo.
You wake up in the morning and say, “I need a nie latte.” You
go here and order it. It tells you your ice latte will be ready
at 7:29am. It does that because there is a virtual queue, he
figured out how many latte can make a minute and he put a box
into the Starbuck’s, so Internet of Things infrastructure
matters cap to this new world. The box lights up, beeps, spits
out an are e seat that goes into the work flow of the restaurant
and they make your latte and you go there and pick it up. It
is a frictionless transaction. You don’t tap anything, you
don’t touch anything, you don’t talk to anybody. You don’t hand
over a credit card or cash, you just pick it up and leave. Now I
thought that was pretty nice! But that’s last year. This year
he told me, “I know where you are standing and I know where
all your friends are standing, because everybody has a mobile
phone and he has the GP is — GPS location of everybody in the
system.” He nos my friend is already in the Starbuck’s, and
he will put a notification on my friend’s phone saying, “Why
don’t you pick up Robert’s latte and deliver it to class and you
will get five Tapingo dollars?” He’s creating a new kind of
delivery service, a decentralised delivery service,
all for the mobile phone. I am pretty sure that when magic
leap comes out, he is going to get rid of the mobile phone.
Because I am talking to guys, like Adam, who started Siri, where he is
creating a new company where you talk to a world, an audio
operating system. I will see it in couple of weeks. I will have
a fun in class soon. I am going to just say, “I want an latte”,
and an latte will show up!
(LAUGHTER) A Cooper cafe, one of the coolest places to go if
Silicon Valley, they take Bitcoin, and they have little
boxes on the table. And they ask you to download an app and they
say, “Well, you can do it the old way. You can get in line.
And wait 20 minutes to get in line and go and get an latte.”
Monty, would that be kind of me to leave our conversation while
I am talking with you for an hour and wait in line for 20
minutes to have another latte? No. I will pull out my mobile
phone for the app and say, “I want an latte. You want one
too?” OK. In two minutes they will bring it to our table,
because they know what table you are at, because of the beacon
in the top of the box. Sales went up 395% so far. I know you
are going to do it because it’s going to increase sales. You
take clicks away from people, you increase sales. You make
people’s lives better, you increase sales. That’s why I
know you are going into vest in this — going to invest. Let’s
talk about grocery stores. They are creating a new grocery
store, putting a beacon inside the cookie aisle and you are
going to tap your phone and you are going to get cue ponds for
that ail, and other things. If I am in the cookie aisle I will
tap and it will say if you take 10 boxes of Oreos you will get
10 loyalty points. The company studes any time you say
something about wine. If tonight you are at dinner and say, “I
just had the best bottle of pen fols I have ever had”, or we are
having a great time, or if you go to the Penfolds winery they
put a v Joe sown sore on the winery. You go there and say, “I
just bought a case of pen folds.” Think about what you
just told the world and told his system. Penfolds is – what,
about 100 bucks a bottle? More sometimes. If you bought a case
of that, you just told me you make $100,000 or more. One
tweet. If you go to Napa, and a $10 bottle of wine that tells me
something else. If you come into my winery, and I am wearing
magic Leap I will serve you differently. Based on what the
app told me about you. Says you are walking in my front door
with a beacon. Every one as a beacon. You probably have two.
Knowing Shel! I talk to Cantelope systems. Their family
owned vending machine businesses for years. He said the old way
of doing vending machines is stupid. My driver will have to
go up to the machine, open it up, count how many Diet Cokes
were sold, go back down to the truck, carry a bunch of Diet
Cokes up, and maybe do this trip two or three times. While the
truck is standing outside, probably getting a ticket
because he’s double-parked, wasting gas, wasting labour
expense, because he’s getting paid $20 an hour in San
Francisco. Instead I will put a Jasper computer and internet of
things computer in there that talks to the internet and now
his vending machine tells his system how many Diet Cokes sell
in real time. If there is a run on Diet Cokes because it gets
hot, he can have a truck go out there and refill the machine.
But the machine is – the supply chain radically changed because
now they have put a bin together for each machine and he only
has to take one trip up, he doesn’t have to open it up to
count anything, because he – the system knows how many Diet Coke
s were sold out of the machine. So, you radically changed and
simplifed the supply chain. Makes his employers happier,
because they have to carry fewer things and make fewer trips
upstairs and stuff like that. Anybody have this device that’s
called an Amazon Echo. I don’t know if they allow that here in
Australia. You have one? Do you like it? You do? I absolutely
love it! Every single person I have asked in an audience says
that. You know what? You are paying with toilet paper, right,
because you talk to this ING and you say Alexa, I need more
toilet paper.” It says, “Brian, would you like the Sharman
brand you brought last time?” “Yeah.”
Alex is play a game.” “What’s the stock market doing?” What’s
the weather doing?” “Turn on my lights”, because if you have
the new lights, internet connected lights, it’s hooks up
to them and turns off the light. It will turn off the lights in
the bathroom or the kitchen, “Turn on my lights.” It is
coming. This thing is crazy freaky!
Because it is listening to you, full-time. We are expecting a
new kind of experience in the world. This is not looking at a
mobile phone. We are walking around our kitchen. My boss has
brought $10,000 of stuff off Amazon and Amazon has a database
of every purchase he’s made. When he talks to this thing and
says he needs new cups, he – the system knows what kind of cups
he buys. He says, “Would you like the red ones?” “Yeah.” We
will have new shopping experienceexperiences, where we
are going to be measured by 36789D sensors. I saw this
already – where you just turn around in
front of a sign that e-Bay is building. We are going to
strengthen the amount of inventory that is needed in the
store and the amount of floor space that is going to be needed
to try new things on and you are going to try new things at
home. I mean, Flip Card is crazy.
Anybody heard of that? It is the number 1 e-commerce system
in India. It will be the head of product and the numbers are
just astounding. This thing is going to save your life! Again,
you are not looking at a mobile screen. Maybe you are! But
soon you are magically say, “Your dad hasn’t been out of
bed.” It is already doing this. It saved three lives. It is a
little internet of things package that you put, a sensor
on your dad’s – or parents’ – senior parents’ bottle, put one
on their refrigerator, and within on the front door. It
tells you if they don’t get out of bed. If they don’t get out of
the bed, they don’t take pills or touch any doors. We are going
to see new kinds of products. This is coming, it is a new dog
dish with a sensor. It tells you if you have fed your dog
enough. New kinds of wearable computers
are coming. That tell you – like this one tells you you are not
standing up straight enough. There is now kinds of sensors
for our garden, where we are going to put these things in and
it is going to tell us to water our plants. We are going to get
new kinds of interfaces for our cities, because there is going
to be things like this that tell us there is parking available
over at this lot, not over at this lot. The Google
self-driving car uses this thing called a vechlt ladine –
anybody has a subwoofer, Veladine one?
I used to sell them in the 1980s. They were the best
subwoofers. That is speakers! He has a factory because he
shoved his factory to — he moved his factory to China. He
started making devices for self-driving cars. Spends 80 —
spins 80 lacers in the air 30 times a second and it can see
what you are doing. Now, what Google is doing with that, is
building a predictive system. It’s predicting what you are
doing on the ground. It is Age of Context technology. That’s
how it’s going to work. This step is going to lead to start
cities. I was in Dubai last week, and they showed me a work
station where they could watch everything in the city, because
they are putting sensors on everything, and people are using
Ways, so they can see traffic patterns, and buying data from
the cell phone provider. That is how you get the red line. If
you car a Verizon fast it knows how fast you are going – or
Telstra here in Australia – and it tells the data – it knows
where the traffic is going. We are going to see new kinds of
entertainment, thanks to virtual reality. We talked about that.
We are going to see new kinds of products for the ski slope.
This is Oakleighs ski Google with a computer inside. It tells
us how fast we are going, where on the mountain we are, where
my kids are, and let me chat with them.
It shows me the hang time on my last jump, which in my case was not on purpose!
(LAUGHTER) We are going to see new kinds of manufacturing
systems. I saw this with one who makes a lot of things in the
phones. They are building new work stations. The work
stations tell you how to make things in real time, and they
can reconfigure the product line if they figure out something is
not working, they can retrain you in real time and they have a
camera and send sores that watch you work, and so they can
see if you are doing things the proper way. Let’s talk about my
favourite topic! This is the demo I got at
Occulus Rift a month-and-a-half ago, where I had – another guy
across somewhere else in the world had it on too and I could
see him and play with him, light things on fire with a little –
true! Throw things, stretch things, shoot things. The
sensors coming out – by the time we come here next year, we are
going to have this, right. It’s amazing. Think about how this
transforms education, things — thinks about how I might not
have to fly here next year to give this speech. You might not
have to be here. You could be watching this at home. Right. I
could see you all and you could throw things at me and I can
throw them back and I could be in California. That would be a
lot of fun. A week ago I was in Dubai and a guy came up to me
and goes, “I have a new product. Doesn’t even have a name yet.
Not released. This is the first time it’s been seen in the
world.” It listens to you. It is a little microphone that
listens to you. While it is listening to you it is listening
to the sentiment and the context of where you are, the
sentiment of your voice. Are you angry?
Happy? Are you saying something that might be important to call
back later? You can even touch it and tell it, “This is really
an important time to capture a note”, so if I have a thought,
like I need to worry about my ticket, I will tap and sate,
“Later on, can you remind me to check on my airline ticket”, or
something like that. This is a problem. We are going to talk
about this at 4pm in a little panel. The entrepreneur came up
to me and goes, “How do I convince this is OK – people
this is OK?” Because this is a privacy problem. If it is
recording my voice 24 hours a day, record it — records it for
two days on one charge, how do I bring the product to market?
Imagine you are at a big company and you are trying to do this.
Your boss is like, “No, I won’t let that thing go to the
market.” This is one guy who created a product with $10,000
of his own money and wrote an app. And it works! Our world
is about to change and we are going to get new kinds of
capabilities that are going to devalue our mobile phones. Thank you very much.
(APPLAUSE) Hang around! We are doing Q&A UNKNOWN SPEAKER: Thank
you very much. We are going to hang around for Q&A. Ill welcome
back Kathryn Parsons. Grab a seat,
guys. You have seen the tweet feed coming through. Please
throw your questions up with the hash Telstra Summit in the
tweet and we will pick them up. There is microphones around the
room. We will be on for about 10 or so
minutes here. Please keep the Q&A coming and then we will be
on for a morning coffee break shortly. Kathryn, why don’t we
kick off with you. What is a data scientist?
That is one of the things that we – we teach. It is tricky,
because there is so much jar qon involved in the world of
technology. A data scientist, at the moment, within business,
they are like human unicorns! Except they actually exist.
Incredibly, incredibl rare. For me, there are different kinds
of interpretations, also it is someone with business acumen and
insight. Someone who can actually manipulate data but
also tell a really insightful story using that data or data
UNKNOWN SPEAKER: Well, data. Robert, your thoughts Robert
Scoble His goal is to one consider
next to you when you ask for a car. Not five, because that is
too many. Not zero because that isn’t enough. And he’s using
data science to figure out how to get one car next to you,
right. So they had 3,000 catches at Cochella. That is a big
music festival. They knew there was going to be high demand for
their service. They called all drivers from the western United
States and said, “Can you please come to Palm Springs and pick
up people?” That’s what they are doing. They are using data
scientists to know ahead of time what the demand is going to be
and – like you said, tell the story. Great way to put it.
Fantastic. There are microphones around the room if you want to
ask a question directly to Kathryn or Robert. One of our
first questions that’s come in can can Australia become a
technology leader? Kathryn you have chosen Sydney as your third
stop for Decoded. Perhaps you can reflect on that?
Absolutely. There is no way that we would be here unless we
thought that it had all the ingredients that made it
incredible for technology in innovation — innovation, in
terms of culture, people, passion for learning, the fact
that coding has been put on the national click lum, your can
creating incubators, it is picking efficient — ticking
every box in terms of that energy and that excitement. I
cannot wait to – the next few years are going to be so
exciting! Awesome. Robert, you have been
here – your fourth trip My iPhone says you are 18 hours
ahead of Cupertino. Think about that one! Jody Fox showed me
how you can build a really interesting global company from
Australia and there is a lot of tech talent here, a lot of
business talent, and you need to work a bit more on fining rich
people who will fund risky new ideas that I hear are still
needed. You need to bring broadband to everybody, because
– what is the difference between here and Silicon Valley?
I talked to the founders of people who started here. They
needed to move their headquarters to San Francisco.
They did so because there is internet infrastructure there
that you can’t get elsewhere. There is talent that you can get
there. If you need to hire somebody who built a 20,000 node
cluster, there is few places you can go the hire that person. There is PR and money. There is
business economy here in sill son valley that takes risks and
funds risky start-ups. That is starting to be built here. It is
exciting to see it. I am meeting with self companies
tomorrow to see the latest. Right. Good stuff! Fantastic.
Kathryn, you talked about diversity. It is a big challenge
in all businesses and not to mention our own at Telstra. We
are making steps. What are you both observing in terms of
change, real change, gender and beyond in diversity in tech?
There are a few contradictions in many senses. How can our
business have attracted so many women – 50% females within the
business. But then the facts and figures have never been worse
and they are getting worse. So for me, it is about showing why
this is important. For me, it’s the product that are
increasingly shaping our lives and changing the world, borne
out of an insight that is not female or – aren’t coded by
women. We are going to end up – in that state where advertising
wasn’t — was in the ’40s and ’50s and not understanding the
needs of half of the population. For me it is a high priority
issue. OK. Robert, you are based in the
bay on the doorstep of Silicon Valley
Valley. I agree. We are in the third age
of the personal computer. The first age was building a beige
box that sat on your desk. The second age is building the
mobile phone. That’s sitting in my hand. It has to be more
everyone threat tack — empath empatheic. The new
age is wearable, and we need new skills but the nerds, the nerds
in sill convalley, are not skilled at fashion or empathenic interfaces. We need
new workers and we need women to be a part of that, and other
minorites as well, which are very undisturbed in our industry
Thank you so much. If a 14-year-old knows more about
tech than a 40-year-old CEO, should they be scared? (LAUGHTER) I have met teenage
coders and think – well, it is probably not legal for you to be
working in my business but I would hire you! So, it’s a time
where I think there’s a new kind of shift in power dynamic.
I love this kind of reverse mentoring, seeing – leaders are
connecting with young, technical talent, investing in it, but
also mutually learning from each other Yeah.
Increasingly, the young person is the CEO. I remember walking Mark Zuckerberg before he was
the billionaire, back when he had 50 million users – he was
already a pretty important CEO. But now he’s real the most
powerful CEO that I know of. We are going to meet a young
person who is going to buy an Occ zu Rift in the next year and
it will beu see Spielberg. They are going to –
he is going to discover how to create movies in the way a —
that 20th century Fox is trying to, but 20th century Fox is
aimed at building a movie for a screen. That’s a different skill
than building a movie where the action happens all around you.
There is a Broadway play in New York called Sleep No More. It is
a remake of Shakespeare. The action happens all around you.
That’s the still that we are going to need in this new
statement world. It is going to be a young person who gets it. I am too busy to create that
movie and so are you. It will be the young people who come along
and create massive new companies.
Fantastic. By the way, somebody disagreed.
Mobile isn’t going away. When I say mobile is being revalued,
music got devalued, Spotify and napster. It didn’t go away. The
mobile is still going to be in your pock, because it is going
to the — pocket because it will be the hub. We will look at it
less. That means it will be devalued. We are going to create
new things and new ways of interacting with the world that
are going to have more value. There will be less neck pain, because…
(LAUGHTER) Yeah! Or maybe less. I will be in a virtual reality
world and I might not see you here, right?
That might – that will lead to a cultural shift. We don’t know
where that’s going yet. We are going to discover that together
over the next 18 months. I know someone who’s enjoying
the experience in variety yool reality so much. I asked hem how
much of your day do you spend if reality versus virtual. It
was a significant prosecutortion, it had been
spent not in the real world. Wow! Let’s take one of these
other questions. In your opinion, what is the next major
industry or service to undergo major disruptions?
I think it’s happened to different industries at
different times. It’s interesting to see that media,
for example, are probably one of the most to be radically
impacted. For me, I think the ones are interesting is wherever
think think there is an element of human function or human
trust that can possibly be replaced by technology. Because
it is always that assumption that that couldn’t possibly be
replaced by technology that gets undermined.
So, things like luxury fashion, through to private banking. I
think they are right in the midst of a big disruption.
Robert? Entertainment. It is going to be
the big story of 2016. We are going to get Occulus or Sony
Playstation VR and we are going to get a whole lot of new
virtual reality devices, Google is giving away millions of
cardboard devices to New York Times subscribers, and there is
going to be a lot of them. You are going to get them at trade
shows because they will be handed out like handy. Because
they cost $2 to make. Now you can experience the world in a
new way. We will see – here is where I am coming from and why I
am bullish. I watch people at both web summits, which you
spoke at, and the consumer electronics show, come out of
the demos of Occulus. Every person used an expletive coming
out! (LAUGHTER) They said, “Holy” – I
can’t believe what I just experienced.
It is so mind-blowing. Until you have it on your face, you just
can’t get how deeply this will change our society. And our
entertainment. But entertainment is not necessarily in trouble.
Because the ones who invest in the new world – we are not going
to watch TV any more on a screen. Or we are going to watch
it less. OK. We are not going to go to as many movies. We are
going to watch a lot more in a virtual reality. We are not
going to go to as many sporting – so sporting people, the people
who run the stadiums, are worried about are we going to go
to the stadium any more? Because it is going to be far
better to watch this thing court side, because I will be able to
sit right next to Bill Gates at a basketball game! I have
already talked to – in fact, the guy wearing that thing in my
flight, he was director of IT as the Golden State Warriors. He
is saying there is huge demand in China for his sporting events
for virtual reality. He is going to put virtual reality
cameras around the court. You are going to have a better
experience in China, watching the Warriors game than if you
were sitting there. They are on a bit of a roll. Any
prediction force the season 2015? Closet fan from down
under! I don’t do sports!
(LAUGHTER) We have a question from the floor. It is our
microphone 2. I am just interested – with regard s to
what’s being talked about, how do you combat the tin kum ban —
the income ban say to stop the disruption. Uber is the example
where they are fighting in NSW to actually be legal.
We are in a period of friction. That new device I showed you –
changes what we think of this privacy. There is laws against
recording conversations without both people’s permission. We are
going to see continued efforts by Uber to fight the taxi
industry, who is – let’s just put it this way. When I walk
into a city and they don’t allow Uber, I assume it is because
the government is corrupt. Uber is –
to me, is a far better experience than any taxi system
I have ever been in. It lets me see in real time the rating of
the driver. The driver knows who I am. She or he is safe or un
safe, because if something bad happens, everything is captured.
And I can prove it in a court of law. This guy murdered me or my – you know!
(LAUGHTER) You can’t do that with a taxi because you don’t
have the data. You can’t do this. So, when I go
to a city and they don’t have Uber, their behind, and they are
corrupt. I go to Las Vegas, they don’t have Uber – until a
week ago. They stopped a light rail, a quarter mile from the
airport because the taxi system is so powerful and pays off the
politicians and it is so corrupt.
So, we are going to see a decade of where we have to figure out
how to influence the political system to allow better systems
to evolve. It is a great question.
Fundamentally it means that governments, the people kind of
making – drafting legislation, need to be digitally literal and
aware and be payable to think five years into the future. You
need to be unplug security to put in place encryption laws,
otherwise it is like stabbing in the dark really.
Fantastic. You heard from Senator earlier that Malcolm
Turnbull is the most tech savvy. That ended our question this
morning. We will try to get back to you on Twitter. Coffee time. We will kick off again at 11:30.
A big round of applause for all of our speakers.
Thank you! (CHEERING AND APPLAUSE) Lethal generosity Lithium .
Lithium technologies. Manager of government business. Manager of
government business in the Senate. Minister assisting the
Prime Minister. Minister assisting the Prime Minister for
digital government. Minister for arts. Minister for communication: . Minister for
social service. Minister for the arts. Mu rue D, mur are you D.
Mur rue D dop. Naked conversations .
Netball World Cup. No. No gong back now . Knew on , knew
I don’t know. On demand. PayPal. Pich,
pitch . Pick . Question and answer. Rack
space . Manuel Valls. SitecoreSitecore:.
Sn SMSs: South by south-west .
Start-up:. SXSW interactive. Telstra digital. Telstra retail. Term dough. Desn Te man dough.
The empires strike back. Total community .
Twitter:: YouTuber black. Uber Lux. YouTuber SUV.
UN *** ber taxi, Uber taxi: Uber X. You pickty. Wide
area network. Wan. What’s the future of
Business.Business:: Seth Guys. Consumer . Digital . Products .
Retail . All in one . Out of the box . Money can’t buy . Class 1.
Class 2. Adhere row. App Vera. Buzzy, butty. Buzz sn Buzzy.
Buzzy Network, but butty network. Cardable: Crowd source
hire. Disrupt. Fan fuel . Pham got. Freight exchange . Tune ticks, few net ticks. G
call. Instrument worksrks . Investors
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Rocket. Maxine. Momentum Cloud, momentum cloud . My film bag .
Open learning . Peach, peep . Pick . Saas. Safe site,. Send hellnd helper.
Soccer brain. Stash . Trip local, trip alocal.
V class. Vendee. Visitor . Watt bloc. Xeer, zero : Zed Technology s. Welcome to Ericsson’s Live
Remote Captioning Service. Welcome to Ericsson’s Live Remote Captioning Service. Welcome back everyone. If you
can take your seats we will be kicking off in about one minute.
So, grab your seats, guys! I hope you have fuelled up with a
coffee. Welcome back, everyone.
If you can take your seats, we will kick off with our
secession. I hope you have all managed to fuel up on coffee. I
am reliably informed the baristas are in high demand and
producing quite a good product out there, even though we all
know Melbourne is better for coffee than Sydney!
(LAUGHTER) There is a few of us here. Good!
So, as we kick off our second session, I wanted to take time
to reflect on some of the insights, particularly from
Kathryn this morning on Decoded. Joining us to the stage now is
Annie Parker, Holly Cardew and Cate Hull. Let me tell you a bit
about Annie Parker. She is the cofounder of muru-D, the
start-up acceleration program in Australia and Singapore that’s
funded by Telstra. In addition to muru-D, she is the director
of of the code club, a network of coding clubs in Australia for
children aged between 9-11. We have heard already the
importance of early education in terms of technology and coding. Holly – sorry, Anne will be
joined by Holly Cardew, the founder and CEO of pixie . Not
only is Holly running this fang business, she was the winner of
the 2013 Australian digital school/ship. After lunch, or a
bit later in the day, we will be having the 2015 installment of
the Australian Digital Scholarship. Al of you here and
those online will be able to participate and vote for the
winner. Holly is an alumni of muru-D and
she will be doinged by Cate Hull. Cate Hull won the 2014
Australian Digital Scholarship. We are in good company. Without
further aI do, why don’t I welcome back do the stage or up
to the stage, Annie Parker, Holly and Cate Hull! let the ladies grab a seat
first. I will put the microphone down. One of the things that
you will note about the speakers we are at a little vertically
challenged! (LAUGHTER) It is a pleasure to
meet you guys here. It is the first time I have actually been
to the Digital Summit. I have always wanted to be here, but
it’s too first time managed to coordinate the diary. For those
of you who don’t know what muru-D is, I am about to put
myself under the spotlight of what we do for our start-ups
pretty much every single day and the saying to Holl and Cate
they will have to do a 60 second pitch. If fine is timing –
Mick, I know you are in the audience. I will give you the 60
second pitch of muru-D. Good morning. I am Annie Parker,
the Co founder of muru-D, which is Telstra’s start-up
accelerator program. We take 10 start-ups, we invest a small
amount of seed capital for which we take around about 6-8%
equity stake in that business and over the course of the six
months we bring in industry leading mentors, advisers and
coaches, and essentially help them kale their business and go
global. So far we have three act second ray tor globally, one
here in Sydney, one in Singapore, and a partnership
that we are trialling in Brisbane. So far, 34 start-ups
invested in, three different locations, as I mentioned.
Nearly 100 entrepreneurs that we have actually helped to
education and bring forward to help grow the ecosystem here in
Australia and Singapore. I am delighted to say that as a
result of that we have generated over 5 million worth of capital
invested in those start-ups, on top of the million dollars that
we have already put in to those businesses. What a great way
for us to be able to build the ecosystem from the ground-up and
help these wonderful entrepreneurs achieve a global
business! How did I do? Got it!
(APPLAUSE) (LAUGHTER) OK. So, that was the muru-D
pitch. For any of you who do want to find out more I will do
one small plug. Hands up how many of you in the room have
already been into muru-D or mentor a start-up outside of the
muru-D program here in Australia? There is quite a few
hands. Awesome. However the majority of you haven’t. So, my
personal plug – please get involved. There are so many
different programs here in Australia now for you to give
your time Tom. Imagine, think of the knowledge capital sitting
in this room. If we were able to apply that thinking, apply that
learning and experience to the next generation of
entrepreneurs, we get to short cut their success. So, please,
do get involved. Obviously if you want to get
involved the muru-D that is awesome too!
Now, I will talk about a few things we have already heard. It
is kind of fun to do the impossible. And with technology
— which technology will kill your businesses. The chances are
somebody is already out there building it. I will introduce
you to Cate and Holly and who will give you on background.
These two ladies absolutely manifest exactly those two
statements. And you will find out more now. Holly, why don’t
you start with a 60 second pitch.
At the moment we provide on-demand image editing services
and on the mication services for e-commerce stores. We are
building an end-to-end producting listing solution.
E-commerce business owners don’t have to sit at their computers
uploading content, optimising it and then pushing it to every
platform and market place they are selling on. done. Nice work. Cate?
I am Kate CEO of freight exchange. The problem we are
solving is one in five trucks on the road globally are empty.
You can imagine the enormous waste and the imposition on our
environment as a result of that. Our solution is to develop a
technology platform, where businesses can seamlessly and
automatically buy and sell freight capacity. We launched in
April, we have got over 300 trucking companies on the
platform, tens of thousands of trucks. And our next step is to
look at international markets so we are travelling to Indonesia tonight.
Both of you beat me. I feel like I have done my job right!
Holly, you won the scholarship a couple of years ago. Remind us
where you were at with your business?
When I first pitched I had a landing page and maybe under a
hundred customers. Now we are over 5,000, and in over 15
countries. Amazing. Clearly winning a
scholarship like this gives you some PR coverage, but one of the
things you guys got to do as a result of winning… Yes How
was that? Fantastic. I mean, what is interesting is seeing
the difference between SydneySilicon Valley. South by
south-west is in Austin but the majority come from Silicon
Valley. It seemed like an international community but
focused on the same things – helping each other. So, I found
it interesting that in Austin everybody’s really open to
sharing and helping you grow your company.
How about you, Cate? That is my official happy place!
Possibly the most I-opening most frenetic, most ideas that I
have been exposed to in the space of four I would ex-Co the cutting
edge of thinking globally is on display there. Companies that
are 3B Pty Ltding limbs, everything that you can possibly
is on display, and, also, some of the fastest moving companies. And obviously it was a year ago,
pretty much to the day that you were on stage pitching. What
changed? I don’t even know where to start!
Everything! (LAUGHTER) We were justem
barking on muru-D at that stage. We were at a similar stage of
development, with very few customers. Since then we
launched, with a lot of customers and filled a lot of
trucks. Fantastic. What is the end
vision? So ultimately our goal is to be
invisible and to be a global market police where freight
capacity is automatically optimised, and to really change
the way – the way freight is moved around the globe.
Back to you. One of my personal stores that I love about you –
amongst many of course – is that you are from Orange. One of the
things is the story of how you built essentially what is a
global business but from regional Australia. What advice
do you have for other budding entrepreneurs who have a similar
maybe background to you? The biggest thing they learnt
was because I didn’t have anyone in Orange that I could hire, I
immediately went global. I looked for people online, I had
people in eight countries who work with me. It works well for
us. It is like – even then and it does today. So, I think for
other entrepreneurs, it is like you don’t have to look just
within your surroundings, it’s – there are people online, there
are people all over the world, there is talent all over the
world. You – I know that it does work well when one is sitting
next to you, but if you is set up good processes then you can
have a global team and do a global business.
Cate? Any – I think you are from WA?
No Going Back Now: The Intersection of People, Business
and Digitisatio PCate? Any – I think you are
from WA? No Going Back Now: The
Intersection of People, Business and Digitisation We did start in Fremantle. What
I am trying to say is we can prove just by the two founders
that we have on the stage that you can global from day 1 .
What advice do you have for somebody looking to do something
similar? To deliver a global company.
Distributor teams are incredible. I have been
fortunate to travel to a number of countries, and observe what
our competition is doing in China and in South-East Asia. To
learn a lot from how other countries and regions are doing,
solving the problem, is really important. Yeah, likewise, the
distributor team is gold. The other thing is you can
contact – like a customer anywhere in the world. They will
respond. You don’t have to contact people just here.
One of the other things you have done since grade waiting was to
get accepted into one of the sort of leading global
accelerators, 500 start-ups. What did you learn from that
experience that was different to what you learnt here in
Australia? 500 start-ups, 60% of people
were international. I think, again, you learn from every
culture, different backgrounds straight away and everybody is
coming from a different place so they are already thinking
globally. The other one – the other thing is that with 500
start-ups, —
Silicon Valley style, everyone is helpful, it is no longer
competition. Every corporate company, start-up, every person
is willing to help you and I think that is extremely
important, because either your company is going to make it, and
someone is going to want to acquire you or your company is
going to fail and someone is going to want to hire you.
Everybody is helpful because they know at the end of the day
you are all in it together. Cate, I think you have been out
in the wide wall, post-grade waiting. For or five months?
What have been your learnings since leaving the program and
seeing this Christ lie for you? One of the greatest learnings,
mixing the audience – you will be delighted to hear this – is
we need to move faster and faster, and that doesn’t mean to
do things in a stressful or panicked way – although that
does come into it occasionally – but it is basically putting that
rigour around testing, learning, testing, learning, and
I can say we are absolutely moving at a breakneck speed
relatively. He will be delighted! I will
ask you a question now around – if you could change anything
about the Australian ecosystem, what would you ask for and wave
a magic wanded over and say, “The great if we had this.”
Holly? Two things. Investors need to
take more risk. It isn’t about how much revenue you are making
today, it is what your vision is, and the money you need to
get to that vision. And then the other thing is I would
definitely say people partnering together to help you, even if
it is just to test product. I know people are closed to
testing products because they are buggy, they don’t work and
they are not interested in helping you until you have a
brand established. Cate? I don’t have much to add!
(LAUGHTER) Apart from that, but also be –
to support female entrepreneurs, and also to get education in
coding. You know, we have got a very resource-heavy
education-heavy industry here, we should be making more of
that. On that point, around
encouraging more female entrepreneurs, what do you think
needs to change? Or what was it that inspired you, as a
woman, to go and create a business?
Lots of things. I just wanted to – like many Australians, I
wanted to be my own boss. I think wanting to – I want to
make a difference. Seemed like a good way to do it.
What advice would you give to other women potentially wanting
to take that leap of faith as well?
Do it! (LAUGHTER) Give it a go. I was
fortunate to have amazing network of –
support network. Maybe seek out your support networks and take
the risk. Holly, anything for you that
made you think, “I am going to do it anyway”, as a woman?
Anything holding you back? I have always been
entrepreneurial, even 16 years ago. It’s is difficult being a
woman because you are seened a the admin or the secretary that
turns up to the meeting. You just start to ignore it, and you
stus – I don’t know, you do your job.
Rise above it A couple of questions. I will bring it back
for muru-D. For those who don’t know we are open for
applications now until 31 October. Please do apply!
(LAUGHTER) Shameless plug over! What was being part of an
accelerator program like for you both?
I think the best thing is that you are surrounded by people who
are really inspiring, and the other thing is if you don’t know
something, marketing, business, growth side, but not so much
the technical side or the hiring of certain people, and sow you
can learn that from — so you can learn that from being
surrounded bid other people. Absolutely. Being a start-up
means that you are competent in two or three things and every
other element of the business is an area where you need help.
So, Telstra – you can reach out to people with expertise all
throughout Telstra for that help, working with other
businesses, which is a gold mine of information. It means that
you have got 20-30 other companies who are making mistakes that you don’t have to
make! (LAUGHTER) It is an amazing
network. Then we have three of the –
three other staff from the muru-D family pitching this
afternoon for the next Digital Scholarship. What advice would
you give those guys? Keep it short, suss pint, talk
about your problem and your solution and how big your vision
is. Cate?
Yeah. Tell a story. Make it exciting.
Cool. Well, that’s pretty much us done. We have rattle through
20 minutes of questions quickly. And please thank Cate and Holly for joining us today.
(APPLAUSE) Thank you. I say, again, if you have n’t already
got involved in the ecosystem. It will pay
you back 10-foal. Please pay it forward, people.
Thank you very much. (APPLAUSE) Awesome. Three
fantastic stories, muru-D and a couple of other scholarship
alumni. Thank you very much, guys. What an awesome session!
An awesome session! OK. Next to join us is a gentleman by the
name of Rob Tarkoff. Rob is the President and CEO of Lithium. He
is responsible for the strategic direction and
corporate vision and inter supervise software —
enterprise software company who’s total platform helps
brands build trusted relationships with customers
helping people get answers. Prior to joining Lithium Rob ran
the enterprise – digital enterprise products at Adobe. To
join us, tell us who is getting it right and what opportunityes, Rob Tarkoff,
welcome to the stage.
(APPLAUSE) Welcome back. Fourth year in a row Lithium have
joined us. Great to have you here!
Alright. We haven’t talked one about rugby!
(LAUGHTER) Yeah. I was not watching it at 2am. I will be
honest! I had to speak today and I promised Monty I wouldn’t.
I did watch the highlights. An incredible game.
I am a US rugby fan. That was a huge mark. Way to go everybody
here! It’s been an incredible panel,
set of panels and speakers this morning, and I think when I see
all of the technology that Robert talks about and the
leadership that people like Andy and the centre are talking
about and just the wave of the way technology is changing, I
think, well, of course, it would be easy for companies to just
seize this and adopt it and implement it in to their
systems. I thought the perspective that I could offer
this group – someone referred to you as the digerati of Sydney –
I will be careful I don’t dry to dwell v into —
delve inis topics I don’t know. One thing I do know is my
personal story. The conversations I have been having
with CEOs and CMOs across the world. When I was at Adobe
running the digital enterprise business I ran the PDF. My wife
would say the reason I left is because I got tired of being
assaulted at cocktail parties with people telling me that
their reader download didn’t work on a mobile device.
(LAUGHTER) That is not the reason I left!
The reason I left is because in about 2010 and ’11 I saw an
incredible phenomenon taking shape. We have heard a lot about
it today. It was a phenomenon that was hitting the corporate
world by storm. I thought that it is going to be a whole new
system of technology, a whole new system of engagement that is
going to guide the future. It will transcend devices, it will
transcend form factors. It will be more about behaviours of
companies and how they adapt to the future.
So, I thought a lot about this concept of customer change and
how we could get corporations to change. But the trend that was
emerging with something — was something interesting. And that
is that the trend is total fear. Totl fear inside a company,
almost terror. You can understand it when you watch
presentations like you saw today and you saw the incredible
motivation of the start-ups, that came up, the comment, the
absolute brazen ability to go in and say I will get acquired or
get hired, it doesn’t matter. I will compete. Effectively
against the established companies. It creates fear. Fear
that almost makes these large companies freeze. Because
business, as we knew it, and Andy talked about — about this,
is going forever. How many here went to business school? OK.
Throw away all your books, all your case studies, everything
you learned. It is all irrelevant. Because the kinds of
conversations that I am having with brands today is about an
entirely different world, about an different set of behaviours.
So, we decided to do research. Last year Brian Solis is up here
and he spoke about the phenomenon which he referred to
as the magazine as an iPad that doesn’t work. I loved that! I
loved that! I have to give credit to Brian. Because it is
about that complete change in the customer and consumer
behaviour, the way they perceive products, the way they perceive
brands. And the way they perceive service. It was great
to hear Andy talk about customer services a a key priority of
Telstra and one of the areas they are trying to differentiate
thoemss, but for the most part you have to agree in the old
model, the one we have from business school, customer
service was an afterthought, it was the realm of the contact
centre, it was the part that you funded the least, it was where
you outsourced the Labor and you tried to get arc Tarj on
technology investments. It was the last point in the journey of
the consumer. Right. All about marketing, sailing and re
reaffirming your purchase decision and then service came
at the end. The problem is today – this is Australia-specific
data that we looked at – 67% of Australia’s — Australians agree
to pick up the phone to call that customer service agent,
that contact centre that you invested hundreds of billions of
dollars in, you have already failed. It is a complete
failure, the experience is a breach of trust.
By the time they – you call them, you have failed to meet
what we refer to at Lithium as the era of extreme expectation.
Not so extreme in our consumer life, right. We live it every
day. We have a card at the push of the button, ready make
ingredienteds for milk, packaged and deliver on the same day. On
the corporate world, back into buildings, go up in the
elevators and think about how or consumers act, we don’t think
about the new model, which is service always comes first. And
service is the new marketing. The second piece of data I
thought would be interesting to share is that in the old model
it didn’t matter if you failed in a customer service process.
If someone was fwrus frustrated that they
found their Kai to the call centre, it didn’t matter because
it was an isolated incident. The problem today is a 46% of
Australians – by the way you Australians – this is a higher
statistic than the Germanys or French or Americans – 46% are
more willing to share a bad experience than you are willing
to share a good experience. You would rather talk about the
problems that you have with the brand, than praise them on
social media. In my conversation that I have around the world, I
still oftentimes get the corporate resistance.
Even though they know this can inflict massive damage at
breathtaking speed. We see it all the time. I get resistance
because CEOs and CMOs and chiefs of customer care – they say,
well, you know, we don’t care about those people. They are
going to gripe anyway. They are narky customers. They will go
out there. Nobody pays attention to them anyway.
Research showed something different. This is probably all
intuitive. 68% of Australians will not buy something that
doesn’t have a positive review online. You guys agree with
that? 68% of you. One of the highest statistics again. You
guys are so far out ahead in really thinking about peer
review and trust established between different customers,
rather than between a company and a customer. 68%! You should
care if you are a brand about the really bad things, the 46%
people are saying, not because you care about them, but because
you care about the 70% of people that they impact. They
won’t buy your product. You can’t ignore the experience of
vocal detractors, but, still, across the globe lots of
resistance to this point of view. Last year –
how many of you were here last year at the Digital Summit? Not
that many. Great. You haven’t heard this story. One of my Klout, we thought that over a
year ago. E told a surprise and delight store. He told a story
of a stake house who was listening to blogger. Someone
was flying to Chicago. They said you know what would hit the
spot? A porter house. Moreton delivered the porterhouse ” My God. Incredible service.”
Tweeted about it. It was a great story. It isn’t realistic. It
is not what most customers expectfrom brands, in my
opinion. Most people want you to do what they have entrusted you
to do. They want you to do something that they are allowed
to share with others within the context of their relationship.
The only challenge is that they want it right now. In the old
model, instant gratification was considered an aberration. Most
people are OK, they understand the human condition, we have
priorities, there is queues. I have different things I am
working on. Not in today’s world. In the new world, of extreme expectation, 72% of
Australians want instant gratification from any online
interaction. It isn’t just having a conversation. It is
providing them the right answer that they want at the time. They
expect you, as a company, to leverage everything that’s
available at your disposal. If you think about all the stuff
you saw this morning, all the technologies, all the
capabilities to bring that into play, it is a lot of things to
incorporate, unless you change from the old model to the new
model way of thinking. Finally, a large percentage, 40% of
Australians, expect an on-line response within an hour. How
many of you work for companies that provide consistent online
response within an hour? Not a lot of hands. Good for you guys.
Because you are satisfying almost half of the population
who will make decisions about the brands they want to do
business with and the places they want to work, based on
these kind of statistics. So that’s the world of extreme
expect taxes. It is the new — expectations. It is the new
model of consume ever. I go around talking and everyone
shakes their head, I get Uber, Amazon Prime, I live all of
that, but we are not set up that way. That’s not the way our
company’s been built. If we are going to change we need to
understand what the new reality is. When we get into this
conversation, we talk about the experience of the consumer. We
talk about the experienced consumer in the context of how
you responded to business. I love to tell the story of what I
call Daniels market theory of interview. Heard of Daniels
market theory? Economists out there? Good. You shouldn’t. It
doesn’t exist. It is my son, my 14-year-old son.
(LAUGHTER) He has a DJ business. Like Barry there! He does
really well with his DJ business. He is very talented,
an artist, not much of a business person. But he
constantly has to buy equipment. DJ is very capital intensive
business. You have – need to be able to look at the stuff there.
You have to be upgrading. He picks a really good business
partner – my daughter command
— Alexandra. She will be the CEO who will replace me. I said
it here! She said OK, I am the artist. She is the businessman.
We will work with dad and figure out how we get him to front us
some money so that we can buy the DJ equipment. It turned this
into an experiment. How are you going to go about this? Think
went on their purchase — they went on their purchase journey
to buy the mixer. All of you know this – because you do it
every day – you discover through search, looking at videos,
images, consuming different content that is out there on the
web, you compare it through ratings and reviews. He want to
get in the I don’t know if you have been there Barry!
The great sites that talk about how to look at different DJ
equipment at different points in your evolution of the business. Then he went to the comrunlt —
community to compare prices. He connected with all his friends
on social media to compare different things. He built the
DJ total community himself around the experience. He bought
a new mixer, but nothing in his discovery ever came from new
mark. Nothing was part of the old model of the way that new
mark was the way it would think about marketing or product
promotion or building loyalty. Again, nothing earth shattering
here. We all do this. When I talk to large companies around
the world, I don’t talk about technology, which may seem
strange. I talk about behaviour. The issue is behaviour, like my
Australian selling of behaviour! Pretty good!
(LAUGHTER) Not how we spell in the US! You see it now!
(APPLAUSE) Hey! Locally sensitive presentation!
(LAUGHTER) The issue is behaviour. And recognising the
behaviour is recognising that the customer experience is
fundamentally different. It is an experience driven by a
behaviour that establishes trust in a very different way than
the old model product. Extreme expectation, says that the brand
doesn’t dictate the experience. We came over with a great
expression with Lithium – I would love you guys to tweet.
This is my favourite – if you like it.
Brand is negotiated, not declaredin this world. I love
that statement. I don’t know who came up with that. It wasn’t
me. One of my people on my team.
Brand is negotiated, not declared. Because to build a
customer experience in today’s environment for a large company
that aren’t the new start-ups, that are entering world without
the income ban say, they have to rebuild trust through a
negotiation with the customer. Andy talked about that today,
scale is often times not an advantage. Because you have to
rethink the way that you build trust with a consumer. So, here
is the challenge – few Australian businesses are doing
it. In May of 2015 there was a new consumer experience index.
It talked about very few companies that are making this
change. Tactical, not strategic changes. Lack of understanding
of the true customer journey. Lack of ability to invest deeply
in the data that’s able to them to change their processing.
They need to know what they don’t know about their
customers. That’s the conversation I have
when I go around the world. You can’t think about digital
transformation, you can’t think about technology overhauls until
you actually understand how your customer has changed
forever and how nothing you did in the past apples any more. So,
it usually results about this point in the conversation in one
of three reaction from the company. The first is total
denial. You are one of those upstart Silicon Valley CEO-types
and our blazer and coming in and telling me the world has
changed, it isn’t real. Go away! I deny that this is happening.
We are going to stake to the things that we do and good luck!
Most of those businesses in the four years I have been at
Lithium- they are gone. It is happening fast now.
The second phase or wave that most people find themselves in
is experimentation. Most execs are not like that. They say I
see it. I have corporate maverick. They are the really
smart newly minted Med MBA that everyone will tell you I will
run the company. I will put them on the project give them
discretionary funding and let them go. It is what I call new
technology, new behaviour, but not to scale.
The third wave – this is where I find a lot more companies
arriving, particularly here in Australia and I will talk about
some of them – is courage. The courage to accept the new
consumer extreme expect tax, and a– expectation and adapt
businesses. My point to you is in light of all the digital
transformation that is happening, not enough companies
have the courage to make the change to survive what this
transformation is going to do to them. So, if you are one of
those companies, how many here represent companies that are
established with over 25 million, 15 million in revenue?
A lot of you here? Great. My thoughts that I share about the
behaviours to move from wave 2 experiment mentation to wave 3,
because that is whether most people are. Most people aren’t
in denial. The first diversify your team. Immediately. I don’t
just mean the traditional diversity, which you should be
doing anyway around age and gender, and nationality, but I
mean diversify the skill set. Make sure you have people that
understand all aspects of this consumer behaviour and these
extreme expectations. People who understand the data that
surfaces. You will hear from Uber shortly and they will
explain – I imagine – the way that Uber runs a business on
data that didn’t exist when any of us were in business school.
That is their data set. As we move forward, the sharing
economy, all of the new technology companies are looking
at data as a gold mine. They diversify the go of the brand.
Daniel’s market theory does not require you as a brand to
promote messages to the consumer. It requires you as a
brand to curate and host conversations about topics that
are important to you, to be seen as somebody that a consumer can
trust, to be seen as part of the conversation, not somebody
only interested in the transaction.
That’s the fundamental difference and a good – a big
part of moving from experiment tax to courage. Gather data from experts. When Daniel was
searching for the new DJ mixer, he didn’t know who was going to
be the person to give him the answer, but he did know the type
of person he was looking for. He wanted somebody with
experience with reputation, with ranking, he wanted somebody
that was trusted by others like him. He wanted somebody who was
prolific on topics important to him. He didn’t care what company
they worked for or what job they held. He just wanted the
know they were passionate about the topic. Oftentimes the super
fans of a product gather data from influencers and experts
because they drive your business more than anything else.
Finally, take money from the core faster than you are. If
your company — if you are a company still
spending hundreds of billions on call centre technology and not
putting money into the things that matter, you got to move
faster. Let me tell you the story of companies quickly.
MYOB – a company that moved from experiment to courage. Many of
you know. 1.2 million customers in Australia, cloud accounting
service provider. They went through their transformation
from on-Prem to cloud. Stock turned off. Email support. They
built a community, invited their 40,000 partners to that, so they could provide expert
answer and help the transformation of their is.2
million businesses moving from accounting software to cloud.
Dramatically changed their business. Helped them move ahead
much faster than they would have in that transformation.
Cross-examine —
CoMcast. I don’t know if you have heard of them out here. US
cable provider. Often berated for bad service. It decided that
a key part of their business was going to be to use the new
model the way their consumers are talking about, as an an
early warning detection. They are able to tell when an outrage
occurs in a certain area of the United States faster then they
are in their call centres and able to get there and create the
kind of conversation that they want around that. In addition to
saving lots of money and driving up the reputation.
British Gas very exciting company! Imagine
saying utilities! Believe it or not, British Gas was able to
tap into all the conversations that are happening around hot
water heaters, and lifestyle issues around home appliances.
Instead of selling products, in the old model, British gas was able to
provide expert advice from the community and inside the
company. Come Source Bank the first digital bank in Germany to
change the way they talk with customers. It was about sur fags
peer content. They were able to drive conversion up 30% by
putting that content in front of consumers from others like them
as opposed to the brand. And, finally- sorry, go back. Sorry.
We will stay with Telstra. (LAUGHTER) Finally, Telstra.
Telstra, as you guys know, has done an unbelievable job in
building an incredible community. 250,000 members of
CrowdSupport. They have been able to innovate and drive
knowledge over 80% growth year over year. More importantly,
they have learned to make this so central to their business
that when new products come out, the entire community’s fuelled
the training for the rest of the company. 17,000 employees at
Telstra have to know about the new iPhone, 15 days after it
launches. An impossible task if you are not leveraging the best
parts of digital transfor places and changing to the new model
are the way consumers find information.
Hopefully at this point I can do my 30-second info commercial.
You are probably wondering who are you guys. We are software
provider with a largest in the world providing total community
solutions to large brands. It consists of three parts – we
listen and engage over social networks to help the brand
understand who’s talking about your product, and how do you
interact with them to build the most engagement.
We help you build communites on your own websites, you can
curate that conversation from social on to your website, to
help drive sales or drive down coast or create expert knowledge
to run your business. Finally, we help you tap into your
influencers. Your experts, the people who know your brand, who
others – other consumers will trust as they make their
decision. As you leave today, I wanted you to think about the
set of conversations I have had for the past four years. I end
with three questions. I ask you to ask yourself these questions.
First, if you represent a business here, do you understand
your customers’ extreme expectation? How many of you
think you do? OK. That’s honest. Thank you. Think about
that. Think about the ways your customer interacts in new models
that you haven’t prepared for. Secondly, ask whether you can
meet it with current investment. Most companies that I speak to
still have 90% of their stuff chasing infrastructure,
technology, processes that don’t matter any more. Finally, if I
started from scratch, what would I do if I had a blank piece of
paper, and I could build companies like muru-D if moneyng and financing, was able
to build from scratch, how would I do it?
Would my legacy be a burden or a benefit? Would I move money
faster, away from core, to enable me to flourish in the new
economy? I hope you take some of these comments away, as you
think about the transformation happening as a result of extreme
expectations and the business needs to meet them. Thanks a
lot. (APPLAUSE) Wonderful. Thank you
very much, Rob. Thank you very much. We are going to have you
back shortly for some and da. Grab a — Q&A.
We will kick unlawful. Three stages, denial experiment and
courage and understanding how your customer has changed
forevertheir behaviour has changed. Fantastic. Continuing
on the theme, we have heard this morning a number of references
to Uber. Why don’t we ask a slow of hand – who took an Uber in
the last 24 hours in the room? I think you will be happy with
that David! (LAUGHTER) Not to steal anyone’s
thunder by David Rohrsheim is the general manager of Uber in
Australia and New Zealand. David was living in San Francisco
back in 2012 when he met the Uber founders and agreed that
Australian cities needed a better way to get around. After
initial launching in Sydney as Uber’s third international city,
David has since helped Uber expand to nine cities across
Australia and New Zealand and there is more to com. Creating
thousands of jobs. Please David Rohrsheim of Uber! Go for it!
DAVID ROHRSHEIM: There is one second question – is who here
has given a ride using Uber app? That’s the next frontier for us.
If you have a good driving record and a car that’s in good
condition, I think everybody should during their spare time
Oar their journeys share the empty seat in their car. Rob was
right – we started with data on or first slide. This is a map
generated from Uber’s journeys around Sydney. A bit oh out
date. We have spread further across the city now. Very
excited to be here at the Telstra dij the summit. Any
opportunity to speak will be great but this year’s theme is
superrelevant to us, the discussion around convertions
between different technologies, business models and peel is what
made Uber possible. No-one thing was necessary for Uber.
But quite a few. I will talk through the Uber story in
Australia, and what technology made it popular. This is a low res picture but it
was so good I have to use it. This is the current experience
or this was the concern experience of taxis between I
joined Uber in 2012 and our founder in 2010 were motivated
to start Uber because they were unhappy as customers with the
experience they were getting. The senator Fifield made a pitch
this morning for all of us in the digital community to get
involved in the digital transformation of government. I
am sure few people were thinking I don’t know how government
works. I don’t know what services and technology they
need. But if you are a customer and you know what good service
looks like, if you know what a good experience of a transport
office looks like, if you know what a good experience is
registering a business, then you are qualified to get involved
and be part of that. That was the beginning of the Uber
journey. No-one in the business was a taxi driver or knew
anything about dispatch. They knew what good looked like and
what bad looked like. This picture shows one lady holding
her shoes. A good sign it’s been a fair while out on the road
trying to get a ride. That’s not safe. She should either be
still in the bar having a drink or at home and not out on the
street. The individual peeking through
the window is involved in some sort of a negotiation for the
opportunity to be a customer and pay money for – to a driver to
drive him home. He’s also out on the street. Tragically the
father of two died on Paramatta Road trying to cross the road to
get a cab. The process of sticking your hand out and
trying to negotiate through line of sight is not the best we can
do with today’s technology. I won’t dwell on how the app works
but I will talk about the ingredients technology changed.
So Uber was only possible once we had smartphones with strong
GPS, strong data connections. That’s why Australia was one of
the first markets globely. Telstra has done the good job
raising Dan starts, get — standards. And GPS and maps.
Those are starting conditions to rethink how we can improve that
experience. Fundamentally we talk an anonymous transaction
and made both parties accountable. So, you as the
passenger are handing over contact details, mobile phone
number, credit cards, which were verified, and the driver also – once you request a ride, you
will know their name, the photo, their vehicle, their
registration. If you need to, you will have their phone
number, but in most cases you don’t need to communicate. We
know where you are from GPS. And the moment that trip’s been
requested, accepted, you can then in stage 2 here watch the
car driving to you on the map. We are obsessed with getting you
cars superquick. We are down to 3.5 minutes on average in
Sydney. But in the early days it was n’t that fast, or that
good. And sometimes it was a 10-15
minute ETA, and riders were tool can it. The insight there was
they were happy knowing it was coming. That transparency, to
see there is a car coming, I know for sure, that John is
coming do pick me up, and it is 10 minutes away. I believe it
because I can see it on the map and see it advancing towards me
and the ETA updating. If I need to I can call and confirm that.
Suddenly, customers are calm, becausetive transparency.
At the end of the trip credit card’s on file, no money
changing hands. Huge step forward for safety of the
driver, they are not carrying catch. The biggest incidents in
taxries are passengers doing a runner, in Uber every ride is a
runner! Or someone breaking in to the cab because you know a
cab will have a certain Alt of cash in it at any time of day.
Finally, the rating system – there is talk about what kind of
a rating do I need to get to get kicked off Uber? It’s not
really the main focus. Just knowing that you are going to be
rated – goes both ways, drivers are rating you on Australia Day
everyone needs improve their behaviour. The worst day of the year by far!
(LAUGHTER) Just knowing you are going to be rated means people
bring their best behaviour. You are not aamong mouse, fearful
of another anonymous stranger, you are accountable. That is the
technology that made Uber possible. Nobody thought it was
going to be a big thing in the early days. Here is an image
from a Saturday night in the early days in San Francisco.
Originally Uber was just a club. It was an app you could download
but you needed a password to use it. It was Travis and Garrett and 50 of their
mates. They would show up. Say, “Watch this”, a car shows up,
feels like their own personal driver.
One by one their friends said, “That’s awesome. I want that
too. Sign me up?” ” At some point they realised this was
actually a business. On a Saturday night, four trips. The blue line, trips in
progress, the individual holding briefcase is waiting to get
picked up, always holding a piece case– briefcase. Come a
long way. Turns out getting a ride — getting a ride when you
need it is a global problem. This is a typical image from
Sydney. We are in 300 cities world wide. Last week in
Australia we celebrated 10 million uberX ride. We are
excited that we have tapped into something that – it was
fundamentally disappointing. Ebber X was — ebber X was —
uberX was the real innovation. uberX taps into the cars that a
city already had. Uber black did that with them scenes, but
uberX is tapping in to a city like Sydney 4 million-plus cars,
of which ill like to believe at least a million are in good
condition,ing with a responsible driver. We are just making
better use of what the city’s already have. Subject to the
appropriate background checks. Instead of spending billions on
more roads and tunnels and infrastructure, that’s the
current government’s mandate from the last election. They
brought at least a $10 million spending plan to combat
congestion and efficiency in the city. We think we can start by
making that better use of what we have already got. So Uber is
the software for the city’s hardware. We make existing
infrastructure work better. Building a tunnel takes at least
five years to talk about and at least five to billion it. Uber,
we have 10 million rides in a year-and-a-half. Somewhere can
move faster than — somewhere — software can move faster than
government or infrastructure. Another feature worth focusing
on in the sharing economy is the part-time nature of it. This is
a story that was published earlier this month from the Gold
Coast. Illustrates that most partners using uberX aren’t
doing it full-time. They are just logging on, when they have
spare time, or when they want to make extra money. And that is a
new way of working. It’s cool as a customer that you can press
a button and get a ride. That is what is expected now. That’s
the bare minimum in transport. But what’s often not noticed is
that we have created the same opportunity for drivers. They
can log on, start making money. Here in Sydney, during the last
month, that was an afternoon, Monday — average, money in the
back $30 an hour. They could log on and make $30 an hour when it
suited them. When we survey our partners, that is the number 1
thing they highlight, the freedom, the flexibility to fit
in around other things in their life, whether they are a
student, parents, caring for others. 9-5 job, it doesn’t work
for them. We give them the flexibility to fit around
whatever else is going on if their life. It is fine it is
transitional. Between jobs, or just to hit a certain savings
goal. That car only has two doors so that can’t be the car.
There is a four-door requirement on Uber. The point is clear –
just to go one step further, you might have had this experience
on a journey? Sydney. We have four deaf or hard of hearing
partners on the platform. That is the last number I know. On
the ber app — Uber app and you request your driver lard of
hearing you will get a prompt saying put in the destination
because your driver is lard of hard of hearing. Then the ride
just works fine. Another example of how technology is making –
this wasn’t conceivable in the old frame, taxis when the
legislation was written in the ’90s and to this day in most
state, you can’t get a taxi licence if you are deaf or hard
of hearing. Taxis don’t like this. This was a scene last
month in Melbourne, Victoria. That first picture showed you
with two taxis and a whole bunch of customers essentially
begging for a ride. They are a happy place. That’s the perfect
outcome for a taxi driver. It means you are always busy, your
cab is full, you are making as much money as possible. But it
means customers are getting the worst possible experience.
Taxi industry thinks it has a monopoly on transport. They
think they should be the only option to get around. This is
their traditional way of getting what they want. A protest.
Strike, what have you. Public Democratics. Our response is a
technology response. Most of our Uber riders would have received
one of these emails during one of the taxi protests in the last
few weeks, but in Victoria, within an hour, we were able to
send out an email to our users and let them know what was going
on. Taxis are blocking the streets. Do you want to tell
your side of the story? With a click of the button they are in
touch with their MP or sharing on social media and under
hashtag why I ride or why I drive, they are telling their
own story. Tens of thousands of individuals contacting their MPs
that day. Trending on social media nationwide. We are
empowering the consumers. I think Andy, the CEO this
morning, totally on board with the power of the consumer now.
We just heard more of it from the Lithium folk. The consumers
have a voice now. Traditionally it was an angry, loud minority
that were dictating how transport works, but now the
consumers have a voice. We have made it easy to be heard to get
their demands out there and it applies to government too. The
governments are more accessible and can be communicated with,
easier than ever before. It goes both ways. In Canberra, comfs
the first — which was the first state or territory in Australia
to recognise ridesharing and announced they were going to put
regulations in place, slated to begin this Friday, when the
chief minister made that announcement – this is a cute
example – but his social media was trending globally for
recognition and thanks for being a leader and actually taking on
this opportunity. Now, it isn’t just transport.
We are just a technology company, we are software that
makes the cities work better. What else can we work with in in
Sydney we have put boats on the system. It is actually the best
way to get between some points in Sydney.
It isn’t US — it isn’t just for a laugh. Same technology.
Just hand it to water taxi owners. We are making an
underutilised asset easier. We have done it with ice cream. We
had a lot of fun with that. Press a button, get some food.
That is a product in a bunch of Uber cities every day of the
week, Uber Eat. That isn’t just fun, it is an experiment of
other technology that we could deliver. It is also so we can
have fun and it also gets people talking about the app, the
highlight for the marketing team was in July. BNT magazine
announced that ebber was the most talked about brand on
Facebook, edging out Apple. That’s a win for the team.
Coming up with content that people like to talk about and
share. What comes next? The neck nothing day — the tech —
technology day. Inbounder pool. Anybody tried this? Awesome. I
hope it was fun. It was – only about six months old, worldwide.
With ebber pool we are — Uber pool we are giving you the
option to share your ride with another passer heading in the
same direction. It doesn’t need to be beginning and ending in
the same point at the same time. Someone could jump in halfway
through your journey, you get to your destination and they carry
on. We are in pursuit of a pipette July trip where the cars
always have at least one passenger in them, which means
they are more utilised than ever and the passenger can pay less
than ever and you are starting to approach public transport
prices at the touch of a button on-demandwhen you need it. Again, if we are talking about
congestion, this is another step forward. If we are putting 2-3
now individuals in one car, rather than just one passenger –
I think there is hundreds of thousands of cars journey across
the Sydney Harbour Bridge every day. Huge opportunity to match
some of those up. Maybe we don’t need to build more tunnels.
Maybe we don’t need to spend so much on congestion. It also
means people will own less cars. There is a whole generation
growing up saying, “Why do I want to own a car?” I can’t –
don’t want to buy up-front, 10, 20, $3,000 worth of asset. I
have to find somewhere to park, not cheap. I have to find
somewhere to park. Can’t use it when drunk. I have to get it
maintained, queue up to get it registered, when it breaks down
I have to deal with it. I have to pay insurance, fuel, or… I
could just open up my phone, where all of my happy things are
and now I have one more service, press a butt — press a
button. Get a ride. Only true once we
have got cars in every corner of the city at every time of day
at a price that is superattractive.
We are getting there. Cities that then don’t have as many car
owners, suddenly don’t need quite as much space for parking.
A city like Melbourne or Sydney has between 5-15% of the CBD
dedicated to parking space. If people didn’t own so many cars
what else could you do with that? Cities could look
different in the near future. We have also opened up an AP I.
This is big news. Exciting step for us over the last 12 months.
That means that within your app you can actually search for
information about how far away is the nearest Uber ride, how
much would it cost to get to this restaurant or this hotel,
and potentially even book a ride from inside your app. Keep your
customer where you want them, and then transport is a service,
an AP I. Google matches has done — Maps as done it. Monty,
we need to talk. Not enough Telstra devices or apps that
have this embedded. There could be. It is just – a function that
makes other experiences come to life.
I would also highlight Uber Rush this is a public test or
product in a bunch of US cities where we use the same
technology, same cars most of the time, to move packages.
Small businesses, small retailers can load up a
dashboard and start moving packages around the city
on-demand, again. Deliveres within 5-10 minutes, not
overnight or the next day. at — autonomous vehicles. The Teslar gave the world
autopilot. Over the air software upgrade to
the hardware. All of a sudden you had an autopilot system
which could cruise along highways for you. Within a week
these three individuals decided to really push it. And they set
a new electronic vehicle record coast to coast, California to
New York City, in two-and-a-half days using Teslar vehicles,
charging station and autopilot. That definitely means they were
travelling well above the speed limit a lot of the time. But –
they got high fives from people. The point is the technology is
out there now and for today’s theme there is no going back
now. Once consumers are started using it, they started loving
it, starting going cross-country in two-and-a-half days, just
for kicks, there is no turning back now. But it is a good
example. The rules for autonomous
vehicles barely exist right now. Perhaps after this stunt, a few
state also think about it and say, “Gosh, do we want these
cars on this road. There should be rules.” It is a test for
government. Technology is evolving at a faster and faster
pace, whereas I would argue that governments are making
decisions at a slower and slower pace. And thankfully we heard
from the senator – and I would agree – we have a Prime Minister
that at least understands the opportunities. We certainly
believe Google is a bit of a litmus test – Uber an a bit of a
litmus twist. (LAUGHTER) Don’t tweet that!
(LAUGHTER) We believe Uber is a litmus test for government. How
quickly do they respond, as Robert Scoble articulated. It is
a bit of a litmus test. SportsBet Australia is running
odds on the first state or territory to legalise Uber. Some
states are 16-1 and some – they got the ACT right.
It is an opportunity for states to prove that they are welcome
to innovation and when they do, they will see more coming. They
will see more following. That’s the Uber story. How we connect
people. Fun to be here. Thanks for listening. around, because we have got
plenty of time for Q&A and I might also ask Rob Tarkoff to
come back up to join us. Hosting this moderated Q&A is a very
familiar face to the Digital Summit, and that is Brian. He is
back in Australia, he’s been with us for each of our summits
and he will have a wonderful keynote for you coming up after
lunch. But nor now, he is — for now he will host Q&A, the
question format will be the same. Come through to any of the
microphones here, or post your questions up through the
instructions that will come up on the screen. Please join me
and welcome — in welcoming Brian Solis.
(APPLAUSE) Sole Solis —
BRIAN SOLIS: I did not choose that song. I want to encourage
you if you do have questions I think there is is a timer to
kind of look at. That keeps you on time for lunch. If you have
questions, please either tweet them or come up to one of the
microphones. I have a whole bunch. Using an analogue app
called paper pen and clipboard – or an stylus! Rob, you opened
the door of which you sort of put people first, right, and
people is one of the pillars of the themes of the event. I think
about customer relationship management, I think about
customer support, customer retention, customer acquisition.
They all have the word “customer”. CRM, what have you –
but I don’t think businesses actually think about the C as
human beings, I think they think of it as can’t! What do you
think businesses misinterpret? What does technology get in the
way of our ability to see people and build relationships with
them? A great question. There is a
couple of things that I think are happening. One is there is a
statistic I recently red that 70% of the purchase decision in
a B-to-B software context is made before you ever talk to the
company. That’s an industry where you are traditionally
dealing with – enterprise software companies hate to here
that. But the available information makes a relationship
with the someone before any transaction happens. That’s when
they become a customer and they actually buy something. It
makes it really far more important than ever. If you
think about any of the jornys today of gathering information
or figuring out what it is that you want to do with a brand,
they don’t have the data sitting in their CRM system, they don’t
have the customers and objects in some database with attributes
assigned to it. There is a bunch of conversations going on,
there is a bunch of patterns, there is insights that you are
gathering from their behaviours. And I think that the learning
or the behaviour that – to change is to go beyond the
system of record being a CRM system. That’s good once they
are a customer. But what about when they are in that critical
phase of determineling, from all different choices, who they
want to do business with. We think of this as from a
techno speak perspective. There is a new set of technology that
is emerging, called system of engame. The system is products
like our own, the total community and others out there
that help you connect in to all the conversations among
customers and influencers and people who can impact your
business before they ever do a transaction, and if you can
capture that, I think it will change the way most businesses
think about all these things you talked about, customer
experience, retention, because it’s not about the transactional
part of that equation, which is traditionally what CRM has been
about. It’s about the true conversation, the insight, the
building of really relationships.
Well said. On the contrary, Uber use this technology to bring
people together. To actually improve relationships, to not
just – not just facilitate transactions, but to actually
improve customers’ experiences. At the same time, I would be
foolish to call over just transportation company.
Obviously you are now in the gelato business and in San
Francisco you are also in the kitten business, delivering
happiness to people everywhere. But what was the perspective
around the company to use technology differently than most
businesses are, and what should other businesses learn?
In terms of those adjacencies, what is common between the lato
— gelato and the kittens is we are in the on-demand business.
From day 1 it was press the button get a car. That was new!
That was an app that got you something in the real world.
That was exciting. It is far more common now. It was a lot of
fun to experiment with three or five years ago. So the
questions in the room were what else could I get with a press of
a button? And I think food is a good
example of something that when you have a need, if you can
solve it if five or 10 minutes it is useful, but if it takes
three or five hours don’t worry about it. With shoes, dress, you
can wait a few hours. So, we are focused on that instant
gratification. There is a whole generation growing up that how
they expect the world. They get their information at a moment’s
notice, their friends at a moment’s notice. That is what
they want. I have a question that I want to
ask of you Rob and then go to you, David. We are all I would
like to think we are all aspiring geeks. Technology is
becoming sort of part of our every day life. For in the
mobile phone is an extra appendage. The argument around
technology is just – it is almost a — illogical while
businesses aren’t understanding the impact. As you said, a lot
of things we are getting in the way of fear, these are all human
issues. What is it that you see businesses getting wrong and
then also at the same time what is it that finally breaks
through, that gets an executive to see they need to change?
I think one of the biggest challenges is that most people
inside these large companies don’t know how to do it. I mean,
this has been the phenomenon in the Silicon Valley for years.
Every cycle, when there is a huge new technology disruption,
you get a brain drain into start-upstart-ups. Particularly
when the VC ecosystem is superstrong. You get ideas that
are being created until what you find – the concept of
entrepreneurship – they call it the idea you find
the people who want to start businesses inside of large
organisations – it takes a very, very Visionaire CEO and – to
enable that stuff. Clip the stuff we are hearing about from
Telstra from muru-D and that kind of initiative, you rarely
see that. Most corporate venturing initiatives fail.
Because somewhere the CFO gets ahold of it and he goes, “I
don’t know. Is that good enough? Are we a venture complainant
list? I don’t know where to put it.” I have seen this at
multiple big companies, which is why I wanted too try to big my
own big company. I wanted to enable us to do this. That is
what I see as – you get this sort of institutional bias
against this entrepreneurship. Uber has the largest logistics
network in the world. If you think about everything
you know about routes, drivers and where people go and – so,
why couldn’t that be – have been built inside of a company like
Fed-Ex or UPS or anybody that has all that worldwide logistics
information? It’s because it would have required somebody tot
go do something certainly disruptive, like what they have
done. So I think it is that, the sort of the death of
entrepreneurship, which is part of the reason you don’t see
these amazing ideas spinning out of big companies. That is my
experience. At some point that has to change, or else they
won’t survive. (LAUGHTER) They try to be
innovative because I got stuck in meetings
all day! (LAUGHTER) I will sort of modify
the question. I am also cognisant of the questions
coming in over the Twitter-verse. One of them has
to do with customer insights and how you use that to translate
into business innovation. I mean, for Uber – it is
incredible. It isn’t really a surprise that the taxi
experience sucks in so many parts of the world. I can
understand sort of the motivation or the inspiration to
create Uber. Before we get to the second half of the question.
The first is what do you think prevented change in the taxi
industry? No surprise that they were sort of inflicting pain to
certain people. It is also not a surprise that change was
inevitable. They could have been part of change. Now they are
just sort of violently erupting against it.
It’s a question we have only started thinking about after we
launched the business. We didn’t come in with a hypothesis
around, “This is why this model is broken and here is the
answer.” It was just – it was a club for a few people who
wanted to pay extra money to solve their own problem. But, of
course, we have gone back and reflected on it. I think the
ingredients are – you look at anything that hasn’t changed for
20-30 years. That is probably a good opportunity. Frankly,
regulations, a highly regulated environment is on the balance of
probabilities probably going to restrict innovation. If you see
– doesn’t necessarily need to be a monopoly, but if you see
highly profitable businesses, that means they are not
reinvesting in their own technology and improving the
service or improving the experience for drivers. Those
are the plastics the industry made. The owners in the industry
said, “We can make a lot of money out of this while the
riders and the drivers suffered.” And so that
inevitably is going to open up opportunities. I would keep an
eye out for those. Top of my list would be anything to do
with financial services and healthcare. Highly regulated,
highly profile table reinvesting in the business. So
the idea of boats, food, in the US tlrp there was a story going
around about the partnership with the new BMW 7 series, and
how Uber was promoting rides with the coming cars, a way of
helping BMW reach new audiences. How much is different by
insight and how are you able to enact the insights quickly? Clearly we are a data driven
company. We have been a technology company from day 1.
That native to us. We never went through a technology
revolution. So, everything is trackable in
terms of who is looking for a ride, when, we use that data
pro-tick where should the cars be, the drivers get money and
passengers get rides. What is probably given us – my belief,
what has given us the ability to keep innovating is just the
comfort to test and try and fail. So, for us, each city is
really a start-up within a start-up. There is 300-plus
general managers around the world. Out there making Uber
work in their city. That is an unusual model for a technology
company. Most companies, if they can avoid it, would have the
entire team in Silicon Valley, sitting together. We have people
in each city trying to figure out how should Uber be
different. That is how Sydney ened up with boats. Monty would
want member to be coffee ondom. That would be a local thing.
What is key is cities are empowered to do it. It is OK to
fail. The company from a top down understand that. We push
responsibility and decision making as far down to the
frontline as we can. We can run 300 different start-ups.
Rob, I have a big question. Just one second, because you have
used the word “fail” a few times in your response. In Silicon
Valley it is a good word. It means you are trying. I am sure
many people in here – when they hear the word “fail” it isn’t
good. Right? It means you tried and you failed. So, how do you
and cow rarnl a culture of experimentation experimentation? I will be clear to draw the line
on failure, if it isn’t about safety. There is a few read lines for us, just to be clear
(LAUGHTER) How do you create the culture?
It is the manager’s responsibility to say yes to a
crazy idea. Kittens on-demand. Who knows whether that will be a
good idea. No amount of data you can collect will tell you
that. Buzz Feed will tell you
otherwise. Turns out kittens are viral. You
don’t know. You don’t want to have – there is too many
companies where you can make a mistake. That is what people
will talk about and be in your review. The correct, logical
behaviour is to not try. If you are trying to keep your job and
get promoted, too many companies where that’s the case. I was
speaking ton’t a MP — to an MP who wanted to do an
entrepreneurship award, the best business idea, or – of the
month or the year. I said, “No, mate.
Come up with biggst failure. Go reward the individual that had a
crack and didn’t work and say, “That’s awesome.”
Excellent. I am a big fan, Rob, of your message, vision and
purpose. I want the room here and those following on Twitter
and socially to hear your response. You talked about the
Moreton example. That is talked about a bit, written about, as a
standard of excellent customer experience. I will go on the
other side and say it is a big PR stunt. I am also going to go
on record to say that I think Co pl cast is — Comcast is using
Twitter as PR. If it was true they were using social as a way
of improving the customer experience, they would improve
customer support, experience, and we wouldn’t have issues like
we saw with Veronica, quite famously when she tried to quit
the service, because they transferred her to the customer
retention department, which is a big sales group, that tries to
uncomfortably keep you as a company. The question is – how
do we not get caught up using new technology asstunts. How do
we take insight to bring about proper change, rather than using
technology to mask the real problem?
Yeah. A great question. It is why it is hard for people to go
from experimentation to courage. Look, Comcast serves millions
and millions of people with entrenched model of customer
care. It used to be whenever you had a problem you got on the
phone, call, a tech came to your house. You had a good
experience or a bad experience. You sort of moved on. There was
– there is a lot of embedded processes in that that – you
can’t change overnight. But what Comcast did do is they took an
initial experiment of 10-15 agents monitoring social and
trying to get the conversations right.
They said we will take this to 150. We will quadruple this,
start pulling money out of the core, having bumps along the
way, we will have experiences where rogue agents – you know,
does something like this and it is bad PR. They also – this is a
false knitting thing in terms of team diversification – they
took their head of PR and put him in charge of customer
service, digital customer service. I thought that is
amazing, because here is something who is used to only
being able to talk about things that are sort of liquor Pratt
messing, and now it is something who has to respond to all the
issue that’s happening. As she started to learn the
issues she realised there is bigger things we have to do to
transform the overall image. It was a bit of the kind of the
learning inside. How do I get my PR team to understand this is
the real customer experience until this is what should make
its way, this is the real PR, what piece happening on the
customers service side. That’s one great example of just moves
that Brian made inside of Comcast to get customer service
at the front end. The other thing I was going to
say to the question of – if you are moving, as a big company from experimentation to courage,
you will fail a lot. What I tell CEOs is don’t focus on
whether you are going to fail. Focus on how you are going to
experiment, because you will fail. But do you do the
experiment right? Do you set up the parameters in a way that
you are constantly learning from what you are doing, because I
think if you run an experiment and fail and don’t learn, then
it is not excusable. That’s a failure.
That is a bad failure. But learning failures are OK, I got
data, I got more insight as a part of that. We, today, are
running experiments with our brands to say, “What if you
could tie everything you know about people on cloud with all
the conversations that happen across 450 large brand
communities on thousands of topics?” What if you could
build a profile for your consumer that allows them to
better negotiate their service levels with you, and for the
brand that you – that allows you to know more about them than
just what they have brought and what they said specifically on
the community in response to a problem. I know everything about
you. Lots of privacy implications, lots of – how do I
go take that and deal with both sides of the equation? A
better experience for the consumer, and a better
experience for the brand. We are running lots of experiments.
Some of them aren’t working. Some of them are working well.
But the key is every time we do that, we have got to be
learning, getting data, that is helping us to refine that. And
so that – I think sate lot more. That is the – a lot of the
things Uber do. They may not “succeed”
but there is no much data generated but you are smarter
the next time. That is why it is so rich.
I know we are out of time. I will ask you a quick question,
David, because it keeps coming up as Uber set aside budgets for
a fleet of autonomous vehicles yet?
Speaking… We are investing. No questions asked. In the US we
have partnered up with a university, the best robotic
department in town. That’s a disruption technology. We could
sit back and wish for everything to stay the same. But there is
other industries that have been that way. We are investing, we
will give it a go. Just to highlight – Tesla that went
coast to coast, it was Australian autopilot 96% of the
time. There is still 4% where it hasn’t got you covered. That
last 4% can be hard. It isn’t the type of product that you can
launch when it is 99% ready. Fail is a real fail in that
game! (LAUGHTER) That is different to
a lot of technology and software companies’ ways of thinking. We
are investing. We want to be part of it. We don’t foe when it
will be ready. Ladies and gentlemen, please
join me in thanking Rob and David.
(APPLAUSE) Well done! Thank you very much, guys. It is lunchtime, guys.
Time to get some food. Lunch will be served on the terrace
and also in the foyer. If you want to get sunshine, it is a
beautiful Sydney day. Get out amongst it. For those tweeting,
the top 5 tweets of the day will win a Telstra TV. Keep those
coming. Brian will be back after lunch, which will conclude at
2pm. Psh This is a test caption. This is a test caption. This is
a test caption. This is a test caption. UNKNOWN SPEAKER: Welcome back
everyone. Just ask you to take your seats. Hope you all
managed to get a bit of Sydney sunshine. That sky looks
fantastic. I popped out for a quick walk and for those dining
inside, I hope you enjoyed your lunch. As I promised before the
lunchbreak, a summit, is Brian Solis, and he’s going to join us
for his keynote in a moment. Let me introduce him first.
He’s a principal analyst at Altimeter Group. He’s a
business strategist, a future rist who created new media
strategy, and builds brings between companies, customers and
employees. He’s going to talk to us about his wonderful new
book X: The Experience When Business Meets Design. Please
welcome Solis to the stage. wanted to take my time because
that is – I mean, that song! It could come out today and it
would still be huge. Just noticed too that when I tried
the button at lunch, I think it settled too quickly.
well, you’re going to see the book at the afternoon break.
Telstra was kind enough to purchase copies for you. It’s
not a presentation of the book, but a presentation about the
inspiration of behind the possibilities of everything.
I’m going to share with you how the world is changing, and the
irony wasn’t lost on me that I was going to tell you that in a book format!
(LAUGHTER) BRIAN SOLIS: As you’ll see it took 3.5 years to
produce and a lot of that was because I studied how we use our
Smartphones and how we use tablets and the apps and the way
we behave of it and the attention span of teenagers in
school to see if you could reinvent what a book could be in
a digital economy and if you could make print matter in a
world where we’re attached to our Smartphone. If I went
through that process, we can all go through that process.
That’s what the theme about this is about. This intersection
between humanities, technology, people, it really is sort of the
representation of X. X means a lot of things, X marks the
spot, but also it means experience.
and perspective. So on one side you see the zombie apocalypse
as we think it looks like and on the other hand if you talk to
any executive or any parent, they’ll tell you that that’s the
real zombie apom lips. If you — apocalypse. If you spoke to
Scoble, if it’s devalued, we’re going to be like this now…
(LAUGHTER) But that is a matter of perspective, right, because I
think at least the way that we see the world and the way that
others see the world and a lot of them are at conflict. You
heard a lot about technology, we’re going to hear more about
the technology, but the magic of this moment, what makes it such
an incredible opportunity, is our ability to just maybe see
the world through the lens of someone else. Because it is
perspective that is holding us back. Many of us, whether we’re
executives or what we’re strategist on just on the
frontline, we are coming to that moment based on the moment we
know. Based on our life experiences and professional
experiences and we don’t see things the way they truly are.
We see them as we are. I mean, that’s just a natural reflex and
seeing all of this change, looking at this massive amount
of technology that’s disrupting us now and in the future, it is
perspective that’s going to allow us to see what we really
need to do about it. Because customer experience isn’t the
same thing as it is to you or as it is to me because it’s ib
credibly — incredibly personal and it’s how influenced how
technology is used in our lives. Some of us have gone through
wilfully digital detox and some of us are proud to use clip
board and paper still. but this is in one image, I
think, the state of the world.
I was in Germany at the time, and I got so excited late at
night, and, what would be a great caption to this picture, I
established it on Instagram. How dare she deprive her
Facebook audience of this moment!
(LAUGHTER) But this is sort of repetitive of that moment that
we — representative of the moment, to
see things that the ways others want to experience it as well. It’s experience for not one but
for many. A friend of mine, and his quote was CRM today – as
you saw we talked with Rob earlier, customer relationship
management is actually nothing – nothing to do with
relationships. Everything to do with
management. And we use technology a way of scaling
ourselves away from people, when in fact the gift of technology
is that we get to see people, we get to see the humans behind
those scenes in ways never before possible to the point
where we’re watching digital’s impact on the physical world,
the physical world impacts on the digital world, it’s changing
everything. I spent my fair share in airports, and on those walking escalators, keep right
if you’re going to stand, and kept left if you want to move.
Even that is hard for people to understand. Now we have to
consider the safety involved with this without actually being
able to see obstructions ahead. space. But the point is:
Unless we understand what it is that’s really driving people,
like why is this technology affecting your life and how and
to what extent? How is it changing your decision-making?
How is it making you the centre of your universe? What do those
behaviours add up to? How does I change your values? How does
it change the attributes of a business that makes you want to
align wit. Understanding all of these things helps us to make
sense of technology and also make technology matter. Not
just to react to every single trend that’s out there but use
it in meaningful ways, that build relationships, that
nurture those relationships that turn into experiences, that
turn into customer loyalty. Because customer retention is a
lot less expensive than customer acquisition. But imagine if we
invested in the experiences of everybody, in every moment of
truth throughout the lifecycle, then acquisition and retention
leads to all kind of new possibilities where technology
just becomes an enabler. You don’t need to have an occlus rip
app for your business if that’s not the experience that makes
the MES sense. Understanding people is why I became a digital anthopolijist. I want to say
businesses that are created, are cocreated. Rob said you got to
let go of the brand and that’s –
some of it is impossible for executives, because they come
from an era from command and control, and they don’t live the
brand the way customers and even employees do. They’re busy
in a world of stakeholders and shareholder. We have to
appreciate why it’s so difficult to bring about change, but also
appreciate at the same time that change is inevitable.
Disruption happens to us or because of us. What is X? What
is an experience? This is me was the biggest inspiration of
writing the book was that experiences, it’s something most
of us misunderstand. It’s not a thing. It’s an emotion,
something that you feel. And you feel it throughout anything
and everything that you do, so when it comes to working with
the brand and what that brand experience is like, we often get
confused with messaging and creative and product design, and
tactical exchange information with transactional stuff like
customer service or customer support. Experience is
incredibly personal and in an era where technology is
conditioning us to be become accidental narcissists, I don’t
call it the sharing economy, I call it the selfish economy in a
good way. That means experiences are now more
important than ever because people are going to have them
and they’re going to share them. This is an experience. You’re
looking at one of the most sophisticated technologies to
hit the consumer market in a long s long time. The amount of
data it tracks is incredible. But she doesn’t care because it
just let her into the park. It knows who she is. She can get
into our hotel room, and buy food with it. The vendors know
who she is. Overtime it understands her preferences.
it creates an experience that just unlocks new value and new
possibilities. A lot of us talk about Apple when we talk about
experiences but a lot of us don’t really understand why it
is and to what extent Apple goes out of its way to unify the
experience. There is a person at Apple whose job it is to open
boxes. All day long! Can you imagine the workmen’s
compensation issues of paper cuts?! Apple has a story
ark designed for it. Whether you’re supposed to feel and
think and do. As you unbox that moment.
And it’s meant to enliven the overall experience architecture
that was designed that is alive in the product design, in the
websites and in the retail experience. Incredibly
thoughtful and its intentional. As to what extent – we have to
think about competing for experiences because it is the
new value creation. Again, no technology trends needed to be
relevant at a human level because customer experiences
isn’t just one moment, it isn’t just the share of voice, it is
actually the sum of all emotions and experiences people have
with you throughout the lifecycle.
The sum. You fail in multiple places but you succeed in a
couple, it’s still the sum. we all know the stats that
people will talk about negative experiences. They will share a
negative experience. If they have negative experiences
they’re going to leave you. These are all things we know,
yet we don’t really do anything about it. We try here and
there, but experience is exponential and if it’s complete
and universal, that means how we’re structured in business
days, the model we operate against, are not designed to be
universal. They’re designed to operate in their pacts, to their
standards and budgets. So what if in a world we shifted
everything and we started to invest in positive experiences
because we all know when you have positive experiences you’re
going to tell people that you’re going to be happier,
you’re going to probably even pay more for product because you
know you’re going to get a better experience.
and imagine then if you invested in this whole new era of
customer relationship management when you incentivise people people. All
the negative experiences completely pile up online and
don’t disappear. Experience architecture than
required an unbiased perspective. This is an image I
thought that really captured the state of my anxiety every
single day. The four horsemen of the modern apocalypse.
we look at our phones 1500 times a week! That adds up to 177
minutes of your life every single day. I don’t want to
know where most of those minutes are spent!
the idea of social, ephemeral messaging, all of these apps we
use, it’s just second-nature. We expect a car to be here in a
few minutes with a driver of a high rating because we’re being
conditioned to do so. Snapshots and selfies, these are all not
just acts of narcissim, these are actually marketplaces for emotions,
human emoticons and influence that changes the nature and
dynamics how people communicate and share. People go to YouTube
to search more than they do on Google on the Smartphone. And
Google websites comes back, why haven’t we thought about what
the point of a website is in 2015? Because we don’t question
enough. We take for granted a lot of the things that are
there, but, in fact, when people start wanting to have websites
and we don’t do anything about it we have to get to the core of
what that means. What that means is people are
looking for insights, and information that helps them take
the next step forward and that completely undermines the lot of
our I investments that either exist or that are in our road
maps right now. experience architecture also
begins with empathy because once you study the customer journy,
the devices they use, the questions they ask, the content
that comes back or the pages that come back, you realise the
customer journey is broken, and it’s because we sort of designed
it that way. We designed it based on committee without
really ever understanding what people do or what they want to do. This is just one of the
many examples of how people are hacking their way around you
and it’s just becomes a matter of point. The friction you
heard come up over and over again.
Friction sucks! Right, so at some point, you stop subjecting
yourself to it. If businesses do not change the way they do
business, then you find alternatives. Uber and taxis.
A million apps like that. Tinder and But I
would be lying to you if I considered Tinder a dating app!
(LAUGHS). So when you go through the customer journey,
you start to empathise with the technology pains that they have
– that friction that comes up, the lack of information and
insight. The number of places they have to visit to make a
decision, you can’t help but feel frustrated yourself but
also inspired to understand that the way that they use these
personal technologies, the way they they’re talking to one
another, the way they’re sharing their lives, they expect every
single day for your business to emulate those apps, the
experience that they have with those apps should be the way
that you do business. And we get stuck because we’re caught
up in the legacy infrastructures and investments that we have.
It’s very hard to pile it or test and learn new things when
we are rooted in the past. But today, all of these gestures add
up to something much more significant. When you study the
customer journey, you realise that most of the time it starts
on the phone, and in order for them to continue – this is true
from B to B or B to C, they can’t finish it on the phone,
they have to break, they have to go to another device, they have
to go to a desktop because it won’t load on the phone or it’s
a horrible experience. And then this happened last week… mobile search has
overtaken desktop search. Per Google’s earning statement.
What does that mean? That means it’s a world that you have
probably designed for your customer is a desktop
experience. Not a mobile experience and by mobile
experience I don’t mean your team has given you responsive
design and loads on a mobile phone. I mean what is the
purpose of when someone searches on a mobile phone and how do
they interact with what comes next? So this is the result of
a lot of work I have been doing with Google over the last year
and what we call micromoments. Micromoments are when you grab
that phone, maybe at a break or maybe on a train, maybe in the
back of an Uber, and you start whatever that process is. And
it esusually driven by context, like want to learn, I want to
buy, I want to know, I want to go. And in those moments what
comes back helps you decide what to do or whatnot to do. And
what’s key is in those micromoments because they’re
only seconds’ lock, maybe 12 seconds, if your experience
doesn’t work, then they abandon it. And that reflects poorly on
your business. And what’s starting to happen and this is
critical because a lot of executives gloat is they don’t
have to change so quickly because they’re profitable
today, that’s true until they’re not. The minute they’re not
they’re starting to react, and when they react it’s act of
desperation and not necessarily strategy. So what happens is
that consumers are now starting to teach themselves that they
are not brand sent Rick. They’re going to reward anybody
who gives them relevant information, a better experience
and understands what it is that they’re doing and what they’re
trying to do. That means all of our work, regardless if you’re
marketing, or an executive or customer support, whether you’re
in product design, that we now all have to work together to
reverse engineer the customer journey combining technology,
value, and business objectives. Right. This is the baseline of
human centre design which is a big, big practice in Silicon
Valley especially with companies like Frog Design. Frog Design
being the customer that created the magic band. When you look
at the customer journey, we tend to look at it in disparate acts
but there’s the buy side of it and own side of it. The own
side is almost completely neglected. All of the things we
can invest in terms of strategy and technology to bring great
experiences to life even after the fact, are largely missed
opportunities. And what you see here is not just a model that
looks cute, but actually becomes sort of the baseline or the
foundation for how business could be structured or
restructured today. This is why start-ups are eating the world
because they don’t have the legacy politics and what have
you of the organisation to be able to just go and execute.
They start from scratch. What could the model look like? What
could the canvas be in order to succeed, in order to
accelerate, in order to get market share because they have
to deliver ROI to their investors.
and once you start to understand this, and be thoughtful about
everything step of the experience, you can now
restructure how it works and what it looks like and who works
on it and who works together.
The omn-channel is going to be a figment of our imagination or
a buzz word until we do things inside the company to make it
possible. That means have to talk to people we don’t talk to
today, we have to work with people that don’t necessarily
know us. So it’s the epicentre of every micromoment. This is
the core of the customer experience moving forward is
intent, context, and immediacy. And these are the three things
that should inspire us moving forward. If you’re not
discoverable in these moments, then you’re absent from the
ability to be part of the decision-making process. People
are not looking for your websites, people are not looking
for your info graphics. People are not looking for corporate
YouTube commercial. People are looking for information that
caters to them selfishly because they have something to do and
the contents they find here, whether it’s from brands or from
peers and it’s largely from peers by the way, helps them
take the next step. So in order to be there, we have to
understand where we’re not. We have fob useful. This change it
is entire game of how our company talks to market. We’re
really good at talking at people. But if you think about
who it is that we’re really writing for or creating for,
most of the time it’s for lawyers that we can get a path
to the legal department. Then the rest of the time it’s for
the people who are approving that project or funding that
project. And maybe hopefully it’s the customer or people or
humans. So understanding what that context is and that
intention is, allows us to be more useful, right, because the
result of that is just good old-fashioned social commerce.
When you’re useful, people feel a sense of use, and if they feel
that, they want to give something back to you – and
that’s business. Most businesses I think it’s like
75%. 75% of companies don’t have a mobile strategy and now
that we have just found out that mobile searches has taken over
desktop searches, most start on a mobile phone, we don’t have a
mobile strategy, the number one place to start is: Where are
their friction and their problems and solve for that. If
it takes too long, you have to remember the ego system – people
who are accidental narcissists do not have time or patience.
None of us do. There’s that funny Lewis CSK joke. He was
talking about he was with a friend a and he was trying to
send a message and it wasn’t going through. He looks at his
friend – wait a minute! Just wait! It’s going to space! And
comes back! We just all want that sense of immediacy, that
on-demand economy is no joke. You don’t want it now, you want
it right now! And all of these other apps and services are
conditioning your customers to expect that. So we have an
opportunity here. X represent it is cross roads. Do the thing
the same old way or do things the new way and take chances and
starting with the little things and elim Nating the friction
points. What’s important to the customers. Because one of them
creates new value. One of them doesn’t. And new value is is
what is going to take to compete. All analysts agree,
that customer experience is going to be the baseline of
which companies compete against one another. It’s bad because
it should have always been the way we did business, but on the
immediate horizon, we have to realise that no amount of
technology is going to solve this problem. Empathy is going
to solve this problem and our ability to go back inside the
company when we go to work tomorrow to say what can we
start to do differently? What esbroken down to get fixed and
how do we work together? Operating the status quo is not
going to work. So I’ll leave you with this: If you want
copies of the slides you can check the experience with that,
but I’ll leave you with this: This is that moment where we
have to question whether things like innovation even mean. What
do things like mastectomy mean? empathy and sympathy. How do I
change what it is that I do or how I see things. The greatest
thing in all of this is that what we’re talking about is
humanity. I always joke – the humanities of it all. The
reality is unless we shift our perspective to see things
through the lens or through the mobile screen of someone else,
we’re always going to be sympathetic at best, at worst
we’re going to be making assumptions. Everyone is using
mobile. Great, get a mobile strategy together. Empathy is
where you feel something, you can relate with somebody because
you feel it the same way they do. Understanding to translate
empathy into innovation. Innovation doesn’t necessarily
mean technology. Innovation could be something as simple as
seeing something differently because in Silicon Valley, you
rarely hear people come up with technology first solution. No,
that’s not true, you hear that all the time. The ones that
make the impact and change the world start with the pain point.
Or optimism or an opportunity or something that sort of brings
up something new that you couldn’t do yesterday. Solves
the problem that you had to deal with yesterday. Those are the
greatest source of innovation of which technology then brings it
to life. And so no matter how many disruptive technologies are
in the future, no matter how much beacons are tracking you
and helping you have a better experience when you walk into a
store, for example, they’re all just gimmicks until they connect
with somebody based on what someone values or find
important. It’s like anything – a relationship is something that
offers mutual value. Mutual benefit. And I think that one
of the greatest gifts in all of this technology is that it’s
very humanising and very forcing us to see — and forcing us to
see people in what they want. More importantly what they want
to be. And that’s why when I say – we are are innovation.
Innovation is something that begins with us because it’s
something that we can feel, based on the inspiration of
someone else, based on the empathy we feel for someone else
because then technology is great, and as a result, all that
we do with everything that matters with people, and once it
matters with people, then we got a community together and
that’s the foundation of which we can build the future of
business. Thank you very much. Wonderful, wonderful, thanks
very much, Brian. Year on year, so many new insights, and
fantastic keynote and we wish you the very best luck with your
book. For those who are interested in grabbing a book,
it’s a complimentary copy and Brian has generously offered to
sign those books at the afternoon break.
So first in, best dressed an you’ll get a niced autographed
signed copy. Believe me it’s not a typical on-demand book.
The book itself is quite special. Congratulations on
that launch, Brian, and thank you for your address. Dr Larry
Marshall is going to join us now. He’s the Chief Executive
of the CSIRO. The Commonwealth scientific and industrial
research organisation. I have always known it as CSIRO and
sort of thought I’d ek ploit the acronym there. One of the
leading mission-directed multi-disciplinary applied
research organisation in the world. Who is using wifi?
Anyone using wifi today? The wireless LAN was developed by
the CSIRO and now in 4 billion devices world-wide. Australia’s
innovation catalyst, Larry Marshall joins us today to
discuss the role. Please help me to welcome Dr Larry Marshall.
(APPLAUSE) LARRY MARSHALL: So I wanted to compliment Telstra on
this event. I do feel like I’m back in mountain view, and
that’s remarkable. Well done. So I spend 26 years in Silicon
Valley, I started six tech companies k took two of them
public and sold the others and surprisingly didn’t have a crater, but it was as much
luck as anything else. Every company I started, I started
backwards, it should start with the customer and pain point. We
spend our time trying to figure out what to do with them.
Start-up number 7 – CSIRO. Soon to be 100-year-old start-up.
5,000 people. I meant to ask you how to click the slides
here. sorry, I’m not good with
technology. Is it the green button? Excellent! we live in exponential times.
This is a B with a backpack, we’re trying to figure out why
the honey bees aren’t poll Nating the way they used to.
It’s part of the economy-wide centre network. We did it in
Tasmania because it’s small enough to be manageable but we
tried to put sensors and gather data from every part of the economy. Also 3D printing
technologies have made the bridge between this digital
world, and the physical world. This is the replacement heel
that we custom made with an Australian company to save a
man’s leg in Melbourne. Literally to save his leg by 3D
printing. You think about it – in partnership with Telstra you
could beam this part anywhere in the world. So teleportation,
transportation is even possible. That’s the unique connection
between digital and physical that didn’t exist before. I
heard on many panels that the 25 most valuable companies in the
world today are all data companies and Internet
companies. I’m sorry to say that’s not true! It’s actually
not even close to true. But they’re very valuable
companiesful all of them — valuable companies. All of them
were in amazing revolutions in deep technology science,
underpinning changes to the way we do business. Fib onics. 100 gig transport. The
CISCO router, the Intel chip, nonvolatile memory, all of these
things work together to enable, for example, the iPhone to
enable mobility, to enable connectivity on an unprecedented
scale. I have run 6 start-ups through three recessions and
9/11 and I have seen this battle between deep technologies
hardware and software or Internet, I have seen this
battle. A lot of competition, but the truth is – they’re
linked together. You don’t have one without the other.
I’d like to touch on some disrupters in the Telecom space.
So if I was running a telecommunications companies and
I’m going to mention AT&T so I don’t contextualise it to
Australia. There’s a number of keep disrupters in that space.
If you think back to the glory days of AT&T, the biggest
research lab in the world, invented many of the
technologies that underpin the Internet, they had a Monopoly on
the US mark. They owned the connection to the customer
through physical infrastructure. They were wired into even’s
homes, they had billing relationships with just about
every person in the country, basically an unassailable
position. A few years ago we saw this sort of major
disruption where content trumped connectivity. We’re even
seeing more so today the disruption of that model where
content can be free. So content trumps connectivity. Now
content is free. Now, previously the competitors to
AT&T were other phone companies, Verizon for example, now it’s
Google and Microsoft. It’s a big change to an old established
company. Internet of things – I invested
in first Internet of things, a company back in 2002. I took
about five years for the term to koch up. Now you have an
explosion of connectivity, data on an unprecedented scale and
suddenly, we went from content over connectivity to now content
is free, now you’re the product and everything is free by
virtue of this data that connects literally into your
brain. Mobility – everything is
untethered an mobile, and again reminiscent of the free to air
TV model. If someone can crack it with a low cost, for example,
Google fibre with wifi on steroids, that’s a very
empowering technology plats form to have. Messaging is
reinventing everything, but there’s a sort of
democraticisation that needses to happen, what costs $1 in the
US costs in Australia. Costs $26 in China. So the
democraticisation has to happen there and value will be created
when it is democraticised. There there’s fundamental
generational shift in most western countries. Telemedicine
will be huge and I applaud Telstra for getting behind
behind the e-Health. So I the company I mentioned – that was
one of the first. It focused how you secure the dumb devices
in your network because back then the founders of the company
realised the printer was the easiest place to hack the
network. It’s fundamentally connected into the heart of the
netwalk. Today everything is connected to the network. And
finally, free space communication, we have seen
Google do remarkable things with weather balloons and wifi. We’re seeing aerospace to low
earth orbit satellites for wifi on steroids. It’s a big, big
disruptions in that market. I mentioned the sort of tug of
war, the link between hardware and software. I ran companies
from about 1989/1990, through to about 2005. And this is a plot
of the nad dack through those recessions. I tried to libl the
technologies that led at least Silicon Valley out of the
recession. Generally they happened there a couple of years
ahead than the rest of the world. Each of those
technologies was the combination of a profound breakthrough of hard science. Blue LEDs
through to white LEDs, ion battery technology and storage
technology, sudden why have an iPad which you couldn’t have
without those fundamental breakthroughs. My personal egs
peefrns, it was driven by this fundamental breakthrough in
technology which gave us hope and let us to grow new markets
and create new value. I think software or hardware play
integral, intimate part and together, and that eye eel be
going forward — they’ll be going forward. However, one
does worry since the Second World War and even before,
fundamental breakthroughs in science and technology drove
productivity, created value literal why from nothing, which
made the pie bigger, it created new markets, so productivity and
jobs grew in lock step. But around the time that the
Internet happened, in a consumer sense, it was happening years
before in an academy sense. But when it happened in around 2000
in a consumer sense, we saw a bit of a divergence. A new
model evolved. It’s a bit difference to creating the new
value. It’s about reallocation of value. Now, I’m absolutely
confident that the balance will be restored. But we’re going to
be in for a really bumpy ride while we go through this
transition period basically you could say it’s taking
inefficiencies out of the system and improving business
efficiencies, that’s great. But from a social point of view,
it’s a little hard, a little Changing to cope with. I’m
convinced that it will come back, we will continue to grow
new value and new productivity and many, many web companies do
that. But most of the money now is being made through
disintermediatation, it’s happening whether we like it or
not. It’s overall a good thing but we need to adapt to it.
Let’s go back to the AT&T example. Unassailable position.
Unassailable connection to your customer, they’re hard wired to
you, literally and figuratively. And then all of a sudden along
comes Skype. Suddenly it’s free to make a phone call, you’re
fundamentally disrupted from a seemingly unassailable position
and that’s the case for me, Uber is another classic example.
AirBNB is another example. How do you deal with that? It’s my
thesis, fundamental breakthroughs in technology will
help us move back to a value creation mode. How might that
happen? And what might I do if I was, for example, running
AT&T? Well, I’m glad you asked! So I would invest in optical
switching technology. I would try and build the most powerful
data centre in the world with almost no lek electronics in it
at all. I would want to deal with the data at native 100 gig
line rates, I would want to process it, manage it and redistribute it
so my customers would see no latency in their connectivity, a
massive increase in band width. Call it a 10 X reduction in
physical input, and 1,000 times faster than what is possible
today. By getting the electrons out of the loop and leaving
everything in they tiff optical mode, the mode it goes through
the fibre in. Now, if that sounds far-fetched, I like to
talk to you about that in length, but there are three
order of magnitudes shifts in the fundamental technology that
underpin it is Internet which gives the speed far beyond what
we can imagine today. I also might put fibre everywhere, but
if I’m AT&T, I have already done that. Google is trying to
catch up with me by the way and putting their own fibre
everywhere and at the end of the fibre points, put wifi on
steroids, I’m talking 60 gig wifi, not conventional wifi, but
very high speed and long range wifi, basic wifi format but
different to enable me to give a richer mobility experience to
my customers. I’d also take advantage of that pure optical
data centre to evolve into an optical computing backbone.
That literally processes information in parallel so again
thousands of times faster than traditional serial processing
that we’re all familiar with. That enables associative memory,
the way our human brain remembers data. Processes in
parallel, the way our human brain processes, has image
recognition from a little piece of an image, can recreate the
entire image and enable puristic search, search that reads my
mind, understands what it is I’m looking for without language
getting in the way and serves it up to me. And finally I’ll
invest heavily in Quantum communications and Quantum
encryption which has been shown is essentially unhackble or at
least if you hack it, you can’t do so without the
telecommunications company knowing about it there was you
can invalidate the package and keep it secure.
so if I wanted to do all that, where on earth could I go?
Where could I go? I might go to astrommy.
Seems like a strange place to go, but I might go to WA to the
Australian square kilometre array, where there’s a one peta
byte computer, that’s very fast by the way. Certainly the
fastest in the southern hemisphere, that processes the
whole data of mapping the whole universe.
Forget mapping the world, imagine mapping 600 known
galaxies in the known universe. Each one of the antennas runs at
terabits per second! That’s more than the global Internet
traffic was a few years ago, and it’s already exceeding the
global Internet traffic today. Now, all of that data, so more
than ta global Internet traffic today, all of that data gets
processed in a 10 by 20m room. At native 100 gig optical line
rates. It all gets compressed and encrypted on site and
through some magic, which I’m not going to explain today,
we’re able to transmit it over existing optical fibre
infrastructure to be processed. To put that in context, if
anyone’s visited the Dish, we did a famous survey of a galaxy
called centaur Russ a, that took 12,000 hours of compute time to
process, to call bait ASCAP, we did the same survey in 15
minutes. That’s a profound shift. So if for any reason you
think the capability to do what I described previously about
increasing compute power, increasing processing speed and
optical backbone data centres doesn’t exist in this country,
you’re wrong. It does. It doesn’t exist in an obvious
place, but it does exist. It may surprise you to learn that
Australia built the world’s first working digital computer.
I have to calibrate that because it was working. The US beat us
in building it, but they had problems running code through
it. Where a few months later, ours ran code successfully.
Feel proud of the accomplishments that Australia
has and can again make. There’s a lot more here than meet it is
eye. — meet it is eye. Let me come
to digital. I have spoken to a lot of companies since I have
been back. Companies in the US and in Europe and the rest of
the world have the same dilemma as the companies here, they’re
not really that much more advance, they have a bit, but
not as much as you might think. But roughly just under 90% of
companies clearly understand they’re going to be disrupted by
digital technology. But only 7% have a plan for how to deal
with that. When I came in, one of my conditions for running in
this amazing organisation, was to save the national ITT lab of
Australia. It’s a very unique and really important piece of
data science capability that I think otherwise would have gone
away if we hadn’t put our arms around it. So we have created
this new group by combining NICA, with the digital group.
It’s called Data 61. And Adrian who by the way was the founder
of the company I mentioned, one of the first Internet of
companies, Mecana, he’s the chief executive of Data 61. A
deep understanding of Internet of things and security and
connectivity. He’s on a mission to help Australia create its
data-driven future. This is the other place we can go for help
with adapting to the digital age. It’s just over 1,000
scientists, data scientists. It’s arguably one of the largest
groups of data scientists in the world. And it’s focused
100% on helping Australia navigate through digital
disruption. Make no mistake, that
disruption will impact every part of our nation from
Government to enterprise to transport, to telecommunication
and traditional industries like agriculture, mining, health and
so on. The way that that group accesses those other industries
is by using the broader CSIRO, which has business units in each
of those areas as a channel to market. It’s a combination of
domain expertise of the CSIRO Ag Group and the digital expertise
of Data 61 to give the best values of our customer which is
is all of the people and companies of Australia. So
mining is one of the first areas that really seemed to embrace,
outside of telecommunication, one of the first traditional
industries that really seemed to have embraced the ability to
disrupt using digital technology and we have done a lot with the
mining industry from robotics to help them mine more safely,
and to get humans out of harm’s way, but also in putting unique
sensors on every part of the mining value chain to enable the
big mining companies to figure out what their process is doing
and how to optimise it. Things like sensors that go survive the explosion, and
provide really valuable data on the nature of that explosion so
the mining company knows where all the minerals went.
Remarkable information you can gather from this type of data.
Sensors on all of the motors, the trucks, the conveyors to
measure the efficiency of the process. Putting that together
in a platform so unique hardware technology that can survive in
that environment, you need data science to make decisions and
optimisation of the process, we’re slowly seeing a
convergence there. Traditionalery, that industry
was resistant as many Australian companies are to technology,
seemed a little scary, a little too sciency, but now they’re
really starting to embrace it and I’d argue that Australia
could well be one of the most advanced in mining technology in
the world as a result of that change. But it’s a painful
change. It’s a scary change for traditional industries.
Agriculture is the other one. So CSIRO places sensors all over
the country on certain farms to help understand how to
understand moisture content, soil qualities, we have climate
models that help the farmers to determine when to plant, when to
sow, where to put out – when to rotate pasture yours and go
from one crop to another or to grazing. All of this data, it’s
a rich data set but it takes a long of heavy compute power and
a lot of heavy analytics to get the most out of it.
eHealth – we haven’t had that much success in eHealth outside
of Queensland. Queensland has been a remarkable state for us.
They’re the first place in the country to give us access to
their state health data base. We have already shown very
conclusive evidence of improved mortality through Queensland
hospitals as a result of our data mining, and feedback to
them that enable them to improve their processes. So many, many
people are alive today as a result of those improvements.
Just an example of how data science can help improve
processes. also in aged-care which is going
to be a big issue in Asia as it is in this country, eMedicine
enables new types of sensors to be placed around an age care
facility, that enable monitoring of the people in that facility
without interfering in any way shape or form, with what they do
everyday. I mentioned the honey bee
initiative, this is a global initiative. We’re trying to get
this technology and the globe because 30% of our food depends
on these little guys doing what they do.
industrial Internet, I’ll show you Zbd later when we talk on
the panel but we’re able to 3D map inside mines in a GPS denied
environment and yes still get geopositioning data, we have
taken that technology to a number of other industries to
enable a fundamental connection between the physical world and
the digital world. the soil map – so we have flown
drones over most of Australia, gathered the soil data, the
mineral data to help with precompetitive analysis.
Imagine taking that rich data set and making it available to
everyone? Completely open data set. Imagine connecting tell
all together, and making them accessible to global industry so
that data can be mined and the economies can be improved.
We’re working on a thing we call OZ gnome , I know it’s a
terrible name, it’s a gel that enables if data set to be
preserved but updated. It’s a bit comply cased to explain in a
short time. We put a lot of effort in mapping the future of
the nation, hue it will be disrupted by all types of
technology, but particularly digital technology.
so CSIRO, our mission for the next five years, Australia’
innovation catalyst, we’re here to help. If you want to – if
you need help navigating digital disruption or any kind of
technology disruption, please come to us. We work with 3,000
companies every year, we work with all of the universities,
we’re going to do more and more of that, we want you of the best
customer experience you possibly can. If we work
together to collaboratively, we really can navigate this future. Disruption will lead to growth,
will lead to profession perty and good things. But we have to
work together to make that work. Thank you.
(APPLAUSE) UNKNOWN SPEAKER: Thank you very much. I cannot
believe that we have had drones fly over and do the soil map.
Stay with us. Stay with us, because we’re
going to welcome some other team members up for some Q&A. So,
Brian, if you can join us again and while you’re coming up, I’ll
also introduce Gerd Schenkel, the executive drector of Telstra
Digital. He’s to ensure a bright future of Telstra in a
digital world, and every now and then you ask me to help you out
with that. Welcome. GERD SCHENKEL: Thank so much for
both of you for two mind-blowing presentations. I
think the – the surprise in particular the
amazing work CSIRO has done and is doing, and if some ways, you
are the first and most digital organisation we have in
Australia, I think it was founded in 1926. You were the
first organisation to use the Internet according to Wikipedia
that is, so it must be true! And you are also the first – the
first organisation to use a computer in Australia. In fact
the fifth compute ner the world. So — computer in the world.
The digital credentials is certainly second to none. I
think the question is how can we compete – how you can compete
and help Australia to compete with unicorns and $10 billion
research budgets and Google and Facebook and the likes. Clearly
you have the credentials but are you able to keep up with
those kind of budgets and competitors?
BRIAN SOLIS: Budget-wise probably not. But in order to
be successful we have to focus. I know it’s not a popular saying
in Government here to pick winners, but I don’t know any
other way to win but pick winners. We have to focus our
resources in areas where we can make a difference. The first
organisation to use Internet, yes. Organisation that invented
wifi, yes. Organisation that built the world’s first working
computer that can run code, yes. But we can’t rest on our
laurels. We’ll be defined by what we do to help this nation
evolve to digital. GERD SCHENKEL: You heard
Minister Fifield this morning put out a new set of language of
our Government, certainly not –
putting out the initiative of being a leader in the digital
economy. And you heard Larry displaying the credentials. Are
you convinced or would you say, “You know, not convinced yet?” BRIAN SOLIS: First, Larry…
(LAUGHTER) Briens briens backpacks on bees, I mean?! It’s
brilliant. Something that you said, though,
that I got, you know, use in the response, is resting on
laurels, that was – that’s exactly right, but most
businesses pride themselves on those laurels on how they got
here today, and continue to think that’s the source of their
superpower moving forward, and that comes to your question
then, you know: Are intentions and statements
good enough anymore? And I think that for the most part,
the aspiration of trying to do something is noble. It’s – you’
designed by your actions and your words. I can tell you
travelling the world, every minister I have met with, has
the right intentions to do the right things and make the right
investments but things like the culture of the country, things
like vision, things like laurels, those sort of become
either the defining attributes or the defining distribution
point which then ables whatever you define as greatness. I can
tell you with a lot of scientists I work around the
world, a lot of them are hampered by the things that are
trying to do the right thing but not looking big enough or great
enough. And to your point about unicorns, for those who
don’t know – start off with a billion dollar evaluation,
that’s now starting to become common-place.
Those unicorns, if you look at Uber’s, they’re – they’re
rumoured to get another big round of funding here that’s
going to soar that valuation up through the roof. But it’s not
through technology — certain why not for technology and for
kittens. It’s to fight Governments and change
legislation and essentially break down all of the barriers that prevent and indhinder —
hinder innovation. The idea is good enough. The money and
support to build those ideas is good, but it’s also: What are
you going to do that changes how society operations.
UNKNOWN SPEAKER: Is the role of Government then to get out of
the way and let the Uber will
innovative. And not fund amazing things like the CSIRO.
UNKNOWN SPEAKER: I think the role of Government is to deal
with what is best for the people. I don’t know about you,
but a lot of Governments around the world don’t do that. And I
think that in many cases what is best for the people, it’s not
just saying what is best, but understanding what they cannot
do today and what’s great to be competitive around the world,
and becoming an enabler, becoming like a venture
capitalist of human intentions and aspirations to bring those
alive. UNKNOWN SPEAKER: A specific
question about the war on logistics, you mention so many
stwris, this question is about logistics, can you help break
out that issue on the last mile, or the last 1,000 miles. We
got Australia Post, we got some – a small number of logistic
companies, but many e-commerce companies, in particular, don’t
feel we have the same innovation that we have in the US. Are
you guys active in that space at all?
UNKNOWN SPEAKER: Sorry, when you say logistics, I was thinking
of northern Australia. So we map actually the whole of
Australia, but particularly northern Australia because we’re
trying to figure out how to monetise that region. So
figuring out the transport and logistics for northern Australia
and indeed all of Australia to move goods more efficiently at
lower cost without them spoiling. We’re also doing a
lot of work in India. I don’t know if you’re aware – 30% of
food in India is wasted because it spoils before further gets to
market. It’s a big problem. But is that the logistics you’re
talking about? UNKNOWN SPEAKER: I’m not sure
it was on the wall. Whatever logistics you feel like!
(LAUGHTER) UNKNOWN SPEAKER: I mentioned the digital maps,
so… UNKNOWN SPEAKER: There you go.
UNKNOWN SPEAKER: I know it’s a bit wobbly, if you can… so we
– in Australia, we often confuse particularly in research, we
often confuse invention, you know, we invented wifi with
innovation. And we think that the invention is the value when,
in fact, it’s just the start of the journey and the innovation
that delivers the value. And we really need to understand that
profoundly if we’re able – going to deliver the value from the
wonderful science, the 41 universities in this country
produce. The reason I show this, we did this for BHP. So
they could actually map inside their mines and use it for
robotic vision. They have this on their vehicles.
It’s the Vision System. Kind of a version of a predecessor, I
should say, to Google’s spinning camera, that’s on the car that
does Google maps, but bounces around and produces a HD digital
image of the inside of the environment, like a mine. That
was an idea on a lab bench. But it had no value until we
physically embodied it in this product. Now, we had to do that
ourselves because it’s perceived as, it’s sciency, a
bit too risky. You can’t blame Australian business for feeling
that way, by the way, because they haven’t felt the profound
impact of innovation. So I feel it’s up to us to actually take
that risk to fund these things to get them at least halfway to
industry so that industry can pick up the torch and run with
it and take it the rest of the way to market. We got to bridge
this gap between the lab bench and, you know, invention and
actual the value creation caused by true innovation.
UNKNOWN SPEAKER: I mean, you have an incredible resume
yourself, you know. What attracted you to the role? Why
work for the Government when you got a history of start-up
yourself? UNKNOWN SPEAKER: I’m not allowed
to stay what the Prime Minister said, so I was asked a very
high level politician…
(LAUGHTER) UNKNOWN SPEAKER: Larry, why do you want to be a
public servant. I said, gee, I have to do that,
is that part of the requirement? I don’t think any of us feel
that way as public servants. Most scientists get up out of
bed in the morning to go and change the world. I peen, they
really — I mean, they really believe passionately their
science will make a difference, whether they’re doing
environment science or digital science. For me, when I met the
people inside the organisation, it reminded me of every
start-up I had ever run, which was populated by missionaries
wanting to change the world, rather than public servants.
UNKNOWN SPEAKER: So, Brian, listening to that story, what’s
your advice for Larry? Personally!
BRIAN SOLIS: I don’t think he needs any advice from me
personally. Maybe the other way around! I don’t know that I
have any advice for you, Larry, other than, you know, maybe
keep bringing that prop with you everywhere you go!
(LAUGHTER) BRIAN SOLIS: Certainly a conversation
starter. UNKNOWN SPEAKER: How do you
innovate – Brian, if you put yourself in Larry’s shoes, how
do you innovate when you sort of in between? You’re a scientist
or in charge of thousands of scientists, you ultimately
reliant on the Government but yet you’re seeking obviously
proximity to industry and customers but don’t have direct
customers necessary why or maybe you feel you do. How do you
innovate in that position where you don’t have maybe that
commercial pressure than as much as some other companies do, or
that commercial reward, no doubt you’re going to make a billion
dollars if you’re very successful and your executive
team, how do you invo investigate in that — innovate
in that situation. BRIAN SOLIS: If you allow me to
psychoanalyse you at the moment. I would have to imagine he is
where he is, maybe we’ll talk like you’re not here! He is
where he is because he is – because he’s an entrepreneur at
heart. He has the passion to — has the passion to do and create
and invent and make. Those are the attributes of an
entrepreneur that as long as he doesn’t lose that within a
Government body, I mean, that’s exactly what the Government
needs. It’s just hard to attract people like Larry to roles like
that because other – there are often outdoing — out doing
those things. It’s true for any business also chsmt is why we
have to create cultures, I think, that an environment that
fosters that creativity and rewards that creativity in ways
that are meaningful to the people that are
creating, otherwise they leave and they go and do their own
thing or do it with someone who’s going to appreciate that.
And to just one more thing on that: You’re very lucky that
Larry is incredibly successful without this job. You know, he
– probably not doing it for the
pay cheque. So we have to find ways to reward these types of
thinking, even if it’s failing faster than it is creating, to
sort of reward this behaviour. It’s something you said earlier
which I thought was brilliant, one thing in particular, that we
can all learn from the a lot of times we tend to look at our
own competitors for what we need to do and how we need to
respond. But in the one example where you
look at astronmy as one possible way of bring to life,
it’s not as an innovative as what you’re doing, but they
whether tell you that they do not compete against coffee
companies, they compete against consumer technology companies.
That’s why a lot of their infrastructure is – has been
completely reinvented because they’re not acting like the
company you think they are. So I just think a lot of this
work is cultural in nature. UNKNOWN SPEAKER: One question
here specifically for your, Larry: What can you do or the
CSIRO do specifically to help others navigating the digital
disruption or digital economy? What is it – you invited
essentially people to engage with organisation, but what
specifically would you do for them?
LARRY MARSHALL: Probably what we did for a couple of the big
mining companies where we kind of went in and pitched the
notion of data mining, which is the wrong terminology use to
with a mining company, but the idea of making decisions based
on data and predictive analytics . One of the really
profound outcomes of that, we took an old technology that we
developed years ago as part of Radar. I don’t know if you
know, but CSIRO built Australia’s first radar air
defence system and actually the first portable radar in the
world apparently. Because we had to get it up to
Darwin in about three weeks and get it deployed to defend
Darwin. So the necessity drove the invention there. That same
group developed this technology where you can beam energy into
an orb body and make the mineral, what you’re trying to
extract, make it resonate and literally can measure very accurately the percentage
yields that you’ll get from that body.
We have deployed that in Bada. We need to be in Badar a lot
more often. We need to be there all the time. But we’re able
to deploy that on a main conveyor line for a big
Australian mining company so they could measure the yield
before they crushed the ore, and figure how to blend them. It
gave them a much higher value end product from a piece of
fundamental science, invented for something completely
different. So I think to go more broadly, we need to engage
much more deeply with our customer-base, traditionally we
haven’t engaged deeply enough with other big
industries in Australia, like Fintech. Like companies like
Telstra. We need to do more of that. We need to start the
conversation because it’s through interaction with you
that we can help craft our vision of what our science and
technology can actually do for you, and you in turn can
help us figure out where to invest our funds to go and
create the technology, so when you market gets to where you
think it’s going to be, the technology is going to be there
to support what it needs at that time.
UNKNOWN SPEAKER: In mining, I heard a few people recently in
the US talk about mining asteroids and points out an
asteroid, whether it’s platinum in the asteroid is worth $5.3
trillion. They said the first trillion nair is
going to be the one going to mine the as strait.
UNKNOWN SPEAKER: We’re really getting out of the box here,
aren’t we! That atronmy group I mentioned, which by the way is
the group that build the radar, which invented wifi. So they’re
an innovative group. Even though they’re way out in the
fields mapping galaxies. Very innovative group. So, yes, they
have looked at a lot on that and they day dream
a lot about that. What we haven’t done enough of – is
customer engagement and it’s not – most scientists are
introverts, it’s not our natural state to go and talk to
customers, but you can really help us. We need your help as
much as you need ours because if we can get this conversation
really going, really deep conversation about innovation,
it will help us steer our technology, our science, far
more effective why to what – to deliver what you need.
UNKNOWN SPEAKER: Brian, would you consider investing in the
asteroid mining venture?
BRIAN SOLIS: Considering what I have to invest, I’m sure I
wouldn’t get very far. Yeah, why not, 5 trillion return on
the smaller investment, sure! But, yeah, if I get that
opportunity, I will and I’ll also tell you – I’ll call you on
the spot, “Guess what I have an opportunity to do right now?”
UNKNOWN SPEAKER: That’s a good risk profile you have got there.
With the remaining 30 seconds, I wouldn’t mind asking each of
you, or giving you the opportunity to provide advice to
people in the audience. We have a diverse group of people,
but I’m sure many of the audience would think – am I
wasting my time in my current job, should I be working for
Telstra, or should I quit working for Telstra, or move to
the US. The opportunities are so amazing, what advice would
you have for people in the audience in making those kind of decisions?
LARRY MARSHALL: I think Australia is on the cusp of
really generational change, fundamental ground-shifting
change. We’re so close. This feels like, pardon me, andcy,
but it feels like silicon value why in the ’80s. It feels like
we’re so close to a fundamental shift in our innovation
ecosystem. It needs some nudges and some direction, but I think
we’re so close to that. And whatever it is that you do, can
I remind you that you can always reinvent. So this is…
(LAUGHTER) LARRY MARSHALL: This is a circuit, all USB dahhate
circuit in cloth. It’s the material itself, you can fold it
and wet it and still maintains connectivity. This was invented
by the same group that worked on wool that made wool an
industry in Australia. Figured out how to make pants and butt
pleats in them. And now they’re making things like backpacks
and coats that charge your iPhone by your physical
movement. With no circuitry at all. I think you can reinvent
any industry and reinvent yourself and don’t be afraid to
do it. It’s opportunity… UNKNOWN SPEAKER: I wonder what
else you got in your pocket?! (LAUGHTER) UNKNOWN SPEAKER:
Thank you very much, both of you for your amazing insights. That was just brilliant. Thank
you very much. Gents. A woollen USB, bring it
on. Asteroid mining. Who apparently?! It’s that time of
the day where we look at how we support a start-up business or a
number of start-up businesses, and it’s time for the 2015
Australian Digital Scholarship. I’m going to stage Claudia
Grinzi. She’s Telstra’s service lead, one of our star
performers, our game changing winner for 2015. Annie Parker
will join Claudia as well to host our scholarship finalist.
Please join me in welcoming the team to the stage.
(APPLAUSE) UNKNOWN SPEAKER: It’s an absolute pleasure to be
here today and to listen and learn from some extraordinary
humans. For me, receiving the Telstra
Digital Game Changer award, really meant a lot. Ever since
I was a young girl I was inspired from Gandhi’s quote of
be the change you want to see in the world. I wanted to see a
world with more compassion, positivity and happiness. I ul
always thought that meant I had to be part of some global
humanitarian effort or a charity. After some time, I
realised I could actually make that change right where I was,
right in the workplace. That just by being myself and
bringing my version of compassionate and empathetic
leadership, and playing outside the lines, that I could bring
about change and influence people’s happiness, job
satisfaction and positivity. So I’m delighted that Telstra
Digital has embraced my version of leadership, and valued it
highly enough to award me the Game Changer Award. And with
that, I also have the honour of awarding and hosting the winner
of the 2015 Australian Digital Scholarship winner to South by
Southwest Interactive in Austin, Texas next year. I have never
been, I’m so excited. I heard the stories, Monty!
(LAUGHTER) UNKNOWN SPEAKER: As you heard, South by Southwest,
is one of the world’s biggest digital events. And this prize
is a way that Telstra can support start-up businesses. So
they can share and learn from other businesses that they might
not otherwise get access to. so it’s a pretty amazing prize.
So let’s find out who’s vying for it and let’s meet our three
short-listed superstar start-ups. Annie, other to you.
ANNIE PARKER: Nice to see you again. This is the second time
I had to follow Larry, and him and his bag of props, trust me,
they go everywhere! But for those who are from a British
background, I am going to use a analysis. So you’re going to
see three different entrepreneurs pitching today.
Just quickly in terms of background. One is in Sydney,
our in from our second class, and the third is from Brisbane.
We have a real breath in terms of experiences they have had,
and how long they have been going in the start-ups as well.
Ken, Gary, Andrea, please join us on stage. is from Green Silks. She’s from
Brisbane. Ken is from Chatty Kidz who is from our class one,
and Gary from Disrupt – disrupt Thoughts (?) is part of our
second class. Each of the guys are going to get an opportunity
to pitch to you and you get to vote on which one you believe
has done the best pitch and deserves that trip out to the
US. Back to you. So you can explain the process.
UNKNOWN SPEAKER: This is how we’re going to role. I’m going
to kick off with a few questions so we get to know our
entrepreneur as bit better. Get under the skin a little bit.
It’s during that time you in the audience or anyone online has a
question, I ask – invite you to SMS your question to 0484100600.
We’ll get the start-ups to do their two-three minutes pitch.
And then after all three pitches, I’ll open up the voting
lines and I’ll explain how that works in a moment. So,
firstly, I wanted to congratulate you all for making
the short list. You’re deserving power must be
very high and your eight to hustle — ability to hustle
must have impressed our selection team. Ken to you
first. As – I know the working parent trying to find the time
to get involved in my kids’ education can be a bit tricky. So your Chatty
Kidz app can potentially solve the problem. When did you and
Annabelle, your wife, come up with the concept of Chatty Kidz?
UNKNOWN SPEAKER: It started about three years ago, I’m
Scottish, not from Australia. You may recognise! And my mum
complained to me that I was a bad son because my children
wouldn’t speak to them. So I gave myself the challenge of
trying to engage my kids to talk to my mum on a video call. I
discovered that using education meant my kids would sit and talk
to my mum for half an hour, 40 minutes. Quick!
UNKNOWN SPEAKER: Great. Wow, it’s – when it comes from real
personal experience, you know you got something going on
there. Gary, so you are creating the world’s first fully
customiseble sports gear platform and using 3D technology
and it’s growing to quickly. What has been your most
surprising customer moment? UNKNOWN SPEAKER: OK, I’m going
to put it into two. The first one, I think, for us was the –
as a couple of sports pieces on there, our first one was in
surfboards. Then we had an Aboriginal artist from SA to
approach us to put some artwork on a line of boards he wanted to
make. For him it was about the old Australia and new Australia
combining and creating something that is both useful
and artwork. And on the second side of it:
Several weeks ago, we had about 100 local manufactures here and
overseas, one of the sons was making cupcakes and said thank
you, you funded my holiday.
UNKNOWN SPEAKER: Lovely, thank you. Andrea, you and your
business partner have created an online lawn mowing marketplace,
a bit aiming to create Uber from lawn mowing. What has been
your biggest ah-ha moment. UNKNOWN SPEAKER: One thing we
didn’t expect is just how many people would pay extra money to
get their lawn mowed quickly. It’s amazing how people just
want their problems solved so fast. But probably the second
ah-Ha moment is we started this business so we didn’t have to
talk to the mowing guy. We spent all day talking to the mowing guy!
(LAUGHTER) UNKNOWN SPEAKER: Thank you. I might ask a few
more questions. So, Gary, what would be your
personal advice to an early stage entrepreneur who’s
thinking about starting up a digital?
advice? YouYou’re never going to be ready.
You can prepare yourself as well as you can, but you’re never
going to be ready. Make sure that every says jump in the
deepend, I would say not doing that. Find out as much
information as you can. And make sure you have enough bank
to keep you going. Running a business is hard and you have to
keep yourself going and eating. You only get one shot of that.
And then apart from that, you’ll know if it’s right for you.
You’ll feel it and it will be a feeling. Just go for it. I’m
on a good day today. UNKNOWN SPEAKER: What about you,
Ken, what’s been the most surprising thing you have learnt
about starting… UNKNOWN SPEAKER: How long it
takes. You can do things very fast, you can get through
things, but doing business and growing a business and getting
things started takes time. Takes years. So start-ups, if
you’re an entrepreneur be prepared for three, four, five
years of hardly any cash. All these successful companies are
all 10 years’ old already. UNKNOWN SPEAKER: OK. And,
Andrea, like I said to you, do you think the Internet has
levelled the playing field for entrepreneurs?
UNKNOWN SPEAKER: Absolutely. That question comes at young
entrepreneurs but it has levels itself to all ages of
entrepreneurs. It’s just amazing what you can do for such
a small amount of money compared to five or ten years
ago in starting a business. UNKNOWN SPEAKER: OK. Thanks,
everyone. Let’s get on to the really exciting part – the
pictures. Alright. You have each got about two to three
minutes max to convince the audience and everybody online
why they should vote for you, and award you the Digital Scholarship. So, Ken,
you’re closest to me, let’s start with you.
(APPLAUSE) UNKNOWN SPEAKER: So kids all over the
world have to learn to read and speak English. But nowhere is
that need greater than in China where most of those millions of
kids learning English are taught by teachers who speak English
as a second language. They produce students that can write
and read English well, but when they travel, speaking an
understanding English is a different ball game. Especially
when you’re thick in an accent. So Chatty Kidz solves this
problem. We have thousands of videos of native English
speaking kids reading books, all structured based on level of
difficulty. From easy to hard. So that kids
all over the world can read and can learn English by watching
videos. How easy is that? We also got thousands of books
throughout our global partner, Pearson Education, structured on
the level of difficulty, so kids can practice the reading
themselves. Oh, yeah! There you go. Based on level
of difficulty so that kids can practice reading themselves.
Can also record themselves reading books, that is peer
reviewed on our platform. They can also get on a real-time
video call and chat in English with kids in Australia. All the
time we’re collecting data, valuable data. We’re even
analysing the videos the kids are recording so we can assess
the reading ability at any point in time, avoiding the need for
boring tests. The data creates reports that are valuable to
school, teachers, pants, and — parents and students. Imagine
how easy it is to watch a kid reading a book, and compare that
to a kid reading that six months ago. You can see that
kid’s learning progression. There’s lots going on. One of
the biggest opportunities we’re working with at the moment is an
agreement with the biggest education company in China.
Today has 16,000 schools and 10 million kids. We’re creating a
partnership with Australia and China. Connecting schools and
students. The opportunities are huge. One of the biggest deals
with negotiating at the moment is a commitment for 1 million
paying users in China. It’s very exciting. So look, if you
want to get involved and help me scale China massively. If you
want to invest, rounds closes in two weeks. of things I love about Ken – he
completely forgot he’s got slides, and that’s one of the
things we teach these guys when we take them through the program
is to make sure they’re ready for anything to happen. So,
Ken, as you very quickly understood, can actually do that
whole presentation without any slides whatsoever!
Gary, over to you. UNKNOWN SPEAKER: I don’t teach
kids to read! But my name is Gary, and I’m the cofounder and
CEO of Disrupt and what we do is customise the world’s sports
equipment. As an interactive session, raise your hand if
you’re into sports of any kind, you watched sports, played
sports. Yes 95% coverage. Hopefully you’ll appreciate the
problem we’re trying to deal with. If you’re into sports,
you’re incredibly passionate about what you do, most of us it
defines us as individuals, I’m a surfer, a really passionate
snowboarder and I’m a terrible cricketer. Yes, I know, I’m
English! But the probable we got is that – I can’t use a
clicker! That is a massive problem that
we’re trying to solve right now. There you go! The problem we’re
trying to contend with is even if you’re incredibly passionate and
sports defines you, this is what you’re stuck with: It’s
boring, and not made to your individual ability and style,
and it takes up to 18 months from product innovation from lab
to in store where you can purchase it. Everyone takes
their mark-up in between that. On the flipside, you got
hundreds of localised manufacturers right here in
Australia that are incredibly brilliant at advanced
manufacturing. Their issue is they can’t compete on a global
scale or with Asia where the wage rates earned are lower, but
what they do have a special skillset. That’s where we come
in. We got a 3D customisation platform where you get to design
your own sports equipment. It’s 100% customised to your
ability, and 100% – 100% design to your individual style, it
arrives in your door in two weeks and it’s exactly the same
price as retail. So it’s 100% customised, and exactly the same
price as retail. With dit Runt, and we’re customising the
world’s sports equipment — we’re Disrupt, and we’re
customising the worlt’s sports equipment. The way we do it is
we got integrated backend manufacturing system that links
into these manufacturers all over the world. It allows them
to make products at scale and fast without ever slowing down
their productionline and we skip out all the people in the
middle. I have got three others for you. The person would be
jump on to your mobiles after this and vote for Disrupt, we
not only want to go to South by Southwest. But we want to open
up the US market for us. The second would be if you are an
angel investor or interested in sports and technology, come and
have a chat afterwards. And the third one – you’re likely all
have marketing departments. I’ll like to have an
introduction to them. We do great corporate giveaways.
UNKNOWN SPEAKER: You really can hustle! Andrea, over to you, to
hear about Green Socks (?).
UNKNOWN SPEAKER: Hi, I’m Andrea Martin, and with my business
partner, Richard, we are Green Socks, the easiest way to get
your lawn mowed. Similar in son September with uber, we’re
trying to inject quality control and convenience into lawn
mowing. So let me tell you about Gabby and her friend, and the problem
we’re solving for customers and why they’re so happy with Green
Socks. Gabby working full time and superbusy, her husband says
he’s mow the lawns but he’s busy too. She doesn’t have time
for quotes and even if she did, she hates how the mowing guys
make her feel when they show up late, don’t show up at all, or
trying to haggle with her over price.
What we do for Gabby is give her the option to book on her
smartphone or her computer in just 60 seconds, by clicking
through some very fun pictures, she can get her price, book her
lawn mowed and someone will come and mow the lawn for her like
magic. After the mow, someone checks if she’s happy, and
conveniently puts it on her credit card and she never has to
talk to the mowing guy – problem solved. So let me tell
you about the problem we’re solving for our typical mowing provider.
Graham can’t afford a mowing franchise to help him get
customers so he has to do it by myself. He’s tried letterboxes
but most people have no junk mail signs these days so that’s
a business tricky. World of mouth is really slow. He’s
tried the Australian lead sites where they charge him $15 up
front for a lead. He doesn’t even get the job. He’s not
quite sure what to do. Enter Green Socks.
We only make money when he makes money. And only send out
guaranteed work. We’re providing more guarantee than a
franchise but for at a fraction of a cost. Barely anything
compared to a franchise, problem solved. If you think lawn
mowing isn’t sexy. That’s what people thought about the LAN
transport industry until Uber came across. Plus, ladies,
depending which suburb you live in, and which day you book, we
might just have a fireman or policeman mow the lawn too.
Because whilst most of our guys are full-time lawn mowing pros,
we do have some guys who in between rescuing people from bad
guys and burning buildings, will mow lawns for you. So we
at Green Socks, is the easiest way to get your lawn mowed. If
your business might be able to help our business, night this
David and Goliath battle for these lawn mowing franchise
around the world, we’ll love your help.
Thanks very much.
UNKNOWN SPEAKER: So, we are now going to encourage you guys to
vote. Can you remind everybody how to vote.
UNKNOWN SPEAKER: Absolutely. It’s now up to you. Everybody
in the audience and online to vote. So what I need you to do
is get out our phones, and SMS the name of the business that
you think is most deserving of the 2015 Australian Digital
Scholarship. SMS to 0480333333.
We’ll leave the lines open for a couple of minutes. So while
you’re all voting, let me have a look at this and see if there’s
any questions from the audience.
We got time for one. This is could be for any of you: What
was the worst investor meet that you had?
UNKNOWN SPEAKER: Is it a good one?
UNKNOWN SPEAKER: Look investor meeting…
UNKNOWN SPEAKER: Won’t mention any names.
UNKNOWN SPEAKER: Not mentioning any names. They give you lots
and lots of questions. Quite difficult questions. You know,
I haven’t had – I can’t think of a good one, never mind of a bad
one at the moment! They’re certainly tough.
UNKNOWN SPEAKER: I think a really good investor knows at
what stage they’re investing at. So if they’re asking questions
that should be from a 4-year-old company at a 6-month-old
marker, then they’re not the right investor for you. That is
finding the right balance. UNKNOWN SPEAKER: I’m going to
answer one thing that was asked of me during the break: The
first is how do I get involved? I asked you guys to pay it
forward to get involved. For those of you who didn’t know, it starts this weekend at Sydney
this week. Just go for a quick search online to start-up week
Sydney. For those of you who do want to really
get thrown into it, one of the really simple quick ways you can
get your head around how to get involved in the echo system and
learn – the other lady who asked, I think it was Yvonne,
muru-D is an Indigenous world, it means the “path to”, and the
D stands for digital. UNKNOWN SPEAKER: The votes are
coming in. So while we’re just finalising that, let me just
remind you that the winner and their business partner will get
a money can’t buy opportunity to go to South by Southwest
interactive as well as Silicon Valley for some amazing meeting
and mentoring opportunities, but no one is going to be going
home empty-handed. All of you will walk away with $1,000 gards
growing your — towards growing your business from Telstra.
(APPLAUSE) UNKNOWN SPEAKER: OK. A few more seconds. Whilst
we’re waiting, we have a couple of questions of you guys – these
are the prizes by the way, you’re not getting them yet.
It’s $1,000 in $1 bills! (LAUGHTER) UNKNOWN SPEAKER:
Look, we have asked the same questions of Holly and Kate
earlier, what did you guys get out of being part of an accelerator, that you
think you wouldn’t have gotten otherwise. Whoever’s got the
mic can start. UNKNOWN SPEAKER: It’s the mentor
network. The – for us to go through something and learn it’s
not right takes a week or two. Hood is you have gone through
all those issues we’re facing. Please get involved. To have access to a
mentor network, we can ask questions, and bounce ideas, it
wasn’t much of a commitment. I have regular weekly phone calls
and we catch up.
UNKNOWN SPEAKER: This is my second business, I started my
first business in 99, and sold in 2007 and we had nothing like
the network that I got access to. The experts, the advisors,
people’s opinions, they’re not all good, but, hey, there’s lots
of them. But also getting kicked in the
backside. It’s good. UNKNOWN SPEAKER: Anything to
add, Andrea? You’re only week six now into Brisbane.
UNKNOWN SPEAKER: Yeah, this is week seven.
the comment — echo the comments, amazing network and
connections. If you’re going on an accelerated program, you’re
going to be trading in your gym card for your access card.
You’re all the time husling and working hard.
UNKNOWN SPEAKER: Lines are now closed. Now, OK. I am very
pleased to announce that the winner of the 2015 Australian
digital Scholarship is Gary and the team from Disrupt! Special award. Congratulations!
you like to say a few short words?
UNKNOWN SPEAKER: If you’re after some sports equipment, just go
Thank you very much, and it was a hard battle but we’re really
going to the US to open up the market. There’s hundreds of
small to medium sized manufacturers here, and there’s
thousands of them and hundreds of millions of customers.
Please stay in touch. (APPLAUSE) UNKNOWN SPEAKER: Yes.
So thank you all for making this session possible. All your
pitches were outstanding and I know much success awaits all of
your businesses. Gary, looking forward to going to Texas with
you next year. And a big congratulations to you all and
thank you from Telstra. UNKNOWN SPEAKER: I’m going to
say quickly – just be ready – Gary eats like a ganet.
Wherever there’s free food… UNKNOWN SPEAKER: Looking forward
to it. I wish you all a smooth day and we’re now breaking for test.
This is a test. This is a caption test. UNKNOWN SPEAKER: Welcome back,
everyone. It’s been an absolutely brilliant day so far
and we’re not done yet. We’ve got a fantastic final few
sessions coming up for the day before we can have a
well-deserved brink later on this evening. — drink later on
this evening. I’d like to welcome Karsten Wildberger for
the Group Executive for Telstra Retail. He became Group
Executive earlier this month after serving in another area.
An experienced telecommunications executive
with a career spanning more than 18 years, he has a passion for
leadership, customers and digital innovation. The Empire
Strikes. Please join me and welcome Karsten Wildberger to the stage. Welcome.
KARSTEN WILDBERGER: Good afternoon, everyone. I hope
you’ve had a great day so far. I’m not sure about the title – The Empires Strike Back. We
haven’t talked about the incumbents yet and it’s time to
talk about all these wonderful companies that really make the
world go round. And what I’d like to share with you, a few
thoughts that we at Telstra and incumbents think about
digatisation and the opportunity of digatisation.
Incumbents in any industry increasingly realise the
possibility of disruption from digatisation.
And it opens up most industry to actually lateral competition,
especially from software-griven companies. And the way I look at
traditional value change gets deconstructed, and traditional
business models get challenged but the challenges open
opportunities. And at the core of digatisation in many ways are
three things, in my view. One is most digital models provide
marginal costs of zero, which fundamentally challenges lots of
businesses. It provides the opportunity to create reach to
customers on a global scale. And it provides richness in terms
of functionality that it actually provides to customers.
In a few examples well-covered and well-known today, Air B&B
are bigger than some hotel companies but don’t own any real
estate. Uber is bigger than all the taxi
keams together but don’t own taxis. They are digital
platforms that use the infrastructure. If you think of
PayPal, they use the payment infrastructure of banks and card
companies. Similarly, in telecommunications, Whattapp
has paid hundreds of millions but uses the telcos’
infrastructure. They need reinvent themselves
and do it faster than they did in the past. New growth
opportunities require innovation. Innovation is
essential for any incumbent business. And the cycle of
innovation is speeding up. Much faster than it normally allows.
Telstra is a great example of an incumbent in Australia. Wore an
established business. We are a large player in the
telecommunications market. And many years ago we used to be
slow andcumbersome. Maybe some of you still think that we are,
but we’ve become very, very agile, I think, in many areas
today. But needless to say we always have to do better and
strive to be better. And today we are building some
huge momentum in lots of areas. Let me first of all point out in
the age of digatisation, connectivity and network play a
crucial role, because the demand on network, in terms of quality
and security is increasing. And we are best positioned in
Australia with world-leading networks, especially our mobile
network, to satisfy that demand. In the past five years we’ve
also reenergised around customer service and the customer, which
is at the core of digatisation. customer thinking is at the cer
of innovation and — core of innovation and the catalyst for
innovation and growth. We started our journey of
digital transformation at Telstra about five years ago and
our Digital Business Unit has played a very crucial role in
changing Telstra. A bit disruptive in the beginning and
still today and being the challenger. And now under Andrew
Penn’s leadership, we’ve set ourself the new benchmark, to be
a world-class technology company and at its core, it
means we will be unrelenting in our focus on using technology to
deliver value to our customers in Australia, but also overseas,
because we are also becoming increasingly an international
company. We have built a very powerful cloud business at our
Network Application Service business is growing at very high
rates. Another example in a recent
survey we conducted for Small Medium Enterprises, we asked
them who they would trust most to be their solution provider.
We were surprised by the result. Because they voted for Telstra
2.5 times more likely to trust us than any other nearest
competitor. And that’s a huge growth opportunity for us.
More than half a million Australian businesses now use
Telstra X Marketplace which is a one stop shop and management
portal to make it easier to buy, find and use leading
cloud-based businesses to boost their productivity. So we see
ourselves very much in the sense of also driving productivity,
offering digital solutions. We are very focussed on improving
customer experience to also improve our cost position. So
our digital efforts new provide more than 50% all service
transactions online. This is fantastic growth over the last
year. We’re investing and providing digital solution to
all our frontline people with apps where they can provide and
get information to make the interaction with customers more
meaningful. By the end of the year we have rolled out digital
solutions to more than 20,000 frontline colleagues.
We won’t stop there. We have a number of digital products in
development and they are born digital. We’re not launching any
more products that are not digitally enabled. We also used
our competitive advantages in terms of national distribution
and brand recognition. And we want to be and to provide the
preferred axis to our customer’s homes and businesses using
Digital Solution. The see sector for success in this — key
sector for success enthis digital age for anyone in the
organisation is looking at the opportunity and not at the
threat. And this requires often a
cultural shift. It also requires a shift in thinking around
agility, time to market, and in particular putting the customer
in the centre of everything we do, because beautifully
digitally designed solutions are all about the customer. And in
that sense Telstra has, in our pursuit to become a world-class
technology company, we definitely embrace the digital
change. And with that I’d like to thank you for your attention. (CHEERING AND APPLAUSE) UNKNOWN
SPEAKER: Stay with us. We have audio back here.
Fantastic. Stay with us. We’re going to welcome to the stage
Brian Solis and Robert Scoble for a bit of a panel
conversation. We have both sides of the ledger here. The future
in Robert and the leader of our retail business at Telstra. And Brian to host
the session. I was hoping we could
get – Brian Solis I guess we can be thank youful for jetlag.
I couldn’t imagine that. With that said, excellent speech and
I have to say that I’m a big fan of what Telstra has done,
starting with the Sydney flagship store and
demonstrating what’s possible with making digital space. I
kind of want to start there, and then bring Robert into the
conversation. My write-up after visiting the Sydney store last
year said that Telstra has done something here that Apple could
learn from. And I would love for you to just share a bit of the
vision of what went in to the marriage of physical and digital
in that flagship store? KARSTEN WILDBERGER: You said
applicants can learn a bit but we didn’t pay you for that statement.
BRIAN SOLIS: It was in bitcoin. KARSTEN WILDBERGER: Who has been
to the Sydney flagship store? The vision was really to say
often we think in channels in silos. You have the context
centre and a retail business. And often you think about
competing channels, if you like. And the reality is that
customers today, they move they want they want to cross all
channels. And in any channel at any point in time and on one
journey they can pop up in different channels. The cer of
the idea is how can we bring together the best breed of
technology in the traditional retail channels based on digital
to think, to really connect the challenges and make the journey
more seamlessly? If you book an appointment in our store, we
should recognise you through the technology today. Connect you
before with your trusted advisor in your store and make it a
more personal experience. During the shopping experience you can
tack with digital efforts, all the items you looked at and you
can review them once we get back home online and go back to the
store. It is about looking at the customers and what they
want. BRIAN SOLIS: For those who have
visited and who haven’t, there was a lot of Disneylike behind
the scenes stories that I found marvellous, like the translucent
doors for all of the products, so that you never really had to
lose your representative. They never went behind the scenes.
They were always in your view, the idea that you put tables so
you could sit down together and almost at a family community
spot, the slats of the ceiling that helps you visually
understand where you were in the stores. Very thoughtful.
Robert, I don’t know if a lot of you know this, but Robert and I
are practically neighbours back in Silicon Valley. And I know
you have been at almost every Apple store and have been the
leader in a lot of the lines when a new product comes out. I
want to hear what’s your viewpoint on the convergence
between digital and physical and what that means for the future
of retail? ROBERT SCOBLE: I was at the Indy
Race and a met a film crew from the Petersen Automobile Museum
that’s being built. They’re going to have a space where you
walk in and be faced with autoracing in 180 degrees. You
get to walk in the front door and experience other racing all
around you. And that’s where I’m going with it. The world is
about to shift where the computing is on you, around you,
in your pocket, on your clothes, in your car. I mean,
think about what Apple is thinking about with the car. How
would you design a new car with no constraints? No budgetary
constraints? Apple has more money than most companies and
most countries. How do you rethink a car from the
beginning? I would get rid of all windows, maybe. Think about
a jet fighter pilot. I visited an air force
base and there are cockpits with orange glass which will have
information on all surfaces, right? One of the pilots told
me I’ll never lose a dogfight because I have better
information. That’s how I want to be in business. I want tohave
better information to make a decision faster.
BRIAN SOLIS: I have a question. I was in Kodak Booth in 1989 and
they had a digital printer there. They kicked me out of the
booth because they didn’t appreciate that I knew more
about their digital business and was more excited about digital
photography back in 1989 than they were. They didn’t believe
in it. How do you turn a business that some people in the
business know there’s a disruption coming but they can’t
convince the other parts of the business to get what the
program and what the business wants?
ROBERT SCOBLE: We could be subjected to that and you fail
how your consumers are changing. We saw the same thing with
Netflix and blockbuster in the States. An engineer went to the
board of Kodak in 1989 and introduced digital photography
and the quote was, “That’s cute.” Ignorance is bliss until
it’s not. How do companies compete in a digital economy
when you’re still selling physical goods? How do you stay
relevant? Last year David said that Telstra would always be
relevant? KARSTEN WILDBERGER: First of
all, in the digital world, especially with all the devices
around us, connected devices, the importance of
network and connectivity is actually growing. If you look at
the opportunities of cloud business and if you want to use
cloud at any point in time, there’s download and upload
speeds you need to provide. Security aspects are increasing.
So at the fundamental core, providing connectivity there is
an incredible demand out there. So I think that’s great news.
And our engineers and technical people are all inovatinging and
working with other global companies around the latest best
technology to always be at the forefront of innovation when it
comes to network technology. That’s at the core. Equally, at
the end of the day, the customer decides what they want. Lots of
our products where you have to go into a store or a cactus
centre and now you can do it online. A beautiful and simple
intuitive experience is borne out of the idea that I can do it
myself. I don’t need the manual.
That’s why we embrace very much digital solutions, to try to
design customer solutions from a digital standpoint. If
customers then still want to go to a store or want to call the
contact centre, that’s perfectly fine.
We have an incredibly large store network and that will
always be the case.
ROBERT SCOBLE: Listening to the customer very closely, not quoit
a year ago I was at a big music festival that has 200,000
attendees. I was hanging out with the geek who built all the
information systems. He put 90 beacons in the field and has all
the digital and the bands and to
check everything and stuff like that. He turned to me and said,
“I just fired my cloud computing vendor. It wasn’t you, either.” He said, “I couldn’t get through
to the customer service on my business day of the year, on the
day when everybody’s trying to register their bands and look up
their calendars for when they’ll come over the next three
days, right?” Today we’re providing support for this
company, for the cloud on another vendor.
Because we were listening. Businesses who listen have a future, right?
BRIAN SOLIS: This is an example, no matter how much innovation
or even interation that you put your bets on, if you don’t
change your infrastructure, if you do not change how you run
that business, that innovation is going to be the very thing
that takes you down. So you talk about digital first, Born
Digital is what it was. What does that mean? What does Born
Digital mean? What does it mean from a culture perspective as
journey for us. Because that was not a traditional way that
products and processes were developed in a telco world. And
what it means is that the product design, end to end, we
have a service product that manes we have the whole life
cycle of a product from purchasing decision, you buy the
product, you activate the product and you service the
product, you have an assurance in there. And then you have a
retention. Everything, the whole journey of customers is thought
through, it has to work purely through a digital lens. If the
customers want to, no manual or physical interface to a person
that has to happen. That’s the ideal world. And that also means
that data flows through the system in an automated way.
Digital is, digital – and that’s what our digital unit also
supports the business – it is truly going to a legacy process
to define them to make sure that everything flows through
ideally automatically. Because at the end of the day we hold
right, the first time, our own mantra we’re aiming for. There
is lots to do. But this work is best in a fully automated
digital way. I need to be very careful. At the end of the day
about the customer, we will always have stores and contact
centres. It’s the customer’s choice which channel they want
to use. And the experience in a store oin a contact centre
should be similar how it would feel if they were online.
ROBERT SCOBLE: CEOs tell me there’s two new business
imperatives. The first is they need to know everything about
everything. The guy who runs the four screens at a stadium, he
can see how many hot dogs are selling for a minute. He can see
which parking lots are filling up. He can see which has the
longest lines. He can see all sorts of stuff that we couldn’t
see three years ago in a sports stadium. And he’s been asked to
know more because he’s making money with the data. Think about
Uber. What is Uber? It’sidate off about the world of — it’s
data about the world of transportation and that turns
into features that pleases customers. Knowing more about
everything. If you can figure out something in that store that
you don’t yet stud study digitally with a camera or a
sensor, you’re not yet there. You’re not yet 100% in the
digital world, right? The second thing is they are being
asked to know their customer in far deeper debail. I was talking
to the Ritz’s executive team. He goes, “Dude, do you have any
clue how the Ritz started 100 years ago? We used to have a
room in the middle of the first Ritz with index cards and they’d
go through your trash and see if you ate an apple or had a
candy bar and have an apple on your pillow the next time you
came to the Ritz. This was 150 years ago. They knew the
customer really well back then. Whether they had allergies or
your kids had some special needs. Today we don’t know that.
But we’re going to get it back. And Levi Stadium was a great
example. They will know you when you come through the front
door. “Can I take you to your seat, please?”
BRIAN SOLIS: The answer is, “Yes, you can. Especially for
the Super Bowl.”
ROBERT SCOBLE: Going through the trash, it’s kind of in a
strange way the original data. We have.
BRIAN SOLIS: We have one minute left. The world of incumbents
and the way I want you to spin this, Robert, is the Uberes and
Amazons. How do you compete against what it is that you do
not know? These customers that are able to create and operate
from scratch? And you’re having to inovate based on legacy?
What advice do you have for companies in a similar position?
KARSTEN WILDBERGER: There is always the risk of disruption
and the risk that technology can make someone less relevant and
it’s important to watch that space. As I said before, with
many of the companies that people call to disrupt us, we
partner many areas. So I think there is a great space of
co-existence. Fundamentally at the core of what we provide is
connectivity. And that requires huge investment, huge
technology, security aspects become more and more important.
Quality of network, more demand. We’re very positive of actually
having our space with increasing demand. And I believe it’s
important to work in partner in today’s world and find the opportunity.
BRIAN SOLIS: When will Melbourne get the flagship experience?
KARSTEN WILDBERGER: End of November and I hope to have
another chapter in your book. BRIAN SOLIS: Robert, what can
companies learn about from companies like Amazon?
ROBERT SCOBLE: We were competitive for a long time and
now we’re a partner. We figured out we’re not going to be able
to beat them on their game. They’re going to be able to play
our game. We have something they can’t do and we can now
partner. That’s why I’m here, right? How
can we get along? Last time I was here, Gerd and I were
locking down towards the beach and counted how many Telstra
boxes were there. One every 30 feet. I won’t be able to compete
with that. So if I want to get a beacon on every street corner
I’m going to have to partner with Telstra. When I come along
with the magic leap, I will need something in that box to make
the world smart. So when I walk down the street it tells me
stuff about the local street. BRIAN SOLIS: Ladies and
gentlemen, thank you.
UNKNOWN SPEAKER: That was awesome. Thank you. Thank you
very much, gentlemen. OK. Two more fantastic keynotes to go to
close out the day. Shel Israel was a best-selling author and
speaks about technology’s impact on business and life. Been a
keynote speaker on all continents. I think we brought
you here for the first time too. Might have ticked off Australia now. Two previous books were
written with Robert Scoble and this is a sequel.
The former book focussed primarily on technology. This
new work examines how the impacts retail and other public
safety enterprises. All the way from California, welcome to Shel Israel.
SHEL ISRAEL: Isn’t that beautiful? It’s not like
militaritelligence or aeroplane food, it actually has a meaning.
It’s one that started about five years ago when I was in a bar
somewhere, I think Seattle – I’ll get to him in a minute.
Lethal Generosity, what it means, if you treat your
customers with great kindness, if you give the kind of
experience that was spoke about earlier today, you will
absolutely screw the competition. There is no way traditional marketing can take a
customer away because of a price of a weekend sale or a
deal. I started to learn this five years ago with this guy.
Does anyone recognise him? He’s strange and in some far off
land. I’m not quite sure. But Robert and I were sitting in a
bar – I think it was Seattle – he told me a story about his
first job. He was in a camera store in California. Every now
and then he would pull a trick. Someone would ask for a camera and
Robert would say, “I’ve got that camera. The guys around the
corner have a sale on for 20% off.” They would step back, go
round the corner, buy the camera. Sooner or later come
back in and say, “That was nice of you. That was a great deal. I
need a camera case, a tripod.” Those of you old like me will
remember this stuff called film. And they would keep coming back.
They would have something to talk about to this guy who sent
them away. And listen to Robert’s story and I said, “Why
did you do this?” He said, “You can lose a sale and gain a
customer and the customer is a lot more valuable.” I said that
was cool but at the time we’re in the glory of the fame and
almost fortune of Naked Conversation, our first book
together – a little while later I finished a book by myself
called Twitterville and a company in Canada, I know this
stuff is as bad as Foster’s but it’s a story about them. It is
now Corr’s and the largest brewery in Canberra. They have
had a marketing campaign about responsible drinking which is a
pretty good idea if you’re a traditional beer-maker. In 2009
when I was writing Twitterville, the City of Toronto had to have
some budget cutbacks and cut $80,000 out of the public,
eliminating free transportation on New Year’s Eve, the biggest
drinking night of the year. And Molson stepped up and said that
private industry has to step in. This is for the public good. We
need $80,000. We call upon the business community of Toronto to put up the first
$20,000 and to show our civic mindedness, we call upon our
most bitter rival to match our $20,000. This is very noble, but
they did it on something that was brand new.
Something when Robert was in the camera store wasn’t around yet,
it was called Twitter. And the people at Molson were using
Twitter and the other company was not. It started going around
that people in Toronto were just getting into Twitter,
particularly young adults, young social adults, the prime
customers, the customers you can have for 50 years. And so they
started talking about how cool this was that Molson, the
challenge. Molson never said that. The users started saying
that and it started going around. About five or six days
later there were over 20,000 tweets which probably you got
more than that today but back then that was a lot of tweets.
The local newspaper picked it up and ran a front page story
about the Molson Challenge. And they called up the other company
and said, “How will you respond?”
And the company said, “What’s the Molson Challenge?” This was
the first example of technology playing a role in a brand, using
conversations to get to customers while the competition
stood there clueless, putting their money into advertising and
other traditional activities. I wrote about this in
Twitterville and called it Lethal Generosity. A lot of
people love the expression. It was suggested I wrote a book
about. It I researched it at the time and couldn’t find enough
stories. There wasn’t enough technology out. There certainly
weren’t too many brands in the world who were paying attention
to this stuff yet. The blue bottle in the corner is the
other company and they were caught in the quandary. They
could follow the challenge of their leader and establish
Molson as the thought leader, or they could say, “No, and
support irresponsible drinking on New Year’s Eve.” They ponied
up the $20,000 and adhered to the competitor’s challenge.
This story I got in 2013 – the guy in the middle is an old
hippy. He went to UC Berkeley and got into the out of doors
movement. They started a company that got based in Berkeley
called The North Face. It’s a brand challenge and named after
the Eiger Pass. He didn’t have any money
for advertising and marketing. He said, “We couldn’t even
afford rent most wunts.” But he came up with an idea and
called it the lifetime guarantee. And this guarantee
was if anything goes wrong ever, we’ll make good on it. Around
the corner was Sierra Designs. They said, “We do that too.” So
a Sierra Designs customer comes in and goes up to the chief
salesman there and the cashier and a whole lot of other things
at the time that he was – I got this thing from Sierra Design
and it’s a backpack and the zipper is broken. They said
they’ll make good on it but they’ll send it to the
manufacturer and they said ask The North Face what they can do.
They said, “Come on in. Have a seat.” He went to the other side
of the building where they were making the stuff. The stitcher
stitched it up. Handed it back to the customer. The customer
said, “Fabulous. I can go on this big trip this weekend. How
much do I owe you?” He said, “Just enjoy your trip. Have a
nice time.” That guy has been a customer of The North Face for
50 years. He has broughtane an incaliable number of people.
This story appeared in a column I wrote for Forbes. It was a way
of branding the company as the company that is centred on the
customer and what the customer needs. They will guarantee what
they do no matter what has gone wrong with it. If you have a
problem and you’re in our community we will help you
because we’re in the same community. The result is Sierra
Design was flipped over. That’s why you see an inverted logo
there. It landed on its head because there is nothing sweeter
than being kind to a person and stealing them from your competitors. In the book I
wrote with Robert in 2013, we talked about the convergence of
five technologies – social, location technologies, sensors,
and mobile and data. This book talks about the convergence two
years later of those technologies with the new
generation of humans. The millennials. Self-absorbed,
much-maligned and a lot of books and magazine articles and TV
commentaries written by old people like me disparage them. I
dedicated the book to them. I think they’re the best hope for
the planet. And I think that they are, above everything else,
the generation, the first generation in the world to be
born comfortable with the technology. Most of us, if we
learn a language before we’re 14, we can speak without an
accent. If you learn it after roughly the age of 14, you’ll
always have an accent. Most of us in a reek of a certain age
were still a little uncomfortable with technology,
as much as we use it and love it, it’s still uncomfortable.
When I was a kid I wondered how the little guys got into my
radio. They’re so natural with it, when you think of sales and
the places and the factors that are involved, you overlook the
phone, you’re missing the most important companion. What’s real
important about the millennials is there’s a lot of them. The
last watershed generation that impacted the marketplace are
boomers and boomers are getting old and as nature will have it
we’re diminishing in numbers now. In 2015, millennials took
over in the global marketplace to be the largest geographic
segment because they’re having fewer babies than prior
generations. They’ll be dominant for another 50 years according
to experts. There’s a lot of things about
them that are universally true. It can’t be denied anymore. One
is that branding efforts to get them to want something don’t
work. What works is friends talking to friends. What works
is customers talking to future prospects. This turns marketing
upsidedown. There is a power shift that’s going on. And the
shift is not complete, not total, but it’s going from the
brand marketer to the customer. The customer is now in control
for the first time in marketplace history since the
good old days of the shop on main street – that’s a US
cliche. But simpler times when the clerk behind the counter knew every customer.
As employees, millennials are a different breed. Many people
would complain they hire adbatch of millennials and they sit
around talking to each other, using their phones, looking all
the time saying, “That’s good stuff.” A lot of millennials
have this attitude that their elders and their employers
sometimes don’t like ’em. If you want to get my trust, do
something to trust me. When I first heard this I was clueless.
I didn’t know what it meant. This guy, Dave Donovan, works
for United Software in San Francisco. He was in a company
that hired a bunch of millennials because they wanted
to get more millennial customers and wanted all the
collaboration and the good stuff. And what he did was he
opened up one morning and someone directly reported to him
and asked him to be his Facebook friend. Seemed simple
enough. Seemed easy enough. The problem was that it had never
happened in the company. He did it. And low and behold other
employees started asking their bosses to friend them. And
within a year the company completely changed, better ideas
were coming from younger in the organisation, meetings were
eliminated. They started a private Facebook group and
started to exchange ideas and information all the time every
day over there. If you want to get lethal, let’s talk about
incumbent companies facing contextual competitors. There
are three basic groups of these competitors – the sharing
economy is the one that’s talked about the most. Like Brian and
a bit cynical about how much sharing is going on in this
sharing economy, with all deference to the gentleman from
Uber who I don’t see anymore. What is different about the
sharing economy is as a software platform and it’s competing
with brick and mortar and the advantages of an established
brand. And the efficiencies of us in marketing and sales and
everything is enormous and unstoppable. The customer
becomes the channel which is a part of most millennial
marketplace strategy. Or it should be. And what the sporns
they had in the store matters most than anything. Millennials
in particular and the rest of us have fallen for this – listen
to what I say I want and stop telling me what you think I
wants and maybe we can do a deal. If you want my data,
that’s great. What will you give me for my data? A second
category millennials have spawned was started by the guy
in the upper left hand corner. How many of you have heard of
this? My wife likes it. They cost less than the shoe she used
to buy. The thing is every time you buy a pair of their shoes
they give a pair of shoes to a poor kid that needs them
somewhere in the world. When they do that the customer feels
like they’ve done social kid. When somebody tells my wife that
these shoes go niceply with those slacks. She ez, “They know to kids that
need it. The girl in the middle is not a customer, she is
wearing some glasses. It’s a millennial start-up that
is growing in very, very rop udly, selling on websites. They
give a pair of glasses every time that a customer buys one.
They buy them for cheaper than they can in other stores. The
third guy is less known. He started a company. He takes
personally good vegetables and turns them into health and
beauty products. Cucumbers, carrots, blueberries and so on
down the line. He’s now said nine companies with the same
model, each one of these companies does something organic
in this area and then contributes significantly to a
cause that’s connected with it, and as he said, and repeated
questioning, “My marketing strategy is my customer. What I
have to do is keep my customer happy. And they will get me
other customers and it’s a lot cheaper than advertising.” He’s
making millions and doesn’t spend much on advertising. I
can’t say zero but it’s very minimalist. What’s a big company
to do? You’re being hit with all these new business models.
None of these companies have the luggage, the legacy and the
continuing advantages of brand. There is something to be said
about brand that’s been established, been around for
years. It does have familiarity. And still it maintains trust.
Although that’s all tapering. That’s been discussed quite a
bit today. My advice is if you can’t beat
’em, join ’em. Robert wanted me to name this book Uberise
Everything. I decided not to do that. Uber was involved in one
of its larger controversies which we won’t go in to now. But
I think what you need to do is Uberise what you can. If you’re
a big company find things you can do to join up with this
marketing and join up with automating everything you can to
make the experience of the customer as seamless, as
frictionless as you possibly can. This is an American chain
of stores that are very successful. They compete with a
bunch of other stores which are also developing their own
strategies. In this first picture, it is located exactly
in the flagship San Francisco shore where Nine West had been
located the year before. They find they’re more popular and
more sales are being made with them being in the middle. A
woman’s collective is part of that as well. They’re located in
Sub-Sahara Africa. They make beaded jewellery and pottery in
the tradition of their ancestors. And through the
affiliation there, these goods are now sold on the shelves with
a little card about what the story is about them and the
competitors are the only ones who are not allowed to do the
right thing. The guy on the right shows another company
that’s good. Everything he’s wearing from shoes to glasses comes from lace retrieved from
the ocean. Some parts are seaweed that’s been recycled and
turned into thread. The rest of it is trash pulled out of the ocean. Has anybody heard of
a company called Telstra? Yeah.
How many have you have gone into their store? Yeah. Yeah. I usually will
eliminate someone who generously sponsored part of my book and
invited me to come speak here and is going to give some of you
books out in the lobby later, but I couldn’t help but make my
first tourist attraction – the Telstra store –
I was also on my way to the Opera House. I stopped in there
for a visit and the very nice sales lady who never had heard
of anybody I knew at Telstra, took me around and showed me
everything there. She was curious as to what I was doing
and why I was asking the questions I was. But from when I
entered there and I was asked to go for an appointment, I
realised one of the magics of what Telstra is doing that I
haven’t seen anywhere else. They’re becoming truly omny
channel. If you’re in retailing or branding, you understand that
means that your sex works with your store, it works with —
your website works with your store, it works with other areas
too. It just doesn’t happen that way because there’s a bunch
of silos. When you go into this store, if you’ve opted in, they
know what you looked at on the website the night before and can
have those goods ready for you. products, you can compare them.
If you still can’t decide, you can go to another silo which is
your own home, with an old technology and a C card and look
at the dita more closely before you make a decision. You can
buy online or around the store or wherever you want. I think
this will be very imitated. Coming soon and I’ve run out of
time, so I’ll be very quick. To the left are a bunch of
mannequins in the store window. They don’t exist yet but they’ll
have beacons on them. And in the future they may be connected
to something, a peer to peer technology coming along. But
these beacons will take a signal from a phone, through the
cloud, of course, and let the store know that you’re
interested in those goods. And if they happen to know who you
are because you’re a loyal customer, they’ll know your size
and the colours that you probably prefer. The person in
the middle there is using a phone store. Retailers know this –
browsers are before you go to the dressing room. So when
you’re browsing, you probably want to be left alone, but as
soon assia go into that room and come out wearing something, you
want help. And the browser becomes a customer at that
point. One you’re probably familiar with – Apple pay and
that kind of stuff? Wow. It’s coming to Australia very soon.
It means the death of the plastic card. It means the death
of the long wait with that little gizmo that says
processing. It’s one more way where everything is being
Uberised one piece at a time. When you get out of Uber, you
don’t pay, you just leave, and it gets recorded along with the
tip. That’s going to be every you buy. Ultimately, what I’m
talking about is pinpoint marketing. Pinpoint marketing is
the ability to understand every customer on a global basis, who
they are, where they are and you can predict what they want.
It’s very powerful. And it doesn’t take putting any
messages at all in front of them. One factor I would go over
comes from the CMO of Vision Critical, a company that does
business in Australia. He told me at the end of the day
it isn’t about technology, it’s about people. That’s my story.
I’m sticking with it. Thank you very much. Thank you for your
time. MONTY HAMILTON: Thank you very
much. Well, on the topic of lethal generosity, Shel will be
signing his book outside at about 530 clc. I’d like to
welcome to the stage Karen Stocks. Her second porns at the
digital summit — her second experience at the digital
summit. Take tuway, Karen. KAREN STOCKS: Thank you. Turn
the volume up for me, please? I thought we could start up with
something pumped up. I have the last slot before drinks. So get some energy going. Get up and
dance if you wants, if you have the urge. Pthe urge.
Um, absolutely delighted to be here. Thank you for having me.
We have seen this all through today. Mobile has disrupted
absolutely everything. I think a lot of people have seen this
tweet and wouldn’t be surprised around, “Really, what is this
dude doing? Hasn’t he got a life? Doesn’t he have a mobile
device?” Twirt is a company that was founded — Twitter is a
company that was founded on mobile. It was found with a
simple text message to the public which said, “What’s
happening?” By asking that simple question, getting more
and more people to answer it, what we find over time is
Twitter is a window into the world. It is telling us what is
happening right now, what’s happening in this moment? As
people ask this question, what we’re seeing on Twirt is what’s
happening in the world is coming to you 10 to 15 minutes faster. 10 to 15 minutes faster we’re
seeing on Twitter what’s happening in the world, what’s
happening in your local area, what’s happening with your
customers, business and your competitors. There’s a great way
for you to understand. By looking at Twitter, for people
outside of this room, I can tell you primarily what people are
doing at the moment. So in about 4:30, 5 o’clock on a Monday
afternoon, people are picking up their devices and looking at
videos. So this is the biggest trend we’ve seen happen in the
past 12 months. As people hit the downtime towards the end of
the day, we’re starting to see this kind of behaviour happen.
Mobile is growing really fast. What we’re expecting to see
between now and 2019 is mobile viewing growing by 13 X. On
Twitter alone, and a lot of this is on Telstra, we’re seeing it
grow 150 times in the last 12 months. That’s got a lot to do
with some of the products we’ve released when it comes to video.
I’ll take you through those a bit later. 90% of Twitter views
are on a mobile device. So we’re seeing again this trend of
people looking for snackable content that they can do on the
go when they’re in their mobile space. We’re seeing these
moments happen on Twitter and whether some of our brands about
what’s happening. People here like
Cody Simpson. Or just media. And we’re seeing all of this
content sitting on Twitter, on video. What else we’re seeing is
live video that’s happening in the moment has an emotional
response rate that’s 51% higher than normal. It has a personal
relevance that matches basically receiving a personal letter.
Hands up if anyone has received a personal letter in a while?
It doesn’t happen very often. You know how special that feels.
So live video, when it’s timed right and delivered to you, has
exactly the same personal relevance and the high emotional
response of receiving a personalised letter. What we
also see – and this is unique to the Twitter platform – is the
power of the retweet. If you can put your content out there, you
can earn media 5 to 10 X of what you paid for it. What we
see is that video on Twitter gets retweeted on average six
times more than just photos. It’s a really popular medium
that you’re seeing and something the businesses can take
advantage of. That’s great. But what do we do? How do we create
content on the platform that will engage our customers? I
want to talk about a brand over in the US that deals with
feminine hygiene products. And they wanted to take a position
around something they’d seen in their customer base. That’s
around girls from ages 10 to 12, as they’re going through
puberty, lose a lut of their self-confidence. They use the
power of video to get their message across. Let’s look at this. Hi. Hi. I’m going to give
you some actions to do. And just do the first thing that
comes to mind. Show me what it looks like to run like a girl. Show me what it looks
like to fight like a girl. Now throw like a girl.
UNKNOWN SPEAKER: I’m 10 years old.
UNKNOWN SPEAKER: Show me what it looks like to run like a girl.
Throw like a girl. Fight like a girl. What does it mean to you
when I say to run like a girl? UNKNOWN SPEAKER: It means run as
fast as you can. KAREN STOCKS: A fantastic
program released there. It’s brilliant. And because
they shared it on social platforms, because it had the
abilities to be retweeted and had a conversation, it grew
bigger and better than just the simple video they had. And some
great tweets from other businesses that are jumping on
the band wagon with a product that has nothing to do with
them. And a great opportunity to use a product like video to do
that. What we feel we have seen with
video on Twitter is we get an increase of 40% campaign
awareness, an increase of 44% of purchase intent when people
engage with promoted video versus those that don’t. Another
great way to use video in the platform is Vine. It’s a
6-second looping app. It’s on your mobile device. What we’ve
seen with the release of Vine is we’ve seen this great view
world of really cool content created.
That is one of the best there is. What they do is they create
these really unique videos that people can use and brand can use
to get their message across. One of the brands that hat used
Vine really well – sorry, I could go back – was a company
called HP with a Bend Their Rules campaign. They built this
beautiful TVC to run on television, to run on prime
time. They spent all of this money planning this TVC. They
launched it. And it flopped. Just didn’t go how they wanted
to. The TVC was beautiful but didn’t get the message they
wanted around the new product HP was putting out there. They
went to a group and gave them the laptop and they said, “You
go and make content.” Here are some things they came up with. So really clever
unique ways from these groups of people that just think
differently about how to package content. What HP went and did
is they went and stitched the Vines together and created a TVC
which was the first time a company had put a TVC based
solely on Vine back on to mainstream television. What HP
have done this year is they’ve done it again and this time
they’ve done it with a new campaign. A lot more seamless
than this one was. And done solely
through Vine. Bend the rules of what’s possible. Just a really smart
way. And HP got from this campaign s how do you get social
connectors and content creators and move them to traditional
media? Use the reach of the social content creators. These
guys come with massive audiences businesses can tap in to and
they’re a good way to engage the millennial audience. A lot of
businesses I speak to say that we don’t know how to get in
contact with these guys and how to relate to them.
Here are some great examples of Australian brands that are
leveraging Vine. Some great examples whether it’s Dr Who,
Coles supermarket, Seek, Virgin Mobile, Samsung. And Qantas.
Really interesting unique ways to get your brand message
across. What I wanted to talk to you about is a new product
called Pair scope. — Periscope. It is a product from Twitter.
For those of you who don’t know exactly what Periscope is, I’ll
get Ellen to explain it. ELLEN: Have you heard of Periscope yet?
We use it on the show, so you’re busted. Means you don’t watch
every show. You missed out. I’ll tell you what it is. It’s an
app that lets you stream anything you want any time of
day to strangers all around the world.
That’s the good news. The bad news is it lets you livestream
anything you want any time of day to strangers all around the
world. It’s actually pretty fun. People Periscope themselves
eating breakfast, lunch and dinner. And I even saw someone
eating brunch. KAREN STOCKS: When you talk to
the founders of Periscope, what they wanted to do was create a
platform that was the closest thing to telepertation. How
could I teleport —
teleportation. How could I teleport myself to any moment in
the world realtime? The product has only been around for
eight months. UNKNOWN SPEAKER: Here we go. And
we’re off. UNKNOWN SPEAKER: We’re in
Thailand. UNKNOWN SPEAKER: Hey, guys.
UNKNOWN SPEAKER: We’re in a village in Nepal.
UNKNOWN SPEAKER: We’re at the observatory.
UNKNOWN SPEAKER: People are getting on with life.
UNKNOWN SPEAKER: Hope you enjoyed it.
KAREN STOCKS: Um, one thing we’re really proud of and one
thing we’ve been tracking is the amount of live video that’s watched daily. At the moment,
after only eight months, we’re tracking at 40 years of live
video watched every single day via the Periscope platform. A
quick touch on some of the key product features because it’s a
new product out there. What you can do is live broadcast from
it. And it is a way to have a conversation so people can type
questions to you while you’re actually broadcasting and you
can see those come up on the screen and so can anyone else
watching the broadcast. You have to ability to do Hearts which
is great way for you to find out which parts of your Periscope
are really engaging and people can start seeing those through
the Heart. There’s a map that shows you all over the world how
these Periscopes are coming to light. And you can follow other
users. The Periscope stay on the system for 24 hours after they’re finished
and then they’re gone. I want to take you through a business
called Sky Scanner. They’re a booking company. They wanted to
try and show some fantastic content because they didn’t have
any content around the places they can take you through their
business. And here is an example of what they did.
UNKNOWN SPEAKER: Ready. Hello from London, everyone.
UNKNOWN SPEAKER: Quickly wanted to show you this.
UNKNOWN SPEAKER: Hi, everyone. UNKNOWN SPEAKER: Welcome to to this.
KAREN STOCKS: The whole idea of what they were trying to do was
have a live Periscope for 24 hours where they had 24 bloggers, local bloggers
positioned all over the world and they did an hour in each of
those cities. Not only did they take their potential customers
and audience on this journey, they created a lot of amazing
content they can then go and use for their business. We’ve seen
a couple of great local examples as well. Myer used Periscope
for their Spring Fashion Show around some of the designs
they’ve got coming out. I’m loving this next slide because I
didn’t have to take it out today because some of you have
been up since 2:30 like me this morning. A Periscope of when
they ufnounced who would make the Rugby World Cup team.
Another great way for businesses to think about how they might
use it. You can see the comments and hearts coming up as the
livestream happened. For a business, really quickly,
how are some different ways you can use Periscope, how can you
think about it? Product launches and announcements.
Livestream. People love hearing about it in the moment if they
can’t be in the room themselves with you. Customer education.
Customer tutorials that you can do. Common questions you’re
getting and how can you answer those questions on scale in an
authentic way because it’s live? VIP access behind the scenes.
Very similar to the Myer Fashion Show. For those closed events
that you want to hoe the world but you can’t because you want
to maintain exclusivity. How can you open that up to the world
in a different way? Live events in general. KFC did a good Q&A
in theback of their stores. One of the challenges they have as a
business is what are you real eaf cooking? A lot of questions
the fast food industry get. They did a live Periscope in the
kitchen with the cooks. So people could see what was
happening and then the audience could ask questions at the same
time and the KFC cook could answer it. What I did want to
finish with because I have about a minute left, is when I spoke
before around all the information that exists on
Twitter and as a business or as a consumer, or as a brand, how
do you find out about that and how do you make the most of it?
One of the things we’re trying to do at Twitter is make finding
that information much easier, much more emersive. And in a way
that’s quick and easy. In the US earlier this month, you may
or may not have seen this – we launched a product called
Moment. Please don’t ask me when it’s coming to Australia
because I can’t tell you. I wanted to give a sneak preview.
I get asked questions about this every single time. I thought
I’d stho you this — I’d show you this video from the US
quickly before I finish up. The whole idea is you pick up
your phone, you go to the little tab with the lightning bolt on
it and flick through to the moments that are happening in
the world right now and they are locally relevant to where you
are. In the US all based on the US and tabs spor fort,
entertainment, tabs for fun. And might be pictures of Trump or
other interesting things. There is a really great way for people
to see in an instance, through a really emersive experience
around what is happening in your world right at this moment.
Thank you so much for having me. It’s been a delight. Thank you.
MONTY HAMILTON: Thank you so much. Thank you for joining us.
What an outstanding collection of videos. And the videos, it is
enormous the growth of them. Thank you very much, Karen, for
sharing those insights on behalf of Twitter and Periscope. You
can follow Telstra on Periscope. There’s a couple of shows each
day broadcasting from our team over in Adelaide. We’re just
about done. A couple of closing remarks from Gerd Schenkel to
wrap up thevent and a very important presentation from the
incredible ticket sales we’ve had for today. Gerd Schenkel, please join us.
GERD SCHENKEL: If you didn’t have enough propaganda for
Telstra, this would be my opportunity to even the score.
We had plenty offered and everyone has been very kind to
us. What we’re really trying to do with the Summit is to create
a platform for a diverse conversation about digatisation
in Australia, what does it mean for you and for us? What’s good
for Australia is good for all of us, including Telstra. I
think we did have that today with an amazing array of
speakers. We heard from Andy about Telstra’s future as a
world-class technology company and we were
talking about a multichannel environment. And we heard from
the Minister, a new focus on technology. We heard about
coding and the importance of teaching people how to code. We
have heard from Robert Scoble about the post mobile era, not
sof kind to Telstra perhaps. We heard from other start-ups about
how it can be done in Australia and how start-ups can be global
from the outset, right here in Australia. We heard from Rob
about the power of communities. From David about how Uber is
changing every industry on the plan. We heard from Larry,
Prince of Pockets as I call him, about how Australia can lead in
cutting-edge signs. I was blown away that these things were
going on here and didn’t know about them. We heard from Brian
about how we have to inovate our day. From Shel how software
breaks every time and finally from Karen about the power of
video content. Lots to think about. If I compared a
conversation this year with the conversation at previous
Summits, there is a renewed optimism for digital in
Australia. I think it’s palpable. We heard from local
people and from people from overseas that it can be done. I
think Larry said we’re at the cusp of really assembling all
the components of the innovation ecosystem right here in
Australia and I think that gives us all renewed cause for
optimism. Thanks to all of you for attending and making the
conversation happen. We hope to continue the conversation on
Twitter and over drinks right after this. Thank you to our
corporate supporters who support the event financially and
thanks to our amazing speakers. There’s one more thing to do
before we move on to drinks and Monty will join us on stage for that.
MONTY HAMILTON: Thank you very much.
GERD SCHENKEL: Not for me? MONTY HAMILTON: No, someone very
special. I would like to welcome to the stage now. Welcome. Thank you for
joining us. She has just started as the CEO of the NCIE and and look, welcome and
we have had a long-running relationship with the NCIE for
this event and Telstra through the Telstra Foundation. And is
there any comments or anything you’d like to share with us
about the NCIE briefly?
KIRSTY PARKER: I want to tell you what it stands for. It’s a
rallying call because it stands for the National Centre for
Indigenous Excellence. And I want to say thank you, Monty,
thank you, Gerd. And the NCIE and the
Telstra Foundation have partnered for five years to
bring Indigenous excellence together with digital
technology. We’re very excited what can happen when we bring
our young people and our perspectives together with
digital technology for the expressions of our cultures
which are the oldest living cultures in the world, with
cutting-edge technology. The aim of NCIE is to liberate
possibility and create opportunity for generations of
young Aboriginal and Torres Strait Islander people and it’s
hard to think of something that does that to a greater extent.
So our young people may inspire and are very proud. With the
support of the Telstra Foundation and all of you
because you all helped contribute to this magnificent
big cheque, that they will also make everyone in Australia and
beyond inspired and proud as we. So thank you very much. — as
well. So thank you very much. MONTY HAMILTON: On behalf of
tell truand everyone who was — Telstra and everyone who was a
paying ticket holder, we’re pleased to donate $45,400 to the
NCIE. Well done.
UNKNOWN SPEAKER: Thank you. We hope you’ll put it towards
something nice. MONTY HAMILTON: They’re
incredible facilities and I think you’re doing an amazing
job. Thank you for your support. KIRSTY PARKER: Thank you.
MONTY HAMILTON: It has been incredible. Thank you for making
it sure a special day. Drinks outside. So please stick around
and have a chat. A lot of our speakers will be here for a
drink as well. Have a fantastic night and thank you again. (End of session.)

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