Tatu Koljonen, Director for EIT Digital Finland, talks about hyperscalable business logic at the Automation Summit in Västerås, Sweden, on Thursday 3 September. Automation Summit is a two day conference focusing on the development and future challenges in the automation industry.
Abstract of Dr. Koljonen's speech
Hyperscalable business logic -recipes to the H2H business
Productivity increase through scalable production of goods was the idea in industrialization. In scalable business output grows more quickly than the input. Industrialization opened the whole world as a potential customer limited only by the cost of logistics. The world order is again changing and the good old export industry is struggling. We have noticed how the digital component, bearing no logistics costs, changes the industry dynamics, especially in terms of how businesses scale. New hyper-scalable businesses based on digital services and digital products have emerged. Initial examples are from gaming and entertainment. The bad news is that internet of things (IoT) makes the real world susceptible to digital tools and ways and consequently the new industry dynamics will eventually find its way to realm of traditional businesses and whole society. We have to learn how to embrace the new hyper-scalable business logic, due to which global natural monopolies will emerge in smaller and smaller pieces of innovation.