Transcript No Slide Title

Technology & Innovation……
The past, the present and the
future…..?
Andy Button
Divisional Technology Banking Manager
HSBC Bank plc
InfoLab21 : Technology Matters
6th September 2006
The Global Business Environment
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The Internet
Location irrelevant
Productivity
Network-centric not location-centric
Think globally, act locally
Globalisation
• E-Commerce markets are not the same as old
markets!!
• Networked markets can change suppliers overnight!!
• What happens to markets happens amongst
employees!!
• Markets know more about products than companies
do!!
• Markets are smarter, faster and more informed!!
• Exponential change is like a runaway train…….by the
time you see the danger, it’s too late!!
(kind permission of Peter Cochrane)
The Knowledge Economy
• Science & Innovation Investment Framework Chancellor July 2004
• £185m (124 awards) over next 2 academic years
under HEIF 2
• R&D spend to increase to 2.5% of GDP by 2014
• Wellcome Trust expects to commit £1.5bn in UK
over next 5 years
• Technology & Innovation accounts for 8% of
GDP
What is Innovation?
“The commercial application of new ideas”
• USP provided by science/technology
• Invention + entrepreneurship
– more growth in last 150 years than previous 1000
• Contrast China 7th - 12th centuries
– invented paper, movable type, clocks, gunpowder
– but government prevented wide exploitation
• Japan 1950-95: 55% of tech came from UK
The Knowledge Economy
• Science & Innovation Investment Framework Chancellor July 2004
• £185m (124 awards) over next 2 academic years
under HEIF 2
• R&D spend to increase to 2.5% of GDP by 2014
• Wellcome Trust expects to commit £1.5bn in UK
over next 5 years
• Technology & Innovation accounts for 8% of
GDP
Microsoft Corporation 1978
“I went to my bank first and met a very nice chap,
very friendly. It turned out he was normally doing
things like lending money to people to set up
newspaper shops. He did not really feel qualified to
comment on my adaptive non-linear pattern
recognition technology. But he did give me a good
piece of advice, which I carry with me even now,
which is that people will always buy confectionery.”
Mike Lynch CEO and founder of Autonomy.
5 Dec 99
The Empathy Gap
Business Characteristics
Banks Prefer
• High growth rate
• Fluctuating cash needs
• Steady growth forecasts
• Stable cash-flow forecasts
• Business inexperience
• Track records
• New market/technology
• Documented market
• Low fixed assets ratios
• Good fixed asset ratios
• High gearing ratios
• Low gearing ratios
Start-up Investment Profile
Value
Risk
Friends
& Family
Venture
Capital
Angel
Investors
Investment
Banks
Equity
Gap
Time
“Seed” 1st Round
2nd Round
Mezzanine
IPO
The Business Plan
Choose a card …….
keep it in your mind for a
few seconds…………..
The Business Plan
Card has
disappeared!!!!!!
The business plan
should contain realism
- avoid “smoke &
mirrors!”
Understanding the Technology
Does it work?
Risk
USP/ How innovative?
Market?
Timeliness?
Longevity?
Family of products?
Management?
Priority
IPR?
“The Present……. ”
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Wireless technologies - Bluetooth, Wi-Fi & 3G
Broadband - networks & infrastructure/ ASPs
Network security - viruses
Smart card technologies/ biometrics
Radio Frequency products
Nanotechnology
Biotech (drug discovery, diagnostics & devices)
“Green” & Environmental - Renewables
Digital Media & Software
Famous past quotes……!!!!!!!!
• “I think there is a world market for maybe five computers”
(1943)
• “Computers in the future may weigh no more than 1.5
tons” (1949)
• “But what………is it good for?” (1968)
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“There is no reason anyone would want a computer in
their home” (1977)
• “640k ought to be enough for anybody” (1981)
The Future……?
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VDU displays will come in rolls like wallpaper
Quantum computing
Utility computing
Omnipresent Computing
Telephone communications will be virtually free
Desert Reclamation including new megatechnologies
Ocean Farming
Genetics will give new biomimetic materials and “designer” foods
Expert systems will redefine artificial intelligence
Micromachines
Automated Transport Systems
Virtual reality
And finally…
• Reliability
• Route
• Resolution
• Risk
• ‘Rchitecture
• Reward
Why the business plan?
“If you do not change direction, you
may end up where you are going”
Lao Tzu
(604 -531 BC)
Technology & Innovation……
The past, the present and the
future…..?
Andy Button
Divisional Technology Banking Manager
HSBC Bank plc
Thank you.