Europe cannot afford another Doha Round

Mikael Hagstrom
Mikael Hagstrom|May 16, 2013

As the European depression deepens and unemployment soars, policymakers are desperate to restore growth in a region crippled by debt. Opportunity knocks, but the question is: will Europe learn from its mistakes?

To help address this issue, I’m in Brussels speaking at the European Business Summit, where the hot topic is the Transatlantic Trade and Investment Partnership (TTIP). In short, TTIP is a trade agreement between the EU and US that seeks to bring convergence on key standards and regulations for the benefit of both economies. If successfully negotiated, TTIP would be historic in scale, supercharging trade in a transatlantic economy that already swaps nearly $1 trillion in goods and services each year.

In his recent State of the Union address, President Barack Obama put his stamp of approval on TTIP, announcing his intent to initiate an agreement with the EU. According to his executive office, “a successfully negotiated TTIP would aim to boost economic growth in the United States and Europe and add to the over 13 million American and European jobs already supported by transatlantic trade and investment.”

More jobs, more investment, more growth … this all sounds good, but will it happen? The Economist thinks TTIP has a good chance of surviving. While I commend the EU and US for its vision, I can’t help but remember the failed Doha Round launched in 2001, where similar trade negotiations between the EU and US stalled over emotions.

Like TTIP, the Doha Round aimed to lower trade barriers for global economic gain. Yet, 11 years later, no agreement has been made as the EU and US remain deadlocked over, in essence, the particulars of trading beans and rice. Despite the fact that agricultural trade accounts for only 8 percent of world merchandise trade, this issue became the linchpin in the Doha fallout, a missed opportunity said to be worth hundreds of billions in lost trade.

Facing economic crisis, Europe cannot afford another Doha Round. Europe needs an alternative to austerity and that starts with a transatlantic partnership that enables the private sector to fuel inclusive growth through more public-private partnerships. Holding on to protectionism policies of the past will only lead to further austerity and social unrest, which threatens the very foundation Europe is built on. Options are narrowing quickly, and approaching current negotiations in the same way as the Doha Round will prove fatal unless balanced with policies that promote free trade, especially in huge growth areas like the digital economy, which is estimated to reach $20 trillion in value this year.

EU and US relations are at a turning point, and the benefits of TTIP could be tremendous for the transatlantic economy. I encourage policymakers to heed the lessons of the past and bring these negotiations to a successful close. After all, TTIP is not a zero-sum game, but rather a joint effort to put our transatlantic economy in a stronger position to meet the competitive challenges of tomorrow. Let’s rise to the occasion.

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Q2 2013 Intelligence Quarterly: Bring big data to life with visual analytics

Mikael Hagstrom
Mikael Hagstrom|April 3, 2013

We are shifting from a world in which we think we know into a world in which we know and we can prove it. This paradigm shift was made possible by our newest and most important asset class – data. Consider that 90 percent of the world’s data has been created in the past two years, with that number expected to double in the next 18 months. Now that is big data. But the value really starts when you liquidize the data asset using visual analytics.

Just as the steam engine was central to the industrial revolution by providing a convenient source of power, being able to harness the power of big data is central to the digital revolution. With analytics, the data asset allows us to benefit from our collective knowledge and outperform previous generations in efficiency and innovation. That’s good news, as the potential economic and social benefits are endless.

In the digital economy, the new asset class can positively affect a broad range of issues, including improving health care, eradicating unemployment and fueling economic growth – all while fostering inclusive growth. In this issue of Intelligence Quarterly, you will find stories of many organizations that are transforming the data asset into a driver for greater public good as well as a competitive advantage. Will you be the next to unlock the power of big data?

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The little engine that could

Mikael Hagstrom
Mikael Hagstrom|March 21, 2013

“I think I can, I think I can ...”

Chances are, you’ve heard this phrase before. Popularized in the children’s book, “The Little Engine That Could,” the iconic phrase is repeated throughout the story by the small engine as it struggles to tow a heavy train over a mountain.

In the end, you guessed it – through the power of optimism and hard work, the tiny steam engine was able to overcome the challenge and save the day.

While in Mumbai last week for SAS Forum India, I compared the technological promise of big data to the steam engine during an interview with Business Standard. Just as the steam engine was central to the industrial revolution by providing a convenient source of energy for transportation, big data is central to the digital revolution by enabling us to benefit from our collective knowledge and outperform generations past in efficiency and innovation.

In other words, cresting that mountain now would be a cinch.

In my opening keynote at SAS Forum India, I elaborated on the power of big data before an audience of SAS customers, data experts and industry leaders. My theme was “big analytics + big data = big opportunities,” and I didn’t miss the chance to point out India’s unique big data opportunity, noting the country is projected to add more Internet users than any other country in the world over the next three years.

This digitization could add as much as $100 billion to India’s GDP by 2015, according to a study by McKinsey & Company. While other developing nations focus on things like automation, India has moved beyond this point and can now focus on using data and technology to improve work processes in its skyrocketing manufacturing and IT sectors, for example.

As I noted on stage, big data is also useful beyond business. When leveraged with analytics, it can enable governments and regulators to avoid financial meltdowns, and underpin advancements affecting a host of public issues, including health care, unemployment, education and economic growth.

Knowing that data is emerging as a new asset class, it’s clear the economic and social benefits are infinite, especially in India, where the rising economy is fertile ground for those willing to leverage this asset.

In the digital era, hard work and optimism will only get you so far. To capitalize on the opportunities of today, the right analytical tools are needed. Those who invest in the tools can move from “I think I can” to “I know I can.”

Hop on board.

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How to stand out in a world of in-memory, analytics and data visualization

Jim Davis
Jim Davis|March 19, 2013

If you do a quick comparison of today’s big data vendors, everyone looks pretty similar on the surface. Especially if you check the glossy brochures and promotional Web sites, you’ll find that everyone from small BI products to large database vendors are proudly showcasing:

  • In-memory capabilities
  • User-friendly interfaces
  • Rich data visualization
  • Robust analytics

How does SAS differ? The way we handle in-memory and analytics is different – and it’s not a small difference.

Everyone else is providing business intelligence really fast with a nice interface. But they’re not providing advanced analytics really fast, such as price optimization, predictive modeling, forecasting and statistical analysis.

Why? Because the structures of in-memory databases that rely on a strict SQL environment limit the types of analysis you can pull out of the system.

Everyone in the market right now is offering a system built on an in-memory database. Only one vendor is providing an in-memory analytic server.

So, what is that? It is an environment optimized for analytic processing.  It is an environment that can deal with large amounts of data and the multiple passes necessary to take on advanced analytics algorithms.

These are the features that others don’t have. The difference between an in-memory database and an in-memory analytic server is the difference between the top and bottom half of the grid I showed when talking about big data BI vs big data analytics.

Without the in-memory analytic server, you’ll be unable to support proactive analytics because your analytics are limited by the structure of the database holding your data. You’ll still get fast answers in a pretty format, but the answers will be limited to the past. If you want fast answers that look into the future, there’s really only one choice.

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Dispatch from the road

Mikael Hagstrom
Mikael Hagstrom|February 4, 2013

This is the closest I’ll ever get to travel writing.

I was on the road the past two weeks, traveling in Europe to various speaking engagements. This tour has taken me from the sparkling waterways of Stockholm to the snowcapped mountains of the Swiss Alps. And while I enjoyed seeing my home country of Sweden (albeit from a hotel window), this trip is not one of leisure. These speaking engagements afford me a valuable opportunity to sway thought on critical matters concerning the proper use of technology in our new digital economy. Out of a packed agenda of more than 100 meetings over the course of 14 days, here are three highlights I'd like to share.

As I have written recently, Europe is at a crossroads with data protection reform. Though I commend the European Commission on its ambition to bring data privacy laws into the 21st century, I oppose measures of the reform package that stand to ban the technology needed to protect European citizens and spur economic growth.

It was with this in mind that brought me to Stockholm for the seminar New privacy rules for Europe: What is at stake for Sweden? This AmCham EU event, sponsored by SAS, focused on Europe’s data protection reform package and its far reaching implications on transatlantic business – a topic of particular interest to SAS, a leader of data-driven solutions for Europe.

One of my concerns is that Article 20 clearly violates the principal of technology neutrality, which should be core to any laws that deal with technology if they are to withstand the test of time and technology evolution.

I chose a broader focus to my keynote, centering on the immense value of data today and the dangers of restricting its flow in a part of the world hindered by social and economic problems.

From Sweden, I flew to Zurich for the 2013 Horasis Annual Meeting. Here I was joined by fellow business leaders in emerging and developed markets to examine what measures are needed to support sustainable growth for the rising middle class. When it was my turn to speak, I took the opportunity to point to some of the case studies in Intelligence Quarterly that provide concrete examples of how businesses and governments around the world are increasingly using technology and the resulting data to support sustainable growth.

From the bustling streets of Zurich, I drove two hours east to the snowy outpost of Davos for the 2013 World Economic Forum. During this five-day event, in which the world’s top leaders in business, politics and academia gathered to discuss our most pressing issues, I sat down with Hub Culture Executive Editor Edie Lush to discuss the value of technology in our new digital economy. You can watch the interview here:

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Are you resolving to be analytical this year?

Jim Davis
Jim Davis|January 24, 2013

For the last few weeks, the RSS news feeds I follow have been filled with articles about businesses and individuals taking stock of their accomplishments in 2012 and making plans for 2013. Here at SAS, we’ve been participating in similar activities with 2013 kick-off meetings that help us plan for the year ahead.

This year, do your business goals include efforts to become more analytical in your decision making?

I’ve been writing about using data to your advantage on this blog for the past few years. If you haven’t already started to move in this direction, now is a good time to take a look at your organization and determine what might be preventing you from becoming more analytical. It’s time to take a serious look at what you are doing with your data and to ask yourself: What’s it going to take for my organization to go in right direction?

This isn’t just a question for banks and pharmaceutical companies. It’s an important question for businesses of every size and in every industry.

If you dig into the numbers in our 2012 financial announcement released today, for example, one thing you’ll notice is an increased use of analytics in the travel and hospitality industry. The spike in SAS sales to that industry is clear indication that analytics are going to be a competitive differentiator there.  From small businesses that rent family vacation homes to large Vegas casinos, businesses in this industry are becoming more analytical and seeing real benefits from better understanding their data.  Your industry is no exception.

What if your industry increases its use of analytics next year and you’re one of the few who doesn’t follow suit? Will you be left behind?

How can you resolve to be more analytical in 2013?

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Q1 2013 Intelligence Quarterly: Big analytics brings big opportunities

Mikael Hagstrom
Mikael Hagstrom|January 16, 2013

Our world is changing at an unprecedented pace. Just look at the accelerated level of complexity surrounding the social, political, financial and environmental issues we are all faced with today. Daunting, perhaps, but with that comes the digital era that will turn these challenges into bright new opportunities.

Welcome to the beginning of a new year and the beginning of that digital age. Just as the industrial age brought us automation, or the ability to achieve greater output from fewer resources, the digital age brings us the ability to capitalize on our collective knowledge and outperform in effectiveness, efficiency and innovation. With 90 percent of the world’s data created in the last two years, most organizations are still discovering the potential within internal data and, perhaps more importantly, within big external data.

In the latest issue of Intelligence Quarterly, you'll learn how big analytics can enable data and help organizations capitalize on the complexity by leveraging the collective knowledge. Traditional tools make this task overwhelming in today’s complex world, but big analytics can transform the challenges into opportunities by enabling organizations to take smarter actions faster.

Within the pages of this journal, you’ll discover examples of how big analytics will enable businesses and agencies to harness big data, make more accurate predictions and improve outcomes, and be more agile in acting on reliable insights. Regardless of sector or size, I invite you to explore the ways in which big analytics will leverage collective knowledge into a 2013 full of new opportunities.

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Here’s to more questions – and answers – in 2013

Jim Davis
Jim Davis|December 20, 2012

I’m sensing a theme as I look over my posts on this blog from the last year. The top five posts give you a good taste of what we were thinking about as an industry this year:

  1. Is big data over hyped?
  2. What kind of big data problem do you have?
  3. What is a data scientist? And do you really need one?
  4. SAS = analytics. Analytics = hot.
  5. Why would you want to visualize 5 billion rows of data?

To summarize: big data, big data, data science, big analytics, and big data visualization.

My goal in writing about these topics was to pull away from the industry hype and offer some real definitions and explanations for what these trends mean for your business.

If you’ve been reading along, did I succeed? Are you bought into the idea of finding real, forward-looking answers in your new big data sources?

Have we talked enough, or are we ready to get going in 2013? Once we make it through the holidays and survive the doomsday predictions, are you ready to visualize your big data?

This quote from a new visual analytics user at SAS really sums up the benefits: “You can’t look through five-and-a-half million lines of data and make sense of anything. But you can with Visual Analytics.”

Or, how about this one from XL Group VP Kimberly Holmes: "Visual analytics will inspire more questions than we ever would have asked before."

Join me here next year, and we’ll talk more about the types of questions you should be asking, and the types of answers you’re getting – from your big data.

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In the digital economy, the data asset must be protected

Mikael Hagstrom
Mikael Hagstrom|December 17, 2012

The path forward in today’s volatile economic environment is unclear. Rising powers are gaining traction in the global economy, while crushing debt and political paralyses continue to plague the western world. With our economic outlook in question, and the fruits of globalization fueling the growth of emerging nations, the world faces the possibility of different global futures.

This was the topic of discussion at the Atlantic Council’s Global Trends 2030 Conference. US strategy for a “post-Western world” was the talk among global policymakers, business executives and technology experts.

The panel I participated in, “Emerging technologies that will change our future,” evoked similar discussion as the Transatlantic Legislators’ Dialogue Conference where I spoke last month. Although the audience was different, my message was the same: Progressive legislation is needed to protect the positive uses of our newest and most powerful asset class – data.

Similar to the printing press in the 1400s, technology continues to revolutionize the way people connect with one another. Digital media is the modern example. Instant global communication (think Twitter and YouTube) has transformed the world in many ways. Elections have been won. Dictators have been toppled. And reputations have been made and, in fact, destroyed.

The invention of the printing press contributed to the need for the First Amendment to the US Constitution that was adopted to effectively govern the use of such technology. This legislative framework gave the news media strong regulatory support, and as a result, enabled the technology to reap its full benefits.

Just as the printing press can be used to spread gospel or propaganda, modern information networks and the technologies they support can be harnessed for good or for evil. The same networks that help organize movements for freedom also enable terrorists to incite violence against the innocent.

My argument is that governance similar to that bred by the printing press is needed for digital assets. The world’s data supply is multiplying by the day, through countless emails, page views, credit card transactions and more. In many ways, information has never been freer. At the same time we must also remember that technology is not a windfall. These same tools are also exploited to undermine human progress and put our nation at risk, so we must govern our digital assets accordingly.

Essentially, we must view technology and the resulting data as the asset it is. Progressive multilateral legislation is needed to protect the positive uses of this asset – the good – while minimizing the negative – the evil. By doing so we can help protect our nation and secure our economic future.

To see the full report, “Global Trends 2030: Alternative Worlds,” click here (.pdf).

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Will the US and Europe pair for share of digital economy?

Mikael Hagstrom
Mikael Hagstrom|December 10, 2012

On Nov. 30, I took the stage at the Transatlantic Legislators’ Dialogue Conference in Washington, DC, to deliver a keynote on the expected outcome of the High Level Working Group on Jobs and Growth to members of US Congress and the European Parliament.

Since 1972, delegations from the United States and the European Union have come together biannually to discuss issues of mutual concern with the goal of promoting legislative coherence. Speaking on behalf of AmCham ExCo, and as a European representing an American company where nearly half of our revenue comes from Europe, I have a vested interest in the well-being of our transatlantic economy. As such, it was an honor to present my ideas before this distinguished audience.

The US and Europe remain each other’s most important markets. No other commercial artery in the world is as integrated. Our transatlantic economy generates close to $5 trillion a year in commercial sales and employs 15 million workers. However, with economic numbers around Europe getting worse, and democracy being challenged by recession, it’s clear that there is both a very good reason and a groundswell of public support for measures that promote economic growth.

So where is growth likely to come from?

For growth to occur we need investment. But investment requires an innovation environment, and that starts with common rules. Otherwise people won’t invest. It’s that simple. The Working Group on Jobs and Growth is tasked to identify measures that will strengthen our transatlantic economy and then report their findings to EU and US leaders for legislative consideration. My speech aimed to influence legislators to pass laws that maximize the potential uses of technology – while also promoting the responsible treatment of data – on both sides of the Atlantic.

The digital economy will happen with or without the transatlantic economy. If we don’t set the agenda, others will. French research firm IDC estimates the global digital economy will reach $20 trillion in value by next year. Given the magnitude of this number, it’s clear the digital economy is coming of age. What we cannot afford to do is argue about the past at the cost of the future. Going forward we must get it right. I implore the Working Group to heed my advice and recommend measures that promote the common rules needed for our transatlantic economy to flourish.

Read a joint statement on the conference from TLD co-chairs Cliff Stearns and Christian Ehler.

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