Class note “Shape of the New Digital Era”

ESKO Aho Ex-Prime Minister of Finland and ex Nokia Executive Chairman

Short Note By…”Satean Neolution” #IDEA1 #IDEAbyUTCC
Class note 25 Feb 2016
Innovation Lecture

“Shape of the New Digital Era”

# ESKO Aho ex PM of Finland and ex Nokia Executive Chairman

 Digital Age

– ICC International Chamber Commercial :

– Finland and Thailand are both depend on foreign exchange trade  

– today we talk about Digital Age , Digital economic , how to success in Digital Age

– what make different on success or fail on business , VIsion <– 

– He doesn’t believe only Leadership make different for business like Good Leadership make good business bad leadership make bad business it ok but not at all there are somethings more special

– I know NOkia since it was childhood ; he will make Nokia for example found 1865 NOKIA Also goes up and down

– Once it close to Bankrupt , it has many kinds of product line Rubber ,wood , TV , and also Telecommunication , even the owner of Nokia even thinking of selling company to Erikson

– It is not about Leader but it is about business concept and context , Europe in that time has many thing change

– Nokia sold 80% of asset to focus on 20% of the rest asset , so they focus on Mobile business ( from multi-functional to focus business) 

– First day believe Mobile business is the future and the market would growth 5 times in 10 years ( 10 millions people in 1990 to 50 million in 2000)

– Second Finland ( the country will be able to provide ) has good R&D FUnding , Infrastucture and also people 

– Europe is the best place in the world to invent mobile technology GSM has been develop in Copenhagen EU will be world biggest SIngle market 

– High Risk Concept <– for Nokie that time , but for the result is User in 2000 = 700 million people  

– 1993 Nokie market cap rise from 300 millions USD to 300,000 Million USD in 2000

– We can not focus on today concept & context so we have to future concept ( we can’t change environmental context so we need to change our concept)

– He give us example such as IBM and KODAK if you not chnage you might disappear

– ” Concept & Context ” he insist this rule can you vary from company business even for Countries

– For example USSR and CHINa is the leadership make different of this two countries let see how much it should put the faith on Leaders or Concept   

let see CHina ” No matter what the Cat color as long as they can catch mouese”

Context Changing the game

– Esko was PM in the age of 36 when he was PM he just happen to know 1991 Finland was in crisis GDP was -7% the worse in Finland historic after independent in normal time ( no war)

– They decide to change business fundamental such as they did not more or less in Industrial , Trade and rely a lot on USSR  

– what he did is Devaluation Currency but this is short term it can’t be use in the long run  

– Only most 3 important decision to bring back FINLAND competitiveness

      JOIN EU –> we took the changllege

      Reform Tax system –> Lesser tax incentive company anymore

      Increase Funding R&D 62% even they cut off other funding in countries   

– even tax rate is down from 43% to 25% but only two year FINLAND can get Tax 3.5 time more than before because of company gain more benefit  

– if you ask the FIN , why no more NOKIE , they we says becuase of leadership 

    He siad no , he was there it is about concept 

– He siad Technology change the world 

– 2008 when he join the company Nokie concetp is the same but context is change because Hardware is not the main for industry but SOftware ( iphone is coming with apps)

– They asked existing customers , not future customers they didn’t notice that the younger gen Z like touch sceen or keyboard , they not ask future target future concept and Digital Market

 – 2008 is the years that Nokia gain the biggest market share 40% , iphone get 1% market share , when you are in the top you dont want to change a thing , legacy ( who will dare to reform that time) at that time it looks good but actually when they not change it is over

– 2011 Nokie knew we have to change there are 3 concept

    1 Develop their own system but no capacities anymore 

     2 GO ANdoird cant because Samsung is too strong already

  3 GO with Microsoft ( give up their own operation system)
and later on they sold all device business to Microsoft 

and New Concept 

Now NOkia still survive but on Network business ( I even don’t know) now still top three in biz in EU

 

then now we go for our lecture  

– Shape of the new Digital Era : it is not about how create technology but it is about how we take benefit of them

– 43% of US people spend time on phone is game social is 25% Entertainment music 10%

– He talked about IOT ( internet of thing ) why entertainment is dominant mobile spending time ( please sum Social + game + music movie entertainment up above) is that because leadership ” no ” it is about economic context

– Furure oppornity of internet of thing : 17% of US GDP spend on Healthcare if now all of those matter on THailand US or FINN not about Percent ( talk about three entertainment above ) then compare with healcafe 17% but not tomorrow ( same as nokia ( 1990 – 2000) 

– who will create the winning concept same as Apple did Nokia did before on IOT

– in next decade Digital technology will speard around and relate to all business and industries but who will make right concept ( winning concept )  

– PAT siad great idea of game is to make online – offline together ( P LENG siad also )

– the most important not how to create new app or tech but how to apply and utilize

– how diff invention or innovation : the best answer he like Harvard said ” what opposite of innovation ” = Imitation ( Copied Cat) Imitation can’t change fundamatal change , but Innovation do ( no risk , no innovation because becaise it is not imitation )

– Digital revolution : ( multi disciplinary talent ) required for new innovation such as when electricity COMPUTER so as well as Digital Age < ——— YESSSSSS inDEEDDDDD

– He said people need to be Multi disciplinary talents ใน อนาคต ต้องเก่งรอบด้าน และ บูรณาการทุกอย่าง มารวมกัะนเพื่อนใช้ได้เ 

– Crisis allow new concept ( ปัญหา คือ บิดา นักประดิษ วิกฤต คือ โอกาส)

– Isarael PM 92 years old answer why you alwsy look yong , People will be always Young when he has dream more than memory

GOod side of Games in your opinion

YOu mention about 43% of US people spend time on mobile with game if my company has not high technology and I want to take chance on that 43% what kind of digital business idea you suggest me to do ?

and we don’t need create new but how to utilize

Digital Game ; 2004 Angry bird super sale Public Venture Digital game and IOT People want to learn by Gmes now boy speaking english better than girl in school by games
Short Note By…”Satean Neolution”
#IDEA1

#IDEAbyUTCC