Alex lightman fortune_nest_bahrain2010

Kingdom of Bahrain: From Financial Center to

Gulf Cooperation Silicon Valley?

byAlex Lightman

Director and Chief Technology Officer, Fortune Nest CorporationBahrain World Economic Summit, Nov. 22- 23, 2010

The Talk

1. Engines of Silicon Valley: VC+A+G2. Ten New Rules for Creating a New

Economy for GCC.3. Fortune Nest Vision and Mission4. Aspects of the New Economy: Three

Technology Engagements at FNCa. Virtual Reality Goes Globalb. Health GuardCards Reinvent Medicinec. 4G Networks: Innovation of the Decade

Opportunities from New Economy

• Size does not matter. Small nations with smart government policy have turned small companies into the massive companies.

• Singapore: largest oil reserve, largest port (first to build docks for 900 foot containerized ships), Biopolis

• Finland – creator of Nordic Mobile Radio. Teamed with Sweden and Denmark (13 million people total, won GSM competition, over 1 billion users), Nokia once worth over $200 billion and Sonera worth over $50 billion.

• Denmark – world leader in renewable energy, no net energy imports, one of five largest wind power manufacturers,

Billion and Trillion Dollar Opportunities in New Economy

• Health Care Reinvention Greater modularity, portability of records; solution providers, repeaters, and extelligence.

• Real 4G: The Integration of Communication and Computation (Replace Home PC, Office PCs, and even Data Centers; put Supercomputing as iPhone app)

• Virtual and Augmented Reality The Great Replication – making 3D copy of every person, place, thing, relation.

Ten New Rules for Creating a New Economy in the GCC countries 1 of 2

1 Look for 90-99% Finished Systems2. Finish the System and Take Bonus

ROI3. Think of New Technology as a

Force Multiplier4. Enable Dual-Use Applications

(information/medicine)5.“Let 100 Flowers Bloom” (new

companies in GCC)

Ten New Rules for Creating a New Economy in the GCC Countries 2 of 2

6. Shift The Paradigm (inventing zero)7. Get Social (Facebook is third largest

country…)8. Conflict, War, and Gov’t R and D was

the Basis for Silicon Valley.9.The Primary Opportunity in the World is

Bringing Mobile Broadband to 7 Billion.10. The New Apple Computers that Will Be

Worth $100 Billion+ Are Starting Now

Standards: Where The Golden Rule Meets the New Economy

Introducing Fortune Nest Corporation

• Fortune Nest Corporation (FNC) has been five years in the making.

• FNC represents a collaboration between leading business and technology talents from China, Taiwan, Russia, the GCC, and the United States.

• FNC is a diversified multinational corporation based in Beijing and Bahrain.

Introducing Fortune Nest Corporation

• FNC is a virtual value chain. We aim to take the best aspects of Silicon Valley and disaggregate them and redistribute these functions to the rest of the world, including Bahrain and the GCC.

• In this sense, FNC is creating a Virtual Silicon Valley, one where Bahrain can have several pieces of value.

• At Fortune Nest Corporation (FNC), we believe in the powers of science, technology and innovation. Such powers will create New Economies that will transform societies by empowering them to gain full benefits of participation in the civilization of the 21st century.

Engines of Silicon Valley: VC

• The US has 312 million people. 37 million live in California. 5.6 million live in the San Francisco Bay Area. About 1.2 million live in Silicon Valley, half in San Jose.

• Silicon Valley, primarily Sand Hill Road, Palo Alto, near Stanford University, accounts for 40% of all US venture capital, even though it is less than 1/3rd of 1% of US population.

• Bahrain has a big opportunity, embracing and extending the banking brand and expertise into venture capital.

Main Ingredients: Talent from Spinoffs

• “I observed the beginnings of Silicon Valley & VCs there, and then watched a smaller version take root in Seattle.

The main magnet seemed to be talent. Where VCs perceived tech talent to gather, they ...followed. They want to be in on the ground floor, and know the players.

Lots of start ups sprout from the wings of large tech companies. Lots of talent parachutes out and starts up nearby the Mother Ship. That's what I attribute the concentrations to.”

But Silicon Valley emerged from Government Spending

• Frederick Terman ran Harvard’s Radio Research Lab (800 people), came from Stanford, which only got $50k in WW II, out of $450 M spent on weapons R and D.

• He changed the rules, to make sure Stanford got more government funding:

• Graduate students encouraged to START companies.• Professors encouraged to CONSULT for companies.• Terman (Dean) and other professors took board seats

and received equity – academic capitalism.• Getting out into REAL WORLD was good for academic

career. • Technology licensing was made very easy, affordable.

Shadi Farhangrazi

Virtual Reality: 3D becomes Essential• Seven billion people in the world, speaking 6,000

languages, over one billion illiterate. All need to get onto the Internet.

• June 1985, The Futurist magazine cover story. Pixel Power: graphics = future language of int’l business.

• Virtual Reality – The Great Replication will mean making a 3D version of every person, place and thing. Everyone will have copies of friends, family, pet, home, office, and be able to interact.

• Immersion allows people to learn and decide faster, with participation from more people in more places.

• I-Cube Demonstration now LIVE at DC44 in Doha, Qatar, showing EDUCATION and TRAINING. Our vision is to have a virtual laboratory in every school.

Shadi Farhangrazi

Virtual Reality: 3D in the GCC• I-Cube Demonstration now LIVE at DC44 in Doha,

Qatar, showing EDUCATION and TRAINING. • Our vision is to have a virtual laboratory in every school.• We are developing content for every aspect of

education, training and entertainment.• Planning for six virtual theme parks to be installed, one

in each of the six GCC countries. Five virtual theme parks are approved and financed in the People’s Republic of China. 21st century theme parks.

• All the intellectual property for those projects belong to FNC’s subsidary Fortune Virtual Reality.

• “Where Education is More Entertaining than Entertainment”! Bring you to the moon, under the sea…

Shadi Farhangrazi

Augmented Reality: Real WWW

• Augmented reality is on a continuum, like a light dimmer switch. Can move between 100% reality (video) to 25% virtual and 75% real (augmented reality) to 50/50 to 75% virtual and 25% real (augmented virtuality) to 100% virtual (VR). (Milgram’s Continuum of Reality)

• The end goal: Real World Wide Web, ability to insert the virtual objects with different transparency into the eyeglasses or sunglasses of a person who has video screens in the glasses.

• See who owns each building or where your friends are as you walk through Manama or any city.

Shadi Farhangrazi

Health Care: National to Global

• Health care needs to be completely reinvented because of aging populations in wealthy nations, better technology, better bandwidth, medical tourism, telemedicine, expert systems, and interactive medicine.

• The Innovator’s Prescription: Disruptive Technological Enablers + Disruptive Business Model Innovations + Disruptive Value Network.

• Solution Shops – figure out what’s wrong with you.• Value-Adding Process Businesses – replicate treatments• Facilitated Networks – Sufferers forming “communities of

practice”

Shadi Farhangrazi

Health Guard Card

• Personal Electronic Health Records are a part of Electronic Medical Records. Need to be portable, and work globally, yet protect privacy.

• A card with 1 Terabyte (1,000 Gigabytes) of storage that can fit in your wallet like a credit card.

• Can store dozens of medical scans and your medical history.

• Useful for foreign workers from countries that don’t have electronic medical records, don’t speak local languages, and don’t have ability to clearly communicate their symptoms.

• Can be a global standard for Electronic Medical Records.

Shadi Farhangrazi

Real 4G: The Innovation of the (Next) Decade

• The Economist: “best global brand of any magazine, online or offline” – LA Times.

• First time: invited the entire world to vote on the Innovation that will most radically impact the entire world over the next decade, 2010 to 2020.

• 4,000 suggestions, 32 judges, five months of voting in over 200 countries.

• Winner: 4G Networks. I was given the award.• By 2020: six billion people receiving 20 Megabits/sec.,

allowing almost entire world to do text, speech, video conferencing, buy-sell-borrow-loan-swap with each other.

Shadi Farhangrazi

Real 4G: The Big Play

• Real 4G is a $2 trillion revenue a year opportunity.• Massive confusion in advertising in US, other countries. No

consumer trust in claims that 1 Mbps is 4G (Sprint, T-Mobile).

• ITU-T has said 4G is at least 100 Mbps to 1 Gbps. This is vast overkill, probably would lead to serious spectrum conflicts, and to headaches, brain tumors.

• 20 Mbps is the right number. No company is focused on this “Goldilocks” – just right, not too slow, not too fast.

• Big possibilities for disruptive innovation that comes out of the GCC for a real 4G company.

• Thank you for your time and attention.

Shadi Farhangrazi