Digital Media: A driver for economic growth

Digital Media: A driver for economic growth

Presentation by: Adam Froman

President & CEODelvinia Group of Companies

April 7, 2009

© 2009 Delvinia Interactive Corp. All rights reserved.

Why Not Here? The Emerging Leaders Network Ideas for Toronto

“We have virtually unlimited resources to purchase innovative Canadian companies for about $100 million each, keep them in Canada, and growth them to be billion dollar enterprises...”

“...the problem is…

we can’t find any worth investing in.”

Quote from Canadian President of Multibillion dollar Global Technology Company

How did this happen?

Innovation

Innovation is a process through which economic or social value is extracted from knowledge – through the creation, diffusion and transformation of ideas – to produce new or significantly improved products, services or processes

Source: Conference board of Canada

Colleges and Universities

Source: Sustainable Development Technology Canada http://www.sdtc.ca/en/about/innovation_chain.htm

Fundamental Research

Applied Research

Technology DevelopmentAnd Demonstration

(Pilot to Full Scale)

Product Commercializatio

n & Market Development

Market Entry & Market Volume

Governments

Industry

Angel Investors

Venture Capital

Banks

Industry

Funding Intensity

Pre-IPOGap

Pre-Commercialization

Gap

Pre-Commercialization Gap

Harnessing the “Troika”

• A new platform is needed for government, industry and academia to address the pre-commercialization gap

• Government investment must have the greatest impact on the economy and through this growth the public reaps the benefits

• Industry needs investment in the pre-commercial gap and High Quality People (HQP)

• Academia wants to see their knowledge meeting the needs of today’s society, they want to provide high quality relevant programs to students with linkages to industry, want to help create the opportunities in a rapidly changing economy,

INDUSTRY

ACAD

EM

IC

INSTIT

UTIO

NS G

OVERN

MEN

T

ThePlatform

A Platform to Bridge the Gap

The Platform: what it must support

• The platform has to engage the 3 players on their own terms

• The industries supported should be transformative in nature

• The platform itself should not have any sort of agenda other than meeting the needs of the customer

• Meeting the needs of the digital customer

“Ontario recognizes that innovation can boost the productivity of the manufacturing sector and of the

services sector alike and thus ensure economic prosperity.”

“Ontario’s innovation agenda recognizes that post-secondary graduates need skills to support innovation in all sectors, including services.”

“The projected global market for the digital media sector alone is projected to

reach $1.5 trillion by 2009”

Digital Media: A Transformative Industry

Defining Digital Media

Twitter is the Fastest Growing Member Community Destination in Feb 2009

Source: Nielsen Netview, 2009, U.S. Home and Work

Rank Site Feb 2008 Feb 2009 % Growth

1 Twitter.com 475,000 7,038,000 1,382%

2 Zimbio 809,000 2,752,000 240%

3 Facebook 20,043,000 65,704,000 228%

4 Multiply 821,000 2,394,000 192%

5 Wikia 1,381,000 3,758,000 172%

Facebook’s Growth has been Global

2-17 18-34 35-49 50-64 65+

Male 3.7 10.9 12.4 6 1.9

Female 3.6 11.9 11.7 7.6 1.3

1

3

5

7

9

11

13In

cre

as

e in

Un

iqu

e A

ud

ien

ce

(m

illio

ns

)

Source: Nielsen Online, Global Index, December 2007-2008

The Conversation

Prism

Source:http://www.briansolis.com/2008/08/introducing-conversation-prism.html

How Canadians Share Information

Sample: Nationally representative sample size of 11,600

Source: AskingCanadians, Delvinia Insight Engine, Delvinia Analysis

Sharing with 10 or more friendsSharing with 1 to 2 friends

86%

14%

% of Canadians who PlannedOn Researching their Gifts Online in

2008

61%

39%

% of Canadians who PlannedOn Purchasing their Gifts Online in 2008

Yes

No

Yes

No

Source: AskingCanadians, Delvinia analysis

What Canadian online shoppers were planning on doing for 2008 holidays

Which of the following do you find the most annoying:

What Canadian online shoppers find the most annoying

Multiple applications on the site that distract from the ability to shop

Continuous cross promotions

Lack of contact information for questions about products and services

Lack of relevant product information and customer reviews

Cluttered web pages that make the site dif-ficult to navigate

Full page pop up ads promoting another product and service

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

7%

9%

9%

15%

17%

43%

Source: AskingCanadians, Delvinia Insight Engine, Delvinia analysis

Use

of t

echn

olog

y

Time

Consumersexpectationsof technologyin their lives

Companies use of technology to connect with their customers

The Ageof the DigitalCustomer

Digital Customer Experience

It’s not about funding digital media at large It’s not about a narrow focus of chasing one

segment of digital media (ie. gaming) It’s not about funding “gee whiz” technologies It’s not about “gizmos” or “widgets” It’s not the Internet, mobile/wireless, social

media, etc… It’s ALL about the Digital Experience

Fitting Digital Media on the Innovation Agenda

It is about commercialization Commercialization takes place in industry Therefore the platform is about innovation

through industry driven digital experience projects

Digital Media and the Innovation Platform

INDUSTRY

ACAD

EM

IC

INSTIT

UTIO

NS G

OVERN

MEN

T

ThePlatform

Economy

Sectors

Companies

ProjectsGovernmentFunding

Services/Products

HQP

$ $ $ $

Crossing the Activation Barrier

WE NEEDChange

Inappropriate questions posed about an Innovation Project

How many jobs will it create? What is the minimum return on

investment? How much will be funded by government,

how much by industry? How long will it take? What it will lead to…buildings, operations,

other projects?

Appropriate questions to ask aboutan Innovation Platform

How many jobs will it create? What is the minimum return on

investment? How much will be funded by government,

how much by industry? How long will it take? What it will lead to…buildings, operations,

other projects?

For each $10 Million invested into an Innovation Platform

How many jobs will it create?• 500 to 1000 High Quality, Sustainable Jobs

What is the minimum return on investment?• Companies participating in the platform will invest an additional $100 Million into

the economy

How much will be funded by government, how much by industry?

• Initial $10 Million by government• the remaining $90 Million by industry at the back end

How long will it take?• 18 to 24 months (1/2 the time of existing innovation cycles)

What it will lead to…buildings, operations, other projects?

• Yes…if that is what is needed to drive future growth

We have to want

success

Customer Focused

We needInnovation

We NeedVision

Qa`1

We Need Leadership

We have to want success

Adam FromanPresident & CEOThe Delvinia Group of Companies

Tel: 416.364.1455 x222

Email: [email protected]

Our Website: delvinia.com

Our Blog: delvinia.com/diseases

Follow me on Twitter: @adamfroman