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Collaboration across digital industries

Collaboration across digital industries

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Published by Justin Souter
Technology Strategy Board

Driving Innovation

Collaboration across digital industries

Round 1 Competition for funding
collaborative R&D and trials

July 2010
Technology Strategy Board

Driving Innovation

Collaboration across digital industries

Round 1 Competition for funding
collaborative R&D and trials

July 2010

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Published by: Justin Souter on Jun 02, 2010
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Collaboration across
digital industries
Technology Strategy Board
Driving Innovation

round 1 CompETiTion \ue000or \ue000unding
CollaBoraTivE r&d and Trials
July 2010

People
C\ue009\ue007\ue007\ue00d\ue008\ue005t\ue00f

The general public, including
consumer and business users
o\ue001 the internet.

B\ue001ck\ue004\ue00b\ue009\ue00d\ue008\ue002

Internet users are the ultimate
bene\ue000ciaries o\ue001 the power o\ue001 the
internet, and are also the source o\ue001
revenue that sustains the entire
business ecosystem. They must be
willing and con\ue000dent to use it, and

must value the experience they receive.
Ex\ue001\ue007\ue00a\ue006e
0
50
10
15
20
25
30
35
2006 2007 2008 2009 2010 2011 2012 2013
PB/month\u201800
0s
Source : CISCO, 2009
Video to TV
Video to PC
Gaming, Voice, Video Comms
File Sharing
Web/Email
By Sub-Segment (PB per month)

Consumer internet tra\ue001\ue000c doubles
every year but is dominated by
content that does not directly
create revenue.

Ch\ue001\ue006\ue006e\ue008\ue004e

Protection and enablement: to create trust, security and privacy in services that are highly available, usable and can be personalised.

Content & Services
C\ue009\ue007\ue007\ue00d\ue008\ue005t\ue00f
Originators, owners and distributors o\ue001
creative and digital content, plus the
designers and operators o\ue001 services.
B\ue001ck\ue004\ue00b\ue009\ue00d\ue008\ue002

In the context o\ue001 \ue000le-sharing and
di\ue001\ue000culties in managing intellectual
property rights, new business
models are needed, alongside
advertising, to assure the long-term
economic success o\ue001 the sector.

Ex\ue001\ue007\ue00a\ue006e
Source : IAB, 2009
0123456789
10
2005
2006
2007
2008
\u00a3Billion
Online
Conventional

UK advertising revenues are declining,
and even though online advertising
has overtaken TV, it too has fattened
o\ue001\ue001 as multiple channels compete
\ue001or attention.

Ch\ue001\ue006\ue006e\ue008\ue004e

To generate sustainable revenues
\ue001rom creative content and services,
to enable continued market growth
o\ue001 the UK creative content sector.

Networks
C\ue009\ue007\ue007\ue00d\ue008\ue005t\ue00f
Owners, operators and programmers
o\ue001 the internet\u2019s in\ue001rastructure.
B\ue001ck\ue004\ue00b\ue009\ue00d\ue008\ue002

The networks enable the delivery o\ue001
content and services to the user, but
o\ue001ten receive no direct rewards \ue001or
increased tra\ue001\ue000c or improved service
quality. This reduces incentives to
invest or to make available the \ue001ull
capabilities o\ue001 the network to create
versatile products.

Ex\ue001\ue007\ue00a\ue006e
Source : ONS, 2009
0
10
20
30
40
50
60
70
801996 1998 2000 2002 2004 2006 2008 2010
%ofUKHouseh
olds
All Internet Access
Broadband Access

Two-thirds o\ue001 UK households have
a broadband connection; there is
general political consensus to achieve
universal availability, with \u2018next-

generation\u2019 becoming accessible to 90%
o\ue001 the population in the next \ue001ew years.
Ch\ue001\ue006\ue006e\ue008\ue004e
To justi\ue001y investment to expand the
networks\u2019 reach, capacity and capability.
T\ue001b\ue006e 1: Th\ue005\ue00c \ue005\ue00c \ue001 c\ue009\ue007\ue00aet\ue005t\ue005\ue009\ue008 \ue003\ue009\ue00b \ue00a\ue00b\ue009\ue00a\ue009\ue00c\ue001\ue006\ue00c th\ue001t \ue001\ue002\ue002\ue00be\ue00c\ue00c \ue001t \ue006e\ue001\ue00ct tw\ue009 \ue009\ue003 the ch\ue001\ue006\ue006e\ue008\ue004e \ue001\ue00be\ue001\ue00c \u2013
\ue00ae\ue009\ue00a\ue006e, \ue002\ue005\ue004\ue005t\ue001\ue006 c\ue009\ue008te\ue008t & \ue00ce\ue00b\ue00e\ue005ce\ue00c, \ue001\ue008\ue002 \ue008etw\ue009\ue00bk\ue00c
Technology Strategy Board
Summary

Over the next 12 months we will invest
up to \u00a318m in this competition, which
challenges businesses to develop an
internet with a sustainable economic
\ue001uture \ue001rom which all participants will
bene\ue000t. To this end, we have identi\ue000ed
three challenge areas:

K\ue000people
K\ue000digital content and services
K\ue000networks.

In this \ue000rst round, we anticipate providing
up to \u00a310m to support collaborations
between industry sectors, which must
substantially address at least two o\ue001 these
challenge areas.

The speci\ue000c challenges are outlined
in table 1 opposite. We will invest at least
50% o\ue001 our budget in projects that address
all three challenges.

In this round we will \ue001und two types
o\ue001 project addressing these challenge
areas, both attracting 50% public \ue001unding:

K\ue000strategic research
and development projects
K\ue000ground-breaking trials.

This round o\ue001 the competition is open to
all UK-based companies and research
organisations in business-led consortia,
and may be o\ue001 particular interest to those
designing and operating internet networks,
or the services that operate over them, and
those who are concerned with how digital
content is distributed to, and used by,
customers.

We will be \ue001unding:
K\ue000\ue003\ue001\ue00ct-t\ue00b\ue001ck \ue00a\ue00b\ue009ject\ue00c: up to \u00a3100k in
total project value. These should be
completed within 12 months, and
K\ue000\ue007\ue001\ue005\ue008\ue00ct\ue00be\ue001\ue007 \ue00a\ue00b\ue009ject\ue00c: more than

\u00a3100k in total project value. These
will last \ue001rom about 12 months up to
a maximum o\ue001 24 months.

The competition \ue001or \ue001ast-track \ue001unding
opens on 14 J\ue00d\ue008e 2010. For mainstream
projects, the competition opens on

12 J\ue00d\ue006\ue00f 2010.
Background and challenges
The internet touches all aspects o\ue001 our lives,

reaching across shopping, travel, banking,
healthcare, education, communication and
entertainment, and it is revolutionising the
way we work. The implications are
pro\ue001ound \ue001or all businesses. The most
strongly a\ue001\ue001ected are those working to
create and distribute in\ue001ormation and to
o\ue001\ue001er services to customers, who are
\ue000nding that conventional commerce needs
to be \ue001undamentally rethought. This is an
exciting time o\ue001 opportunity and risk. It is
a time ripe \ue001or innovation.

In our digital strategy (see
www.\ue005\ue008\ue008\ue009\ue00e\ue001te\ue00dk.\ue009\ue00b\ue004 under Publications)
we identi\ue000ed three interdependent
challenge areas: people, digital
content and services, and networks.

Much e\ue001\ue001ort has already been devoted to
these challenges, but o\ue001ten an advance
in one area has unintended repercussions
in the others; \ue001or example, protecting
ownership rights can impact user privacy
or reduce opportunities \ue001or innovation,
controlling peak tra\ue001\ue000c volumes can a\ue001\ue001ect
service quality, and poor rewards \ue001or
improved network service inhibit the
roll-out o\ue001 in\ue001rastructure.

These challenges must be addressed
together, to develop a sustainable \ue001uture
\ue001or the internet economy, and to advance
our vision that all participants should
bene\ue000t \ue001airly \ue001rom the creation,
distribution and consumption o\ue001 digital
content and services.

We expect there to be one or two
more rounds o\ue001 this competition in this
\ue000nancial year.

Collaboration across digital industries
CompETiTion \ue000or \ue000unding CollaBoraTivE r&d and Trials

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