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Data-driven innovation in Singapore

The first in-depth assessment of the contribution of data-driven innovation (DDI) to the Singapore economy has been captured in a new Analysys Mason report.

Singapore

The types, sources and amount of data being generated are growing at a remarkable rate. Over the next 5 years, worldwide wireless data traffic is expected to increase at an annual rate of 44%, growing from 13TB in 2013 to 80TB by 2018. Innovators around the world are using this wealth of data as the raw material for developing services that deliver value to consumers and businesses, through a process we have called 'data-driven innovation' (DDI).

A new report, Data-driven innovation in Singapore, which was commissioned by Google and produced independently by Analysys Mason, shows that Singapore stands to benefit substantially from DDI in the future: its impact is set to more than double over the next 5 years, to SGD11.6 billion – roughly equivalent to the total expenditure of Singaporean households on transport.

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About the report

In its study, Analysys Mason identified five main types of value-creating service enabled by DDI:

Service type

Examples

The new bazaar: Services that allow firms to offer one-off products at one-off, personalised prices

  • Personalised insurance pricing
  • Price-naming websites

Services for here and now: Services that help users with 'real-world' tasks in real time

  • Smart routing
  • Enhanced reality

Attentive services: Services that adapt in anticipation of users' evolving needs

  • Medical tele-monitoring
  • Customer retention systems

Services for people like me: Services that target groups of consumers who share key characteristics

  • Recommendation engines
  • Differentiated newspaper paywalls

Intelligent planning: Allows businesses to adapt operations to changing market conditions

  • Supply-chain management
  • Public-health planning

DDI creates value by allowing firms to operate more efficiently, to improve offerings and/or to offer products and services that might not be possible without data. This generates improvements that benefit consumers and businesses throughout the economy. Drawing on extensive research into international trends, coupled with primary research conducted in Singapore, Analysys Mason has quantified the impact of DDI on the Singaporean economy. Our research shows that DDI already underpins more than SGD4.2 billion in economic value in Singapore (see Figure 1), which is roughly equivalent to the total expenditure of Singaporean households on utilities or health.

Figure 1: Breakdown of surplus created as a result of DDI [Source: Analysys Mason, 2014] (Click to enlarge)

The report also offers analysis of the main challenges faced by policy makers seeking to facilitate the development of DDI. Positive policies such as open data, innovation grants and skills development can play key roles in facilitating DDI development. But also, as the impact of DDI grows, policies and regulations on data processing and the free flow of data are likely to come increasingly into focus.

Figure 2: The economic value of data-driven innovation [Source: Analysys Mason, 2014]

Figure 2: The economic value of data-driven innovation [Source: Analysys Mason, 2014]