̽��ֱ�� of Cambridge - entrepreneur

From Chinese milk to Indian chocolate, behind the world’s fast-expanding markets

Anonymous — Wed, 21 Oct 2015 10:31:23 +0000

It’s time to think small when it comes to identifying growth areas in the global economy.

For the past 15 years, since the BRIC acronym was coined for Brazil, Russia, India and China, the world’s biggest emerging economies have been the focus for discussion on growth opportunities outside of western developed markets. But with a slowdown in China and a credit downgrade for Brazil, it is getting harder to view the BRICs story as a simple, grand narrative of gilded opportunity for investors and businesses alike.

Those concerns are not confined to China and Brazil. Russia’s economy is contracting this year due to low energy prices; India’s economic recovery too has been slower than expected.

But these nations are not a busted flush; we just have to adjust our thinking. Real growth can be found in fast-expanding markets within those countries. It is a subject we have examined recently in a paper published in the Thunderbird International Business Review, seeking to understand these markets which transcend sectors as well as nations, and sometimes even confound conventional wisdom.

Milking it

While BRICs was useful shorthand for showing that a few populous countries would reshape the global economy this century, this macroeconomic lure has in fact been a microeconomic disappointment for some big companies. Home Depot had an emblematic experience, entering China in 2006 and pulling out completely in 2012. It didn’t anticipate that the do-it-yourself culture of the US wouldn’t translate into a country with abundant and relatively cheap labourers.

It is a story that illustrates the difficulty in using a top-down approach when operating in emerging markets. So rather than only taking a bird’s-eye view of such populous countries, it is useful to also take a ground-up look at where highly specific opportunities lie in BRIC countries and beyond.

̽��ֱ��heat is on. Fast expanding markets take flight. Will Murphy, CC BY-NC-ND

In China, one of these fast-expanding markets is milk production and consumption. More people have been paying close attention to their health and to the role that milk can play in their basic diet. Other factors have included an upgrade to the supply chain, a relaxation of the country’s one-child policy and the continued westernisation of China as companies such as Starbucks grow popular.

From 2000 to 2006 alone, China’s raw milk consumption nearly quadrupled, and the country is now the world’s third-largest producer behind the US and India as agricultural infrastructure has improved.

Choc-alert

In India, fast-expanding markets include Western-style cheese, which saw sales growth of nearly 200% from 2008-2013; solar water heaters, with the area in square metres of instalments almost doubling between 2009 and 2011; and the chocolate industry may treble this year to more than $2 billion, as a rise in sugar prices has made traditional sweets more expensive.

Object of desire. In Liechtenstein at least Partha S. Sahana, CC BY

Beyond BRICs, fast-expanding markets include mobile money transfers in Kenya and video game production in Turkey, developing games which conform to Islamic values.

And we can even branch out beyond the developing world too. There are opportunities for entrepreneurs, investors and businesses in the Vitamin D testing market in Italy, benefitting from an increasing lack of direct sun exposure; in organic food production in Spain, linked to a downturn in the property market; in food trucks in the US, which have grown at a double-digit annual rate in recent years; and ceramic teeth in Liechtenstein, an industry which expanded in the past five years at a compound annual growth rate of 9.5%.

While overall growth is useful to know, an unquestioned loyalty to macroeconomic data misses much of the equation and loses most of the intelligence that can drive astute investment decisions. That’s partly because macroeconomic analysis often takes a linear look at the future, and this can often prove wrong. If you were to look at the US population statistics in the early 1900s, one could reach the conclusion that the country would have been 80% Italian and Polish by 1930 if trends had followed a linear progression.

Pocketing the wealth

̽��ֱ��central idea is that wealth can be found everywhere, even in countries that share gloomy macroeconomic data or prospects, like Bolivia, which is the country that has driven the quinoa revolution into the “ready to eat” industry in the US. With an annual growth rate of 26.5%, Bolivia has exploded its production of quinoa, to the benefits of the new dietary aspirations of Americans, who have integrated the super grain into the daily use of soups, salads and energy bars. This is a great example of an agricultural fast-expanding market, which stems from what many consider as the poorest economy in Latin America.

Making the most of the boom. Bolivian quinoa farmers. Bioversity International, CC BY-NC-ND

Sometimes, fast-emerging markets develop in unlikely settings. Italy has long had a reputation for high-quality food products and delicious wines, but in the midst of that, microbreweries are gaining a foothold. This is partly because the lack of a traditional beer culture in Italy means microbreweries can more readily experiment with flavours and ingredients. Another surprising expanding market in Italy: American-style bakery products such as chocolate chip cookies, cupcakes and donuts.

Some may scoff that craft beer in Italy or quinoa in Bolivia are pretty insignificant compared to major global industries such as automobiles or machine tools. But such a reaction risks blinding us to fresh insights that can lead to new pockets of excellence that, taken together, make a real difference to the world economy.

Khaled Soufani, Senior Faculty in Management Practice (Finance), ̽��ֱ�� of Cambridge; Mark Esposito, Professor of Business & Economics at Grenoble Ecole de Management and Harvard Extension School, Harvard ̽��ֱ��, and Terence Tse, Associate Professor of Finance / Head of Competitiveness Studies at i7 Institute for Innovation and Competitiveness, ESCP Europe

This article was originally published on ̽��ֱ��Conversation. Read the original article.

Khaled Soufani (Cambridge Judge Business School), Mark Esposito (Grenoble Ecole de Management and Harvard ̽��ֱ��) and Terence Tse (i7 Institute for Innovation and Competitiveness, ESCP Europe) discuss fast-expanding markets in the world's biggest emerging economies.

Gwendolyn Stansbury

Got milk? China joins the lactose lovers.

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Cambridge is a major player in the £1bn UK computer gaming industry

pbh25 — Thu, 17 Jul 2014 15:49:36 +0000

In the field of computing, the ̽��ֱ�� of Cambridge is scarcely short of global firsts. For example, its Electronic Delay Storage Automatic Calculator (EDSAC) of 1949 is considered the earliest practical general-purpose electronic computer; and in 1953, the Cambridge Diploma in Computer Science became the world’s first taught course in computing.

Between those two landmarks sits a lesser-known landmark. In 1952, PhD student Alexander S Douglas developed the world’s first computer video game – a noughts and crosses emulator that he titled ‘OXO’. ̽��ֱ��program ran on the EDSAC, which occupied more than 200 square feet of the Mathematical Laboratory. Competing against an artificially intelligent opponent, players would input their moves on a telephone dial, and follow the action on a flickering cathode-ray tube.

More than 60 years on video games are big business in the UK. According to industry body TIGA, the games development sector contributes around £1bn to Britain’s Gross Domestic Product each year, employing 9,000 skilled workers of whom 80 per cent are graduates. What’s more, Cambridge is at the very heart of the industry, home to a cluster of companies including Jagex, Frontier Developments, Geomerics, Guerrilla Cambridge, Ninja Theory and many more

“Cambridge is thought to have 18 per cent of the games market,” says Adrian Page-Mitchell of the Centre for Computing History. “And depending on who you talk to, it employs anything between 1,200 and 4,000 people.”

A trip to the centre, located off Newmarket Road, offers a crash course in how the city became a magnet for games talent. ̽��ֱ��museum’s most popular displays are almost certainly the 8-bit machines designed by Cambridge companies in the computing boom of the early 1980s, and particularly the Sinclair ZX Spectrum and Acorn BBC Micro.

Today, the presence of technology giants such as Microsoft Research, Broadcom and ARM (a descendant of Acorn) makes Cambridge a particularly favourable location for software development, including games. This dates back to the 80s heyday of Sinclair and Acorn, says Page-Mitchell. “They were hardware people, and always on the lookout for software talent. So feelers went out to undergraduates, and you had these bedroom coders – of which the biggest ones were David Braben and Ian Bell, who wrote Elite.”

On its release in 1984, Elite was a startling piece of software: a space trading and combat game with revolutionary 3D graphics, open-ended gameplay and a vast universe. Co-writer David Braben has remained in Cambridge, where his company Frontier Developments is producing a 21st century reboot of the game, Elite: Dangerous, after raising a record £1.25m on the crowdfunding website Kickstarter.

Braben cites the close relationship between the ̽��ֱ�� and the ‘Silicon Fen’ tech hub as a great advantage for games developers. It’s strengthened by organisations such as games Eden and Creative Front, which organise events such as the annual Brains Eden gaming festival. “It all helps to cement the relationship between the town and the ̽��ֱ�� in a very positive way, and give people opportunities to stay in Cambridge and work for Cambridge-based companies,” he says.

One thing that the ̽��ֱ�� lacks is any courses specifically geared to computer games, unlike institutions such as Anglia Ruskin ̽��ֱ��, which runs a popular BSc in Computer Gaming Technology. However, Braben believes that a more generalist approach is best at undergraduate level: “you can pick up the vocational side very quickly. I’m not criticising any of the more specific courses, which teach some important things like team working, but I think it’s much more important to get a proper grounding [in computer science].”

It’s a view shared at Jagex, the UK’s largest independent game developer. Co-founded by Cambridge Computer Science graduate Paul Gower in 2001, the current company is headquartered at St John’s Innovation Centre and is best known for Runescape – the world’s largest free MMORPG (massively multiplayer online role-playing game). Jagex is a regular recruiter from the ̽��ֱ��, both at graduate and doctoral level. Chief executive officer Mark Gerhard says: “We value IQ and attitude over experience. A smart, ambitious, hungry graduate is best for us, as opposed to someone who has been in the industry for 20 years and either has a lot of bad habits or doesn’t want to learn anything new. But we’re competing for talent not just with Google and Microsoft but with Goldman Sachs.”

Yet despite the lure of chunky salaries in the City, the ̽��ֱ��’s brightest students are still drawn to gaming.

Among this year’s Part 1B projects for undergraduates on the Computer Science Tripos are several within the sector. They include “Evolve a Pet”, which will create a game to teach school pupils about genomic sequencing, and a transport game project to enable users to explore the impact of their journeys around Cambridge.

Comp-sci students are also targeting firms concerned with gaming technology for their internships and work placements. Second-year student Sakunthala Panditharatne of Churchill College is looking forward to working with Oculus VR, developers of the Oculus Rift virtual-reality headset, who were recently acquired by Facebook for around £1.2bn. Already the winner of a Google technology prize at the age of 16 for her work in computer animation, she will be writing software to make the headset compatible with games.

Panditharatne plans to remain in the sector. “I think what I’ll end up doing in the next couple of years will be related to the 3D models that go into video games,” she says. “I want an opportunity to be using my computer science skills – I don’t want my degree just to be a ticket to something else.”

It’s not just a matter of Cambridge talent flocking to established studios. Like the bedroom coders of the 80s, small, boutique games developers are thriving again. ̽��ֱ��ability to distribute games online, and the need for simpler games for mobile platforms, means smaller outfits can flourish – and according to Jan Samols, who oversees the Computer Lab’s outreach activities, graduates are successfully going it alone.

She says: “I think Cambridge is unique in that it produces very entrepreneurial graduates, not only in gaming but in whatever area they may be interested in. I’ve catalogued more than 200 companies that have been started by Computer Lab graduates. Academically, we give them what they need to go it alone, and they can also draw inspiration from graduates who have gone before them and done extremely well.”

But it’s not merely as a graduate career choice that computer gaming permeates the ̽��ֱ��: it crops up throughout the faculties and departments, including in some unlikely quarters. In the Department of Education’s Centre for Children’s Literature, games are analysed alongside classic books to gain a more complete insight into what influences young people. Elsewhere, the High Performance Computing Service is employing a cluster of graphical processing units developed for game consoles to deliver vast computing power at a low operational cost.

What’s more, the Department of Engineering recently recruited a Senior Teaching Associate in Online Education and Computer Games Technology for an initiative to get school pupils interested in mechanics and engineering. Professor Richard Prager, head of the School of Technology, already maintains a website to help prospective students prepare for interviews. Now he hopes to take the project a step further using interactive games to capture teenagers’ interest.

He says: “I’ve noticed with my own kids and others that they spend a lot of time being enormously creative and ingenious in the way they play games such as Minecraft and Roblox. Now, suppose we could channel all that ingenuity into stuff relevant to engineering. That would be fantastic.”

Words: Will Ham-Bevan

From the first computer game to the world's largest online fantasy gaming experience - Cambridge has been home to some of gaming's greatest minds.

Cambridge is thought to have 18 per cent of the games market and depending on who you talk to, it employs anything between 1,200 and 4,000 people.

Adrian Page-Mitchell of the Centre for Computing History.

Gaming by the numbers

̽��ֱ��UK video games industry is the largest in Europe

Estimates suggest that the global market for video games will grow from $52.5 billion in 2009 to $86.8 billion in 2014.

̽��ֱ��UK games development sector contributes approximately £1 billion to UK Gross Domestic Product per annum.

̽��ֱ��UK games industry employs over 9,000 highly skilled development staff, 80 per cent of whom are employed outside of London.

Figures from TIGA

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Silicon mashup as Valley hits Fen

fpjl2 — Tue, 15 Nov 2011 11:00:52 +0000

Silicon Valley has entered the modern lexicon as a high-tech Shangri-La, the nerve centre of the digital age. But its heels are being snapped at, and this week some of the great and good of Silicon Valley cross the pond, and will be stopping in Cambridge to doff their caps to the fenland upstart.

Home to an ever-expanding cluster of tech companies, ‘Silicon Fen’ has become one of the most prominent centres of business growth in Europe. With what’s been termed the Cambridge Phenomenon only gathering momentum, the university at the heart of it all is the perfect place to host two days of free events that bring around 30 of Silicon Valley’s major players together with UK business leaders, investors and the students who will become the next generation of serial entrepreneurs.

̽��ֱ��Cambridge days will form the centrepiece of a series of events called ‘Silicon Valley comes to the UK’, dubbed SVc2UK, now an annual fixture in the calendar of every self-respecting UK tech-head, entrepreneur, angel and investor. To register for an event, visit: www.svc2uk.com/cambridge

“This is the fourth year for the SVc2UK series and it is bigger and more ambitious than ever before,” says Sherry Coutu, a leading investor and SVc2UK co-chair. “We hope that by inspiring our world-class students, who are overflowing with ideas to make change happen, we will reap rewards in the not-too-distant future.”

Among the topics discussed will be the future of education in the digital era, posing the question ‘what will the world of education look like in 10 years time?’ at a free event on the 17 November (registration required). ̽��ֱ��panel includes: Reid Hoffman - SVc2UK co-chair and founder of the LinkedIn network, Greg Joswiak – Head of iPhones and iPads for Apple, and Joi Ito – CEO of Creative Commons and Head of the MIT Media Lab. Moderated by Cambridge Vice-Chancellor Professor Sir Leszek Borysiewicz, the panellists are all involved in projects that may well change the face of education in the near future.

This year’s focus will be on ‘Economy 2.0’ and re-writing the rules for economic growth. “ ̽��ֱ��colossal power and potential of a digital world in making a real difference at a time of immense economic turbulence is at the heart of SVc2UK” says Coutu. During the day of 18 November, a series of talks from some of the most powerful people in Silicon Valley will take place, designed to inspire audiences to investigate the world of high-tech start-ups and fast-growing, innovative companies.

Later on that day there will be a ‘Big Data’ panel discussion looking at the digital future and the growth of internet commerce, where speakers will include Andrew McLaughlin – former CTO for Barack Obama, and Megan Smith – Google’s VP for business development, who has overseen such projects as Google Earth and Picasa. Speakers will also be visiting local 6th Form Colleges to encourage teenagers to think about the impact they could have on the world if they pursue entrepreneurship.

Earlier this year SVc2UK launched an ‘Appathon’, in which 1,500 students from 15 universities across the UK entered a coding competition to develop consumer applications using government data, with the aim of making positive social impact by enhancing the accessibility of key information. This innovative project was applauded by the current government, and SVc2UK counts Prime Minister David Cameron among its supporters, who said: “Silicon Valley comes to the UK is one of the most important inward investment events of the year, bringing leading entrepreneurs and investors together with British technology companies to spark new connections. I warmly welcome the news that SVc2UK is rewarding the creative use of government data.”

SVc2UK co-chair and LinkedIn founder Reid Hoffman says: “When it comes to entrepreneurship there are no borders, which is why I look forward to this event each year. I and the other entrepreneurs benefit hugely from meeting the inspirational businesses and students from the UK and Europe. And if in turn we help inspire the talent of tomorrow, then everyone benefits.”

Main events will be taking place at the Cambridge Judge Business School and the Cambridge Computer Lab. Events are free but registration is essential. Full details of the speakers and the programme of events can be accessed at www.svc2uk.com/cambridge

Interested in what our digital future will look like? This week Cambridge plays host to pioneers of some of the most exciting and disruptive Silicon Valley companies - including Google, Apple and LinkedIn - in series of free public events on the 17 and 18 November, where insights into world-changing ideas will be shared by the people who made them happen.

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