The Alberta Center for Analytics y Products A Proposal p to Build the Alberta Analytics Industry Stuart Lomas President,, Alberta Council of Technologies g (780) 953-3415 stuart@lomas.ca
The Problem “Alberta educates some of the world’s top experts in Artificial Intelligence and Analytics. When they graduate, every one of them leaves the province province” - A senior U of Alberta researcher researcher, 2010
One Possible Solution
“Maybe Maybe that’s that s a good reason to stop wasting our money educating these people” - a senior Alberta politician, 2012
Another Solution For the past year, the Alberta Council of Technologies g has p promoted the idea of an Alberta Center for Analytics Products. The goal is to encourage an Advanced Analytics Industry in Alberta. – – –
Keep our world-leading graduates in Alberta Benefit Alberta companies p as suppliers pp and customers Encourage new Analytics companies based in Alberta and serving the world.
Why Do Our Top Graduates Leave? JOBS •
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IIn Alberta, Alb t over 5000 people l are employed l dd doing i Analytics right now. So, we have Analytics jobs. Masters and PhD graduates don’t don t “do do Analytics” Analytics , they create Analytics solutions. We don’t have these jobs. Analytics y graduates are technical experts, g p , not entrepreneurs. They need an employer. The world’s top Advanced Analytics employer is G Google, l where h our graduates d t often ft go. The missing link in Alberta is Analytics Business.
How Can We Create Analytics Jobs? We need Advanced Analytics employers. We can Make or Buy them them. We can Buy analytics jobs by enticing employers with incentives. These employers are answerable to their shareholders, not Alberta. When their needs d change, h th they lleave. Far better to Make new companies in Alberta, and Make new jobs within existing Alberta companies.
Keeping Analytics Industry in Alberta Resource industries, like agriculture and oil, are tied to land. These industries cannot leave. Analytics is not tied anywhere. To grow this industry in Alberta, we need an anchor. The anchor for creative ti jobs j b like lik Advanced Ad dA Analytics l ti is i community. it The Advanced Analytics y Communityy p provides: • • •
Talent, both technical and business; Money, willing to invest in Alberta technology; M k t especially Market, i ll ffor th the crucial i l fifirstt sales. l
There are other factors, but these 3 are key!
Alberta Center for Analytics Products ACAP is the Alberta Center for Analytics Products. ACAP's purpose is to Encourage the Growth of the Alberta Analytics Industry Industry. y for the business of ACAP creates a Community Advanced Analytics in Alberta. The Community allows free movement of p people, p , companies p and capital, while anchoring the industry to Alberta.
ACAP Activities Research Commercialization
Package Analytics research into commercial platform software. Platform software is licensed from ACAP, not transferred. Avoids stranded IP, and allows multiple licensing.
Company Creation
Actively spin-out new companies based on platform software and experienced staff. Reduce the cost and risk of new startups, which increases success and encourages patient financing financing.
Analytics Marketing
Promote the use of Analytics solutions in receptor organizations organizations. Direct platform development to the discovered needs of markets.
More ACAP Activities Training and Certification
Conduct courses and provide certifications for clients and the public. Hire term staff from organizations in Alberta and around the world, and cycle them back to their organizations when their terms end.
Consulting to Business
Solve problems under contract to business and governments IP from contracts stays with ACAP, and is licensed to clients.
C Corporate t in-kind i ki d Financing Fi i
Allow deferred payments for IP and services for clients that stay in Alberta, with up-front payments for cost-recovery only. Further reduces startup risks, risks and ties clients to Alberta Alberta.
Financial Model ACAP has several financing options, and this is an important strategic consideration. Financing activities must be aligned with the center’s goals. Public P bli money iis lik likely l ffor startup. t t P Private i t money iis welcome, provided it does not result in a loss of control or skew the market for ACAP results control, results. p g funds can flow from consulting, g courses, Operating licences, and certification. This may not meet all operating needs.
Governance Model As with Finance, Governance is strategically important because of the need to be focused on public benefits, and remain free to execute. Governments, Universities and Corporations all have vested interests that can conflict with ACAP’s goals. They also have a lot to offer if their interests are balanced. ACAP governance should blend these interests.
ACAP and Industry Client Industries • •
ACAP maintains close ties with Analytics using companies, including multi-national users. Goal is to train their staff, meet their operational needs, and create startups p to service them.
Competitive Industries • •
ACAP seeks to partner with these, use their access to market, and create startups that global majors will want to buy. Market advantage g to startups; p ; new p product development p advantage to large players.
ACAP and Academia ACAP works closely with researchers in Alberta and around the world world, providing: • • •
A place for researcher secondment A place for work-term students A route for their research to reach the world
ACAP compliments AICML and cooperates with it. ACAP has a commercial focus focus, limited interest in research activities, and no academic credentials.
Culture and Physical Location ACAP should look and “feel� like a profit-driven software company, not a research institution. ACAP could locate in a research park park, or in purely commercial space. ACAP needs to be away from universities and independent of other companies universities, companies. ACAP fits into a walkable technology community community.
Where Has This Been Tried Before? Commercialization institutes exist worldwide. Some examples: Germany: Fraunhofer Institute – –
Post-WW2, Post WW2 services German industry industry. Hugely successful, with about 80 sub-institutes.
Israel: Yissum – –
Since 1962; target is startup-creation Hosted in a university, reliant on a specific culture
Both are successful within their environments.
Is ACAP unique in Alberta? We already have: • • •
ACAMP, for Advanced Micro and Nano Products NAIT Shell Manufacturing Center TRL b for TRLabs, f telecommunications t l i ti
The 2011 Premier’s Premier s Council for Economic Strategy proposed a broad Applied Research Institute. None of these target Analytics, but each has the goal of bridging knowledge to industry.
Taking Action ACAP has been well publicized in Alberta’s innovation community and Alberta government government. part of a wider strategy gy to ACAP could be p encourage Advanced Analytics in Alberta, similar to the Alberta Nano Strategy. gy The next step is to develop a specific business plan for ACAP, in cooperation with government and in a strategic framework.
Acknowledgements The ACAP concept p has been helped p by y many people. Special thanks to Perry Kinkaide, who has straightened many paths, and Bruce Matichuk, a co-conspirator. p
Postscript
“We We Need This” This - the same Alberta politician politician, after scanning the ACAP concept doc