Home / Blog / The economics of the Digital Transformation – XXIII

The economics of the Digital Transformation – XXIII

In the cyberspace knowledge can be “sold” through CDTs by providing access to a CDT via API (this CDT may include other CDTs acting a s single point of access, as well as a network of CDTs), by selling the CDT and by selling an instance of the CDT. A platform can provide support in the access to CDT and to applications, mostly using AI, that can extract, create, knowledge interacting with CDTs.

Exploitation of knowledge in the cyberspace

A CDT at stage IV becomes a knowledge entity that can be sold as a whole or by granting access to a subset of its knowledge space, through APIs.

A CDT can advertise itself, its “executable” knowledge in various ways and there will likely be knowledge platform for making this possible and managing the exploitation. As previously mentioned a CDT can share knowledge through interaction or by becoming a component in a higher level CDT (aggregating several CDT under one envelope).

As an example, a consulting firm can have a company CDT that aggregates its consultants CDTs and offer a single point of access to knowledge. Think about a consulting firm in the area of construction. Rather than offering single APIs to provide knowledge on building structural design, a different one for legal support, another for identifying suppliers, another for access to cadastral data (each of these is a complex area for which the firm has pool of specialists) the company can provide a single set of APIs to the firm CDT and it will be this CDT task to connect with the appropriate CDT.

The idea is to create clusters of knowledge to interface at higher level of abstraction, letting the CDTs orchestrate (with a platform support) the specific interactions. This will work both ways making it possible to return knowledge at the level of abstraction needed by the client. This increase the economic value of knowledge.

Notice that the networking of CDTs within the cyberspace can be flanked by applications that work on the knowledge exchanged and that may produce further knowledge.

A typical application case is the connection between the layers of

  • Factual knowledge
  • Diagnostic analytics
  • Predictive analytics
  • Prescriptive analytics

previously discussed.

DT can capture the factual data sent from their physical twin. These data can be transformed into knowledge –diagnostic analytics- (either inside the DT hence a CDT, or by an external AI application that feeds a CDT).

The next step is to have the CDT interacting with other CDT to correlate knowledge and extract/create further knowledge, some of it in a hypothetical for (what if), – predictive analytics – and finally taking decision on the available set of knowledge and release the one that matter –prescriptive analytics.

All of this happens in the cyberspace and different architectures can be used to support it. How much to embed into a CDT and how much to leave to an application is an architectural decision that has ownership aspects implied.

We are still in the first stages of research in this area to define and propose an architecture for CDT, although this aspect is addressed in the KaaS initiative.

About Roberto Saracco

Roberto Saracco fell in love with technology and its implications long time ago. His background is in math and computer science. Until April 2017 he led the EIT Digital Italian Node and then was head of the Industrial Doctoral School of EIT Digital up to September 2018. Previously, up to December 2011 he was the Director of the Telecom Italia Future Centre in Venice, looking at the interplay of technology evolution, economics and society. At the turn of the century he led a World Bank-Infodev project to stimulate entrepreneurship in Latin America. He is a senior member of IEEE where he leads the New Initiative Committee and co-chairs the Digital Reality Initiative. He is a member of the IEEE in 2050 Ad Hoc Committee. He teaches a Master course on Technology Forecasting and Market impact at the University of Trento. He has published over 100 papers in journals and magazines and 14 books.