Mike Edwards - Keynote Speaker Presentation - Midway Investor Conference

“Year 2025�

Our

Changing World Technical, Digital Cultural Ecosystems Are Evolving (faster-than-ever)

Reflections Mike Edwards • Iterate.ai advisor • new (NASDAQ) $38.67 • FLXS (NASDAQ) $50.02 • Drexel University Board of Trustees • eBags CEO (acquired by Samsonite for $105 million) • Staples EVP • Borders CEO, Board • Lucy CEO (acquired by VF for $110 million)

Presentation by Mike Edwards mje1960@gmail.com

game-changer

Reflections & Projections ^ • Smaller, faster, cheaper • Decentralized, distributed, connected • All at once

Presentation by Mike Edwards mje1960@gmail.com

2017

A retailer?

No other retailers on the list

#10

#25

Presentation by Mike Edwards mje1960@gmail.com

https://www.techinasia.com/amazon-vs-alibaba-the-innovation-spending-war

2017

The question is, “Why? Why $16 billion per year?�

Presentation by Mike Edwards mje1960@gmail.com

Startups invest billions (plus passion), too Investment in Innovation into the Startup community

Disrupters

Bootstrappers

Passion | Belief

76% of acquired tech companies

The question is, “Why? Why $16 billion per year?�

Presentation by Mike Edwards mje1960@gmail.com

Source: Lou Kerner, TEDx

Unstoppable Techno-Trends

1.

2.

3.

4.

5.

6.

7.

8.

Gargantuan (Steams of) Data (“Big” is too small + it flows like rivers) AI and Deep Learning Internet of Things Rise of Robotics (spybots to cyberbots, nanobots to humanoids) Autonomous Ground Vehicles Autonomous Air Vehicles Blockchain Quantum Computing

The question is, “Why? Why $16 billion per year?”

Presentation by Mike Edwards mje1960@gmail.com

SCIENCE FICTION COMING TO LIFE

Presentation by Mike Edwards mje1960@gmail.com

Presentation by Mike Edwards mje1960@gmail.com

One advancement enables the next Blockchain

(Bigger than the Internet?)

(Two way street for data and capital)

Gargantuan Data (“Big� is too small + it flows like rivers)

Internet of Things

AI and Deep Learning

Presentation by Mike Edwards mje1960@gmail.com

Autonomous Ground Vehicles (including HyperloopOne)

Rise of Robotics

Spybots to cyberbots, nanobots to humanoids

Autonomous Air Vehicles

(+ SpaceX & BlueOrigin)

Quantum Computing

Big, Gargantuan (Flowing) Data

79.8%

often Streaming in Real-Time

Growing 42.5% per year

20.2%

More data produced in 2017 than the prior 5,000 years Presentation by Mike Edwards mje1960@gmail.com

Growing 22.4% per year

Big Data fuels

and opens the door for

Deep Learning

Source: Lumascape

.

Credit: Shutterstock Max Krasnov

Deep Learning AI that tests, learns, adjusts (all by itself) Where it’s working: • • • • • •

Web personalization engines (Amazon DSSTNE, Reflektion) Image recognition in visual search (PCSSO) Self driving cars (Google, Tesla, Mercedes) Drones (Amazon) Voice recognition and natural language processing Advanced medicine and diagnoses

Possible due to: • • • •

Chip processing power Computer speeds Massive volumes of data Unstructured data processing capabilities

Picture Source:

Presentation by What Is Deep Learning in Artificial Intelligence?

Mike Edwards GeekBoy mje1960@gmail.com

Deep Learning makes the Internet of Things smart and interactive

Photo Source: crtlabs.org

Internet of Things Amazon’s IoT devices include voice recognition and output (which is AI) and web plus video response (which also involves AI)

Presentation by Mike Edwards mje1960@gmail.com

Internet of Things Will make Smarter Cities Involving buildings, transportation security, energy, and more www.iotamy.com

Presentation by Mike Edwards mje1960@gmail.com

Deep Learning and the Internet of Things breathe life into Robots

Presentation by Mike Edwards mje1960@gmail.com

Rise of the Robots: Spybots #BUSINESS NEWS MAY 9, 2017 / 11:17 PM / 5 MONTHS AGO

Presentation by Mike Edwards mje1960@gmail.com

Rise of the Robots: Cyberbots

Presentation by Mike Edwards mje1960@gmail.com

Rise of the Robots: Nanobots Swimming in our bloodstreams

Presentation by Mike Edwards mje1960@gmail.com

Nanobots

DNA nanobots will attack cancer cells; blood bots will swim inside us and clear our arteries

Presentation by Mike Edwards mje1960@gmail.com

Rise of the Robots:

Humanoids Working in our factories and defending our country

Click on video to see the video, or go here: https://www.youtube.com/watch?v=M8YjvHYbZ9w

Rise of the Robots: RoboPizza (Zume) Raised $48 million in October 2017 ROBOT PIZZA COMPANY ZUME CAN CREATE 372 PIZZAS PER HOUR USING ‘DOUGH BOTS’ AND DELIVER IT IN 4 MINUTES

Presentation by Mike Edwards mje1960@gmail.com

Autonomous Ground Vehicles (AGVs)

Presentation by Mike Edwards mje1960@gmail.com

Autonomous Ground Vehicles (AGVs)

Presentation by Mike Edwards mje1960@gmail.com

Autonomous Ground Vehicles (AGVs) X 2 RoboVan by Mercedes + Startups

Source:

Presentation by Why Mercedes Is Betting on Drones and Self-Driving Robots Mike Edwards Fortune Magazine mje1960@gmail.com

Autonomous Ground Vehicles (AGVs) + Air Drones

Source: Mercedes delivery van and drone system: PHOTOS, Presentation by FEATURES ... Business Insider Mike Edwards mje1960@gmail.com

Blockchain

is a bigger deal than

(far, far bigger)

Blockchain Web to Blockchain Analogy

Parallels to the internet Blockchain = 90’s Internet

• Similar investment levels • Similar excitement levels • Similar visions for potential use cases

History rhymes … expect similar …

• Path to maturity • Adoption curve • Evolution of protocols built on Blockchain

More Profound Impact Source: Presentation by Software Infrastructure Mike Edwards https://www.slideshare.net/IBTSMG/blockchain-67620150 mje1960@gmail.com

• Computationally-based society has less need for brick-n-mortar institutional footprint

Blockchain • “Blockchain and Bitcoin have created technology that is open and transparent, frictionless and secure.”

• “This technology is bigger than the Internet.”

• “While the Internet transformed music, communications, information, entertainment and transportation …

• ... “blockchain and Bitcoin will allow governments to be virtual, banks to be unnecessary, ownership to be ironclad, insurance to be frictionless, and we all know who owns that.”

• Hackers will be out of business.

This will be tremendous.”

Presentation by Mike Edwards mje1960@gmail.com

Tim Draper

Draper Associates and DFJ

Quantum Computing

Presentation by Mike Edwards mje1960@gmail.com

Summary

Unstoppable Techno-Trends 1.

2.

3.

4.

5.

6.

7.

8.

Gargantuan (Steams of) Data AI and Deep Learning Internet of Things Rise of Robotics Autonomous Ground Vehicles Autonomous Air Vehicles Blockchain Quantum Computing

Noteworthy Honorable Mentions 1. 3D Printing 2. AR and VR 3. Magic Materials like Graphene 4. Cryptocurrencies

The question is, “Why? Why $16 billion per year?�

Presentation by Mike Edwards mje1960@gmail.com

positive or negative

Impacts on retail ^ Cultural and Social A. Commercial tech is advancing in lockstep with Military B. More Peer-to-Peer behavior bypassing central authorities C. More open and collaborative ecosystems D. More collective creation

E. Business Models will be challenged and evolve F. Growing importance of a plethora of (creative) startups • Cost of digital startup has declined $5 million to $5 thousand

Presentation by Mike Edwards mje1960@gmail.com

Mike Edwards • Iterate.ai Advisor • Two Directorships • eBags CEO (acquired by SAMC) • Staples EVP • Borders CEO • Lucy CEO (acquired by VF)

Advice

V

take it or leave it

1. Your people (employees, advisors, consultants, board, partners)

• will determine your success • need many to be technical or be open to tech • need to be forward-thinking and open-minded • need to understand data and be comfortable with uncertainty

2. Know your assets will be

driven by data

3. Jump into Big Data and AI, ASAP 4. Make sense of the emerging tech (Iterate) Presentation by Mike Edwards mje1960@gmail.com

Mike Edwards • Iterate.ai Advisor • Two Directorships • eBags CEO (acquired by SAMC) • Staples EVP • Borders CEO • Lucy CEO (acquired by VF)

Advice

V

take it or leave it

5. Consistently monitor developments in: • blockchain, IoT, 3D printing …

• evaluate from merchant and ops points-of-view • leverage Iterate for this ongoing activity, perhaps

6. Embrace: • tech that supports your customer experience • tech that increase your efficiencies

7.

Be: • a retail innovation machine • experimental and modular

8. Build experience and inspiration centers that include B&M, IoT, smartphones, PCs, and more Presentation by Mike Edwards mje1960@gmail.com

Mike Edwards • Iterate.ai Advisor • Two Directorships • eBags CEO (acquired by SAMC) • Staples EVP • Borders CEO • Lucy CEO (acquired by VF)

Advice

V

take it or leave it

1. Shift to online 2. Re-urbanization 3. Global access 4. Mobile = retail-relevance • Service, omni-channel, pricing at new levels

Presentation by Mike Edwards mje1960@gmail.com

Mike Edwards • Iterate.ai Advisor • Two Directorships • eBags CEO (acquired by SAMC) • Staples EVP • Borders CEO • Lucy CEO (acquired by VF)