20160317-高盛-What_we_learned_at_our_2nd_Innovation_Symposium__8_panels,_350+_attendees_later_–_the_best_of_what_we_learned_12页_169kb

Summary of the 2nd Innovation Symposium

Core Content and Key Themes

The second Goldman Sachs Innovation Symposium, held on March 16, featured eight panels and attracted over 350 attendees. The event focused on industry-changing disruption across various sectors, including energy, defense, health, the sharing economy, blockchain, virtual reality (VR), and investing. The following are the main insights and key takeaways from the symposium:

1. Big Data and Technological Advancement

• Data proliferation and declining computing costs are enabling new solutions across industries.
• Digital health data, alternative data for financial models, and genetic data for synthetic biology are key areas where big data is creating value.
• These technologies support better decision-making and greater efficiency in sectors such as military operations, power grids, and healthcare.

2. Everything as a Service

• The product is evolving from a physical device to a platform-based service that provides insight and asset management.
• Solution providers are becoming quasi consultants, offering high value at low incremental cost.

3. The Utilization Revolution

• Blockchain and IoT are transforming asset utilization by enabling seamless demand-supply matching, collaboration, and secure payments.
• The sharing economy is unlocking dormant capacity in assets like apartments, cars, and equipment, increasing their value and usage.

4. Climbing the Adoption Curve

• Technology readiness is often not the main bottleneck for adoption.
• VR content is still lagging, and physician buy-in and reimbursement clarity are critical for digital health adoption.
• The potential savings from digital health could reach $300 billion annually by 2026, with a $32 billion profit pool estimated.

5. The Great Battery Race

• Batteries are application-dependent, with Li-ion suitable for demand management and residential use, while flow batteries are better for grid support.
• Pack costs are expected to decline further, potentially below $100/kWh.
• Lower fuel prices may reduce savings in some applications, but the $1 trillion T&D capex in the US through 2025 presents a big opportunity.

6. Military of the Future

• The US military is focusing on innovative technologies to meet evolving threats.
• Cybersecurity, space technology, and unmanned systems are key areas of interest.
• Defense contractors are finding opportunities to sell into the commercial world, especially in cybersecurity.

7. Welcome to Synthetic Biology

• Synthetic biology allows the design and fabrication of biological components that do not exist in nature.
• It offers cost-effective and faster organic manufacturing processes, with applications in agriculture, consumer goods, and healthcare.
• Regulation is still nascent, but collaboration with regulatory bodies is seen as essential for market entry.

8. The Evolution of the Sharing Economy

• The sharing economy is driven by mobile devices, location-based tech, and capital efficiency.
• Trust and safety are key enablers for growth in both consumer and enterprise sharing models.
• Incumbents are responding through co-option, regulation, and investment in sharing platforms.

9. Blockchain – The New Digital Trust System

• Blockchain is a shared, secure database that enhances transparency, efficiency, and security.
• It is not limited to cryptocurrency, but has broader applications in financial services, real estate, and the sharing economy.
• Commercial blockchain trials are expected to begin in 2016, with full-scale production in 2017, though standardization and regulation may delay this.

10. Augmented and Virtual Reality (AR/VR)

• VR is seen as the next big computing platform, with a focus on content creation.
• The chicken-or-egg dilemma persists between content and hardware adoption.
• Immersive storytelling is a key use case, with The New York Times leading in VR content and distribution.

11. Innovation in Financial Products

• Quantamental investing is combining quantitative and fundamental approaches.
• Smart Beta products are growing rapidly, now making up ~25% of the US-listed ETF market.
• Alternative data and big data analytics are playing a critical role in investment decision-making.

Key Companies and Investments

• Northrop Grumman (NOC) and Orbital ATK (OA) are highlighted as conviction buys in the defense sector.
• Ginkgo Bioworks and Intrexon are leading in synthetic biology, with Ginkgo consuming ~10% of global synthetic DNA demand.
• The New York Times is noted for its early adoption of VR, with the NYT VR app being the most downloaded.

Disclosure

• Goldman Sachs may have conflicts of interest due to its business relationships with companies covered in the report.
• The report is not a recommendation but a single factor in investment decisions.
• Reg AC certification and other disclosures are available in the Disclosure Appendix.

Conclusion

The symposium underscored the transformative potential of innovation across multiple sectors, with big data, blockchain, synthetic biology, and VR as key enablers. While adoption challenges remain, the opportunities for growth and efficiency are significant. Investors should consider these insights in the context of broader market trends and regulatory developments.