New technologies – and the production massive amounts of data that they enable – are changing the world map. In a global process pervaded by hi-tech, new players are coming onto the scene, Brazil being one such. The country is transitioning from a rampant emerging economy to a “fulcrum” of the technological world, giving rise to excellent opportunities for those firms – including from Italy – that know how to make the most of the situation. In the following interview, the Aspen Italia website team discusses this issue with Federico Grosso, a technology innovation expert and Managing Director, Latin America, for HP Autonomy.
What opportunities does big data offer for Brazil and Latin America?
Let’s start by saying that we can take the term “big data” as referring to the sum total of data amassing in such a complex manner that it can no longer be handled by conventional means. The three key aspects of this complexity are speed, volume and variety. It springs from the convergence of other technological megatrends: the digitization of information, the internet, social media, and the phenomenon of mobility. Latin America is well-placed in this scenario and its market is larger. Brazil has the world’s second largest population on social media sites after the United States. This shows that changes in the information domain can really alter the world map, and that the division between a “First World” – comprising the US and Europe – and emerging countries no longer makes sense. Naturally, some of the latter may lag behind in certain respects, but new technologies are very quickly breaking down barriers.
Is it conceivable that the processing of a large mass of data could also be used to keep a lid on dissent in Latin America?
A very fine line separates different uses of these technologies, but I believe that a balance is being struck between utopia and dystopia in the use of big data. The spread of information is leading us towards the formation of a contract, not just with institutions, but with society in general, under which different rules apply than those of the past. A case in point is the way the concept of privacy is changing in social media compared to how it operates in traditional media. Besides which, if we look at the measures taken by totalitarian systems, we see that these regimes generally try to shut down or set limits on new media. This is because the increased capacity for scrutiny goes both ways, and users are becoming more empowered.
So does Brazil have a strategic role to play in the information revolution?
With a population of two hundred million people, Brazil has now become a global fulcrum, including in technological terms. Estimates speak of a market for big data that by 2018 could be worth one billion dollars in revenue. This is because there is a strong tech focus over here, even among older age groups and lower social strata. There is an enthusiasm that I have not seen in other countries so far, which could have an important impact not only on the economy but also on the growth of Brazil as a whole. In fact, the prime advantage of big data is efficiency: the ability to analyze, control and better manage even complex systems. Then there’s the important matter of education: here in Brazil, the spread of these technologies is facilitating distance learning projects, with the ability to share data and create learning communities geared to addressing particular topics.
How might this technological dynamism cross over into the Italian market?
I believe that the best approach is to take inspiration from international best practices, starting with what has been achieved with Silicon Valley in the United States. The vibrancy of the technology sector stems from targeted efforts at fostering and special support for digital entrepreneurship. As long as tech start-ups continue to be viewed in the same way as more traditional businesses, it will be difficult to create an ecosystem that sustains innovation. To that end, it is essential to establish centers of technological excellence that bring together talent and entrepreneurs. In a nutshell, I am convinced that Italy should focus more on supporting and growing technology firms. Doing so would also enable us to build on those talents and success stories which, along with Italian culture, remain our greatest assets.
What opportunities exist for Italian firms and success stories in the Brazilian market?
Despite the bureaucratic barriers to entry, there are many opportunities in Brazil for European firms, and Italian ones in particular. In fact, the large foreign conglomerates operating in this market are open to partnering with smaller firms with a strong innovative bent, and I believe there are good prospects for start-ups, both in the technology sector, and in consumer goods, especially in e-commerce. It is also certainly true that Brazil looks with interest, but also with a degree of respect, at the many Italian success stories. This is an asset that technology can help raise the profile of and bear fruit in a market which – let’s not forget – is experiencing a boom in consumption that is not replicable in Italy and Europe. And with an emerging middle class and an upper middle class that is witnessing high growth in spending on luxury goods, the opportunities for the “Made in Italy” industry are truly abundant.
Federico Grosso, an expert in the field of technological innovation, is the Regional Managing Director LATAM of Autonomy, a company in the HP group operating in the area of computing based on the meaning and understanding of unstructured data. A member of Aspen Italia’s Italian Talent Abroad group, he has a degree in Political Science from the University of Turin and is a graduate of the London Business School’s Emerging Leaders Programme.
