Page 307 - Special Topic Session (STS) - Volume 4

STS637 Magued O.
ethics. Furthermore, statistical organizations should disseminate information
according to scientific standards on the sources, methods and procedures
1
derived from the theories of statistics .
Disruptive innovations are changing the way business is done and is
creating valuable “big data” that does not conform necessarily to the
principles that statistical organizations adhere to. A new model to re-engineer
the eco-system of statistics is needed to avoid a complete de-association
between the world of statistics and the future world of data production.

2. How the world of statistics is going to change?
Technological innovations are shaping the way businesses across the
world will operate in the future. Such changes will create a new world. With a
strong trend toward global economic integration, changes will not be confined
to developed countries and will impact developing countries as well.
Disruptive innovation is a relatively new concept that describes businesses
that create a market value from new costumers or successfully address an
2
overlooked niche of less demanding customers . Compared to sustaining
innovations, disruptive innovations are a) addressing new markets rather than
existing markets, b) dramatic and game changing rather than improving
performance, lowering cost and incrementally changing, c) operating in
unpredictable market rather than a predictable one, and, d) facing the failure
of traditional business methods by creating new ones . Disruptive innovation
3
is on the rise and are making paradigm shifts in many sectors including
telecommunications, manufacturing, finance, transportation, education,
health, agriculture, media and entertainment.
Another game changer is artificial intelligence (AI). Estimated worldwide
revenues from the AI market is expected to grow from 3 billion US$ in 2016 to
90 in 2025. AI will increase labor productivity, and hence global enterprise
investment in the AI market is expected to increase from 12.4 billion US$ in
2018 to 231.9 in 2025. With one billion video cameras connected to AI by 2020,
the amount of data created is growing exponentially and calls for more and
better analytical solutions.
Traditional enterprise storage will soon become obsolete, as worldwide
revenues from enterprise storage using cloud services is expected to increase
from 17% in 2015 to 89% in 2025. The revenues from cloud services is
expected to increase from 7.1 billion US$ to 50.7 billion. The expected growing
number of robots, sensors, satellites and internet of things applications will
generate a volume of data beyond what statisticians can imagine. The
increasing revenues generated from big data will move the center of attention

1 UN (2013)
2 Christensen (2015)
3 Babaian (2017)
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