Speeding up Enterprise Digital Transformation with IoT

“Without digital transformation, enterprises will fail, and without IoT, digitization never happens!”

Internet of Things (IoT) is critical for successful enterprise digital transformation, though many organizations do not specifically mention the term IoT.

However, IoT is not just about devices

IoT ushers in a new Digital Age with optimized manufacturing production and supply chain networks, and interconnectivity of disparate systems through sensors. IoT and cloud-based GPS solutions improve the visibility of goods in transit by tracking their exact location, temperature, humidity etc. Though the devices generate valuable data, IoT is not limited to devices. IoT in digital transformation encompasses the intelligence that is infused in the assets to consume and analyze the data to develop actionable insights.

Digital Transformation and IoT- the Inseparables

Internet of Things (IoT) brings the paradigm of connectivity into business and furthers digital transformation by uniting people, processes, and devices under one umbrella. This integration empowers industries by helping them gather valuable business insights. IoT, regardless of any industry, refers to connecting physical devices to a common network so that they can collect and exchange data easily.

Many industries, especially manufacturing companies, are traditionally known for investing more in operational technology (OT) and less in information technology (IT). This is probably due to the asset-intensive nature of those companies. As new digital technologies evolve, many of these industries are hamstrung by decades-old legacy systems and processes. Digital transformation demands the integration of OT and IT that will help enterprises unlock opportunities and make their products and services more valuable and efficient.

When IoT meets Digital Transformation

IoT merges both digital and physical worlds. The massive amount of data collected by the connected devices can help in formulating new business models and fundamentally change enterprise operations. So what happens when IoT and digital transformation converge?

Explosion of data– By 2020, there will be 50 billion connected devices These devices- smart appliances, meters, connected machineries, automobiles, and more- produce massive amount of data.
Cloud will drive business– Cloud offers the agility and flexibility with which businesses are able to respond to the changing market needs. Cloud platforms are cost-effective, fast, and connect to people and devices across the globe.
Boosts business and customer engagement– The invasion of mobile and social media networks gives decision-making power to people as they are equipped with real-time information. This integration brings up novel ways to engage businesses and its customers.

When the devices are allowed to communicate, it brings multiple benefits to enterprises including improved decision making, dynamic response to product/ service demands, increased productivity, and real-time availability of actionable insights. IoT is not just limited to these organizational advantages, it can contribute to asset management through predictive maintenance and statistical evaluation that help increase reliability.

Next steps to IoT success?

Most of the established companies have digital assets, but they don’t know how to truly monetize those assets in the emerging digital world. IoT projects should create scalable software distribution systems, third-party ecosystems, and billing solutions to create new revenue streams that are flexible and ever-expanding.

To taste success in the digital sphere, IoT projects must undergo these six steps:

How to design and deploy the devices?
Connecting the device to a cloud platform (this will improve connectivity)
Secure software distribution (with minimal user intervention)
Create a vibrant third-party ecosystem to stay relevant in the market
Find the right marketplace to promote and sell solutions
Securely bill the apps globally and manage revenue flows (monetization)

The digital transformation journey is complex and application of IoT will bring brand new use cases in the coming years. The bottom line of IoT in enterprise digital transformation is best summarized in the words of Juha Pankakoski, EVP of Konecranes, who says, “The industrial Internet brings machinery alive”. Break-up the words of Juha, and you get the essence of what he means:

IoT provides real-time insight into any device so that the data collected by the asset is available for processing. This enormously influences decision making in enterprises.
Embedding IoT into product establishes a real-time connection with customer. This opens up new horizons to build customer relationship and experience by fostering personalization.

Delight your customer with IoT driven Digital Transformation

In earlier days, the only connection between brand and consumer was the often discarded warranty cards. Today, as soon as the user turns on an IoT device, the manufacturer is immediately connected to the user. When it comes to customer experience, IoT is also a “data capturing tool” that empowers companies with information on their customers and followers. The IoT-powered data can be leveraged to personalize online content, transform online marketing and run analytics. The connection of physical and digital world established by IoT increases the opportunity to co-create with customers. IoT makes enterprises understand the significance of the digital customer interface and improves the scope for personalization.

For the enterprises, it would mean reduction in operational cost, smarter decision making, enhanced customer service and improved customer engagement. Supporting IoT initiatives might require a hefty investment initially, but IoT is perceived as the key to unlocking the doors of digital transformation. And, that’s what big brands like Philips, Mercedes, Walmart and others are doing.

To paraphrase William Gibson, “The future is here. It’s just not widely distributed yet.”

Innovation is imperative for businesses and IoT will open the gates for innovation in the coming years.

What are the key skillsets needed in today’s knowledge economy?

“Self-education is, I firmly believe, the only kind of education there is.” -Isaac Asimov

When I speak at mentoring sessions to students and startups, one constant question I am asked is the skillset needed to succeed in today’s technology dominated world. This seemingly straightforward question does not have a straightforward answer. We are knee-deep in a knowledge economy, and this is forcing us to revisit our core beliefs about the skillsets we need to hire/acquire.

The Industrial economy’s mantra was efficiency and quality. A knowledge based digital economy means that these are no longer critical skillsets. Building new skillsets is indeed a humongous challenge for business owners, executives, HR directors, professionals and universities alike.

So what skillsets does the knowledge economy demand?

The world in the knowledge economy will be dominated by numerous digital technologies like Artificial Intelligence (AI), Robotics, Automation, etc. To be effective in this world, core skills in the field of mathematics, language, information communication technologies, etc. will no longer be enough. These skills must be augmented with the foundational skills like problem solving, critical thinking, curiosity, and persistence, etc. World Economic Forum classifies the skillsets relevant for the knowledge economy as:

Image courtesy: World Economic Forum

Skillset Versus Mindset in the knowledge economy

If you look at the image above, those skillsets that come under foundational literacies and competencies can be generally acquired via education, training and on-the-job projects. But the skillsets under the third column – character qualities – is the new landscape in which businesses and professionals need to excel in. I would like to call these character qualities under a different name – MINDSET. And mindsets are definitely harder to train for, or acquire. It is precisely why these skills are a precious resource, and the reason why today’s professional has to really work hard to master them.

Let us take an example to understand why traits like curiosity, critical thinking, persistence, and collaboration are highly relevant in the knowledge economy. Any digital application you access these days like Maps, Facial Recognition, Voice Assistance, etc. is not a standalone atomic solution. These applications are an intelligent combination of diverse solutions. A recent Harvard Business Review article defined the design of voice assistance like Siri, Google Now or Alexa as following:

“AI program divides the audio into chunks, sends them into the cloud, analyzes them to determine their probable meaning and translates the result into a set of search queries. Then millions of possible answers to those queries are sorted and ranked. Thanks to the scalability of the cloud, this takes just a few dozen milliseconds.”

To envision, design, architect, and implement a solution where multiple technologies from diverse fields come together to create value, hard skills like mathematical ability, statistical knowledge and other subject matter expertise must be augmented with the foundational skills like problem solving, curiosity, communication, collaboration, persistence, and creativity.

The challenge that faces business owners today

Training our employees for these mindsets is not an HR role. Nor is it the responsibility of colleges, universities or governments. It is also not a typical learn-once and forget-it approach. These mindsets require the right environment, supported by management policies, willing professionals who are ready to dedicate time and effort, and a feedback mechanism that provides positive incentives repeatedly for the right actions.

Moreover, each company focuses on different mindsets that help them succeed. It is impossible to have a general list of mindsets for every company. It is easier to recruit, hire and train your employees for mindsets based on your corporate vision and culture. For instance, at Suyati, we focus on fostering three mindsets that we believe is critical for our success: Continuous Innovation, Ownership, and Customer Delight.

The following statement by Doug McMillon, the CEO of Walmart Doug McMillon in a recent shareholder meeting succinctly describes how we all should prepare for this shift to the knowledge economy:

“No doubt our work will be different in the future —robots, drones and algorithms will do some work that we used to have to do. Some people are afraid of what these changes will bring. I don’t think we should be. Instead, I think we should recognize that we’ll be able to learn, grow and change together.”

Five things start-ups can do when employees quit

employees hr IT It innivation IT skillsets knowledge economy skillsets

My yoga practice? Am sure Modi ji would not approve!

I am used to people asking me about India and the Modi government when I travel outside the country. It is no secret that I am an unabashed fan of Shri. Narendra Modi – as a determined administrator, a visionary, as prime minister, and as a brand ambassador for India. I also applaud his initiative to take yoga to an international platform, and give it the recognition it duly deserves.

So do I practice yoga? No. Though I am surrounded by women who do it (my mother, my wife and my dog – she does DOGA!), I still have not had the inclination to take up the practice.

It is not for lack of trying though. In December of 2014, my wife and I spent 5 days at a yoga vacation camp at the Sivananda Ashram in Neyyar Dam, near Thiruvanathapuram. We also went back for another 4 days the following year. A typical day during the yoga vacation camp at the ashram has four hours of yoga, three hours of meditation, 1 hour of theory class, and 1 hour of service. They feed you only twice a day. And as you read this, my wife is back at the ashram for five days to celebrate Yoga day.

While I loved being in the ashram and went diligently to every class, I have to admit that once I came back home, I quickly went back to my routine fitness sessions at the gym. I turned a deaf ear to my wife’s insistence that I get back to yoga. All that changed when I got a new gym trainer two months ago.

In the first session he pooh-poohed the muscles I had built up, or my ability to bench press. My squats and lunges meant nothing. The first thing he wanted to do was to test my flexibility. And the session went downhill from there.

Over the next month, he ignored the weights and the machines, and started building up my flexibility. He pulled, pushed, stretched……..I started devising new excuses not to go to the gym. (I think it will rain tomorrow, so let’s cancel as I have to walk nearly 100 meters in the rain to come to the club house). Luckily I had to leave for a month-long visit to the US before I reached my yoga tolerance limit.

Jokes apart, I know how important yoga is. I know the routine I followed at the ashram was one of the most amazing I have ever experienced. I felt lighter, ate only twice a day, and experienced a greater sense of well-being. It was not just at the camp though. Whenever I practiced the asanas, the pranayama and the meditation, the day certainly seemed to flow with more energy and less stress.

So yes, I know what yoga is, how it can benefit me, and why I need to practice it. And I sincerely want to try and make it part of my fitness routine. Maybe by the time the International Yoga Day rolls around in 2018, I would have a better update for Modi ji.

FULL DISCLAIMER: The link to the blog on Sivananda Ashram is written by my wife, Revathi.

India IYD lifestyle yoga

The impact of Make in India initiative on the IT industry

“India is on the threshold of a big IT revolution. We are encouraging it to fast-track the services to our 1.25 billion people. New technology and renewable energy is our new Mantra. These initiatives provide additional avenues for investment in modern technology and human resources.”

– Excerpt from Prime Minster Modi’s speech on the MAKE IN INDIA initiative, at London’s Guildhall, November 2015.

With the Make in India and Digital India program, the IT and Business Process Management (BPM) sector is getting the much needed attention to further prosper. The government is encouraging multinational companies to boost their productivity and competitiveness by manufacturing products in India and leveraging India’s IT strength. India’s cost competitiveness and high quality services makes us still a favorite outsourcing hub for IT services (56% market share).

Consider the following statistics about the IT-BPM sector:

Our domestic IT-BPM market is growing at an impressive CAGR of 14% and this sector is presently contributing 5 per cent to the country’s GDP.
IT and BPM sector contributes 45% of the total services exported from the country, and by 2025 we aspire to double the revenue from $154 billion.
IT-BPM is the largest private sector employer in India delivering 3.7 million jobs, and this figure is set to grow.
With a view to develop 100 ‘Smart Cities’ and automate all the government processes and services, the government is investing $20 million to create a pro-digital urban infrastructure.

Initiatives to promote Innovation

The “Start-up India” initiative has set a corpus of $3.7 billion to fund entrepreneurship in the IT sector. To attract inflow of foreign capital and to ensure the success of ‘Make in India’, the corporate tax for MNCs has been reduced.
As the government introduced policies that are conducive for the growth of start-ups and innovation, several companies have set up incubation centers in the country. Start-ups are exempt from paying income tax for three years and any venture capital funds investing in start-ups are exempt from the Capital Gains Tax too. These positive steps have moved India’s rank from 134 to 130 on the World Bank’s“Ease of Doing Business”
The government, along with the National Association of Software and Services Companies (NASSCOM), has initiated projects to develop infrastructure for Information and Communication Technology (ICT) throughout the country. Roadshows like TechMarch and bilateral trade seminars are being used to showcase India’s innovation and market her skilled manpower in the field of smart manufacturing and Internet of Things (IoT).

Domino’s effect on the manufacturing, FDI, Technology sectors

The Make in India campaign has provided a domino’s effect on a whole bunch of other industries too. Three years back, most of the smartphones sold in India were imported. But with a duty of just 1% on locally assembled handsets (12.5% for an imported handset), around 40 mobile phone making plants have set shop in Chennai since 2015. In 2016-17, the value of mobile phones assembled in the country crossed $16.67 billion.

Chinese company Xiaomi has set up its manufacturing unit in India. This step has helped to change the perception about Chinese brands and has elevated Xiaomi’s brand image. This has worked positively, as the brand has the second largest share of India’s smart phone market today. They have invested $500 million in India so far and has seen the gross revenue grow fourfold in two years.

Similarly, South Korean brand Samsung, Chinese mobile maker Gionee, Taiwan’s Foxconn, the Singapore-headquartered electronic manufacturer Flextronics, are investing in India to set up their manufacturing plants. Google is building its largest facility outside the US, in Telangana, which will add 6500 jobs by 2019. Apple is planning a new manufacturing centre in Karnataka (agreement signed in February, 2017) which will help bring its products faster to the affluent Indian consumer.

Related: Is India ready for IoT?

What can IT companies do to take advantage of all these positive changes?

As government policies become extremely supportive, the time is ripe for companies to conduct research, innovate products and services, and train manpower in new technology areas. As every sector is riding on the Digital Transformation wave, IT solutions is a must for all, especially education, healthcare, urban planning and financial sectors. A future-ready digital workforce, with skills in newly emerging fields such as Internet of Things (IoT), Machine Learning, Artificial Intelligence (AI), Business Process as a Service (BPaaS), Social, Mobile, Analytics, and Cloud (SMAC) will fuel not just the IT-BPM market, but the entire economy.

Mukund Krishna presents THE DIGITAL TRANSFORMATION JOURNEY at TiE’s Coffee Pe Charcha

Mukund Krishna was invited to speak at TiE’s Coffee Pe Charcha (CPC) session on May 11, 2017. CPC are informative sessions where the speaker expands on a current theme or trend in the business world. This was the 14^th in the CPC series and the venue was at Holiday Inn, Kochi.

With around 40 participants at the CXO level, mainly from the IT/Software/Digital industry, the talk moved quickly from personal background to a detailed what/when/how/whys of Digital Transformation. He discussed key marketing trends – Inbound marketing, Mobile Rising, Ubiquitous Advocacy and the Digital avatar. He deciphered the concept of internet persona, importance and responsibility of social presence, and the transition all businesses are likely to undergo as part of digital transformation. He ran us through examples of some of the digital transformation work Suyati has done across industries.

Feedback from the session:

Mukund has a rare quality of a presenter who pre-empts doubts and literarily provided a bibliography of complicated terms – similar to a ‘Digital transformation for dummies’! He helped populate a lot of white spaces in our mind and I emerged ‘smarter’ after the session! Today we saw a teacher toss up concepts, and make sure we understood in a manner that is long-forgotten – learning together, learning with fun and learning with exemplary illustrations! – Rajesh Nair, Director, Markets at Ernst & Young and Official TiE Kerala Scribe!

Mukund’s presentations focus on digital transformation, content marketing, global and Indian digital trends, life skills for technical success, and charting the perfect career path to the top of the corporate ladder. He has presented at universities, colleges, business conferences and networking sessions across the country.

Translated as reported by Dhanam Online Business Magazine- 2017 June 15 Issue

Accelerate your thoughts to achieve success in Digital Transformation
An open discussion on the entrepreneurial experiences and lessons learned- Mukund @ Coffee Pe Charcha event organized by Tie Kerala

An early bird, Mukund is one-of-a-kind entrepreneur who has exploited the emerging possibilities of digital technologies in Kerala, before most of them even dared. His entrepreneurship venture Suyati Technologies is a fast growing Digital Transformations Solutions Company located at Infopark, Kochi that provides digital transformation solutions to forward-looking businesses across the globe.

The Coffee Pe Charcha event organized by TiE Kerala at Holiday Inn, Kochi on 11^th May 2017, had Mukund narrating his splendid and eventful journey as an entrepreneur. Prior to ending his note, he also remembered to encourage the enthusiastic to-be entrepreneurs with some key tips.

How an aspiring entrepreneur should think today?

Technology enjoys only a secondary role in the growth of a company, while the primary focus should be on building incredible experiences for your employees, customers, and partners. “People may forget what you’ve done, but they will never forget how you made them feel”, says Mukund.
Your customer’s opinion values the most, no matter whichever industry/ business you are into. Digital marketing has grown exponentially, and the way your customers select your brand is undergoing a sea change. Develop a unique strategy that stands the test of the time, to acquire and retain your customers.

On his initial days of entrepreneurship:

“I turned into an entrepreneur to support my team. Even while the company was facing a financial crisis, I made sure that my bank account had enough funds to afford my employees for another 6 months. I owe my team a lot, they are the reason behind my success”, says Mukund.
“Always stay up-to-date and learn new things, as they come”, urges Mukund to youngsters. Mukund also said that he realized the growing value of digital technologies when he attended various seminars held by experienced industry icons and business figures. “That’s when I started focusing on identifying more business possibilities with digital.”

Considerations for Start-up ventures:

Having an idea isn’t enough for a start-up. It’s significant to know if the proposed business will effectively address the customer pain points. “It’s an age of change and the change happens around us even before we realize it.” We must have the right skillsets to accelerate our thoughts to embrace digital. We are living in an era of smartphones, and it’s our duty to ensure that our company’s promotional strategy allots the foremost rank to being “mobile-friendly.”

Want to invite Mukund Krishna to present at your event? Connect with him at hello@mukundkrishna.com

Mukund

Entrepreneurship in the days of digital disruption

The average life span of companies in the S&P 500 is just 20 years today, which means only 43% of those companies that existed in 1995 are left standing now. If this trend continues, 75 percent of the S&P 500 firms today will be replaced by new ones by 2027.

How to be the disruptor?

The new generation of entrepreneurs can achieve better and faster revenue growth if their business has higher engagement levels with digital technologies. Data, artificial intelligence and predictive analytics can assist today’s enterprises to make more balanced and informed decisions than just relying on past experiences and gut feel.
Businesses need to use digital platforms in novel ways to create new revenue streams, and to improve social and business interactions. Data-driven decisions can be the foundation to create a company of substance. Enterprises can leverage the huge consumer data created every day to innovate or to offer personalized services to their customers.

Disruption in the personal transportation space:

How do you think an India based start-up could beat a giant like Uber? True, there were other businesses that tried to attack the same problems that typical consumers faced daily. In fact, much before Ola and Uber, Meru Cabs introduced a service to overcome poor taxi service in India. It did not turn out to be a profitable business, as they owned a fleet of cars. This was the flaw in their business model – it was asset-heavy.

Ola, introduced for the first time in India, the concept of driver-entrepreneurs. Their strategy was to offer transportation as a service. Ola stands apart as they give the riders the choice of size and comfort – cars, shuttle services and auto-rickshaws. They offered training to drivers to use the app and helped them make a good income with a branded company. Operating across 100 cities with 550,000 drivers, this Indian start-up enjoys a dominant market share in India’s $12 billion taxi market. Uber and Ola were successful because they created a platform – an interactive app. Besides offering an efficient mode of transport, they optimized logistics and followed demand balance principle. Addressing another key priority to increase market reach, Ola launched a new offering – the progressive web app at the Google’s I/O Developers’ conference in San Francisco. This app will consume less data compared to a native app, aimed to expand its reach to more customers and driver partners in rural India, with low-end smartphones and slow internet connection.

Disruption in the job search space:

In 2015, Stéphanie Delestre won the Accelerating Tech Entrepreneurs award from EY for her online jobsite Qapa. What difference did she make?

She questioned the traditional system and designed an online jobsite, which can be easily replicated in any other country. For the first time in the recruitment space, big data was used. Her argument was that blue collar jobseekers did not require to make a resume, then why make them go through this turmoil. Her site used matching algorithm to search a candidate’s information and find the right job based on various criteria, in real-time. Employers saved money by posting free ads, and had to pay only when they successfully found someone to fill the job.

Disruption Lessons for entrepreneurs:

Steven Krupp and Paul Schoemaker, authors of ‘Winning the Long Game’, affirm that successful businesses “need to integrate, build, and reconfigure competencies in order to succeed in rapidly changing environments.” The brands that once enjoyed monopoly are forced to squeeze their profit margin, keep pace with the changes around, alter their business model, modify internal work culture, and if required implement, new technologies to exist and maintain its position as market leader.

As developing new products and technologies is not a viable option for all, partnering with startups or acquiring them is the ongoing trend. For instance, Whole Foods Markets Inc. a specialized organic and natural food grocery store struck a five-year deal with Instacart, an on-demand grocery delivery partner. In 2014 when they had this deal, Whole Foods had 440 stores across the US but their sales were dipping. After closing down a few stores, and embracing the online route, they have begun making profits again.

Are you a disruptor?

Today, more than ever before, customers want their solutions to be addressed fast and in the most convenient way possible. Business models that flex or meet the changing expectations of the consumers are going to be the winners.
Newer revenue streams, digital platforms, and automation apps are disrupting almost every industry, driving the scale, growth and operation of businesses. This situation brings both risk and opportunity. You can either be the disruptor who shake things up in your sector or be the one who is disrupted.

digital disruption digital transformation Entrepreneurship

The Indian Telecom revolution: A promising story in the making

According to research firm International Data Corporation (IDC), the total mobile services market revenue in India is expected to touch USD 37 billion by 2017. India is presently the second-largest telecommunication market in the world, and ranks third among the number of internet users. The ongoing wave of digital transformation is impacting the telecom sector both directly and indirectly. It is not merely connecting people, but also providing a robust platform for budding innovations in other sectors to flourish.

Here are some key events and factors that are ensuring not just a booming telecom market, but also a vibrant digital revolution that ensures that the customer wins hands down.

Telecom and retail unite

Favourable government policies, 4G services hitting the market, and the deregulation of FDI norms is helping telecom sector grow by leaps and bounds. Moreover, with the launch of Reliance Jio, the sale of 4G VoLTE compatible smart phones have correspondingly gone up. International Data Corporation (IDC) predicts India to overtake US as the second-largest smartphone market globally by 2017. To make up for their lost customers due to Reliance Jio and to attract new ones, the soon to be merged entity operators Idea Cellular and Vodafone India have partnered with India’s leading e-commerce sites Flipkart and Amazon respectively. When prospective 4G smartphone buyers visit these ecommerce sites for attractive offers, they are also offered bundling schemes by these service providers. Thus, all three entities, and the customer, gains.

Reliance Jio and its after effects

Digital transformation is not just about decreasing cost, it is more about giving an exceptional customer experience that impels growth. In this case, Reliance Jio came up with 4G with VoLTE, which not only gives high speed data but superior call quality, additional services, and seamless omnichannel digital experience.

Unlike 3G and 2G, which are primarily designed with voice calls in mind, Voice over LTE (VoLTE) is a data-only networking technology. The catch is, in places where 4G signal is unavailable, the chances of call dropping is high. But to address this issue, Jio ensured they have Single Radio Voice Call Continuity (SRVCC) in place to allow the phone to switch back to a 2G or 3G signal wherever 4G is not available.

Support and development by the Indian government

For any service to achieve scale it has to be affordable, available throughout the country and easily accessible. As a step to modernize cities in India and offer smarter living experience to its citizens, Gandhinagar, capital of Gujarat, is the first city in India to have high-speed (2Mbps) Wi-Fi service covering 75% open area of the city.
To encourage online booking, the government is not levying any service charges on booking e-tickets on IRCTC.
Finance Minister, Mr. Arun Jaitley, announced in the budget this year that the government has so far received over 250 investment proposals worth Rs 126,000 crore in the electronic manufacturing sector to make phones and television sets in India.

As part of the ‘Digital Village’ initiative, the government will be deploying free Wi-Fi in 1050 rural villages in the country. This initiative has promised that by the end of 2018, high speed broadband will reach more than 150,000 gram panchayats via Wifi hotspots.

Potential new services due to digital transformation

The 2017 global edition of the GSMA’s ‘Mobile Economy’ report reveals by the end of this decade the 5.7 billion-subscriber milestone will be achieved, of which India alone is expected to add 310 million new unique customers.
With enterprises having global presence and employees travelling between offices, more and more businesses are going for web-based applications and embracing cloud services (IaaS, SaaS or PaaS) to store data. Telecom companies have a vital role to play as cloud service providers and cloud carriers.

Telecom companies have access to enormous data including customer profiles, location data, device data, customer usage patterns, apps downloaded, etc. They can create new revenue streams by tying up with businesses from other sectors. By studying these data, companies can unlock hidden knowledge about their customers’ habits, predict their requirements, make more informed decisions, create new innovations and build forward-looking plans for the future.

One of the most important infrastructure for the new breed of disruptive industries is high-speed mobile broadband. Broadband services user-base in India is expected to grow to 250 million connections by 2017. With a total of over 50 million video calling minutes per day, India leads WhatsApp’s video calling market.

What is next for telecom’s digital revolution?

At a time when global telecom players are getting ready for 5G, in India, the service providers are struggling to reach 4G services. Although India has the second largest internet user base, it still lags behind when it comes to internet speed. To solve this issue, ISRO will be launching three satellites (GSAT-19, GSAT-II and GSAT-20) in the coming months. The multiple spot beams used by these satellites will provide high quality internet, phone and video services, covering the entire country. GSAT-19, which is slated to be launched in June 2017, will be able to transfer data at 4 gigabytes/sec.

The Government of India plans to auction the 5G spectrum in bands like 3,300 MHz and 3,400 MHz to promote initiatives like Internet of Things (IoT), machine-to-machine communications, instant high definition video transfer, as well as its Smart Cities initiative – Sectoral report from IBEF.org

Banking on this announcement, there is heavy investment pouring in from the government as well as corporates (both Indian as well as International). For instance, Swedish telecom equipment maker Ericsson is introducing a new radio system in the Indian market, which will provide the necessary infrastructure required by mobile companies in order to provide Fifth-Generation (5G) services in future.

Though 5G is going to be a bit of journey, once the required standards are in place, the rollout will be quick and the customer experience will improve by several folds. Market Research Store – a leading research firm – predicts 10.3 per cent year-on-year growth for the Indian telecommunication services, which is expected to reach USD 103.9 billion by 2020.

The Indian telecom sector’s contribution towards the national GDP is estimated to double from Rs 7.7 lakh crore in 2014 to Rs 14 lakh crore by 2020. With management of spectrum, telecom infrastructure development, broadband strategy, licensing and regulatory issues, strategies planned for revival of public sector undertakings, and shift to a world that is AI-first, the Indian telecom growth story seems to be on track to achieve all the projected goals.

digital transformation telecom

Redefining Brand Management Through the Internet of Things

According to a Frost and Sullivan report, each of us is likely to have an average of 5.1 connected devices (IoT devices) by 2020. Will this avalanche of connected devices impact the way marketers manage their brand?

Yes, of course.

With the increase in the number of connected devices, the pool of data they will collect will rise exponentially in the coming years. The data thus collected will reveal to us critical pieces of information and patterns in consumer behaviour around the world.

According to a study conducted by the Economist Intelligence Unit (EIU) among 500 top marketing leaders, more than half of them believed that the explosion of potential marketing channels via the IoT will impact the field of brand management the most by 2020. These devices present a million ways in which brands can connect to their customers and gives them access to enormous amounts of data that they can use to evaluate consumer behaviour and trends.

Here are some of the ways that the IoT will redefine brand management and engagement:

A new wave of adaptive advertising

Advertising will become a whole new ball game in the IoT era. Just like it adapted to the changes that were brought in by mobile and social media, advertising will fit into the IoT groove. Connected devices help companies understand customer behaviour better by interacting with them in real-time. This will, in turn, lead to more personalised and targeted marketing.

Customers would also appreciate it, proves a study conducted by the Interactive Advertising Bureau. The study found that almost 65 percent of the 1,200 adults who participated were “willing to see ads on their IoT screens”. 62 percent said that they were already receiving such ads.

Enhanced customer experience

Using IoT devices, brands will be able to achieve what the Altimeter Group’s Customer Experience in the IoT report calls the ultimate marketing objective: delivering the right content or experience in the right context. They will be able to go beyond just products and provide their customers with an entire experience. Brands will have an unprecedented insight into each customer’s journey, which will help them make optimizations to their products in real-time.

Amazon’s Mayday button (that connects you to a live tech support system) is a classic example of how brands are already using IoT devices to revolutionise customer support & service.

Support can also be proactive and invisible to the customer. Take the case of Tesla cars. The IoT devices in the cars report performance data to the manufacturer, which allows them to correct any deviations by administering software updates or by proactively scheduling a service visit.

Increased customer loyalty

One of the key ways to drive customer loyalty is by giving your clients rewards for activities that does not necessarily include purchase of your products or service – for instance, sharing information about your brand or liking your page on social media channels.

With IoT devices, the expanse of such behavior and the ability to track and reward them increases. An example of this is how health insurance firm Humana uses wearables to reward customers for adhering to their fitness plans. According to a report by Loyalty360, this led to about 20 percent increase in healthcare savings and a 44 percent reduction in sick days. On similar lines, utility companies are rewarding customers who reduce their energy loads during peak hours, by tracking it through an IoT device like the Nest Thermostat. Such rewards breed satisfaction, loyalty and repeated purchases.

What is the down side?

IoT is still in its nascent stages and there still are concerns regarding privacy and security issues. Apart from this, there is also a growing apprehension about whether the current infrastructure is capable of handling the data load that will arise as a result of so many connected devices.

However, some observers say that IoT devices would trump the existing mobile wave in the coming years. Although there will be a huge surge in the number of IoT devices, a recent Forrester report discards this theory. The report says that IoT will overlap with existing mobile technology. Brands will have to define engagement strategies keeping in mind that smartphones are the primary interface and that it will be used as a main controlling centre for all connected devices.

In conclusion:

Brand engagement and management is, thus, set to evolve in the coming years, thanks to the IoT. With just a few sensors, everyday things can become a crucial point of communication between the customer and the brand. As convenience, communication and care increases, so will brand loyalty and engagement.

IOT and smart home applications – Coming soon to a home near you

The Internet of Things (IoT), a growing network of connected ‘things’ that can collect and exchange data using sensors, has revolutionised the way in which we do business, interact with our consumers, travel, eat out, and, in general, just get things going in our daily lives. According to BI Intelligence’s Global IoT Executive Survey 2017, the number of IoT devices are expected to go up to 22.6 billion in 2021, from 6.6 billion in 2016.

The more immediate way that IoT will affect each of us will be through the special group of devices now collectively referred to as “smart home” applications. From security monitoring devices to smart switches, beds, fridges, entertainment systems and even a smart laundry machine that folds your clothes, the range of devices that were introduced for your home, at this year’s Consumer Electronics Show 2017, at Las Vegas, was astounding. Let’s take a look at how these devices are transforming the way we live:

Energy-conscious living

Convenience is the key word when it comes to smart home and IoT. But it is also instilling and encouraging a new style of energy-conscious living among us. For instance:

· Remote access lighting that can be programmed to fit your mood, Wi-Fi enabled thermostats that regulate the temperature at home, or HVAC (Heating, Ventilation & Air-Conditioning) control systems that use sensors to turn lights and devices off when no one is in a room.

· With devices like Nest Learning Thermostat, one can automatically adjust temperatures in the house using location information and far-field sensors.

· Remember that time you fretted about whether you had switched off the stove, iron or toaster just as you got out of home? Smart plugs that are connected to your smartphones will come to your rescue now by letting you know exactly what devices are on and running, and what’s more, they can even be remotely switched off.

Although the aim is to conserve energy and save costs in the long run, most IoT devices in this category are priced steeply as they are just entering the market.

Enhanced home security

Smart home devices also protects you and your family from unwanted intruders. Smart locks are not just about remotely locking or unlocking doors without physical keys, they also allow you to track who is entering and exiting your house and report unfamiliar or suspicious activity. Like hotel room locks, digital keys can be issued to your kids, guests or trusted handymen who wouldn’t have to wait for you to leave work and be present physically to open the door for them. These features go a long way in being able to enter with ease at times of unforeseen events like medical emergencies.

Predictive maintenance

Every device needs maintenance and repairs at different points in its lifetime. With IoT technologies, we can now reduce the downtime in our devices and maximise their efficiency by knowing exactly when each device at our homes needs to be mended. Smart home devices use data to keep track of the wear and tear or damage that every device goes through and predicts its maintenance cycle. According to a study conducted by the US Department of Energy, predictive maintenance can reduce energy and maintenance costs by up to 30 per cent, eliminate breakdowns up to 40 per cent and reduce downtime by up to 75 per cent. By optimising a device, the energy it consumes can also be cut by 20 to 25 per cent.

Centralised automation

Now, what if we could control all these devices just by speaking to one master robot? For many of you, this may not come as surprise because Amazon Echo and it’s voice-activated assistant Alexa have been the talk of the town lately. You can connect all your smart home gadgets to Echo and manage them using voice instructions given to Alexa. Similar products are available by many other service providers like Google Home, Apple HomeKit and most recently Wink. All these devices are geared towards user convenience, comfort and energy efficiency.

Now for the downside!

Although all this may seem like a leaf out of a thrilling sci-fi book, these devices are not without its complications. The main problem? Security concerns. We will need heavy-duty technological infrastructure in order to manage the huge amounts of data collected from IoT devices and to ensure that they are not misused or tampered with. The other barrier that I see as of now is the high cost, which, I hope, should be pushed down with more affordable technologies and increasing scale of production owing to growing popularity of such devices.

Smart homes represent just a microcosm of how the IoT devices can revolutionise our lives. This can be used as a blueprint to scale this revolution up to smart cities and the like in the near future. The aim of technology is to make life easier and the beauty of IoT is that it makes this possible as seamlessly as ever.

References:

1. https://phys.org/news/2012-10-smart-technology-energy-home.html

2. http://www.businessinsider.com/internet-of-things-smart-home-automation-2016-8

3. http://www.businessinsider.com/the-us-smart-home-market-report-adoption-forecasts-top-products-and-the-cost-

and-fragmentation-problems-that-could-hinder-growth-2015-9

4. http://www.econais.com/applications/smart-home-applications/

5. http://www.greenpeak.com/Application/SmartHome.html

6. http://www.computerworld.com/article/2490360/consumerization/the-internet-of-things-at-home–why-we-

should-pay-attention.html

7. http://www.cypress.com/blog/internet-things-iot/home-smart-home-how-wiced-will-change-way-we-live

8. http://insurance.safeco.com/news/how-smart-homes-are-changing-the-way-we-live/

9. http://www.curbed.com/2017/1/12/14219800/smart-home-tech-ces-2017-trends

10. https://www.techuk.org/insights/news/item/10020-ces-show-report-part-3-the-smart-home-virtual-reality-and-drones

Fintech startups—will it be now or never?

What could be the ‘Word of the Year’?

Demonetization.

From the addas of Kolkata to the high-end hotels of Mumbai, from my driver in Kochi to the Uber driver I met in Chennai, the discussion centered on one and only topic – how the high denomination cash ban is going to affect our economy. The media too has been replete with stories of migrant laborers losing their jobs, and hotels reporting record cancellations.

In the midst of all these developments, a few companies, or rather financial startups, were seen having all the fun. Mobile wallets like Paytm, Mobikwik and Freecharge recorded all-time high transactions through its wallets. Vijay Shekhar Sharma, founder of Paytm, sold one percent of his stake in the company for a whopping Rs. 325 crore.

And I have had some exciting conversations too in the midst of all these developments. Over the last fortnight or so, many prospective entrepreneurs wrote to me asking whether they too can jump onto the fintech bandwagon. After brainstorming with some of them, here are three guidelines or trends that we need to keep in mind about the fintech industry:

Fintech is not just mobile wallets

Yes, this is what most people think. However, that is not the case. From alternative lending to crowdfunding, and enterprise finance to foreign exchange, there are around 11 broad categories of fintech companies (excluding cryptocurrency sector, whose legality is still being debated). So, if you want to start up in the fintech sector, find out where yours and your team’s strength lies. For instance, if your core team’s prowess is in programming, you could think of a startup in software for institutional investors or investment tech or banking tech.

Two good friends of mine do a roaring business in banking tech. Almost a decade back, they realized that core banking software solutions (CBS) developed by software majors were either too pricey for small banks or weren’t customized to their needs. With their rich experience in banking sector, they developed a CBS tailored to meet the needs of co-operative banks. And today, they claim that their solution is used by more than 200 co-operative banks in Kerala.

Fintech is here to stay

The potential of fintech market is growing exponentially, and has not been restricted to a year or so.

The Indian fintech market is forecasted to reach $2.4 bn by 2020 from the current $1.2 bn, as per NASSCOM estimates.

Increasing smartphone penetration, easy availability of credit, burgeoning e-com sales and Government policies incentivizing card/wallet payments are set to further increase the absorption of fintech in India.

Is your fintech idea unique?

To illustrate, if you are planning another mobile wallet with almost the same set of features as your competitors, it will be hard to get a footing. There are a lot of well-entrenched mobile wallet players in the market who are heavily funded. And their marketing strategy is mostly focused on discounts and cash backs. So for a new entrant in the mobile wallet space, there will have to be unique partnerships, enormously simpler user experience, highly differentiated value proposition, and of course huge cash reserves to create the brand/market. In essence, you will have to research and find a unique pain that needs to be addressed rather urgently to be successful.

Take for instance, the Kochi-based startup Spenwise. The company is developing a prototype that will help parents provide a debit card to children, wherein the parents can decide as to where the debit cards can be used. In other words, it’s a parent-monitored debit card for children. The debit card market is a highly crowded one for sure. However, Spenwise team’s idea is unique and designed to reach an audience not much catered by the current set of players.

A year back, I wrote a blog for ‘Business Standard’ detailing the things one should evaluate before taking the entrepreneurial plunge. Fintech or not, these basic rules still apply.

Before I wind up, here are a few fintech sectors that will have a lot of potential in the years to come:

Peer to Peer (P2P) Lending

These are mostly online platforms which connect individual investors with borrowers in need for financing. In other words, it is a matchmaking site for loans.

The global market for P2P lending is expected to grow to USD 1 trillion by 2025. Even though India-specific growth figures are unavailable, I believe that close to 60 mn small businesses in the country will lead the demand for P2P lending.

Financial Inclusion

Recently, I read about the success of the startup, Novopay. In just 2 years, the startup has managed to serve close to 5 lakh customers. The reason for the runaway success – a unique idea in the financial inclusion space. Novopay helps migrant laborers and daily wagers electronically transfer money to their families back home.

So, if you have an innovative solution in the financial inclusion space (remittances, direct benefit transfers, digital identity, aadhar-enabled KYC, microfinance and so on), you have a fortune waiting for you.

Cyber Security

Cyber attacks are increasing by the day, and so are investments in cyber security. The global cyber security market is estimated to be $175 bn by 2020. So, if you are planning to start up in fraud detection solutions, iris/ voice/ visual/ fingerprint recognition services and e-KYC products, expect double digit growth rate in a few years.

Do you have any innovative ideas in the fintech space? I’m all ears. Tweet to me @kmukund7 or write to me at hello@mukundkrishna.com.

Reference

http://economictimes.indiatimes.com/small-biz/money/paytm-founder-vijay-shekhar-sharma-raises-rs-325-crore-by-selling-1-stake/articleshow/55886819.cms

https://assets.kpmg.com/content/dam/kpmg/pdf/2016/06/FinTech-new.pdf