may 9, 2016 innovation for good: opportunities, challenges
TRANSCRIPT
WHAT’S HAPPENING IN THE WORLD
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Our World Today
Internet
ChangingCustomerBehaviors
Compe33on
EmergingMarketTrends
PublicPolicy
⬜ Drive for access anytime/anywhere
⬜ Internet of Things ⬜ Customer analytics ⬜ Cloud computing
⬜ Tablet & smartphone explosion ⬜ Personalization & Security ⬜ “BYOD” in enterprise market ⬜ Prevalence of “Digital Natives” ⬜ Non-traditional competition
⬜ Growing digital convergence ⬜ Growing mobile operator consolidation ⬜ “Winner’s and Loser’s” in Devices, OS,
Operators
⬜ 85% of population increase by 2025
⬜ 1 in 3 <18 years old in India ⬜ Close to 100% mobile
penetration ⬜ 1st time internet access via
mobile
⬜ “Internet freedom” ⬜ Cybersecurity ⬜ Data privacy ⬜ Net neutrality
Terry Kramer 2016
INDUSTRY CHANGING AREAS OF INNOVATION
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⬜ Mobile communications
⬜ Advanced search
⬜ Shared economy
⬜ Internet of Things o Wearable devices
o Connected car
o Connected home
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Terry Kramer 2016
INDUSTRY CHANGING INNOVATION-CONT.
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⬜ Big data/analytics
⬜ OTT and unbundling
- Messaging
- Video
⬜ Mobile payments/ authentication
⬜ Cloud based services ⬜ The “next several billion” internet
users
Terry Kramer 2016
TECHNOLGY IMPACT ON SOCIETIES
• GDP growth • Greater connectedness and “access” in society • Democratization • Progress on societal goals (e.g. health care, transportation) • Growing rivalries between incumbent constituencies and new entrants/
innovators • Digital divide • Income disparity • Threats to non-democratic regimes
© Terry Kramer 2016
ENABLERS FOR SUCCESSFUL INNOVATION
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Successful Innovation
Customer-oriented • Simplicity • Relevance/
Personalization/ Contextualization
• Affordability • Mobility
Technology • Standards • Convergence • Multi-Sided Platforms • Effective use of Big
Data/Analytics
Society/Industry/Regulation • Affordable, ubiquitous
broadband access • Addressing cybersecurity
threats • Policies supporting innovation
while mitigating income divide/insecurity
Business Models • Advertising-based
business models • Subscription/ Software-
as-a-Service”-based pricing
• Multi-Sided Platforms
Terry Kramer 2016
1st Time Internet Access
Jio Pan-India next generation digital ecosystem ➢ Specially designed devices to run with Jio network, applications and services ➢ Commercial launch Q1 FY17, >90% 4G coverage ➢ Average network speed of 17 Mbps ➢ Reliance to invest $17B by FY17 Project Loon Network of balloons traveling on the edge of space to connect remote areas. ➢ Google partnered with telcos to share cellular spectrum, enabling connection to
balloon network with 4G/LTE devices. ➢ Goal: internet access to 60% (4B) un-served population ➢ Carrier testing in Indonesia, Brazil, New Zealand, Australia
© Terry Kramer 2016
1st Time Internet Access Internet.Org/Free Basics Facebook’s initiative to provide free Internet access in developing countries. ➢ Partnership between Facebook, Samsung, Ericsson, MediaTek, Opera
Software, Nokia and Qualcomm--users access via approved websites ➢ Launched 2013. Service offered in 17 countries to 19 million people. ➢ Most recently banned in India-criticized for violating net neutrality Freedom251 Phone Empower Indian citizens with the latest in digital technology at affordable price. ➢ Released in February 2016 as the world’s cheapest smartphone-$3.67 ➢ Government investigation into predatory pricing.
© Terry Kramer 2016
FinTech Innovation M-Pesa Vodafone’s branchless banking service- mobile-based money transfer, financing, and microfinancing services. ➢ Allows users to to deposit, withdraw, transfer money and pay for goods and
services easily with a mobile device. ➢ Launched in 2007 in Kenya and Tanzania. Since expanded to Afghanistan,
South Africa, India, Romania, and Albania. ➢ By 2010, became most successful mobile-phone based financial service in
developing world. ➢ Lauded for giving millions access to the formal financial system and for reducing
crime in an otherwise largely cash-based society.
© Terry Kramer 2016
Internet of Things Mobile health/wearable devices ➢ Number of mHealth apps doubled in 2 years—100K apps in 2014 ➢ Market drivers: penetration of devices and user/patient data demand ➢ Future mHealth apps lies in remote monitoring, consultation and predictive analytics Connected car/autonomous vehicles ➢ 5 levels—automatic sensoring of engine performance to human-less driving. ➢ Driverless cars could reduce traffic fatalities by up to 90%- translates into $190B/
year in health care savings. 90% reduction in greenhouse gas emissions Connected home ➢ Estimated smart home market $12B in 2016, 18% CAGR through 2020 ➢ Current connected home offerings: smart thermostats and smart security systems ➢ Future connected home offerings: learning ecosystem aware of habits & movements
© Terry Kramer 2016
Shared Economy Uber/Lyft ➢ Shared economy with autonomous vehicles could reduce auto purchases by $1 trillion
AirBnB ➢ Reduction in residential and hospitality real estate requirements
© Terry Kramer 2016
KEY ISSUES & UNINTENDED CONSEQUENCES
• User adoption
• Internet censorship
• Workforce displacement
• Income divide
• Privacy
© Terry Kramer 2016
PUBLIC POLICY IMPERATIVES
• Net neutrality
• Internet freedom
• Competitive/liberalized markets
• Privacy
• Workforce training
• Income distribution
© Terry Kramer 2016
KEY ISSUES TO CONSIDER
• What is the end goal?
• Do the benefits of the technology outweigh the disadvantages?
• Does society see those benefits outweighing the disadvantages?
• What role can/should government play to ensure long-term outcomes are achieved?
• How can you effectively make critical transitions towards achieving the end goal?
© Terry Kramer 2016