Unleash Your Potential - Namagunga Girls Coding Club
The Opportunity for Digital Transformation
1. 14 November 2017
The Opportunity for Digital Transformation
Michael MacDonald
Group CTO and Executive Consultant
Southeast Asia
2. The digital
evolution is a part
of our lives……
Less waiting time
More immersive
Better experience
Source: LoriLewis and OfficiallyChadd 2017
3. 1st Wave: Telco
Voice/Message
1.8T USD
1990’[2G] 2000’[3G] 2030’[Quantum]2010’[4G] 2020’[5G]
Market
Size
2nd Wave: Internet
Surfing/Entertainment
500B USD
3rd Wave: Digital Society
Digital Enterprise/Verticals
80T USD (2040)
50% of GDP
3rd Wave
4. Information Technology to Data Technology
App: Entertainment, Home, E/V
IoE: Chipset, Sensor, Robot, Smart Terminals
OTT ISP/ App, Open API
DSM/App, OS, QoE
DT - XaaS
Cloud/Data
Intelligence
Analytics
Pipe
SDN/NFV
TerminalCloudPipe
Operation-Smart
Platform-intelligent
Innovation–Eco.Co-operation
Apple: “Terminal +Cloud”
① iPhone/iTV + IOS
② App Store < 13mn SPs
③ iCloud
④ Home Kit + Health Kit
Google: “Pipe + Cloud”
① GCP: 40 DC + 59 POP + 2600 CDN
② B4 + Fibre + Satelite + Balloon
③ Project Fi: SDN/NFV
④ AI: Android + Alpha Go
Amazon: DT Monopoly
① E-Commerce + Drone
② AWS: 30%, Profit for 3 Quarters
Facebook: “Pipe + Cloud”
① SNS No. 1 : Connect
② TIP + Drone: Connect+
Elastic, Dynamic
80% of global
smartphone
profit
1.6B users
Telecom
Information
Project 250
members
31%
marketshare
Alpha GO beats
16 world Go
champions
5. Broadband deployment…is failing to keep pace with today’s
advanced, high-quality voice, data, graphics and video offerings…
The FCC updated its broadband benchmark speeds to 25
megabits per second (Mbps) for downloads and 3 Mbps for
uploads.
6. Big DataCloud Services Socializing
All On Mobile
Source: Huawei Market Insight
By 2020, 60% of
apps run in public
cloud
By 2020, >50% TOP 500
companies utilizing big data
in business operation
By 2020, 40% Global 2,000
companies use social data for
marketing and service
Megatrends to 2020
By 2020, 70% internet visits by mobile devices
9. Content 2020
60% of mobile data
will be video in 2020
resolution
8k/4k
FHD/HD
VoD
Gaming
VR
Video Com
Smart Home
Mobile TV
Live Streaming
AR
Immersive
Content
The human mind can process
5.2Gbpsof sound and light
11. Health care
Energy &
Utilities
Transport
Buildings
Education
EnvironmentSmart
Technology
Smart city
IoT connectivity
Water $330Bn
Energy $400Bn
Security, traffic
$1.6Trillion
Connected Vehicle
$104Bn
Smart
Home
Global Smart
Environment $705Bn
Smart Education
$344Bn
Smart Building
$22Bn
Smart Health care
$ 1Trillion
Smart technology
$60Bn
Smart Home
$60Bn
(Global estimations from 9 analytics agencies, eg. Ovum, GSMA, Gartner)
Market by 2025
$11.1 Trillion
Estimated economic impact
* Mc Kinsey Global Research 2015
A digital economy is born when digital computing
technologies enable economic activity
12. Operational Processes
Insight
Customer Understanding
Evolution
Digitally Modified Businesses
Automation
Process Digitization
Empowerment
Top-Line Growth
Journey
Customer Touch Points
Cross-Pollination
New Digital Businesses
Synergy
Digital Globalization
Collaboration
Worker Enablement
Insight
Performance Management
Digital
Transformation
13. Digital Transformation Opportunity
Everything Connected
Power efficient
Lower complexity
Longer range
Extreme Bandwidth
Higher throughput
Lower latency
Uniform experience
Foundation Services
Critical Communication
Higher reliability
Lower latency
Higher availability
Hinweis der Redaktion
From Sandvine’s State of the Internet
Netflix accounts for 35% of traffic
Audio and video streaming account for 71% of traffic
Bittorrent which accounted for 31% in 2008 now represents 2.9% peak traffic
YouTube is about 17.5%
Facebook now has 2B+ users of which over 1.8B mobile users
55% use Facebook exclusively from mobile phone
Another 1B use Whatsapp
AirBnB 2.3million listings with 100 million users
Netflix 100million subs
Almost 50% outside the US
Instagram has 700m MAU
Every 10 years there is a new technology that emerges
1st Wave Voice and Message 1.8T USD
2nd Wave Consumer Internet 500B USD
3rd Wave Digital Society 2040 80T USD, 50% of global GDP
TD is connection
CD is IOT
DD is about Cloud Computing and Platform
IT is Video and Digital Info Service for Enterprise
GAFA Disruptive (Google Apple Facebook Amazon)
IT - IOE (IBM, Oracle, EMC)
Apple accounts for 80% of global smartphone profit
Facebook 1.6B users with Telecom Information Project (450 members)
Amazon took 10 years to become leader (31% of market share)
What is telco’s advantage
KM: GAFA- Disruptive Power:Drive Network Intelligence, DT Platform Evolution, App Eco. Booming
The world’s largest companies by market cap had been replaced by silicon vallage
GAFA(google, amazon, facebook, apple) are the driving the intelligence of network e, platform datalization and service ecosystem. “terminal + cloud” “cloud + pipe + cloud” Amazon 2016Q1 31% of cloud market, O2O
Ecosystem be double trumpets: elastic and dynamic are keys. (COTS即Commercial-off-the-shelf,翻译为“商用货架产品”,指可以采购到的具有开放式标准定义的接口的软件或硬件产品)
PIPE evolve to SDN/NFV/COTS and intelligence. Operation intelligent relay on DT and intelligent analysis.
Smart platform: APP + Terminal streamlized.
Innovation: eco-cooperation
The 4 Mbps/1 Mbps standard set in 2010 is dated and inadequate for evaluating whether advanced broadband is being deployed to all Americans in a timely way, the FCC found.
Facebook
3rd quarter 2016
7B in revenue and 2.38B in profit
84% of ad revenue comes from mobile
Facebook Live has grown 4 times since May
Amazon Dash Buttons launched in 2015 (people thought it was an April fools joke)
Sold out same day it was released
Launched in UK mid 2016
Companies pay Amazon $15 for each button sold and 15% of each Dash product sale, atop the normal commission, which typically ranges from 8% to 15%, the people familiar with the matter said.
For their part, consumers pay $5 per button, though Amazon sweetens the deal by offering a $5 rebate for every button. The rebate is good toward the first purchase using that button. Only members of Amazon’s $99-per-year Prime membership are eligible to use the Dash buttons.
Helping expand Dash’s ranks: Amazon dropped a hefty buy-in fee of around $200,000 required of the first companies that signed up, according to people familiar with the terms. Those early Dash brands belong to major consumer companies, including Procter & Gamble Co., Kimberly-Clark Corp. and PepsiCo Inc.
Drones
Sky Drone FPV 2 uses LTE with 3G and 2G fallback for full control provided there is cellular coverage
AT&T has ambitions to connect everything from cars to whole cities. Why not drones, too?
AT&T, The Dallas wireless carrier and chip giant Intel said Monday they would partner to investigate adding 4G LTE connectivity on drones, which would be a key element in getting them to fly higher and further than ever before.
Huawei releases fastest LTE chip with Mate8
Virtual Reality now offering 6 degrees of freedom with full tactile response
Intelligent Seamless Assistant
But for Amazon, making money from music is beside the point. Instead, the Seattle-based e-commerce giant plans to use streaming music to gin up sales of Echo, a gadget that lets people use voice commands to get information, organize schedules and make purchases online. Earlier this month, Amazon unveiled a cheaper version of the digital assistant, the $50 Echo Dot, in a bid to make its smart-home technology more appealing to the masses in time for the year-end shopping season. The devices are also getting prominent placement in Amazon’s physical bookstores and pop-up shops, where workers are at the ready to show off virtual helper Alexa and Echo’s other capabilities.
A central selling point for Echo and rival in-home gadgets is music -- the idea that users will be able to use a simple voice command to instantly stream a song of their choice. That’s where the music streaming comes in -- something that has been part of the plan for Echo since its inception, according to people familiar with the company’s strategy. Even though the music-streaming market is already crowded and competition is tight, Amazon is willing to lose money on a cheap offering to attract more shoppers to the Echo, with the ultimate goal of embedding all of its services more deeply in users’ everyday lives.
No strings attached
For guitar players, your Alexa device can now help you tune your instrument. In the Skills menu, search Guitar Tuner. Then, on any Alexa-powered device, say something like “Alexa, ask Guitar Tuner to tune my guitar.” This will start a series of tones, starting on the low E string and going up A, D, G, B, and ending on the high E. Match your tone and you’re ready to rock.
Driver diagnostics
You might know you can order an Uber using your voice, but what about your own wheels? If you’re a car enthusiast, ask Alexa for updates on your car through the Mojio Skill, which allows you to locate your vehicle, track driving habits and distance driven, view engine status, and gauge fuel levels. Install the 3G- and GPS-powered Mojio device ($149) into any car's On-Board Diagnostic (OBD-II) port, which is standard in all cars from 1996 onward. The price includes one year of service.
IoT is one of the most fertile areas for enabling digital transformation.
By 2025, Huawei predicts that the number of connected devices will reach 100 billion, which in turn will drive millions of new apps and solutions.
These devices and solutions have the potential to redefine competitive advantages in virtually every industry, with the most active IoT development clustered around the manufacturing, transportation, retail, and healthcare sectors.
Currently, IoT is still emerging in the form of basic sensor-actuator devices that sense the environment, collect data, and actuate data to effect change. IoT will evolve towards taskbased technologies like driverless vehicles, robot-controlled factories, and self-managing buildings. These will stimulate a revolutionary transformation in business processes and lifestyles.
IoT systems can be deployed in narrowband networks with low latency. For example, a driverless car will send out many low-bandwidth spurts of data that need a fast response from a DC. For IoT to realize its true potential, it will need to feed on data and, to be efficient, it will need to be served from the cloud.
For IoT to work towards a digital economy and create new business models, a certain level of cloud and big data development is necessary. Most countries’ IoT programs are early-stage, with pilot sensor-actuator systems deployed sporadically. Even the highest GCI countries are still feeling their way with IoT.
Snapshot: China
Wuxi in China launched a smart farm in mid-2015 embedded with IoT technologies.
Over a period of three years, the pilot aims to use robots for pollination, harvesting, and packaging raw produce. Greenhouses are equipped with overhead and buried sensor networks so farmers can monitor soil temperature and humidity, and get better results with less time spent planting. According to Liu Xinjie, General Manager of the company running this pilot, the smart management system has raised crop output to between three and five times higher than conventional models.
Global IoT spending currently sits at US$700 billion, and is expected to reach US$1.3 trillion by 2019.
Customer Experience
Customer Understanding
Taking advantage of systems to provide more insight into customers (market segmentation, geographics, loyalty, exploring social media) to gauge pulse of users
Who, what, when, why and how?
Top-Line Growth
Transforming the sales experience with technology to improve sales (arm staff with tablets) through convenience and information in real-time
Integrating processes to combine services for convenience (restaurant review site with integration into reservation and loyalty system)
Customer Touch Points
Leveraging multiple channels to help make the journey more efficient and convenient as the customer wants
Monitoring social media and using self service to expedite the customer experience
Operational Processes
Process Digitization
Leveraging automation and centralization to take advantage of economies of scale and free up human capital to focus on higher value jobs like innovation and creativity
Worker Enablement
Separating work process from work location by virtualizing the office
Using collaborative tools to enable information sharing and efficiency and allowing experts to get a single, global view of the entire company
Performance Management
Better data gives execs deeper insight into products and sales enabling decision making in real-time
Leveraging collaboration for better strategic decision making
Business Models
Digitally Modified Businesses
Leveraging digital technologies to create new revenue from existing business (Satellite offering OTT services or a grocery store offering online ordering and delivery)
New Digital Businesses
Cross-pollenating ideas to extend into new business (sports apparel selling GPS tech for joggers or an airport buying a travel site for end-to-end service)
Digital Globalization
Digital allows companies to gain global synergies while remaining locally responsive
Using global shared services to promote efficiency and reduce risk (HR, finance, manufacturing) with ability to shift work around the globe wherever it might fit best