May 9, 2016 Innovation for Good: Opportunities, Challenges

Innovation for Good: Opportunities, Challenges and Imperatives

May 9, 2016

Terry Kramer 2016 ©

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


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.


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.


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


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


KEY ISSUES & UNINTENDED CONSEQUENCES

•  User adoption

•  Internet censorship

•  Workforce displacement

•  Income divide

•  Privacy


PUBLIC POLICY IMPERATIVES

•  Net neutrality

•  Internet freedom

•  Competitive/liberalized markets

•  Privacy

•  Workforce training

•  Income distribution


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?


Documents

May 9, 2016 Innovation for Good: Opportunities, Challenges