Mobile Applications-Huge market potential

Keynote:

Mobile Applications!

The Huge Market Potential,

Do’s and Don'ts

By

Sam Gulve

President, Innovate Vertical Solutions

Proprietary & Confidential - Innovate Vertical Solutions Pvt. Ltd.

Mobile: Always On


Mobile: Always With You


Mobile: Ubiquitous Signal


Mobile: The 6th Sensory Organ

� Every one has it and it has become increasingly affordable and available. No inherent divide along the lines of rich/poor, Literate/illiterate, developed/developing geography, urban/rural etc.

� Personal

� Always on and always with you

� Used in interacting with ones environment

� Increasingly used in everything one does

Best integrated to humanity. No parallel in history


Mobile: The Latest and Greatest Mass

Media Channel

� 7th Mass media channel after Print, Recording, Cinema, Radio,

TV and Internet

� Some numbers to ponder:

� World Population: 6.7B

� Newspaper global circulation: 1.7B

� TV sets in the world: 1.5B

� PC’s in the world: 1B+

� Internet users in the world: 2B+

� Mobile subs: 5.3B (77% of world population, 3.8B in emerging geographies.)

� Over 90% of world population has a mobile signal available in easy reach.

� 1.3B Handsets were sold last year

� This year over 4B sms users would send 8T+ sms’s


Mass Media: India Context


SMS’s still rule the roost


Mobile: Unique Facets

� Success of mobile as mass media and its potential in bringing

uniquely useful services to consumers stems from,

1. Personal

2. Always on

3. Always with you

4. Built in payment channel

5. Available at the point of creative impulse

6. Most accurate at measuring its audience

7. Only mobile can comprehensively capture the social context of

consumption

8. Only mobile can offer augmented reality


Mobility:

Uniquely Huge Opportunity

� Without rehashing the numbers no matter how we slice it the

underlying opportunity is HUGE!!

� Before jumping headlong its important to ponder;

� In the world of Mobility where are the nascent yet potentially large

opportunities?

� Are there any Do’s and Don’ts that can improve the odds of success?


Where are the nascent yet potentially

large opportunities?

� Mobile is a “tool” for the masses and tools are used to making

“something else” (objective), faster, better and cheaper.

� What’s this “something else”?

� Clues from human “Activity Clock”

� Mckinsey study.

� Broader domains of activities we engage in

� Slicing by segments.

� Across segment, portfolio of activity by time and money varies based

on segment characteristics (age, profession, sex, Socio-economic

strata, level of education, geography etc.

� Characteristics of mobile usage also varies by segment


Activity Domains

Though distribution of domains of activities varies widely across segments, the set of domains is finite.

Humans engage in,� Earn a living, look for better opportunity

� Raise children

� Trade and transact (buy/sell)

� Manage assets/belongings

� Find information (satisfy curiosity)

� Solve problems

� Communication and socially interact

� Educate themselves

� Take care of health (preventive or remedy)

� Seek entertainment/amusement

� Seek spiritual solace

� Plan and perform tasks

� Comply to laws etc.


So the answer is….


Utility VAS: Nascent and high potential opportunities

� Currently VAS dominated by entertainment/leisure

� Utility VAS covers “necessities” such as Health, Education, Commerce, Government etc.

� Each of these domains have extremely large markets

� Each domain is a complex composite of large number of consumer centric use cases

� These are perpetual necessities and not susceptible to “fad like” market swings.

� Mobile has the ability and opportunity for intervention to improve upon the current state of many of these use-cases.

� Its not too late, the interventions have just begun.


Do’s and Don’ts

� Fundamentals of value creation are still same, even in mobility. Take something big and important and make it Faster, Better and Cheaper.

� Mobile is not just “another” screen but represents a different usage paradigm. Don’t just “mobify” everything.

� To select the most high potential use-cases for intervention look at

� Where mobile usage paradigm has distinct advantage over current state of affairs.

� Know thy consumers. FMCG like discipline necessary.

� Domain trumps technology. Understand current use-cases thoroughly.

� Keep an eye on environmental issues and avoid legally and politically charged areas.


Do’s and Don’ts continued…

� Use-cases that are dynamic and require server intervention are obviously more sticky, have longevity and can demand higher pricing.

� Tying up the relevant telecom as well as the domain eco-system is absolutely critical and leads to simplicity and value.

� Translating use-case/domain knowledge along with the deeper understanding of the relevant consumer segment into correct manifestation of the application is mandatory for adoption

� Emerging geographies are epicenters for utility VAS innovation, so you are in the “right” place

� Emerging geographies scream for “simplicity” and ease of use.

� Emerging geographies still dominated by feature phones and voice/sms as key bearers…don’t ignore these.

� Emerging geographies buy a lot of “local” handsets…don’t ignore these.


Do’s and Don’ts continued…

� Inherent power of mobility stems from the “mass” effect. Ideal business models focus on serving large segments of consumers, low per unit pricing, and recurring revenues via subscription or usage based pricing. So don’t ignore middle and bottom of the pyramid (socio-economic and technology).

� Discovery remains the biggest challenge. Use domain specific traditional channels to help getting to critical mass

� Mobile can yield hugely rich contextual data. By using this innovatively and ethically would lead to ease of use by overcoming small “real-estate” problem and lead to much higher value.

� Overall mobile eco-system is headed in the right direction (a lot of tail wind in your sails) in terms of

� regulations,

� alternate payment,

� general public getting savvier with mobile technology

� Smarter phones and networks and rapidly increasing adoption of both

� Increasing affordability


Rich Context!


Summary

� Mobile is an unprecedented technology that has the potential to significantly further change the world

� Huge economic value creation opportunity…could be orders of magnitude bigger than internet.

� Emerging geographies the place to be.

� Mobile represents a different usage paradigm

� Utility VAS applications the new frontier.

� Need to focus on domain and consumer segment knowledge

� Pick important, large use cases where mobile usage paradigm has inherent advantage in making it “faster, better and cheaper”.

� Do’s and Don’ts to help improve odds

� Environment and eco-system providing the tail-wind so the time is NOW!!


About Me

� Not just pontificating but am one of you…putting money

where my mouth is.

� 26+ years in Technology Industry

� Rich multiple geography experience across entire mobility eco-system

� Know how the big companies think and do. Thanks to AT&T, Netscape,

Amdocs, Avaya, Spice etc.

� Prior multiple startup experience…rode the internet wave too

� Hugely passionate about Mobility. Decided to go back to startup

world…

� Currently doing a mHealth company. Another on the anvil.

� Helping many startups and on boards of a few.

� Contact: [email protected]

TM & © applied for by Innovate Vertical Solutions – All rights reservedProprietary & Confidential - Innovate Vertical Solutions Pvt. Ltd.

HealthHopeOur hope for a healthy you

A few words about us

Innovate Vertical Solutions ™


Why Mobile Health?

� Healthcare services especially in emerging geographies are woefully inadequate (reach, cost and quality) and getting worse.

� Mobile technology and eco system with its unique characteristics (ubiquitous, personal, always on, always with you, vast geographic reach, built in payment channel, highly contextual) has potential to alleviate Healthcare Industry problems.

� The opportunity to make a difference and the market size is huge (in billions of dollars)

� The mobile health industry, after years of pilots and trials is poised to hit the inflection point.


About IVS� Innovate Vertical Solutions (IVS) is a private limited company formed by

seasoned leaders of Telecom and Health Care in India..

� Formed after three years of detailed study and research on the health care

needs of a emerging geographies (such as India) and how the

unprecedented penetration of Mobility can be leveraged to address the

same. Our health related applications are offered under the brand

HealthHope.

� IVS has tied up with a number of leading healthcare professionals, bodies

and facilities. Health care content and services provided by IVS are

sourced from and supported by these partners.

� IVS focuses on key consumer segments and key health related use-cases

and has designed and developed a comprehensive set of useful & sticky

health services: For example ask-Doctor, make-appointment, Youth tele-

social groups, Support Groups, Talk2Baby™, Care4Baby™, especially 4kids

etc.


About IVS� IVS’s mobile health services bring quality healthcare to masses in an

affordable, high quality and easy to use manner.

� We differentiate from potential competitors on the basis of our

comprehensive service portfolio, relevance of our services garnered from

deep consumer insights and focus on specific need based user segments,

quality of our suppliers and partners and ease of use.

� IVS has immediate Reach to 70 million BSNL (Indian PTT) subscribers

growing to 480 mill+ as it expands across Operators within the first two

years of operation.

� HealthHope shortly going live across several operators both in India and in

other geographies.


Vision & Mission Statement

We envision a healthier and safer world for all, where irrespective

of who the individual is, they have access to reliable, affordable,

efficient and interactive access to trusted health related

information & services where they need it, when they need it

and in the form that they need it in.

We strive to continually leverage emerging technologies such as

mobile and communication technologies, key partnerships and

innovation in business models to bring better, faster and more

efficient/affordable health related services to masses.


Thank you

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Mobile Applications-Huge market potential