May 9, 2016 Innovation for Good: Opportunities, Challenges and Imperatives. Terry Kramer 2016
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1 May 9, 2016 Innovation for Good: Opportunities, Challenges and Imperatives Terry Kramer 2016
2 WHAT S HAPPENING IN THE WORLD Internet Emerging Market Trends Drive for access anytime/ anywhere Internet of Things Customer analytics Cloud computing Our World Today 85% of population increase by in 3 <18 years old in India Close to 100% mobile penetration 1st time internet access via mobile Changing Customer Behaviors Public Policy Tablet & smartphone explosion Personalization & Security BYOD in enterprise market Compe33on Prevalence of Digital Natives Non-traditional competition Growing digital convergence Growing mobile operator consolidation Winner s and Loser s in Devices, OS, Operators Internet freedom Cybersecurity Data privacy Net neutrality
3 INDUSTRY CHANGING AREAS OF INNOVATION o o o Mobile communications Advanced search Shared economy Internet of Things Wearable devices Connected car Connected home Terry Kramer 2016
4 INDUSTRY CHANGING INNOVATION-CONT. Big data/analytics OTT and unbundling - Messaging - Video Mobile payments/ authentication Cloud based services The next several billion internet users Terry Kramer 2016
5 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
6 ENABLERS FOR SUCCESSFUL INNOVATION 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 Customer-oriented Simplicity Relevance/ Personalization/ Contextualization Affordability Mobility Successful Innovation Business Models Advertising-based business models Subscription/ Softwareas-a-Service -based pricing Multi-Sided Platforms Terry Kramer 2016
7 1 st 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
8 1 st 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 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.
9 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.
10 Mobile health/wearable devices Internet of Things 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
11 Uber/Lyft Shared Economy Shared economy with autonomous vehicles could reduce auto purchases by $1 trillion AirBnB Reduction in residential and hospitality real estate requirements
12 KEY ISSUES & UNINTENDED CONSEQUENCES User adoption Internet censorship Workforce displacement Income divide Privacy
13 PUBLIC POLICY IMPERATIVES Net neutrality Internet freedom Competitive/liberalized markets Privacy Workforce training Income distribution
14 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?
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