Archive for August, 2012

Which 3 Digital Technologies became Catalysts for Change?

Friday, August 31st, 2012

So what exactly have we recognized as being the three catalyst technologies or products that emerged in the year 2007? Below is an overview of each of these and highlighted are the main factors that we believe have influenced their evolution and subsequent relevance today.

WiMAX

WiMAX was an early 4G technology that started the move of the U.S. market to wireless broadband; it is often likened to “Wi-Fi on steroids”. The fact that Sprint and Clearwire, a startup that was supported by Google and Intel, could deliver blisteringly fast mobile Internet service forced AT&T and Verizon, the two largest U.S. carriers, to accelerate their deployment of 4G LTE. This development meant that standards needed to be agreed upon and formalized, and that network equipment manufacturers needed to accelerate production in order to provide for these large customers.

Having AT&T and Verizon focus on a single frequency (700 MHz) made it easier for device manufacturers to accelerate their development of 4G Internet products and deliver consumer-ready devices. The fact that some of these device manufacturers had been working on WiMAX devices in cooperation with semiconductor providers meant that they could accelerate products based on the WiMAX chipsets that almost 80% matched LTE.

Subsequently, both Sprint and T-Mobile have also either invested in or announced plans to build a 4G LTE network on top of their existing systems. What this means is that for the first time all four large U.S. carriers are offering mobile Internet services utilizing the same technology as the rest of the world, enabling global interoperability and roaming.

The iPhone

The second catalyst product was the iPhone which has received much acclaim for its elegant design and simple user interface. The real essence of the catalytic change that the iPhone initiated, however, was a shift in the consumer paradigm of a mobile device being used solely for communication to one that enabled interaction. The iPhone allows users to connect easily on-the-go and to share information, content, pictures and video simply and effortlessly. When it was first released, users found the interface to be so effortless that data volumes climbed exponentially and severely disrupted the AT&T network that had not been designed for large data capability! This forced AT&T, as well as other mobile operators, to rethink the entire concept of network architecture to include Wi-Fi as an offload mechanism. It also resulted in AT&T acquiring Wayport, and in the process becoming the single largest operator of Wi-F in the U.S.

Not only did the iPhone change the existing consumer paradigm and network architectures, it also broke the carrier stranglehold on its relationship with the subscriber. The iPhone was and still is provisioned via iTunes, which had previously been the domain of the mobile operator. This relationship with the subscriber, initiated at the time of purchase, was then solidified through the introduction of the app store and ultimately the iCloud. Apple effectively took the existing mobile business model, tore it up and replaced it with a hybrid that established a stronger bond with the consumer based on end-to-end user experience. The impact of the iPhone’s innovative design, end-to-end system, business model, user paradigm and elegant packaging of an everyday technology has had a tsunami-like impact on RIM, Motorola and Nokia, as well as on major mobile operators around the globe.

The Amazon Kindle

The third catalyst product that has been an instrumental agent of change is the Amazon Kindle. This device did for a 500-year-old product concept, the book, what the Walkman or iPod did for music. Best sellers are now cheaper and easier to obtain via the Kindle which provides on-the-go access to the world’s largest library/bookstore. This simple to use, low cost device made the mobile Internet transparent to the user by incorporating the cost of access into the price of the book. Amazon achieved this by creating a blanket connection relationship with AT&T for global access. The fact that the Kindle e-Reader automatically creates a relationship with Amazon means that loyal subscribers are a natural evolution. Proof that this technological revolution is affecting the literary world is evidenced by the number of large bookstores, such as Borders in the U.S., that have closed, and Barnes & Noble swiftly producing their own e-Reader, the Nook.

The iPhone and the e-Reader together have evolved into an instant-on class of device – the tablet – that satisfies the mobile consumer’s need to instantly connect, be entertained and informed. While small enough to remain portable, smartphones and tablets facilitate sharing, learning, creating and interacting using wireless broadband connectivity (3G, 4G and WiMAX) and these in turn have become indispensable parts of our everyday digital lives.

Steve Bell, President, KeySo Global

www.keysoglobal.com

 

What Spawned the New Digital Renaissance 2.0?

Saturday, August 25th, 2012

This article is the first of a trilogy in which we share some of the more intriguing aspects we have uncovered about digital technologies and the dynamic impact they are having on our business and personal lives. This first blog examines the unique origins of the new age Renaissance – what we call Digital Renaissance 2.0™ – and its impact on today’s global economy.

Previously, we identified the four “enabling technologies” (cell phone, PC, Internet, Walkman) that rocked the world and pointed out that they all emerged on the scene around the same time – 1981. We also pinpointed 2010 as a “year of convergence” when 3G, 4G and the Cloud all came together. It was only recently, however, that it became apparent to us that 2007 was the year that the “catalyst technologies” facilitated this convergence and, with it, the advent of the new digital age.

My colleague, Steve Benton, and I coined the expression Digital Renaissance 2.0™ (Ren 2.0™) to capture the concept that a fundamental shift is occurring in the way that information is now being accessed and shared. In the original Renaissance era, the enlightenment of Europe occurred due to the introduction of the printing press which led to the democratization of books.

During Ren 2.0™ the Internet has led to the democratization of information, now freely available to everyone – anywhere, anyhow and anytime – and as a result, the collective knowledge held by society is expanding exponentially, both actively and passively. The Internet has enabled information to become much more “transparent” as silos of data are shared between continents, countries and corporations, and on a significantly broader basis. This in turn has facilitated the global cross-pollination of ideas and concepts on a scale never seen before.

The four enabling technologies referred to above evolved rapidly and converged to facilitate the emergence of the Mobile Internet age. In our paper “Introduction to Digital Life Renaissance” (contact us to obtain a copy) we determine that this change is occurring at an unprecedented pace and show how it is touching all aspects of society, as well as governments and global economies.

The magnitude of these digital world changes in economic terms is captured in a chart we compiled that shows the global economy growing from less than $10 trillion in 1981 and accelerating to over $60 trillion by 2010. In a recent blog article in the Economist it was identified that between May 2011 and 2012 the global economy generated $65 trillion of trade (GDP), and that by September 2013 it will add a further $10 trillion to achieve a global GDP of $75 trillion.

The case can be made that global saturation of cellular and expanding penetration of mobile broadband access are primarily responsible for this rapid, worldwide distribution of information, which in turn is fueling economic growth at an unprecedented rate. Concurrently, this transformation is impacting the lives of individuals in developing and developed countries, and their awareness and expectations are growing as they become more exposed to vast amounts of new, previously inaccessible, information. As human behavioral patterns and methods of interaction change, so do their needs and requirements, which in turn are generating an abundance of new business and service opportunities.

It is our belief that the reinforcing cycle of continued innovation, based on the application of new digital technologies, is facilitating an increasingly interconnected planet which will, in turn, strengthen economic growth and favorably impact our digital lives.

Look out for our next two blogs in this series and find out exactly what the “catalyst technologies” are, what their significance is today and the powerful impact that they are going to have on our business and personal lives going forward.

Steve Bell, President, KeySo Global

www.keysoglobal.com

Mobile Industry Trends and Beyond

Saturday, August 4th, 2012

 

 

The mobile industry is a global business that generates $1.5 trillion in revenue every year, approximately 1.5% of the world’s GDP. Throughout its 30 year history the industry has become ever more inextricably intertwined with the global economy. The World Bank estimates that for every 10% increase in mobile penetration the GDP in developed countries increases by 0.6%, in developing countries by 0.8% and for low income countries GDP increases by 1.4 %.

The bottom line is that wireless communications are impacting our personal and business lives because the physical networks are, in the words of President Clinton, “facilitating networks of collaboration and cooperation” that make boundaries transparent between countries, industries, societies and cultures. As the connected world shrinks in a virtual sense, possibility expands in a real sense as boundaries blur and new and previously unforeseen opportunities emerge globally. It is against this background that it becomes critical for industry leaders to make themselves aware of the emerging mobile trends and the implications they have on the global economic landscape, and more specifically on their own businesses.

Emerging Mobile Trends

  1. Mobile technology is disrupting business models and consumer habits, not just within Telecoms but also neighboring industries. The medical, utility, transportation, education and banking industries are all experiencing a shift from simple communication to total connectivity anywhere that mobility facilitates. Some are embracing the opportunities that this brings faster than others, resulting in significant redistribution of wealth along multiple value chains. Industry structures will most likely change as companies look at horizontal and vertical integration to acquire “Super Stacks” of intellectual property in order to exert increased control over their business model.
  2. Over the Top (OTT) Communication Services, easily downloaded from “App Stores”, are encouraging consumers to explore different ways of communicating, wherever they are and with whom they want, across multiple platforms. Voice has become just another bit of data in the new networked world. Consequently there is gradual recognition that mobile operators do not have a monopoly on the provision of voice over their networks; this could ultimately be the end of the existing subsidy model for phones and smartphones.
  3. Network architecture is being rethought to handle the masses of data resulting from the unprecedented growth in uploading and sharing of video from mobile phones. The traditional asymmetric network design has been found wanting and has forced a more symmetric heterogeneous networks (Het-Nets) structure that encompasses multiple technologies, spectrum and access capabilities, including offload to Wi-Fi. This frantic scramble by operators to provide the vision and reality of “anywhere – anytime – anyhow connectivity” has a significant cost implication at a time when the industry economics are in flux.
  4. Clouds of Things” captures the convergence of five rapidly developing vectors of technology: the Internet of Things, Hybrid Clouds, Big Data, Artificial Intelligence and Augmented Reality. “Clouds of Things” will provide intelligent management, control, utilization and distribution of resources. This convergence of capability will be driven by the needs of smart cities as the increasing flight to urbanization continues. It is forecast that by the year 2016 thirty percent of the global population will be living in cities.
  5. Smart connected homes are becoming a reality as embedded and “black box” connectivity become simple to use and install, or come as part of a home automation package from cable companies, utilities or security firms. This will allow enhanced and remote management of all of the connected consumer electronic devices within a household. Smart home management will be facilitated by personal tablets and smartphones linked to augmented reality and will inevitably result in peoples’ social behaviors adapting and changing.
  6. The Mobile Wallet, utilizing Near Field Communications (NFC) technology, could revolutionize online and offline commerce as it is currently understood. This technology appears to be closer to reality in 2012 than ever before and is being deployed in millions of smartphones by multiple manufacturers.  However, in the developed markets there is need for systems and infrastructure change in order to handle mobile wallet transactions; this requires the agreement of many parties with vested interests, many of which are not yet aligned. Unless the complex industry value chain (retailers, card issuers, banks, mobile operators, internet intermediaries to name but a few) can meet consumers’ expectations for “elegant” mobile solutions (simplicity of use, privacy and security) then adoption by users will be inhibited.
  7. Smart devices, together with consumer adoption of “there’s an app for that”, revealed the enormous power and flexibility of the mobile internet. Beyond web apps, HTML5 is the next evolution of the mobile web. It is a comprehensive app development platform that can be used on multiple browsers and phone operating systems. Businesses providing services and content are attracted to HTML5 to overcome the following issues: the fragmentation of Android across an increasing number of device manufacturers and Apple app store economics that takes 30% of each app transaction while restricting these businesses access to their own subscriber information.
  8. Seamless connections management software, with varying degrees of capability, will soon become common place on devices to meet consumers’ expectations for simple, elegant, lower cost access everywhere across the world. It will also enable operators to load- balance across increasingly complex networks using multiple technologies and spectrum. This software will also help operators address the challenge that IT managers face in aligning Bring Your Own Device (BOYD) requirements with corporate security needs.
  9. Green ownership philosophies and government policy are focusing attention on ecological and energy saving issues. It is forcing a rethink of the total cost of ownership calculation for networks and, by default, the cost of consumer and enterprise services. This calculation becomes more complex now that it has to address an increased number of factors: the traditional economic pressures that are compounded by the exponential rise in data traffic, the increasing expectation of customers for access anywhere, as well as the impact of environmental pollution and concerns about energy efficiency.
  10. Mobile discovery will increasingly become the focus of mobile marketing specialists in the same way that SEO is an integral part of internet marketing today. Addressing the abundance of apps, services and information is a new type of problem. Mobile operators are complicating this situation by starting to mine vast amounts of subscriber data. They are blending this intelligence with offerings from a rich ecosystem of service and content providers, and creating unique personalized propositions for consumers that are targeted by location and context. With this diversity of offering, the challenge for small businesses and app developers is how to stand out in this operator and app store dominated environment? This is the emerging art and science of mobile discovery.

For more information about any of the above contact us at +1847-478-1633 or info@keysoglobal.com

Steve Bell, President, KeySo Global