10 Talking Points From the Mobile World Congress

1. Wearables are evolving fast. 

Almost as visible as the new smartphones, was the Samsung Gear 2 smart watches.  There has been much talk about wearables, but this is a big step forward for a number of reasons. The device features are themselves noteworthy, for example the curved AMOLED 1.84 inch screen. But also the focus on healthcare and wellbeing is clearly taking on the market so far dominated by Fitbit and JawBone. The changeable straps provide a nod to fashion, and under the hood, it has a Tizen Operating system, which itself comes from a family tree of operating system innovation from Nokia, Intel, Samsung and the Linux foundation.

The programmability of the device will no doubt provide a slew of clever applications, which will take away the oh so onerous effort of taking your phone out to answer calls, check emails, or even do video calls. The Gear Neo 2 has a 2 MP camera and even a remote for your TV. 

It doesn’t stop there. We also saw t-shirts that can monitor heartbeats while you run, and smart gloves from Fujitsu with which you can point to things and using AR glasses, get more information about them. The Sony smartbands are certainly eye-catchinly stylish. 

But for me, the next wave of innovations will be the one to watch – when the open systems in wearable devices allow swarms of innovative developers to create entirely new ways to use wearables, in ways not even thought of yet. 

 

2. Ecosystem Conference 

Ginny Rometty, the IBM CEO, accurately called this an ‘ecosystem conference, more than a mobile conference’. Increasingly, it’s hard to separate the components. Cloud, Mobile, hardware and software, middle layer and front end tools, wearables, watchables, eatables, sensors, all the boundaries are getting blurry. Moreover, the value delivery is via the ecosystem, rather than any individual layer. 

This means that solutions thinking needs to span the ecosystem and not focus on any one layer alone. This in turn requires a number of related competencies to be brought together in one place. 

Seems like an obvious point but you’d be surprised how uncommon this common-sense is. 

 

3. Telcos in the services game

Telcos have been the perennial bridesmaids in the IP enabled world. All the value created by World Wide Web, VOIP, messaging, OTT TV and other innovations have stood on the shoulders of telecom networks, yet Telcos have seen little of the value. A part of the reason could well be that Telcos have wanted to get rewarded for being structural enablers, rather than end-service providers. 

The penny seems to have dropped, though as evidenced by the number of Telecom providers, especially in the APAC market, who have end user services built around innovative and mature smart systems. These are, importantly, not sold as technology but as services. NTT has a “Cow Birthing Service” built around monitoring body temperatures of pregnant animals, and alerting the right time for delivery. 

 

4. Old Media left behind?

Tucked between the presentation from Cisco and Shazaam, was a presentation from Bob Bakish, from Viacom. It was a very good presentation underpinned by a well thought-through content strategy, yet it felt like we were being dragged back into the past after being shown a vision of the future. 

I couldn’t put my finger on it for a while, and then it dawned on me. This was a good old-media presentation but it missed the transformation to services, analytics and interactive thinking which now characterises most successful and evolving digital media businesses of today, such as Netflix. 

 

5. Dealing with intelligent worlds 

It is no longer a big shout to suggest that the world is becoming more smart, programmable and intelligent. But perhaps our ability to deal with smarter environments is not yet developed to the extent required. This could impact privacy, security and many other areas. 

It could also make a difference to how well we’re able to extract the maximum value of our smart surroundings. Mark Zuckerberg spoke about the need to connect the whole planet, and called out the fact that many people don’t see the value of the Internet, so they don’t know why they should invest. Similarly, how many of us are really equipped to deal with a smart city or a smart environment in the optimal way? 

 

6. Yet another phone? 

Samsung switched strategies to launch the S5 at the MWC. There was also the wearables, and a few other interesting phones – the Yotaphone and the BlackPhone for starters. But there seems to be a level of fatigue with more marginal improvements. We’re going to need some truly disruptive innovation to get excited about smartphones again. 

The S5 has biometrics, the latest connectivity tools, and more megapixels than you can count on your fingers (16 to be precise). The most interesting feature of the S5 may be it’s power saving feature – when the phone is down to the last 10% energy, it has the option of switching to black and white and shutting down a lot of power consuming services, to extend the battery life by a few hours. 

 

7. Shazaam’s next trick. 

It could well be Shazaam that changes the TV advertising landscape going forward. Having solved the “what’s that song?” problem, and having turned it’s attentions to identifying television program, Shazaam is now offering a way of engaging with ads. When the app recognises the advertising, it offers ways in which you can engage with the ad – through a number of ways, over the phone. 

By ensuring that it is connected to the advertising on TV, there is a clear element of triggering the engagement. A number of questions will still need to be addressed, but by making it easier for consumers to engage, which is the problem Shazaam solves, this could be the way forward for interactive advertising. 

 

8. Innovation & Value 

There is much talk about innovation in the mobile environment in general, and especially at events like the MWC. But it’s harder to identify where the real value lies, versus where there is just an interesting app. Messaging may not be new and exciting, but continues to attract gravity defying valuations. What is innovative about mobile messaging in 2014? Yet, some 200 million (400 m if you go by Whatsapps December announcements) are using the service every month. 

The trick may be in simplicity. Whatsapp does not try to do anything apart from helping you message and talk to your friends and it doesn’t get in the way of the communication. Much like the early Twitter. The question of course is what happens now and how do you monitise this? 

Jan Koum, the founder suggested that Whatsapp will go after voice, with the same simplicity and customer focus. Who knows, may be video is next? Skype beware! 

Meanwhile other clever apps like CamMe (use a hand gesture to take better selfies) and Brewster (combine all your contacts), and Blippar (augmented reality using Google Glass and phone) made headlines. Their commercial value remains to be seen. 

 

9. Marginal innovation in payments 

I did go to the MWC hoping to get a glimpse of the future of payments. But I came back having witnessed only marginal innovations and the industry essentially shuffling it’s feet, waiting for a big move from somebody. 

That somebody might be Apple, who have over half a billion iTunes users with credit card information, an app to enable purchases through this environment (Apple Store App), about $150 bn in cash reserves, and some pending hardware patents for payment related areas. But of course this is not an MWC story, as Apple were only there in spirit. 

 

10. Architectures not clear yet 

John Chambers spoke about the critical need to get the architecture right, in the new world of digital services. The challenges is that as new technologies give rise to newer innovations and as sensors, wearables, mobile and web technologies collide to create new ideas, it’s quite hard to figure out what this architecture should be. Clearly something scalable, modular, service oriented, and capable of serving and receiving information from this array of end points is a must. And to bind all of this to some enterprise grade system of record. Easier said than done, methinks. 

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Understanding The Triggers for Digital Transformation

Digital Dominos? 

Domino’s is not an internet company. It’s not web2.0, or social. The product serves one of the oldest needs in the book. The business model depends on humans for both creation and delivery. Yet, the company can claim to be a digitally transformed company. Some 60% of Domino’s UK revenues comes from digital platforms. Of which about 20% comes from mobile devices. This is not to say that everything about Domino’s digital experience is perfect. I personally find the mobile app difficult to order from. But the numbers don’t lie, Domino’s have clearly made giant strides here. 

 

You might argue whether just changing the sales/ order process is good enough for being called a digital transformation. This is why the tired cliche of the blind men and elephant is still valid when one tries to define digital transformation. Recently, I was in a room with colleagues trying to create a single phrase for defining digital transformation and very quickly you could see how each of us was struggling with the limitations or connotations of each phrase. Should it include just customer engagement? Or supply chain as well? Does it matter if the transformation doesn’t explicitly lead to better financial performance, in the short term? What magnitude of change actually qualifies as “transformation”? And why does your business need to transform, anyway? 

 

Rather than the semantics of the phrase itself, I find it more instructive to focus on the causes and effects of this transformation. 

 

The world wide web has been around for about 20 years now, so it’s safe to say that the web itself is not the source of transformation, except for Rip Van Winkle companies who may have been asleep for a couple of decades. Domino’s is successful because it’s already made that transition. So what’s the new challenge? I think there are six actually six! 

 

 

6 Forces of Digital Transformation

 

The device switch is a first and important one. The PC market declined over 10% year on year in 2013. The mobile phone market grew 6%, while the smart phone market grew over 50%. In Q2, 2013, 76 million PCs were shipped world wide, compared to 432m smart phones and almost double that number of mobile phones, worldwide. Clearly there is a massive shift in the devices people are using, to access information and services. Mobile devices require a different user experience, have a different set of use cases, form factors, operating systems and constraints. This itself requires a significant rethink of how you deliver your digital services. 

 

Even as mobile devices take over from PC’s as the preferred environment, connectivity is changing too. We are now in a world where WiFi is ubiquitous, 3G is also on the verge of being usurped by 4G networks in many parts of the world. The number of internet connected devices surpassed the world’s population in 2010. Fibre to the home is available for millions of clients across the US and UK and Google threatens to reach 8 million households with fibre by 2022. Yet, arguably more important is the availability of the internet outside the house. The mobile internet. As this creates entirely new behaviour patterns. 

 

One such behaviour for example is the “always addressable consumer” (Forrester), which refers to the way in which consumers are always connected and hence reachable, by service providers. But everywhere you look, there are new behaviours, which are becoming mainstream. Checking your bank account on your mobile phone before you shop, checking Facebook first thing in the morning, along with news, checking twitter as a reliable source of breaking news, or comparison shopping using your mobile phone from inside a retail store (otherwise known as showrooming). And it’s increasingly clear that companies have to start equipping themselves for these new behaviours, of customers, employees and all other stakeholders. TruZign tries to take advantage of this by enabling 3 factor authentication for e-commerce transactions using a mobile phone. 

 

One of the biggest changes in the influences of behaviour over the past few years is the role played by social platforms. By providing a ready access to the opinion of crowds, or of our friends and families, we are now making choices in very different ways. I was recently warned off an airline by an overwhelming majority of about 25 responses to a question I posed on Facebook. We are increasingly hearing about how people turn their TV on in response to something they read on a social media platform. People are increasingly exploring platforms like “Kickstarter” rather than a bank loan, to start a business. 

 

Lest we forget, it’s not just people connected to the internet, but machines connecting directly and sharing actionable data, which is happening all around us. Sensors and smart appliances are exponentially increasing the number of connected devices as well as the volume of data. The energy industry is set to be transformed over the next 5 years through a combination of smart grids, smart appliances and the use of sensors through out the supply and consumption chains. Healthcare, too, is likely to look very different over the next decade thanks to the emergence of digital healthcare, and the evolution of streams of medicine such as pharmacogenomics

 

All this connectivity, behaviour change and new data is meaningless if it stays as anecdotes, as there are always counter-examples, and individual perceptions about what works or doesn’t. Yet, as our work on Code Halo’s shows, the reason why Blockbuster stumbled while Netflix grows, or why Amazon sprints while Borders stutters, is the ability to make sense of all this new data. Analytics is not new, but the ability to make sense of this deluge of data in a way that is bigger, faster and more meaningful than before is arguably the biggest trigger for digital transformation, as it seeks to reshape how decisions are actually made in your business. 

 

In Sum

 

In sum therefore, we have new devices, new connectivity, new behaviours, social influences, machine to machine and internet of things, and finally analytics, as some of the key drivers of digital transformation. They may collectively influence your business in different ways, depending on your industry, business model, legacy challenges, and your vision. There may well be other factors, such as regulatory change and step changes in computing itself, and the whole sale move of computing and data infrastructure to the cloud, which could be additional influences.

 

Next up: how to deal with digital transformation. 

Surviving The Information Age

I was recently asked (as I often am), “what devices will we use in x years?” Usually, in this kind of question,  x can be 2 years, 5 years or 10 years, depending on the ambition of the question? This is often a cue for animated debates on Google Glasses, Apple Watches and the next big thing in wearable computing and whether you would want a phone chip installed in your ear. This kind of argument, whichever flavour of device your rooting for, misses the point completely about the real challenge facing us – how to survive the information age. In fact, to stretch a point, this is like being faced with an energy crisis and arguing whether the batteries we use should be square or round. 
 
I am personally petrified of how ill equipped I am in dealing with this information driven era we are increasingly finding ourselves in. By all apparent measures, you would think I’m reasonably§ information savvy. All my files are on dropbox and accessible over the cloud. My phones are always backed up. My photographs are on Flickr, Picassa or on Apple’s photostream. My music is on Spotify or on iTunes. I use Google docs extensively to collaborate professionally. I maintain 4 different levels of passwords to keep my data safe. And yet, I would give myself a 3 out of 10 in terms of being ready for the information world. 
 
In my last blog I touched about the problem of “Dom’s MacBook in Iran“. That was just one example. Professor Gerd Kortuem of the Lancaster University’s High Wire program spoke at a session I attended a few years ago about an example where they added little meters to the drills used by roadworks teams, in order to measure the levels of vibration and to alert the supervisor if it was above safety limits. This created a huge problem for supervisors, as they now had new information they needed to act on. Earlier, they just took a gut call and that was it. Now they had to review the information and decide what to do if the readings were too high. Stop work? Look for alternatives? Inform the office? Increasingly, we find ourselves in possession of information which actually creates new challenges for decision making.  
 
On the other hand, this superabundance of information creates a responsibility of it’s own. It is an act of negligence today to not do the “due diligence” on any important decision. Whether it’s researching a hotel you want to book for a holiday, or perhaps the person you are going to meet. Whether you are unwell and need to know about the symptoms and possible causes, or whether you’re checking nutritional values of the things you’re buying at the super market, small and big decisions are now made much easier by information availability. The bottom line is you can make better decisions and a series of better decisions should lead to a higher quality of life and work. 
 
Which brings us to the first of my list of three key survival skills, which collectively explain why all of us aren’t yet equally good at handling and using this information. I’m talking about the ability to find information effectively. How to use Google (or any other) search effectively. How to find information on lean thinking without being flooded by results for lean meat. Information search skills should be taught in primary school. 
 
A personal peeve of mine is the phrase “new research shows…” a term often heard in television news programs. Usually it’s accompanied by fresh perspectives on whether something is or isn’t good for health, and runs contrary to previously held ideas. However, very rarely are we told the source of the data, and more critically the source of the sponsorship of the research. We know well that it’s easy for interest groups to “create” research with favourable outcomes. So if research suggesting that broccoli can cure the common cold is backed by the Broccoli Growers Association, you would do well to dig deeper into the evidence. Mostly this kind of “newsworthy” research suffers from the sponsorship bias or often just the news bias – the need to make a story. The recent story in the BBC about surviving on £ 1 per day is riddled with palpably bad research and poor homework,  as well documented herebut it made for a good story. Of course if you aren’t up to date with the Daily Mail’s ongoing obsession with things that cause and/or cure Cancer, you can get a quick summary here.
 
The second information survival skill therefore, that every 10 year old should know today, is to be able to validate the source of data. It’s likely that you can get a slew of answers to almost any question, on the internet. But which one do you trust and how do you establish the quality of the source? Or remove sponsorship bias? Equally, when the fall back option for most people is Wikipedia, it’s important to note what is and isn’t best crowdsourced. To put it simply, in a quiz show, if you were asked a question about a character on a soap, it’s a good question for an audience poll. Not so much if the question refers to, say, the isotopes of Neon. 
 
Sooner or later, that pesky question pops up again – what is information, and how does it differ from data? My favourite answer is context. Let’s take 2 people – Mary and Max. Max is navigating his way through a jungle, with no access to provisions except what he can find and eat in the jungle. Mary is playing football in a tournament and about to take a penalty. Both are given 2 pieces of data each. First, that most goalkeepers tend to dive to the left or right, so statistically, hitting a penalty straight down the middle has the highest chance of scoring. Second, that if you dig a hole in a muddy area, it takes 20 minutes for the sediments to settle, and the water to become drinkable. Now, clearly for Max and Mary, one of these pieces of data is information. The other, irrelevant. To see the ludicrousness of information without context, see this Fry & Laurie sketch)
 
But Max and Mary might find themselves in each other’s shoes at some point of time.  Will they still retain the “irrelevant” information they were given? 
 
Which means that the third key survival skill is an ability to continuously build and reference your data gathering so that your personal library and signposts enable you to marry information to context all the time? Our education system was historically built to provide information you had to store in your head and use for the rest of your life. That has obviously changed, but do you have a reliable library system to replace it? Plenty of tools (such as bit.ly) for example enable tagging and marking of content and a combination of ubiquitous access and smart devices make this library always accessible. You are your own librarian. Pay attention to your filing system. 
 
To put this in the enterprise perspective, the role of all systems is to deliver the right information in the right context. Whether it’s customer data to a sales person, or risk information to a project manager. This is the bottom line. Once you strip away all the IT jargon and the systems-speak, this is the simple objective. Every time your business doesn’t deliver the relevant information at the point of decision making, it’s an area of improvement for information technology. 
 
But of course, you can only deliver the data you have, so data capture becomes the next challenge. The best source of enterprise data is transactions (and the worst are probably areas where employees are expected to make an extra effort just to provide the data). What’s very interesting is that as more and more activities go digital, we’re seeing the emergence of the digital trail that comes straight out of the transaction. 
 
Increasingly every activity, from using an oyster card in the tube, to a meter reading and from checking your bank account to measuring your blood pressure is a digital activity and leaves a digital trail. This is a trail of data which is is currently divergent and disaggregated. But if harnessed, they could be extremely powerful. Even within your business, the ability to mine the digital trail creates a new source of information. The HBR article Exploiting the Virtual Value Chain is a must read to understand how this could work. 
 
Sometime in the late 90s, I read a very interesting story about a transport company in India which was having trouble tracking the vehicles as they made their way across the vast hinterland of the company, with no real communication system in place to track them. Some of the journeys were over 7 days long each way. The company hit upon the idea of doing a deal with a specific set of petrol pumps where in exchange for a the volume of business, the company got some benefits and information on every truck that refuelled at any of the stations. In one step, the company had created an information network, which would report back on each truck whenever they refuelled. A great example of the digital trail at work. 
 
The Hailo taxi application is another great example of this. Hailo digitises the process of calling a taxi and even paying for it. But it creates a digital information trail which allows you track which taxi you used and when. The company now markets as a feature that you can always trace back if you left something in the cab. 
 
However, one of the great unanswered questions which is sure to be debated hotly over the next few years is about ownership of the information. As we generate digital trails about our purchases, our health, our travel, our energy consumption, this creates a huge and valuable information cloud. Who owns this?
 
In case you’re not convinced about how valuable information can be, consider the fact that smart meters can reveal detailed information about all devices and appliances being at home, including when and for how long. Which in turn provides very meaningful clues into the lifestyles of people in the house – including the number of people, when they are at home and what they do at home. Clearly this is a gold mine for marketers. 
 
So is it us as individual owners of our own data? Is it each service provider? Will there be a role for an information intermediary who can hold our data and monetize it on our behalf? Who should this be? Google? The Government? Cooperatives? Richard Seymour, founder of Seymour Powell has an idea about a digital surrogate who is on “our side of the glass” who is the repository and identity manager for us. But there is also aggregation value of the information which needs to be realised. 
 
To summarise, we need to individually build the 3 basic skills of finding information, verifying the source and creating our own reference & library system. We also, as companies need to tap into the digital trail of transactions and find creative ways of extracting value and meaning from the digital trail, and delivering information in the right context. Finally as a society, we need to answer questions about the ownership, curation and exploitation of data at an individual and collective level. For me these are the basics of survival in the information age.