ICT Global Trends - Driving Innovation

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1 ICT Global Trends - Driving Innovation Sunil Joshi Managing Director and CEO Neotel IT Infrastructure and Broadband Summit August 2014 V20 1

2 2 CONTENTS 1. Innovation hype vs necessity 2. Great inventions may not be innovation 3. Innovation in action 4. Neotel

3 3 There s no good idea that can t be improved on Michael Eisner, CEO, The Walt Disney Company so what then is innovation

4 TRENDS & DRIVERS Certain key elements underpin the trends and drivers Driving innovation Heterogeneous technologies The Internet of things Streaming Data volumes User volumes Source: European Commission, Digital agenda for Europe,

5 ICT TRENDS COMPLEMENTING INNOVATION The adoption and commercialisation of creative outputs 1 Idea 2 Invention 3 Innovation! Belief Creativity Introduction Imagination Source: Invention is not innovation, Andrew Stein,

6 GREAT INVENTIONS MAY NOT BE INNOVATION Failure to recognise opportunities to innovate abound Western Union was offered the telephone by Alexander Graham Bell but turned it down because it could only offer a range of 2 3 miles A 1980 study commissioned by AT & T concluded that the total marketplace for mobile phones would be 900k it was blinded by its huge investment in hard wired infrastructures Despite being a leader in early mainframe computer technology Digital Equipment Corporation saw no reason why anyone would a computer in their home it saw computers as being suitable only for centralised usage at very large organisations By seeing itself as a film company Kodak resisted the digital revolution and saw its market share plummet it began recovering when it reverted back to the original Eastman tenet of making picture taking easy and affordable for everyone Source: Executive Forum, The 26 th Management Forum Series 6

7 INNOVATION IN ACTION The VHS format Sony introduces Betamax in 1975 Standard Betamax tapes offered 60 minutes of recording not long enough to record a movie Beta group manufacturers expand to 12 Source: The Betamax vs VHS format war, Media College.com, 2008 Innovation VHS introduced by JVC one year after Betamax Betamax machines already sold at this stage VHS delivered 2 hour and then 3 hour format tapes Video rentals were increasingly delivered on VHS format as Betamax required two tapes to hold a movie Open policy for partners grew VHS group manufacturers to 40 By 1998 VHS had captured 88% of the VCR market 7

8 INNOVATION IN ACTION The Apple IPOD In 1979 Sony launches the Walkman and sells its entire stock of units within 3 months In 1998 Saehan Information Systems creates the MPMan the world s first portable digital audio player which sells units in its first year But downloading an album was a lengthy exercise without widespread availability of MP3s and broadband there was no value proposition Innovation Apple waited and waited and when Mp3s and broadband were solidly in place it launched the ipod By 2009 Apple had earned $ 22 billion in ipod sales Source: How the Apple ipod broke all Sony s Walkman rules, Rod Adner,

9 9 INNOVATION- isn t a new phenomenon.. introducing something new; to renew or change

10 INNOVATION IN ACTION Google Search engines originally used databases of textual words to find relevant results and, in the case of Yahoo, human editors to categorise and describe each page Results were often not relevant e.g. searching for Microsoft might result in listings of multiple Microsoft products rather than Microsoft Corporate itself Innovation Google delivered superiorly appropriate results through employing an algorithm to evaluate the relevance of certain pages by analyzing the patterns formed by hyperlinks Soon Google s search results were so accurate it became the 2 nd most popular search engine In June 2000 Yahoo switched from its own search engine to that of Source: The rise of Google beating Yahoo at its own game, Tom Hormby, 2013 Google enough said! 10

11 INNOVATION & INTERNET changing business models Mobile banking Match making Car sharing Personal Genomics Education 11

12 INNOVATION IN ACTION UBER IN CAPE TOWN APPsolute convenience Source: With Uber calling a cab is appsolutely easy, The Star,

13 INNOVATING OTHER INDUSTRIES - DRONES Industry lift off Invented for military use - innovating for commercial use Being driven by Open source technology DIY movement Challenges Regulation Security Flirtey drone delivering Zookal order in Australia Order book using phone app Drone delivers order Customer uses book Source: What would you do with a drone, Smithsonian.com, 2014 Drones go commercial, take on tasks from industry to farming, CBC news, 2014 Examples of non-military, non-police use of drones, DIY Drones, 2012 World s first drone delivery service launches in Australia, De Zeen Magazine,

14 Closer to home. 14

15 INNOVATION BEING DELIVERED Neotel is at the forefront of innovation Fibre broadband Dual mode smart phone Tier 1 IP transit Session IP voice service Metro Ethernet Wireless home phone Public Telepresence 95 th percentile billing Consumption based Wide Area Network Open access cable system Converged access Education solutions Broadband booster service Source: Neotel Story,

16 16 HOW WE RE GAME CHANGING (INNOVATING) On demand Broadband on demand Broadband used Broadband boosted Days of the month WAN on demand Single fibre installation NeoOne Metro NeoOne NLD NeoOne VPN Telepresence Voice and video on demand

17 17 SERVING THE WESTERN CAPE Neotel is proud to have been chosen as the connectivity partner of the Western Cape Parties to the agreement Where connectivity will be provided Connectivity speeds Additional communication solutions will be offered sites Phase sites 10 Mbps Voice, Internet and broadband offered to small and large business Phase sites 10 Mbps Phase 3 90% - 100Mbps 10% - 1Gbps WiFi provided to local communities

18 INNOVATION UNDERPINNING PERFORMANCE I N N O V A T I O N Revenue EBITDA 1 st converged access Delivered 2.1 GPS fibre with TP to COP17* 1 st dual mode smart phone 1 st 95 th percentile billing 1 st consumption based WAN 1 st ICT enabled Math lab Broadband booster C A P A B I L I T Y Access to EASSy submarine cable Access to WACS submarine cable Access to km fibre backbone 800 GBPS main route capacity NLD KwaZulu Natal NLD launched FY11 FY12 FY13 FY14 * The 17 th Conference of the Parties to the United Nations Framework Convention on Climate Change 18

19 19 ICT IS DRIVING INNOVATION.it is a necessity!

20 20 Neotel. inspiring possibilities!!! Thank you

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