Fusion: Leading the Digital Innovation Era

5/5 (2)

5/5 (2)

“Innovation is seeing what everybody has seen and thinking what nobody has thought”- Dr. Albert Szent-Györgyi (Discovered Vitamin C)

Innovation over the last 200 years has catapulted the human race into a world that is quite different from where it was 2 million years ago. So, what is the next wave in innovation? The answer seems to be in the interspace between industries, technologies, countries, domains and more.

Fusion innovation is a lateral innovation technique involving fruitful collision and fusion of different industries, fields, markets/countries, organisational silos, technologies, personalities, experiences, and skillsets towards creating radical, high-value outputs – newer ideas, products, and even industries. This is groundbreaking when it comes to digital innovation and its application in new ways.

Results have been big. Here are some examples:

  • Crafting the world’s first digital music deal with Nokia ringtones to spawn the USD 2 billion ringtone industry
  • Fusing satellite technology in radio is now a $24 billion enterprise – SiriusXM
  • Ted Saad and team fusing art and business, technology and teams, and cultures and lifestyles – to win multiple Emmy awards
  • Quantum chemistry, mathematical modeling, anthropology and management, fusing to create a new field – social network analysis

The Success Factor of Fusion Innovation

One secret of success of such radical innovation is a fundamental of design thinking – empathy. A lot of digital innovations either fail at the drawing board due to lack of purpose or at the budget approval stage due to lack of a business case and scalability. Successful digital innovations that have seen large scale adoption are pretty good at addressing end-user pain points, are scalable, and have a strong return on investment.

Examining the breeding grounds of digital innovations driving todays’ world – especially Artificial Intelligence (AI), automation, big data, blockchain and Internet of Things (IoT), we realise that the human potential to co-create stands out as the ultimate game changer.

Dr. C J Meadows, a pioneer in studying Fusion Innovation notes the following traits in “fusioney” people:

  • Outward openness. This involves scanning broadly (including outside your industry) for ideas and technologies, engaging with an eclectic variety of people inside and outside the organisation. This is important especially in identifying unique opportunities for collaboration with cross-industry thought leaders. An excellent example of this would be the many emerging use cases in resource management using IoT in smart cities.
  • Inward openness. This relates to people in an organisation exhibiting curiosity, depth and play and discovering their own inner design. The transformation story of graphics group to Pixar animations is an example of innovation driven by inward openness.
  • Collecting. This involves ideating, curating, indexing and sharing ideas within and across functional divisions in a group or organisation. This not only enables lateral innovation, it also triggers “fusioneers” to see patterns and connections which others might have missed. Team wiki is an example of knowledge sharing within and across teams in an organisation that has revolutionised the art of problem solving in the technology industry.
  • Sensing. This involves a great deal of empathy as well as having a deep appreciation of ideas that can propel the human race forward. Most automation use cases in contact centre operations that address repetitive and mundane tasks are a result of design thinking workshops that focus on the human pain points.
  • Fusing. This involves absorbing many things around us and combining it in new ways. Hackathons conducted by many technology corporations have brought many interesting cross-functional solutions in the digital space that have been unique yet amazingly effective.

The future of digital innovation holds exciting possibilities with advancements in computational power, fusion of technologies and ideas, advancements in digital contracts. Lateral innovation techniques like Fusion can be expected to have a significant role in fueling this space for the years to come.

This is a contributed article from Nandakumar Kumar, a DBA Scholar at SP Jain School of Global Management.

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Technology Enabling Digital Transformation in the Telecom Industry

4.8/5 (5)

4.8/5 (5) The telecommunications industry has long been an enabler of Digital Transformation (DX) in other industries. Now it is time for the industry to transform in order to survive a challenging market, newer devices and networking capabilities, and evolving customer requirements. While the telecom industry market dynamics can be very local, we will see a widespread technology disruption in the industry as the world becomes globally connected.

 

Drivers of Transformation in the Telecom Industry

Remaining Competitive

Nokia Bell Labs expects global telecom operators to fall from 10 to 5 and local operators to fall from 800 to 100, between 2020 and 2025. Simultaneously, there are new players entering the market, many leveraging newer technologies and unconventional business models to gain a share of the pie. While previous DX initiatives happened mostly at the periphery (acquiring new companies, establishing disruptive business units), operators are now focusing on transforming the core – cost reduction, improving CX, capturing new opportunities, and creating new partner ecosystems – in order to remain competitive. There is a steady disaggregation in the retail space, driving consolidation in traditional network business models.

“The telecom industry is looking at gradual decline from traditional services and there has been a concerted effort in reducing costs and introducing new digital services,” says Ecosystm Principal Advisor, Shamir Amanullah. “Much of the telecom industry is unfortunately still associated with the “dumb pipe” tag as the over-the-top (OTT) players continue to rake in revenues and generate higher margins, using the telecom infrastructure to provide innovative services.”

 

Bringing Newer Products to Market

Industries and governments have shifted focus to areas such as smart energy, Industry 4.0, autonomous driving, smart buildings, and remote healthcare, to name a few. In the coming days, most initial commercial deployments will centre around network speed and latency. Technologies like GPON, 5G, Wifi 6, WiGig, Edge computing, and software-defined networking are bringing new capabilities and altering costs.

Ecosystm’s telecommunications and mobility predictions for 2020, discusses how 5G will transform the industry in multiple ways. For example, it will give enterprises the opportunity to incorporate fixed network capabilities natively to their mobility solutions, meaning less customisation of enterprise networking. Talking about the opportunity 5G gives to telecom service providers, Amanullah says, “With theoretical speeds of 20 times of 4G, low latency of 1 millisecond and a million connections per square kilometre, the era of mobile Internet of Everything (IoE) is expected to transform industries including Manufacturing, Healthcare and Transportation. Telecom operators can accelerate and realise their DX, as focus shifts to solutions for not just consumers but for enterprises and governments.”

 

Changing Customer Profile

Amanullah adds, “Telecom operators can no longer offer “basic” services – they must become customer-obsessed and customer experience (CX) must be at the forefront of their DX goals.” But the real challenge is that their traditional customer base has steadily diverged. On the one hand, their existent retail customers expect better CX – at par with other service providers, such as the banking sector. Building a customer-centric capability is not simple and involves a substantial operational and technological shift.

On the other hand, as they bring newer products to market and change their business models, they are being forced to shift focus away from horizontal technologies and connecting people – to industry solutions and connecting machines. As their business becomes more solution-based, they are being forced to address their offerings at new buying centres, beyond IT infrastructure and Facilities. Their new customer base within organisations wants to talk about a variety of managed services such as VoIP, IoT, Edge computing, AI and automation.

The global Ecosystm AI study reveals the top priorities for telecom service providers, focused on adopting emerging technologies (Figure 1). It is very clear that the top priorities are driving customer loyalty (through better coverage, smart billing and competitive pricing) and process optimisation (including asset maintenance).

 

 

Technology as an Enabler of Telecom Transformation

Several emerging technologies are being used internally by telecom service providers as they look towards DX to remain competitive. They are transforming both asset and customer management in the telecom industry.

 

IoT & AI

Telecom infrastructure includes expensive equipment, towers and data centres, and providers are embedding IoT devices to monitor and maintain the equipment while ensuring minimal downtime. The generators, meters, towers are being fitted with IoT sensors for remote asset management and predictive maintenance, which has cost as well as customer service benefits. AI is also unlocking advanced network traffic optimisation capabilities to extend network coverage intelligently, and dynamically distribute frequencies across users to improve network experience.

Chatbots and virtual assistants are used by operators to improve customer service and assist customers with equipment set-up, troubleshooting and maintenance. These AI investments see tremendous improvement in customer satisfaction. This also has an impact on employee experience (EX) as these automation tools free workforce from repetitive tasks and they be deployed to more advanced tasks.

Telecom providers have access to large volumes of customer data that can help them predict customer usage patterns. This helps them in price optimisation and last-minute deals, giving them a competitive edge. More data is being collected and used as several operators provide location-based services and offerings.

In the end, the IoT data and the AI/Analytics solutions are enabling telecom service providers to improve products and solutions and offer their customers the innovation that they want.  For instance, Vodafone partnered with BMW to incorporate an in-built SIM that enables vehicle tracking and provides theft protection. In case of emergencies, alerts can also be sent to emergency services and contacts. AT&T designed a fraud detection application to look for patterns and detect suspected fraud, spam and robocalls. The system looks for multiple short-duration calls from a single source to numbers on the ‘Do Not Call’ registry. This enables them to block calls and prevent scammers, telemarketers and identity theft issues.

 

Cybersecurity

Talking about the significance of increasing investments in cybersecurity solutions by telecom service providers, Amanullah says, “Telecom operators have large customer databases and provide a range of services which gives criminals a great incentive to steal identity and payment information, damage websites and cause loss of reputation. They have to ramp up their investment in cybersecurity technology, processes and people. A telecom operator’s compromised security can have country-wide, and even global consequences. As networks become more complex with numerous partnerships, there is a need for strategic planning and implementation of security, with clear accountability defined for each party.”

One major threat to the users is the attack on infrastructure or network equipment, such as routers or DDoS attacks through communication lines. Once the equipment has been compromised, hackers can use it to steal data, launch other anonymous attacks, store exfiltrated data or access expensive services such as international phone calls. To avoid security breaches, telecom companies are enhancing cybersecurity in such devices. However, what has become even more important for the telecom providers is to actually let their consumers know the security features they have in place and incorporate it into their go-to-market messaging. Comcast introduced an advanced router to monitor connected devices, inform security threats and block online threats to provide automatic seamless protection to connected devices.

 

Blockchain

Blockchain can bring tremendous benefits to the telecom industry, according to Amanullah. “It will undeniably increase security, transparency and reduce fraud in areas including billing and roaming services, and in simply knowing your customer better. With possibilities of 5G, IoT and Edge computing, more and more devices are on the network – and identity and security are critical. Newer business models are expected, including those provided for by 5G network slicing, which involves articulation in the OSS and BSS.”

Blockchain will be increasingly used for supply chain and SLA management. Tencent and China Unicom launched an eSIM card which implements new identity authentication standards. The blockchain-based authentication system will be used in consumer electronics, vehicles, connected devices and smart city applications.

 

Adoption of emerging technologies for DX may well be the key to survival for many telecom operators, over the next few years.


For more insights on the key trends in the telecom services market in Southeast Asia, read Shamir’s report

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For more information on “The New Normal for Telecom Providers in South East Asia”, report please contact us at info@ecosystm360.com


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