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1. Six convergingtechnologytrendsDriving a tectonicshift in theBusiness-Consumerecosystemkpmg.com/in
Tableof ContentsForeword01Impactonindustries14Riseofthedigitalconsumer06ImpactonITvendors58Conclusionandrecommendations70Acknowledgement73Executivesummary02Impactondecisionmakingprocess54Sixtrendsthatwillshapethefuture10Roadmap62AboutKPMGinIndia72© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
ForewordThe market dynamics are changing; there is a decisive shift in the economic, demographic andpsychographic indicators.While the economic turbulence in the form of financial crisis is verymuch evident, the drastic changes in demographic and psychographic indicators of consumersare not apparent to a larger audience. However, marketers are increasingly getting cognizant ofhow these factors which are reshaping the business landscape.Today’s consumer is a changed consumer; he/she will no longer walk down the street and standin queues to get a product/service. It is the era of an empowered consumer who has choices andwill come with a number of expectations. Since basic products and services are increasingly gettingcommoditized, in order to sustain, marketers can only differentiate in terms of quality of service,convenience, responsiveness and speed to market. ‘Push strategy’ adopted by erstwhile marketers,where products used to be simply pushed to consumers no longer works, there is a need to have ‘pullstrategy’ which creates a pull in the minds of consumers by giving them superior quality of service inleast possible time at best possible prices.Technology, which has witnessed a paradigm shift in business arena, has become a critical enabler toachieve this. Role of technology will have to be looked at from a totally different context as a demand driverand synthesizer .To cater to today’s tech-savvy digital consumers, enterprises will have to redesign their ITdelivery mechanism and leverage various disruptive technologies. Different technologies would be required toaddress different needs of today’s consumers:Mobility as preferred medium of purchase; social media as preferred communication channel; embeddedsystems for convenience and self-help services; cloud to be agile, scalable, cost effective, and for faster delivery;big data to understand customer needs better and stay relevant in the marketplace and augmented reality toenhance customer experience.These technologies are taking the centre stage in some of the leading enterprises of today and are likely to havethe maximum impact on the way traditional markets were behaving.Transcending the times when customer usedto come to the marketer, the current business scenario requires enterprises be in constant virtual touch with theircustomers.Therefore, understanding these technologies and the way these are being used by some of the leadingenterprises worldwide becomes imperative.This paper explores the potential opportunity from aforementioned disruptive technologies in various focus sectorscomprehensively and suggests ways in which the IT providers and the user community can better capitalize on thisopportunity.We hope you find this interesting and useful; we welcome your comments and feedback on this report.Six converging technology trends | 1Pradeep UdhasPartner and HeadMarketsKPMG in IndiaSom MittalPresidentNASSCOMN ChandrasekaranChairman NASSCOM andCEO & MD,Tata Consultancy Services© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Disruptive technological innovations are transforming the world aroundus in unpredictable ways. A new era of ‘Digital Consumerism’ isradically changing the way customers shop for products and serviceswhich is impacting the business-consumer ecosystem.Technologyplayers have been fairly swift in responding to these changingmarket dynamics but in most cases they have treated these trendsin silos.A digital consumer does not differentiate between these trends.For a consumer, these trends are just an extension of hisexperience with the world around him, be it interacting witha retailer, or a bank or a hospital. KPMG in India believes thatwhen the consumer doesn’t differentiate between trends,then it logically follows that both – the industry verticals aswell as the IT-BPO vendors must also look at them in anintegrated manner.All these trends need to work together to deliver anoutstanding customer experience; just focusing onone technology in isolation of the other will not work.Businesses need to focus at creating a holisticplatform which encompasses all these trends.Technology players in turn must come up withintegrated solutions that will enable businesses toaddress the dynamically changing demands of thenew-age consumer effectively.Executive summary2 | Six converging technology trends© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
We have identified six trends viz. big data, cloud, social media, mobility, embeddedsystems and augmented reality which will have a logical maturity that inevitablybrings them together.Big dataEvery year, companies and individuals generate billions of gigabytes of data.Data, which properly analyzed and used in time, can emerge as an unbeatablecompetitive advantage. Enterprises need to recognize the prospect big datarepresents and should adapt their IT strategy to capture such opportunities’. Bigdata can help retailers predict buying decisions of shoppers; it can help banksweed out fraudulent transactions; while governments can use big data to provideservices directly to their citizens.Could computingThe undeniable power of cloud computing to foster innovations and improveproductivity is now accepted by both IT vendors and their customers.While thefinancial services and government sectors are mostly moving to a private cloudmodel due to information security concerns, other industries like healthcare andretail have adopted public cloud. Moreover, their existing infrastructure has helpedtelecom players to emerge as providers of cloud computing, leading to erosion inboundaries between IT and telecom vendors.Social mediaA social media strategy has become a must for all enterprises, be it banks, retailersor the government.With over one billion individuals logged on to various socialnetworks, people are now using social media for advice on what products to buy,where to shop and even regarding what firms they want to work with.While mostenterprises use social media for their customer service function only, many firmshave now started using social media in tandem with their sales and marketingfunctions.This in turn enables firms to use data generated by the customerseffectively to service their larger pools of customers.MobilityMobile devices have changed the way people access digital content. Smartphonesand tablets have brought rich, digital content to the fingertips of consumers. Mobilebanking has emerged as one of the most innovative products in the financial servicesindustry. Shoppers are increasingly using their mobile devices for everything frombrowsing to comparing to buying products. Governments are also reaching out to theircitizens, using mobile devices as an efficient channel. Enterprises must also jump on tothe mobility bandwagon, and ensure that their applications are mobile ready.Embedded systemsThe decreasing cost of embedded systems has made their presence ubiquitousacross the business landscape. Embedded systems like RFID chips haverevolutionized supply chains for retailers. Embedded systems are also having animpact in the healthcare industry, where hospitals attach smart chips to patientsto keep track of their entire medical regime.Augmented realityOver the past 24-36 months, augmented reality has moved from the world ofscience fiction, to our everyday lives.The spread of smartphones and tabletsgave rise to the spread of location-based augmented reality applications, andnow everyone from retailers to healthcare providers have embraced augmentedreality. Augmented reality enhances the customer experience, and enablesenterprises to add a fourth dimension to their products.Six converging technology trends | 3© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Digital consumerism is also impacting the way companiesuse technology. Increasingly, the core business platform is nolonger the only source of information and insights. Additionalsolutions based on disruptive technologies are beingintegrated on to the core platform.This has led to a significantincrease in the level of insights firms have about theircustomers.We are already witnessing micro-segmentationof customer, and products and services being tailored at anindividual’s level.The coming decade will only see a rapidincrease in this transformation.IT vendors will need to change the way they are structuredto deal with these trends.They need to be nimble, and thinkon their feet. Rather than being bureaucratic organizations,IT vendors will need to create internal startups that willwork on adopting these trends.They will also need to lookat an inorganic strategy to add to their capabilities in someof these areas.This will also have the added advantage ofbrining in talent that will act as a force of disruption in theseorganizations.Going forward, IT vendors should seek to work closely withtheir customers to stay abreast of the latest technologicaldevelopments, and come up with solutions that can takeadvantage of the convergence of these technologies.Theyshould seek to use customer input more diligently whileinnovating / developing solutions and products.The emphasisshould be on tapping inputs from various channels, mediumsand devices and using these as critical inputs for newsolutions and incremental innovations. Industry bodies canalso play a vital role in this, and increase awareness aboutthese technological trends.Source: KPMG in India analysisThe Digital consumer and Disruptive technologies4 | Six converging technology trendsWe are in an era of technology-ledtransformation.Technology will becomecentral and critical to everything we do. Everyindustry, every process, every businessparadigm is being re-imagined, re-definedand re-engineered. Mobile, cloud computing,big data, anticipatory computing, Internet ofthings (IoT), augmented reality, unfetteredbandwidth, social computing will makea huge impact and not limited to just theenterprise; they will impact our personal andsocial lives as well as the communities andsocieties we live in.N ChandrasekaranChairman NASSCOM andCEO & MD,Tata Consultancy Services© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Identificationof NeedOf web traffic comesvia mobile – more thandouble last yearOf global populationwhich is onlineEstimated number ofbusiness transactionson the internet, B2C andB2B, per day by 2020businesses planto increase theirdigital marketingbudgets in 2013• The social commerce market is forecast to reach USD 30 billionby 2015• Leading global retailers are spending between 20-25 percent oftheir advertising budget on social media channels• Mobile technologies can be used to cut the cost of a financialtransaction by up to 80 percent• Nearly 90 percent of top global banks use social networking toachieve customer engagementAmount of data inthe world by 2020Growth in the number ofglobal 3G subscribers inthe past yearSmartphones and tabletswill be installed globallyby mid 2013 – overtakinglaptops and PCsSeekInformationEvaluation Purchase Consumption FeedbackInfluence of digital channels across all stages of purchasing Disruptive technologiesCloudBig dataSocialEmbedded SystemsMobile handset shipmentTablet shipmentAugmented realityIn USD billionIn USD billionNo. of accounts in millionsIn USDTrillionin Millionsin Millionsin USD MillionsDrivers of convergenceIncreasing influence of digital channelsSix converging technology trends | 5The digital shift13%37%1.5billion30%450billion355.448zettabytes71%10920122012201220122012201220122016201620162016201620162016206.6313248701.2148218582.485354.15155.9304© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The advent of technology has empowered the consumer likenever before.The rising presence and reach of the internet,coupled with the prolific growth of smartphones, tabletsand related technologies, has provided consumers withunmatched access to information on the go, therebyhelping them make informed purchasing decisions.The adoption of digital media is redefining consumermindsets, patterns of purchase and decision making.This, in turn, is transforming consumer behavior.Therapid pace at which digital media is being adoptedis also expected to propel growth in the use ofconsumer technology.Rise of the digital consumer6 | Six converging technology trends© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Effects of digital channels on purchase decisionsA convergence of various factors — a growing social media user base, the rising presence and reach ofsmartphones, and the intensifying consumer demand to connect — is increasingly changing the buyingbehavior.Today, digital channels play a pivotal role at eachof these stages. A simple expression of intereston a social channel or the analysis of consumptionpatterns can help businesses understand whata consumer may purchase and when in the nearfuture. Based on such information, targetedmarketing programs can be developed and bemade available via different digital channels thatcould help influence consumers’ purchasingdecisions.A simple comparison engine has made theevaluation of alternatives more cut-throat.Customers can evaluate a product on the basisof any feature or metric. Moreover, with theadvent of technologies such as augmented realityand artificial intelligence, consumers have theopportunity to virtually experience a productbefore actually purchasing it.Channels through which products can bepurchased have evolved too. Online transactions,purchases through mobile-optimized websites andsmartphone applications (apps) are on the incline.Consumer feedback on products throughcomments on forums, social media and reviewsites has created the need for heightenedmonitoring; positive feedback can generateimmense goodwill, but negative feedback canspiral into a full-blown PR crisis.Source: KPMG in India analysisConsumer buying cycle in the digital ageTypical consumer buyingSource: KPMG in India analysisIdentificationof NeedSeekInformationEvaluation Purchase Consumption FeedbackSix converging technology trends | 7© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The next big opportunityIn a short span of time, digital channels have come a longway, from just providing information (websites) to interactingwith consumers (blogs, forums, social media) and providingan actual purchase experience (Augmented Reality (AR)).There is no doubt that technology is rapidly reforming theway businesses interact with customers.The rise of digitalconsumers who shop online, seek recommendations andinteract with brands presents a tremendous opportunity forcompanies.Thus, an in-depth understanding of customer behavior onlineand their purchasing preferences has become essential.Customers live in an integrated online-offline world, socompanies need to aim for suitable presence on digitalchannels. New information and communication technologiesare constantly emerging, altering purchasing patterns.Whileit may currently be difficult to predict when and which ofthese new platforms/technologies will become mainstream,it is essential to analyze their potential impact on consumerbehavior.Several companies are already creating digital strategies fortheir brands; however, many fail to produce the expectedbusiness outcomes and value through such initiatives, asthese channels and technologies are being perceived in silos.A holistic and integrated strategy encompassing consumers,the enterprise ecosystem and channels is the need of thehour to cater to evolving demands and behavior.The effectiveuse of such channels can help increase sales by monetizingdemand, improve the effectiveness of marketing campaigns,enhance product development, drive multi-channelcommerce and, above all, strengthen consumer engagement.A Digital Consumer expects a seamless, consistent experienceregardless of hardware or software. They also want relatable, intuitiveand intelligent technologies enabled on their devices. Going forward,we will see a multitude of devices that will continue to get smarter,more power-efficient and more intuitive.Very soon devices willrespond to voice, gestures and moods, and will interact with eachother to provide more value and intelligence to the digital consumer.Digital Media in no longer just a mere spoke in the wheel; but thevery axle that can drive the wheels of a marketing campaign.We, asa company, are very clear that Digital Media is here to stay in a hugehuge way!Which is why we have complete cross-functional teamssupport to further the digital momentum of the company.At Shoppers Stop, we don’t retrofit ‘digital’ into our existingcampaigns. Rather, we create specific content for digital media;and sometimes even use offline mediums to supplementthese campaigns.Whether it is developing Augmented Realitycampaigns, the most Fashionable Facebook Profile picture contest,#SSTweetStore, exclusive mobile apps, and much more; each suchelement receives its due digital diligence.Kumud SrinivasanPresident-Intel IndiaVinay Bhatia(Customer Care Associate & SeniorVice President, Marketing & Loyalty, Shoppers Stop Ltd)8 | Six converging technology trends© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Growth and MaturityFeeder CycleThe diagram above shows the interplay between digital consumerism and disruptive technologies.The increasing adoption and usage of technologies by consumers is fueling the growth and maturityof technologies and vice versa.This phenomenon is the key driver for convergence of new agetechnologies. In the following section, we discuss six technologies that KPMG in India thinks will bringabout a tectonic shift in the business-consumer ecosystem.Six converging technology trends | 9Source: KPMG in India analysisDisruptiveconvergingtechnologiesDigitalconsumerism© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
While technologies such as big data and cloud have beendominating the imagination of enterprises for the pastcouple of years, new disruptive trends like augmentedreality and social media have only now started having atangible presence. As per their studies, leading analystfirms have estimated that the maturity curve of thesetechnologies is to increase at a rapid pace over thenext decade, with big data and cloud estimated toreach a market potential of tens of billions of dollars.Six trends that could shape the future10 | Six converging technology trends© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Big dataRise of social mediaEvolution of the cloud computing modelDigitization has made significant strides in recent years —racks of documents and piles of files have been replaced withzettabytes of data stored in the servers of data warehouses.Trends such as the growing use of mobile devices and socialmedia networks are generating considerable amounts of databoth structured and unstructured.Regarded merely as a hub for high school and collegestudents just a few years ago, social media now exertstremendous influence over the way people around the world— of all ages — get and share information.The implications forbusiness are immense.As per a 2011 analysis, every day, the world creates 2.5quintillion bytes of data — so much that 90 percent of thedata in the world today has been created in the last two yearsalone1, and even this volume would have been surpassed bynow.Analyzing this, big data is likely to become a key basis ofcompetition, underpinning new waves of productivity growth,innovation, and consumer surplus by 2020.No trend has had as much impact on the world of informationtechnology over the past decade as Cloud computing.Looking past the current industry hype surrounding it, cloudcomputing is a sustainable, long-term paradigm and thesuccessor to previous mainframe, client/server, and networkcomputing eras.Underpinned by both technology and economic disruptions,the cloud will fundamentally change the way technologyproviders engage with business customers and individualusers as it is a key driver for mobility and big data.1 “Big data:The next frontier for innovation, competition, andproductivity”, May 2011, McKinseyBig data global market size, in USD billionSocial media accounts & usersSocial media usageGlobal cloud computing market, in USD billionSource:Wikibon Big Data Market Size andVendor Revenues report,http://wikibon.org/wiki/v/Big_Data_Market_Size_and_Vendor_Revenues,Jan 2013Source: ”Social Media Market, 2012-16, Radicati Group, June 2012,Morgan Stanley, “InternetTrends 2011”, December 2011Source: Forecast Overview: Public Cloud Services,Worldwide, 2011-2016, 2Q12 Update", Gartner, September 2012Six converging technology trends | 11© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Dominance of mobilityThe surging popularity of smartphones and tablet computers has createdripples across the computing industry. As industry players continue to shifttheir focus from traditional to mobile computing, a significant change is onthe horizon.The global market for smart connected devices — a combination of PCs,smartphones, and tablets — reached 267.3 million units shipped in thesecond quarter of 2012 (2Q12), a 27.4 percent increase y-o-y and a 2.8percent q-o-q improvement.Both consumers and business buyers around the world continue toharbor an aggressive appetite for such devices, adding to the alreadylarge collection of devices that are still in active use. Rising focus on themobile web platform is affecting a number of business aspects, includingecommerce spending and online advertising.Connectivity, content andcommunication are driversenabling business changetoday. Social media, mobile,cloud, and big data are majorthemes that are forcingorganizations to change theway they service changingcustomer demands andbehavior patterns.Wehave seen that data-drivencompanies are able tomonitor customer behaviorand market conditionswith greater certainty,and react with speed andeffectiveness to differentiatefrom competition.Also, the adoption of cloudis increasingly taking atruly strategic role in anorganization.The cloud hasrapidly established a newbenchmark in terms of howeasy, quick and flexiblesolutions should be availableto the business and it putsthe alignment betweenbusiness and IT from awhole new perspective.Aruna JayanthiCEO – Capgemini, IndiaMobile device shipments and mobile penetrationSource: Morgan Stanley, “InternetTrends”, February 2011, "Portio Research Free MobileFactbook 2012", January 2012Beyond pure-play hardware & software: towardsembedded systemsEmbedded systems range from portable devices such as digital watchesand MP3 players, to large stationary installations like traffic lights. Medicalequipment is continuing to advance with more embedded systems forvital signs monitoring, electronic stethoscopes for amplifying sounds etc.With technology erasing the boundaries between hardware and software,embedded systems are expected to bring the new wave of change.Embedded systems market sizeSource: IDC, "Intelligent Systems:The next big opportunity", September2011, http://www.cio.com/article/689563/IDC_Embedded_Systems_Market_to_Double_By_201512 | Six converging technology trends© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Augmented realityAugmented Reality (AR) offers a live view of a physical,real-world environment whose elements are enhanced bycomputer-generated sensory input such as sound, video,graphics or GPS data.The spread of smart mobile deviceshas led to rapid growth in AR. Against the backdrop ofsteadily increasing processing power the future holdssignificant potential for AR, with applications in a wide rangeof segments, from agriculture and architecture to educationand medicine. Several technology firms have also jumped onto the AR bandwagon. For instance, Google has introducedGoogle GlassesTMto tap the potential of this technology.2Cloud, Mobility, Social and Big Data willimpact all industries, bringing in newproducts and business models, similar towhat Internet did over the last 20 years.Companies are looking at taking advantage ofthese trends to drive growth and acceleratetheir innovation agenda – to provide superiorcustomer experience, reduce time to marketor drive efficiencies.The level of technology adoption in India hasgrown immensely. A lot of that has got todo with India’s economic development as apowerhouse of talent, creators of some ofthe world’s successful business empires,hotbed for new technologies and start-ups,entrepreneurship, heightened growth insocial and mobile among enterprises andconsumers alike, and a tech-savvy, anxiousyoung population which will enter theworkforce.Technology is empowering awhole new wave of innovation and growththat is aiding businesses to gain and sustaina competitive edge.We see this changetaking root in industries as diverse as banking,telecom, e-governance, retail, e-commerce,professional services among others.The end-focus of course is on delivering greater valueto the customer.Technological advancementsaround big data and social media analyticsare allowing businesses to create and deliverproducts that are uniquely designed to meetthe needs of an individual customer.Kris GopalakrishnanExecutive Co-Chairman, InfosysSandeep MathurMD, Oracle IndiaAugmented reality applications marketSource: Research and Markets, ”Global Augmented Reality MarketForecast by Product 2011-16”, November 20112 http://www.nbcnews.com/technology/gadgetbox/google-shows-prototype-augmented-reality-glasses-653835Six converging technology trends | 13© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The growing presence and reach of technologies that spanthe web, mobility and social media platforms has led tothe emergence of digital consumers.Today’s enterprisesare marketing to digitally active consumers preparedto adopt new technologies with ease. Gadgets suchas laptops, mobile phones, handhelds and personaldigital assistants (PDAs) have become common andpreferred media for transactions. Consumers tend tostay connected with the internet regularly and seekinformation online before making any purchases.Impact on industries14 | Six converging technology trends© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Possible impact on select sectorsAs per KPMG in India analysis, thefollowing are common traits that thenew-age digital consumer:• Stays ubiquitously connected (thus,the role of cloud, social media,mobility and the internet)• Seeks personalization andconvenience (thus, the role of cloud,AR, mobility and the internet)• Needs innovative experiences andentertainment (thus, the role of ARand social media)• Is influenced by peer reviews andfeedback (thus, the role of socialmedia and big data)• Needs secure and easy purchaseprocedure (thus, the role ofembedded systems, cloud andmobility)• Needs transparency, accountabilityand convenient post-purchaseservices (thus, the role of mobility,big data and embedded systems).These traits reflect a significantevolution from the traditional consumerprofile — the way in which a new-ageconsumer communicates, transactsand makes purchase decisions haswitnessed a paradigm shift.This changeinduces the need for enterprisesto change the way in which theyoperate and connect with customers.To address this need and tap latentopportunities, industries need toleverage disruptive technologies andplace digital consumer at the core ofbusiness strategy.Enterprises need to leverage theopportunities that disruptive technologytrends present. However, the extentto which these opportunities areimplemented within an organizationwould depend on their relevance ofeach disruptive force on the industry towhich the organization belongs.KPMG in India has identified a number of select key sectorsthat account for a significant portion of it vendors’ revenuesand are also among the most promising sectors in termsof growth.These include retail, healthcare, telecom,government and financial services.The identified verticals collectively account for close to 70percent of the market. Further, the impact of disruptivetechnologies — - cloud, big data, social media, mobility, AR,and embedded systems — on these verticals will likely be thehighest.This report is aimed at gauging this possible impactthrough the analysis of various qualitative and quantitativeaspects of these technologies.Global market size and growth rate of select verticalsGlobal IT services market – Split by verticalsSource: Ovum’s Global IT Services Market Forecast Model, July 2011, OvumSource: Ovum’s Global IT Services Market Forecast Model, July 2011, OvumSix converging technology trends | 15© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
In terms of disruptive technologies Big data, Cloud and Mobility are all verysignificant.They will disrupt the industry in different and significant ways. So,it would not be wrong to say that among these, cloud can be considered thebiggest disruption of our times.Mobility is expected to be a game changer. New business opportunities andchallengers are being brought about by the flood of new mobile technologiesand the speed with which this landscape is changing. Customers now expect tohave access to products and services from anywhere, via both the web and apps,using the device of their choice to interact and transact. Mobile workers are alsolooking at mobile solutions to help them be more productive and efficient.Big data, backed with predictive analysis can help businesses generateactionable business insights. In addition to the aspects of complexity andvariability of big data, is the rate of growth or velocity, largely due to theubiquitous nature of modern on-line, real-time data capture devices, systems,and networks. It is due to this that the rate of growth of big data tools willcontinue to increase in the foreseeable future.We believe that in-memory computing is a breakthrough which will not onlyenable applications and analytics to run up to thousand times faster, it will enablebusinesses to be faster and nimble. SAP HANA in-memory technology platformis a completely re-imagined modern platform for real-time businesses. SAPHANA Cloud paves the way for developers to build applications in the cloud withembedded analytics and the massive speed of the technology itself.Together Mobility, Cloud and In-memory computing will transform thebusinesses to run faster and nimbler than ever before. So, SAP is activelyworking around all these three technology areas and is using both organic andinorganic growth models to strengthen its presence in these segments.Avaneesh DubeySeniorVice President, Business SuiteTest Engineering, SAP Labs India16 | Six converging technology trends© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Six converging technology trends | 17© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Following the global economic downturn and a subsequentdip in employment and consumer confidence, the global retailindustry has recovered since 2010. Stimulus packages providedby governments, reinforced by strong domestic demand insome developing countries, boosted the global retail industry’ssize to an estimated USD 17 trillion in 20121. North Americanand European retailers — with players such asWal-Mart StoresInc, Carrefour SA, Metro Ag, and UK-basedTesco — continue todominate the retail industry2.An expanding population base and a largelyurbanized consumer class provide a thrivingmarket for retailersEntry of large, organized retailer into developingnations like India will also be a big boostShift in demographics and purchasing power to theyounger section of the population is also drivingdemandThe rise of omni-channel retailers is also bringingthe shop closer to the consumer, and is leading toincreased spending.Key drivers of growthin the retail industryWith the rise of the digital shopper, shopping has increasinglymoved online and to the mobile platform, especially in theUS,Western Europe and East Asia. In the US, the online retailoutlook for 2012 was encouraging — fueled by the resultsof the 2011 holiday season. Online sales during the holidayseason in the US increased to US$43 billion, reflecting a 17percent increase over 20113.The value of mobile shoppingwas predicted at more than US$163 billion in sales, or 12percent of all e-commerce sales, in 20104.1 www.alpencapital.com/downloads/GCC%20Retail%20Industry%20Report%202011_1%20November%202011.pdf ; GCC retail industry report,Alpen Capital2 www.stores.org/2012/Top-100-Retailers, January 20123 www.comscore.com/Insights/Press_Releases/2012/11/comScore_Forecasts_17_Percent_Growth_for_2012_U.S._Holiday_E-Commerce_Spending4 www.verizonbusiness.com/resources/whitepapers/wp_near-future-of-retail_en_xg.pdfRetailGlobal retail industry, annual sales, in USD trillionSource: Economist Intelligence Unit, accessed January 201318 | Six converging technology trends© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Change in footprint over the decade5 http://www.guardian.co.uk/technology/2012/nov/11/mobile-technology-leap-forward6 “Meet the Connected Consumer”, Jan 2012, Zmags.comAcross the world, the retail industry is at the centre of amajor shift in the way consumers shop and interact withtheir retailers. After almost a century of customers “goingto the store,” the store is now coming to the customer.Customers now demand that retailers be wherever theyare. E-commerce has also led to a global marketplace andhas given rise to new, online retailers who take advantage ofthis low-cost channel, creating a perfect storm for traditional,brick-and-mortar retailers.The growing might of online – and now mobile – shoppinghas led to terms such as “omnichannel”, which attempt toportray how customers use stores and websites in tandem5.Retailers find that the more channels their customers use,the more they spend.Source: http://www.guardian.co.uk/business/2012/sep/02/marks-and-spencer-multichannel-shoppingAccording to Marks & Spencer’s, people who shop onits website, as well in its stores, spend four times asmuch as people who shop just in stores. People whoadditionally use the mobile channel end up spendingeight times as much.Shopping preferences of digital consumersSource: “Meet the connected consumer”, ZMags6http://www.marksandspencer.com/Six converging technology trends | 19© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Key components of retail industrySource: KPMG in India analysisSource: KPMG in India analysisCustomertouch pointsProduct Placement Promotions Point of Sale Delivery System After sales servicesPast Present Past Present Past Present Past Present Past PresentStore 4 2 4 4 4 1 4 3 4 3Traditional media 0 0 4 2 0 1 0 0 0 0Peer group 0 0 0 1 0 0 0 0 0 0Home 0 0 0 0 0 0 2 1 0 1Telephone 0 0 0 0 0 0 0 1 0 1E-mail 0 0 0 2 0 1 0 3 0 3Web 0 3 0 4 0 3 0 3 0 2Mobile 0 2 0 2 0 1 0 2 0 2Call centre 0 0 0 0 0 1 0 1 0 3Social media 0 2 0 3 0 1 0 0 0 2Thus, with the advent of the internet, and now mobile and social media, the retaillandscape has undergone a seismic shift. Channels including the web, mobileand social media have increased their presence in the retail value chain. In thenext decade, these new channels are likely to emerge as critical touch points forretailers, and providing an outstanding experience at these touch points can be thedifference between winners and laggards.4 Very high 5 High 6 Medium 7 Low 0 Absent20 | Six converging technology trends© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Big data applications across different functions of theretail sectorEnabling technology transformationsRetailers understand that the key to the future of consumerengagement is to meet shoppers where they are.Sophisticated mobile devices, big data and cloud computingcurrently work in tandem to provide ready access toinformation, products and services from virtually anywhereat any time.The further integration of the cloud and mobilitywith social networking creates a powerful, new platform thatallows retailers to engage throughout the purchasing cycle.To take advantage of such trends, retailers need to invest intechnology resources that can help them stay a step ahead ofthe competition.Big dataWith large amounts of data being generated from the point-of-sale at stores, online transactions and social media, Bigdata offers numerous opportunities to retailers to improvemarketing, merchandising, operations, supply chain and after-sales service.Retailers use big data to help them manage inventory levels,and make better decisions about new orders7.The US-basedbook retailer, Barnes & Noble used a big data analyticssolution to enable suppliers to monitor its inventory andtake real-time replenishment decisions8. Demographic andpurchasing data patterns can be analyzed using big data tohelp in merchandising related decisions.Big data can also be used to better understand the targetmarket, gauge consumer behavior, understand theirshopping preference and hence do a better positioning of theproduct.CloudRetailers progressively need to process large amountsof data pertaining to customers and products in real timeto provide personalized solutions.The spread of cloudcomputing has helped retailers to not only have largecomputing resources at their disposal; it has also allowedthem to match their demand with their sales season.Moreover, retailers are looking to move all their platform-based solutions to the cloud.UK-based fashion retailer Anthropologies patterns arerigorously managed in-house. It was integrated with a coree-commerce system provided by on-demand e-commerceproviderVenda.The system included a payment mechanism,a product database and a site design accessible on the weband mobile platforms9.Cloud computing also facilitates the implementation ofan omni-channel strategy. It allows for the low-cost andsignificantly low-risk rollout of software that is needed tosupport multichannel retailing.This is particularly attractivefor small businesses that lack requisite resources. Retailerscan gain real-time visibility into their retail operations fromanywhere at any time, as well as provide a single view ofa customer across channels. Retailers can also keep theirinformation up to date10.Further, cloud computing helps retailers manage multiplechannels and locations, integrate their websites withbusiness, support their Point-of-Sale (PoS) systems, providea unified real-time view of business, perform automatedmerchandising and marketing, and gain a 360-degree viewof each customer. Recent surveys also reveal that whilecurrent cloud adoption rates in western European retail arelow, adoption is expected to increase 300 percent by 201411.Additionally, 61 percent of western European retailers planto invest in cloud computing in 2012, with a slight preferencefor increased investment from large retail companies (500+employees), and the budget for cloud being typically less than5 percent of the overall IT spend23.Supply chain Optimal stocking decisions; Distribution andlogistics optimization; Management suppliernegotiationsMerchandising Assortment optimization; Placement andprice optimization; Store layout planningSales andMarketingOnline and in-store: Cross-selling; locationbased marketing; Customer micro-segmentationOnline: Real-time personalization; Facilitateaccurate delivery schedulesIn-store: Customer behavior analysis;Improve multi-channel experienceCustomer service Customer behavior analysisTesco – Harnessing big dataTesco collects vast amounts of data on itscustomers shopping habits that allow it to sendprecisely targeted coupons.When a householdstarts buying nappies, signaling the arrivalof a new baby,Tesco usually sends discountvouchers for beer, knowing that the new fatherwill have less opportunity to go to the pub.Source: LinkSource: KPMG in India analysis7 “Big Data for Retail is Flying Off the Shelves”, Nov 2012, Forbes8 “Big Data –The Next BigThing”, Sep 2012, NASSCOM9 The Guardian, www.guardian.co.uk/cloud-computing/high-street-stores-turn-to-hosted-services, June 201010 Netsuite, www.netsuiteblogs.com/blog/2012/09/cloud-computing-open-doors-for-multichannel-retailing-in-australia.html , September201211 IDC Retail Insights, www.idc-ri.com/getdoc.jsp?containerId=prUK23533512, June 2012Six converging technology trends | 21© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Sephora —leveraging socialmediaCosmetics retailer Sephora has created aninteractive shopping social space launchingits online Beauty talk community. It broughtits customers together and encouraged themto discuss their enthusiasm for beauty products.Sephora found that by creating a communityand by opening itself to its customers it wasflooded with people dying to talk to eachother. Moreover, a Beauty talk communityuser spends two-and-a-half timesmore than the average Sephoracustomer.Social mediaOver the past two decades, the internet has evolved into alarge, social community.The social media has given peoplea voice.The social commerce market is forecast to reachUS$30 billion by 2015, from an estimated US$9 billion in201212.Further, social networks offer retailers the opportunity toconnect with millions of customers and reach out to themindividually. Retail brands need to devise a social mediastrategy, one that goes beyond just having a presence onFacebook andTwitter. Strategy should involve connectingwith audiences over these social networks and leveragingtheir urge to talk about and share similar passions13.It also must be considered that even if a retailer decidesnot to have a presence on the social media, it could still feelits impact.Thousands of consumers write reviews, sharefeedback on their shopping experiences on social mediaplatforms.Therefore, even if a retailer is not present on asocial media platform, it may still be talked about.Therefore, aretailer must have a social media strategy that encompassesnot only social media platforms but also listening andmonitoring tools.According to a recent survey byThe Partnering Group,customer use social media primarily for coupons and productinformation, as well as to read comments from other users.Facebook has emerged as the leading social media platformfor such discussions, with an estimated 55 percent ofcustomers using it14.Worldwide social commerce market, annual revenues, inUSD billionLeading uses of social media by shoppersSource: Booz and CoSource:The Partnering Group12 www.booz.com/media/uploads/BaC-Turning_Like_to_Buy.pdf13 www.guardian.co.uk/media-network/media-network-blog/2012/jul/25/social-retailing14 www.shop.org/c/journal_articles/view_article_content?groupId=1andarticleId=1541andversion=1.0Source: EConsultancy22 | Six converging technology trends© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
MobilityThe spread of mobile devices has changed the way in whichcustomers interact with retailers.They have emerged asan integral part of the sales process. Many of the mobileapplications available today benefit the traditional brick-and-mortar stores by improving the in-store experience or drivingtraffic to stores with discounts.Product identification can take place at any touch point,whenever or wherever a customer sees a product.Theinteraction may be through an outdoor advertisement, in amagazine or newspaper, via a retailers smartphone app, amobile website, on a social network or even in-store, wherean out-of-stock size is required15.A mobile offers the advantage of instant checkout. If thecustomer’s preferred payment and delivery details arestored securely on their mobile device, they can purchaseanything from anywhere, anytime, simply at the touch ofa few buttons. More than 60 percent of pre-purchase websearches are initiated on a mobile device. In addition, themajority of people — 67 percent — researches products onsmartphones and then purchases them at a physical store16.Embedded systemsEmbedded systems are changing every point in a retailer’sbusiness, from sourcing of goods to their distribution todisplay in stores and finally, checkout. Embedded systemsare enabling a connected ecosystem of devices that allowa retailer to have a real-time view of every step in its valuechain17. Retail firms such as eBay, Amazon and Flipkart,whose business models are built around the long-tail, needto keep track of millions of items18.They spend considerableresources on analytics of data, resulting from tracking ofthese items. As analytics of the long-tail grows in importance,embedded systems become a focal point for retailers thatearlier saw only little need for them.RedBox, a US based retailer of rental DVD’s and video games,offers its customers a touch screen kiosk with information onmovies and the entire process is automated. All a customerhas to do is touch the item they want, use their credit card,and get the desired video19.15 www.guardian.co.uk/media-network/media-network-blog/2012/jun/26/mobile-retail-technology-consumer, June 26, 201216 www.cisco.com/web/about/ac79/docs/retail/Retail-Mobility-PoV_011312FINAL.pdf17 “Retailers Add Gadgets for Shoppers at EaseWithTechnology”, Mar 2012,The NewYorkTimes18 “Does the LongTail create bigger hits or smaller ones?”, Nov 2008, LongTail.com19 “Communication and Interaction Redesign for Redbox”, 2010, Ideo.comThe UK-based retailer Sainsburys launcheda new initiative called Mobile Scan & Gothat lets customers scan items as theyshop using their iPhone or Androidmobile device and pay at the till withoutunloading their trolley or bags.Thismakes the shopping experience evenmore convenient for customers byletting them track how much theyrespending, view savings instantly,and then pay at the till withoutunloading their trolley, basket orbag.Source: http://j-sainsbury.co.uk/media/latest-stories/2012/20121014-sainsburys-trials-mobile-scan-go/Source: “How Embedded Systems Are Changing theWayWeShop”, August 2012, bizcloudSource: “Carrefour uses NFC and QR codes to speed up groceryshopping”, May 2012, NFCWorldCarrefour City, the convenience storearm of French retail giant Carrefour,launched Mon Panier, a mobile appthat lets customers order and payfor their grocery shopping with theirmobile phone — and then identifythemselves via an NFC and QR-code enabled kioskwhen they arrive at the store to collect their order.The service is live at Carrefour City outlet at StLazare, Paris.Wal-Mart is one of the pioneers in implementingself-checkout stations that use embedded systemsto read the bar code on each item, compute thetotal of the sale, and process the payment.Six converging technology trends | 23© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Another common application of embedded system, usedextensively in retail is Radio Frequency Identification (RFID).RFID devices are transforming the retail landscape withtheir ubiquitous presence in the supply chain. RFID’s enableretailers to keep track of each and every product in theirsystem, integrated into a common repository to have unifiedand centralized view of information. RFID systems may rangefrom source tagging, barcode labeling systems, hand-heldlabeling systems and retail merchandising systems and canenable applications such as automatic identification, retailsecurity and pricing and promotional labels20.Embedded systems are also enabling a new global standardfor retail payments designed to help exchange data betweenpayment terminals and POS terminals and support newpayment technologies. Use of Near Field Communications(NFC) and mobile payments are common applications in thisarea.This has the potential to improve customer experience,as well as sales.20 “RFIDTechnology In Retail”, Apr 2008, RetailTechnology Review21 www.guardian.co.uk/technology/2012/nov/11/mobile-technology-leap-forward22 www.pbs.org/newshour/extra/features/science/jan-june12/Google_04-09.pdf23 www.juniperresearch.com/viewpressrelease.php?pr=348Augmented realityIt is no longer enough for retailers to stock their outletswith the latest products; the popularity of smartphones hasgiven genesis to a new mobile shopping culture altogether.Apps such as Blippar, which links smartphone users toextra video and product content on retailers’ websites,have revolutionized the interface between shoppers andproducts21. Google has launched an augmented reality-basedhead-mounted display (HMD) called Google GlassesTM 22.This consists of wearable glasses that display information insmartphone-type format, are hands-free, and interact withthe internet via natural language voice commands.Theseglasses seamlessly project information on to the scene infront of the wearer; a customer can access reviews and pricecomparisons of any product in a store; restaurant menusand reviews can be shared; at a bookstore, a customer canaccess book reviews and author information.AR is also used to explore synergies in print and videomarketing. Marketing flyers can be designed with ‘trigger’images that, when scanned by an AR-enabled device usingimage recognition, activate a video version of the promotionalmaterial.AR technology has made it possible for phones to becomebarcode scanners that offer extra information and onlineprices. It is estimated that AR-based apps will generate closeto USD 300 million in revenues globally in 2013 as brands andretailers increasingly show appetite for such features23.24 | Six converging technology trends© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Current state and way forwardRetail industry is one of the early adopters of disruptivetechnologies – be it cloud, mobility, social media, big data,augmented reality or embedded systems – owing to itsB2C nature.Till now, mobility, social media and embeddedsystems (mostly in the form of RFID) have witnessedgreatest adoption in the retail sector.With web-enabledsmartphones, online shopping is being done using cellphones and customers are using social media to get productreviews and give feedback.Augmented reality is expected to be the game changerfor the retail industry. Increasingly marketers are usingaugmented reality to enhance virtual shopping experienceand therefore, the industry would see significant investmentsin augmented reality applications in the near future,especially in the western world.Cloud has been there for quite some time but it is being usedas additional layer for niche applications, for example, to host/support a social media platform.The core retail platform is stillon-premise software as concerns loom large over replacingthe core platform with a cloud-based solution.A number of companies have also started experimentingwith big data tools such as Hadoop and MapReduce tounleash the power of big data analytics. Given the quantumof customer information that retailers have, if utilized in acorrect manner, it can help in identifying and targeting theright customer segment and better positioning of the product.However, it will take some time for marketers to develop abusiness case which can justify the investments made onsuch tools.In terms of convergence, retail is a sector which canencompass most disruptive technologies. It is not hardto think of a cloud-based platform providing integratedsocial media and augmented reality applications on mobiledevices.The data generated through such applications canbe analyzed using big data tools.There can be several othersuch applications which can encapsulate multiple disruptivetechnologies within them.The near future will see manymore such applications.Consumers in modern times expect products and services to cater to their every need,from world over, at times that they dictate and are willing to share information on theirexperiences across social media.The availability of information for customers hascompelled retailers to constantly strive to serve customers above their expectations.Social media, data analytics, advanced CRM etc. have created the ability of one to onerelationship between customers and retailers. No longer can retailers operate in themarkets by mere segmentation of customers; they have to serve customers based onindividual customer needs.Service providers to retail like IT companies also have to realize that retailers asclients expect the provider to give solutions to their business needs rather than merepieces of technology.Various functions of retailers including marketing, HumanResource Development, Finance, operations etc. need technologies that definitelyhelp the functional team. However these technologies need to form part of the totalsolution offered. Retailers also expect to get a clear understanding of the returnon investment which the IT services company is expected to calculate based onfunctional understanding of the business.This also means that IT companies need tounderstand the core business of their customers and create cross functional valuepropositions. For example a technology for social media can also cater to loyalty as wellas marketing requirements of retailers.This also means that IT providers need to be ableto communicate not only with the CTO of companies but also with head of marketing,head of buying and merchandising, the CEO. As convergence increases, and the needfor mobility increases, IT companies are well expected to provide state of art solutionsand not just technologies and these with best quantifiable benefits.Kumar RajagopalanCEO, Retailers Association of IndiaSix converging technology trends | 25© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Healthcare services, as defined, refer to provisioning ofconsultation, diagnostic, patient care and medication services toa patient suffering from injury, illness, disease, etc.1The global healthcare market is well poised for growth withper capita healthcare expenditure growing in most countriesdue to changing lifestyle, ageing population, and availability ofbetter healthcare infrastructure.These countries were eithersignificantly underserved and are now witnessing capacityexpansion or are actively upgrading their healthcare systems.Changing lifestyle, ageing population and betteravailability of healthcare facilities is driving thehealthcare market.Rising penetration of health insurance is leading toincreased spending on healthcare services.Increased availability of doctors, medical services,and health portal is leading to an increasedadoption, especially in the developing economies.Increasing awareness of health related issuesis also leading to extensive usage of healthcareservices.Key drivers of growth inthe healthcare industryAlthough the global healthcare market is witnessing growth,the uptake of healthcare services in both developed anddeveloping economies remains skewed. Developingeconomies such as India, China, Malaysia andVietnamcontinue to lag behind developed countries such as the US,the UK, Japan, Germany and Korea, which have relativelymature healthcare markets2. For example, developedeconomies such as the US and the UK have over 3 hospitalbeds per 1,000 population2; meanwhile, countries such asIndia, Indonesia,Vietnam and China have less than 3 hospitalbeds per 1,000 population.Therefore, in less developedcountries, the role of the government is paramount.1 “Independent Market Research on the Global Healthcare Services(HCS) Industry”, June 2012, Frost & Sullivan2 IMF,The Economics of Public Health Care Reform in Advanced andEmerging Economies, June 2012, www.imf.org/external/pubs/ft/books/2012/health/healthcare.pdfHealthcareGlobal healthcare spend in USD billionSource: Economist Intelligence Unit, accessed January 201326 | Six converging technology trends© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Change in footprint over the decade3 US Department of Health and Human Services, http://www.hhs.gov4 “Global Healthcare InformationTechnology (2009 - 2014)”, October2009, Markets and Markets, Research and MarketsThe healthcare sector stands at the inflection pointand is witnessing a transformation due to governmentregulations and initiatives to bring down the healthcarecosts. Regulations such as Health Insurance Portabilityand Accountability Act (HIPAA) and the Health InformationTechnology for Economic and Clinical Health Act (HITECHAct) are emphasizing on the increasing role of IT in healthcaresector.3It is because of this that the dynamics of the entirehealthcare industry are increasingly becoming IT driven.The IT market in healthcare is estimated to be nearly USD 54billion by 2014, witnessing a CAGR of 16.1 percent between2009 and 2014.4IT is getting interwoven in the industry in theform of electronic medical records, electronic health records,clinical trial management systems, clinical decision supportsystems, data mining systems, hospital information systems,e-prescribing systems, ambulatory care managementsystems, patient management system, computerizedphysician order entry system, and non clinical systems toname a few.Consumers are increasingly using web, connected devicesand innovative health information technologies for self-monitoring, facilitate interactions and information exchangewith doctors, and support treatment adherence.Six converging technology trends | 27© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Key components of healthcare industrySource: KPMG in India analysisCustomertouch pointsPatient on-boarding Treatment & Care Billing InsurancePost-DischargeServicePast Present Past Present Past Present Past Present Past PresentPhysical location 4 4 4 4 4 4 4 4 4 3Traditional media 0 0 0 0 0 0 0 0 0 0Peer group 0 0 0 0 0 0 0 0 0 0Home 1 1 2 2 1 1 1 1 1 1Telephone 3 1 0 0 0 1 3 1 3 1E-mail 0 1 0 0 0 1 0 2 0 1Web 0 2 0 2 0 2 0 1 0 2Mobile 0 1 0 1 0 1 0 1 0 1Call centre 0 1 0 1 0 1 0 3 0 1Social media 0 1 0 1 0 0 0 0 0 2Ease of access is the primary driver to healthcare. In this context, the use of mobiletechnology is very well suited and hence role of mobility as a technology is paramount.Given the high mobile penetration, it serves as a convenient and acceptable method tocommunicate with the patients.Since accessibility is the primary driver, there is an innate need for agility and scalabilityin IT systems to expand the reach of healthcare.The Cloud is an obvious choice butconcerns around security particularly in the context of healthcare privacy standards haveinhibited the large scale adoption of Cloud until now. Going forward, as the industryworks towards addressing this challenge, sector would witness wider adoption of cloud.In addition to this, it also must be considered that no technology can delivereffectiveness in isolation. All these disruptive technologies are complementary andwhen used in the right mix they are bound to bring in efficiency and effectiveness in thedelivery of healthcare services. It is also an expectation that the convergence wouldreduce the cost and help healthcare firms in reaching out to their target audience.Arvind SivaramakrishnanCIO, Apollo Hospitals Enterprise Ltd.28 | Six converging technology trends4 Very high 5 High 6 Medium 7 Low 0 Absent© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Enabling technology transformationsIT is playing a critical role in changing the face and fate ofthe modern healthcare sector.Technology trends such asmobility, cloud, augmented reality, social media, etc. aremaking significant strides and are propelling the sector forincremental growth.Big dataWhile the healthcare sector is poised for growth, at thesame time, it is plagued with challenges.The primitivestate of healthcare, especially in developing economies,can still be associated with paper prescription and manualhealth records.This brings in a challenge of managing largeamount of unstructured data coming from various sources.In more developed economies, because of the emergenceof electronic health records (EHRs) and patient care devices,patient data is getting digitalized leading to data deluge. Inaddition, healthcare costs are rising in countries such asUS, where healthcare providers suffer the constant financialstrain of providing treatments that are often not paid for orpaid for only in part. Insurance industry is also facing a similarchallenge, wherein, finding genuine claims and compensatingproviders for high-cost treatments is becoming increasinglychallenging. It is because of all this that the healthcare sectoris witnessing a three-pronged data challenge in terms of5 “Big Data –The Next BigThing”, September 2012, NASSCOMvolume (large quantities of data), variety (structure andunstructured), and velocity (rate of data generation).Thisinduces a need for big data analytics platforms to get usefulintelligence from tens of thousands of patient records.For example, a number of US’ largest integrated deliverynetworks such as Cleveland Clinic, MedStar, UniversityHospitals, St. Joseph Health System, Catholic HealthPartners and Summa Health System use the big dataplatform for real-time exploration, performance and predictiveanalytics of clinical data.5IBM recently launched big data softwarecalled Patient Care and Insights, anapplication that processes health recordsfrom hospitals, physicians and insurers andthen models outcomes and treatments.It also automates workflow and paperprocesses.Source: “IBM eyes vertical applications for big data”, October 2012, ZDnetSix converging technology trends | 29© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
CloudDespite skepticism due to compliance with regulationssuch as HIPAA, the healthcare sector is now witnessingthe increased adoption of cloud computing.6Offeringbenefits such as lowered costs and reduced clerical effortof maintaining data, cloud computing makes it possible forhealthcare organizations to access and retrieve informationstored in scattered systems in real time.Thus, personnel canfocus increasingly on critical matters cost-effectively andefficiently.Therefore, solutions such as electronic medical records(EMR), telemedicine, patient management, and medicalimaging are gradually shifting to cloud.These cloud servicescan now also be integrated with special medical hardware(embedded systems) for remote patient monitoring.7Due to benefits like these, cloud market is poised for growth.Healthcare spending on cloud is nearly USD 1.8 billion asof 2011, despite market penetration of merely 4 percent,indicating immense potential for growth.8Social mediaSocial media tools are gaining popularity, serving as an easyand cost-effective solution for both healthcare providersand patients.The internet, which was once a source ofone-way communication only, has transformed into onethat facilitates two-way interaction and information sharing.Healthcare providers can now monitor their patients in avirtual environment, thus giving impetus to remote patientcare and monitoring. It also transforms the patient-doctorcommunication from ‘one-to-one’ to ‘one-to-many’; wherein,doctors reach out to a number of online users using theinternet.MobilityIncreasing integration of mobility with healthcare is givingrise to ‘mHealth’. From a physician’s perspective, a physicianno longer has to rely solely on bedside terminal to retrievepatient health or medical information, while from a patient’sperspective; a patient can seek medical advice more oftenand have flexibility in terms of point of care. mHealth can beuseful in serving a variety of purposes, ranging from resultsviewing, to ordering, to e-prescribing, to reference dataaccess, and to remote monitoring.Mobility can play an instrumental role in efficient patientmanagement and quicker handling of emergency situationswhich in turn can save treatment costs and early cure.Blurring lines and convergence of wireless communications,embedded systems, social networks and enabling technologyof cloud computing will further propel the adoption of mobilehealth technologies. It is because of this that the market formobile healthcare applications and devices is on a rise.6 Techtarget, "HIPAA cloud computing advice: Ensuring cloud computingcompliance", 2012,7 KPMG in India analysis8 “Healthcare Industry to Spend Upwards of $5B on Cloud Solutions by2017”, October 2012, MarketsandMarkets, HealthTechZoneA May 2011 Pew Research Center’s Internetstudy showed that, of 3,001 US adultssurveyed, approximately 80 percent ofthe internet users use online media forhealthcare information.The same studyalso revealed that 15 percent of US adultsuse their cell phone to access healthcareinformation.An online survey conducted by Max BupaHealth Insurance in 2010 revealed that of1,004 Indians surveyed, 39 percent use theinternet for general healthcare information.Source: “Increasing importance of social media inhealthcare”, October 2011, KPMGSource: “Kentucky rural healthcare provider uses cloud-based EHR”, October 2012, EHR IntelligenceRural healthcare provider Carroll CountyMemorial Hospital (CCMH) in Kentuckyselected iSALUS Healthcare’s cloud-basedsolution OfficeEMR as it begins its ElectronicHealth Records (EHR) transition.Source: ” Increasing Importance of Social Media in Healthcare”, IssuesMonitor, October 2011, KPMG InternationalHealthcare Magic, started in 2008, is a healthcareportal which helps patients find doctors by specialtyin India, the UK and the US.The portal providesinformation on diseases and conditions and facilitatesonline communication between patients and doctors.It gets funding from sponsorships and advertisementsand also sells different membership plans to patientsfor interaction with doctors.http://www.marksandspencer.com/30 | Six converging technology trends© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Source: “Apollo plans 100 Sugar Clinics in 90 days”, November 2011,Business StandardSource: “Mobile Applications for the Health Sector”, December2011,World BankApollo Hospitals Group provides health informationservices via contact centres staffed by doctors andspecialists using an IT platform with structured querydatabase to give appropriate health response.Theservice is being offered in collaboration with leadingtelecom companies. It is also running a diabetesmanagement program called SUGAR, wherepatients may upload their blood sugar count to theclinician through SMS and mobile applications. AnSMS text is delivered back to the patient explainingthe readings and advising whether further action isrequired.WelTel provides SMS-based messaging to monitor andsupport antiretroviral (ARV) therapy in Kenya.WelTel‘sSMS communications are estimated to have raised ARVpatients adherence to their treatment regimens by aquarter.This increased adherence and associated viralload suppression lowered health system costs by 1-7percent (as reported byWelTel in 2011).Global revenue for mobile healthcare applicationsSource: Research2GuidanceSix converging technology trends | 31© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Embedded systems and M2MEmbedded systems and M2M technology have madeautomated medical devices that focus on disease preventionand healthy living a reality. As a result, doctor and hospitalvisits have also reduced significantly. Applications in thefield of remote monitoring and telehealth, being used forearly detection and health warnings, are changing the facehealthcare sector.A number of embedded software companies and telecomoperators are developing technologies to improve patientcare.The market is increasingly becoming crowded with anumber of start-ups in SiliconValley, application developers,carriers such asVodafone, DeutscheTelekom, AT&T,Verizon,China Mobile, and FranceTelecom and giants such as IBM,General Electric and Philips.9Applications such as a heartmonitoring program, call emergency services device installedin cars, etc. are now a common play in this area.Think of achip that can be inserted into a pill dispenser in a patientshome.The machine would then read the data stored in thechip and automatically dispense the required prescription.That can be the power of embedded systems in Healthcare.10Augmented realityIn the field of academics, augmented reality can be usedby medical students to practice surgery in a controlledenvironment.With 3D imagery and interactive display,complex medical conditions can be explained to patientsusing visualization aids. It can also provide improvedsensory perception to the surgeon and reduce the risk of anoperation. It can also be combined with MRI or X-ray systemsand bring everything into a single view for the surgeon.Augmented Reality can play an instrumental role in the fieldof neurosurgery, wherein, augmented reality can be used toimage the brain in 3D on top of the patients actual anatomy.9 KPMG in India Analysis10 “The healthcare case for big data”, November 2012, ZDNetSource: “Beyond mobile:Telcos hook up hospitals, cars andcoffeemakers”, December 2012, ReutersIn hospital del March in Barcelona, Spain, patientsrecovering from heart attacks use equipment installedin their homes byTelefonica to weigh themselves,take their blood pressure and answer a few questionson their symptoms via a touch screen.The informationis transmitted to nurses at the seaside hospitalscardiac unit who follow up by phone if they have anyconcerns.The program has had a positive effect onmortality rates, reduced hospital visits and saved9,000 euros per cardiac patient since it began twoyears ago, according to doctors.Source: “Medical app uses augmented reality and camera phone todetect skin cancer”, May 2012, iMedicalAppsAugmented reality applications have immensepotential in general wellness and care. One suchexample is of DoctorMole, a free Android app thatuses augmented reality to analyze suspicious molesusing the standard ABCDE approach in order todetermine risk.The risk feedback is given on thebasis of Asymmetry, Border, Color, Diameter andRisk (ABCDE). It also allows users to save photostaken to compare for evolution changes at a laterstage.32 | Six converging technology trendsOutsourcing as an industry has evolved andhas moved far beyond just cost arbitrage.Given the shift towards digital consumerismdriven by proliferation of disruptivetechnology trends like Social media ,Mobility, Cloud, Big Data, Augmented Reality,Embedded Systems the dynamics thatdrive the industry are undergoing significantchange.This is leading to the outsourcingplayers to explore hybrid models or verticalspecific business platforms aided bytechnology.Susir KumarCEO and MD, Intelenet Global Services© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
11 KPMG in India AnalysisCurrent state and way forwardThe adoption of disruptive technologies in the healthcaresector is inconsistent.While technologies such as cloud,mobility and big data are witnessing rapid adoption indeveloped nations, social media, AR and embeddedsystems are yet to take significant strides. Most developingeconomies have yet to experience widespread digitizationand are lagging in terms of the adoption of most technologies.Other than mobility and, to some extent, cloud, developingeconomies continue to maintain a ‘wait-and-watch’ approachtill they see a clear return on investments from theseinvestments.In future, the industry is expected to witness a convergenceof such technologies, leading to an increased demand forconsolidated platforms. However, it is expected to takeat least 24–36 months before this trend starts becomingevident in the industry.While players have already startedheading in this direction through the introduction ofconverged platforms in areas such as SOMOCLO (socialmedia, mobility and cloud), the trend is yet to gathermomentum on a large scale.In the healthcare sector, the convergence is likely to bemore in the areas of cloud, mobility, social media and bigdata as there is a clear upcoming trend ofTele-health andWeb-health.11Embedded systems can have a myriad ofapplications in healthcare as digitization picks up steam;embedded systems may find convergence with technologiessuch as cloud, mobility and big data to give access auto-generated patient information. Augmented reality wouldalso have applications, however, lesser in comparison toother disruptive technologies. AR applications would bemore focused in medical education rather than actual patienttreatment and care.ITTrends in healthcareSource: KPMG in India analysisEmerging solutions inhealthcareKey disruptivetechnologies that shallshape the healthcaresectorFuturistic trends toinvest inm-HealthBig DataSocial MediaAugmented realityCloudMobilityEmbedded systemsTele-HealthWeb-HealthSix converging technology trends | 33© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The dynamics of the telecommunications industry have changed rapidly overthe years. From a being mere carriers providing voice services; telecom playershave evolved into becoming an interface, a window and a platform through whichconsumers interact and transact with the virtual world. Convergence betweenphysical devices and online services is fuelling the growth of new applications.These applications can take personal data and turn it into useful, personal, socialand visual representations using the disruptive technologies mentioned earlier.Other industries like BFSI, Healthcare, and Government are also increasinglyadopting digital technologies which have madeTelecom players an integralpart of their digital strategies.Telecom players themselves also leverage thesetechnologies to reach out to their end consumers and interact with them.With voice servicebecoming ubiquitous, thenext round of growth isexpected to be driven bydata.Areas such asm-Governance,m-Commerce, m-Health,etc. are driving the usage.There is increasing mobilepenetration in rural areaswhich promises immensepotential for growth.Key drivers ofgrowth in thetelecom industryTelecommunicationWith per unit processing cost of data going up and the need forfaster processing time, big data is going to be a crucial technologyfor the telecom sector. It is expected to have wide utility intransaction-intensive domains such as CDR (Customer DataRecords) processing, BI and Data warehouse. Social media isanother important domain which is being seen from both employeeand customer perspective.The drivers are primarily enhancementof customer satisfaction and better employee engagement. Otherthan this, Cloud can be an important technology considering theinfrastructure-intensive nature of telecom business. However,there is need to address a few challenges such as flawless datamigration from legacy systems and ensuring information securityand data privacy to have wide adoption of cloud platforms.Convergence is more likely to be in the areas of Social Media,Cloud and Big data. However, depending on the magnitude ofimpact, companies will decide whether to go for stand-alone orcollaborative platforms.The current scenario is more in a proof-of-concept stage.”Vinod KamatVice President, IT, atVodafone Essar34 | Six converging technology trends© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
This distinct nature of this industry throws opena multitude of options for IT-BPO vendors astelecom players need to integrate themselvesinto technology value chains of other industriesas well as utilize these technologies for their ownbusiness.As shown in the figure above, telecom actsas a medium and an enabler for the variousindustries to interact with their end-customers.These end customers have access to a numberof mediums, channels and devices to interactwithin themselves and with the industries.Whilesocial media, cloud, big data, augmented reality,embedded systems and mobility are touted as thegame changers currently and over the next fewyears; the role of telecom is vital in the successfuladoption of these technologies.Thus while reviewing the effect of these disruptivetechnologies on telecom as an industry, we alsocannot neglect the role of telecom as an enabler.Isolating the effect and looking at it from an ITdemand perspective, telecom sector is poisedfor growth. Global mobile subscribers reached6.2 billion as of March 2012 , with growth mainlystemming from developing economies such asChina, India, Brazil, Indonesia and Bangladesh.12The dual role of telecommunication – as a user and as an enablerGlobal wireless subscriber base and net additions (Q1 2012)Source: KPMG in India analysisSource: Gigaom, "Ericsson: 85% of the world will see 3G/4G in 2017", June201212 Gigaom, "Ericsson: 85% of the worldwill see 3G/4G in 2017", June 2012, http://gigaom.com/2012/06/05/ericsson-85-of-the-world-will-see-3g4g-in-2017/Six converging technology trends | 35Telecom as an enabler© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Change in footprint over the decadeThe telecommunication sector has witnessed a seismicshift in the past decade.The decade that started withwire-line services dominating the sector both in terms ofsubscriber and revenue share, has progressed to the era ofsmartphones, tablets and other handhelds. Ever since 2007,when wireless revenues surpassed wire-line revenues, thestate and implications of the sector changed for good.Today IT and telecom are getting interwoven; telecomproviders have sufficiently matured in terms of availabilityof network bandwidth and IT infrastructure to provide ITservices. Similarly, IT vendors are entering erstwhile telecomterritory as they take their solution offerings to a mobileplatform.In addition to this, from a customer perspective, telecomoperators are increasingly facilitating new web-enabledchannels through which customers can interact/transact withthem or among themselves. It is being done with the aim ofaligning operations with the trends in changing lifestyles ofcustomers. It is due to this that of late,Web has emergedas a key subscriber service channel for telecom operators,especially for younger generation. As per a survey conductedby Oracle in 2011, subscribers, irrespective of the age-group they belong, have shown the desire for their telecomoperator provider to offer live help options on theirWebsite13.The survey also highlights that subscribers of differentage-groups prefer different methods of interaction with theirmobile provider.While older subscribers prefer in-personor over-the-phone interactions, their younger counterpartsprefer online or self-service options.13 Oracle, MobileTrends: ConsumerViews of Mobile Shoppingand Mobile Service Providers, April 2011How consumers prefer to interact with their mobile providerSource: MobileTrends, Oracle36 | Six converging technology trends© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Moreover, subscribers have started to demand personalized online experience and improved waysto research mobile products. As different age-groups favor different ways of interacting, leading toconvergence of traditional and online channels, telecom operators have started to create a cohesivecross-channel customer experience.Key components of telecommunications industrySource: KPMG in India analysisCustomer touchpointsNew ProductDevelopmentTariff-plans andPoint of SalesMarketing Customer ServicePresentation andpayment of billsPast Present Past Present Past Present Past Present Past PresentPhysical point ofinteraction (eg:helpdesks, outletsetc)0 1 4 2 4 2 3 2 4 2TV 0 0 0 0 4 2 0 0 0 0Peer group / friends 0 0 1 2 1 2 1 1 0 0Home 0 0 3 2 2 1 2 1 4 2Telephone 0 0 1 1 1 1 1 1 0 0E-mail 0 2 0 2 1 2 0 2 1 2Web 0 2 0 2 1 2 0 2 1 2Mobile 0 2 1 2 1 2 4 2 1 2Press & media 0 0 0 0 4 3 0 0 0 0Call center 0 1 2 1 2 1 4 2 2 1Social media 0 1 0 1 0 2 0 1 0 0Six converging technology trends | 374 Very high 5 High 6 Medium 7 Low 0 Absent© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Enabling technology transformationsThe role that telecom/mobility plays in the enablement ofdisruptive technologies has far reaching implications thanthe role that disruptive technologies have to play in telecom.From a B2B perspective, telecom/mobility plays an importantrole in the uptake of these technologies:Cloud: one of the key characteristics of cloud is the mobilitythat it provides to enterprises.The data/applications on cloudcan be accessed from anywhere, any device.Big data: big data is becoming more pertinent becauseof volume, velocity and variety of data generated fromincreasing number of mobile devices.Social media and augmented reality: potential of social mediaand augmented reality cannot be explored to the fullest ifthey are not delivered over mobile devices.Embedded systems: most embedded systems now come asmobile devices.However, from a B2C perspective, these technologies areindeed enabling a transformation in the telecom sector.Big dataTelecommunication, as a business, involves trillion of smalltransactions on a daily basis. Add to this, with adoption ofsocial media and analysis of real-time consumer behaviorgaining pace, flow and variety of data on networks hasincreased manifold.Telecom operators are increasingly leveraging big data toolsto convert all the data into actionable information. Globally,operators are deploying predictive analytics and big data toolsto make proactive use of the data.This has helped operatorsto improve quality of service (QoS), increasing customersatisfaction, and thereby making business more profitable.Big data tools can be used to measure and analyze customeractivities, customer churn, reasons for churn, call handlingand management time at customer care call centres, amongnumber of other things. Moreover, the emergence of cloud-based open source platforms, coupled with big data hasresulted in faster processing and analysis of data.CloudTelecom, by its very nature, is an infrastructure intensivesector. Network infrastructure is the key component andforms the backbone of any telecom business. A significantportion of telecom businesses’ expenses can be accountedto network and infrastructure management. Other thanthe cost angle, scalability is another challenge thattelecom operators face. For example, it is somewhat like amanufacturing plant concept. In order to manufacture 100additional cars, a manufacturer will have to install a machinewhich would have production capacity of 1,000 cars. Capacityof 900 cars would remain idle until the manufacturer getsdemand for those 900 units. Similarly, while scaling up tocater to demand from additional subscribers, a telecom firmoften needs to undertake heavy network deployment whichis both cost and time consuming.To address challenges like these, telecom operators are nowincreasingly migrating to cloud environments to achieve costefficiency, scalability and agility.Telecom operators are also fast embracing cloud to opennew revenue streams.This new revenue stream can bein the form of telecom operators offering cloud servicesto enterprises. Because of the availability of networkinfrastructure, telecom operators are well equipped tooffer cloud orchestration services, including automatedarrangement, coordination, and management of applications,middleware, and services over the cloud.Moreover, telecom operators are also collaborating withindependent software vendors (ISVs), which due to theirsmaller sizes look out for infrastructure without committingsignificant capital investments. Operators, globally, areleveraging this opportunity by offering their networkbackbone to ISVs who can offer cloud services.Source: InformationWeek, "Analytics enables marketing to delivercampaigns to targeted customers on a daily basis", November 2012,Source: Arabnet, "LebaneseTelecom OperatorTouch IntroducesTouchCloud", December 2012BhartiAirtel – Using analytics to deliver campaignsBharti Airtel, the largest operator in India, uses analyticsto enable marketing department to deliver campaignsto targeted customers on a daily basis.The analyticsfunction processes more than five billion transactionsdaily, contributing to the top line.Touch Cloud – a Backend as a service solutionfor app developersTouch, a Lebanese telecom operator, incollaboration with Element N launchedTouchCloud which serves as building blocks for HTML5and mobile developers.Touch Cloud enables theapplications to connect with 3rd party services,such asTwitter or Facebook.Source:TelecomAsia, "SingTel, Progress launch cloud platform forISVs", August 2012,SingTel launched cloud platform for ISVsSingTel, one of the largest telecom operatorsin Asia, in partnership with Progress Softwarelaunched a cloud-based infrastructure forISVs to build, test, manage and deploy theirapplications for businesses.38 | Six converging technology trends© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Social mediaWith customer conversations over social media growingat an exponential rate, it is imperative for the telecomoperators to prepare for a social revolution of sorts. Socialmedia applications have now become a standard; devicemanufacturers are embedding them in devices as built-inapplications and service providers are providing them throughproprietary/3rd party applications stores.Other than demand-side push, availability of high-bandwidthnetworks, enabled with technologies such as Long-termEvolution (LTE) andWorldwide Interoperability for MicrowaveAccess (WiMAX), has created an environment conducive forprovisioning of social media services.In addition to this, major telecom operators, globally, notonly look atWeb 2.0 as a communication and collaborationtool but also as a strategic marketing tool. Service providersworldwide are using social media to learn more about theircustomers and explore new revenue opportunities.Augmented realityAdoption of smart devices has increased to a point wherethey rival the power of PCs, ensuing the need for content-rich media applications such as Augmented Reality (AR).As the adoption of AR rises, the implications are clear forstakeholders at each level in the value chain. From a devicemanufacturer’s perspective, augmented reality is somethingthat they just cannot ignore.The devices of today need tobe augmented reality-enabled in order to stay relevant in themarket.Telecom operator needs to have sufficient networkbandwidth to give room to such rich-content applications andapplication developers will have to find new ways in whichaugmented reality can be used across different categories ofapplications.Augmented reality today has utility in location-based serviceapps, entertainment and gaming apps, videos, utility relatedapps and many more. Stakeholders in various segmentsof telecom sector need to be prepared of these marketdevelopments.Source: InformationWeek, "In today’s marketing scenario, interactivity interms of ROI is measured with subscriber responsiveness", November2012,Source: Gigaom, http://gigaom2.wordpress.com/2012/09/11/old-lumias-get-nokias-new-city-lens-augmented-reality-app/Source:T-Immersion, "BouyguesTelecom Augmented Reality Brochureto Experience Latest Smartphones Functions", March 2011Source: DynamicCIO, "Vodafones Response to Social Media", April 2012,Loop mobile – Measuring ROI based onsubscriber responsivenessLoop, a regional Indian telecom operator,is leveraging the social media to createbuzz for the brand. In addition to increasein fans, response or conversations andlikeability, it also looks at other factorssuch as contest participation, generationof leads, lead conversions, clicks on videosor posts and conversations to measure thesuccess of this strategy.Nokia – City LensTMNokia’s ‘City Lens’ is a location-basedapplication that provides an AR overlayview of buildings and instantly highlightsplaces of interest.The company is now pre-installing the ‘City Lens’ application on therange of its newWindows Phone 8-basedsmartphones, Lumia 820 and Lumia 920.BouyguesTelecom – ExtendingARexperience to sales brochureBouyguesTelecom, a French telecomoperator, added an AR feature to thesmartphone purchasing guide available at itspoints of sale.This feature allows customersto test and discover the functions of newsmartphones by placing the printed pageof the 3D guide in front of a webcam.Thechosen smartphone is viewed in 3D as if itwere coming out of the page.Vodafone – Leveraging mining andlistening tools to manage customersupport over social channelsLarge volumes of social media chatter aboutVodafone were untracked and unattended,entailing the need for a system to scan socialmedia to gather conversations aboutVodafone.In response, the company developed a socialmedia listening and mining tool based onJava and MySQL hosted on Enterprise LinuxServers.The tool analyzesTwitter feeds,Twitter trends, Facebook posts, RSS feedsfrom various blogs and articles, and ties intofeeds for third party sites like forums.The toolsalso classify the conversations as queries,complaints and request.Six converging technology trends | 39© 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.