Innovation Challenges in the Wireless Broadband Eco-System


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Keynote Address at Motorola 2011 Technical Symposium, Malaysia

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  • How the government of New Zealand has tried to kick start a number of innovation initiatives to boost the economy. New Zealand has a rich pool of creative and commercially- minded scientists with world-class research and development facilities. It has steadily inched up in the innovative sphere by providing a stable business environment for business with research and development costs of 50 per cent lower than inEurope and the United States.New Zealand is a small and isolated economy which, at least in a textbook sense, is institutionally almost ideal for promoting local entrepreneurship and innovation.It also has a supportive business environment – for example, research and development is 100 per cent tax deductible – and has an IP regime that protects investment.
  • Morgan Stanley predicted shipment of Smartphones will be greater than PCs by end of 2012.
  • Mobile operators worldwide see mobile broadband as the fastest growing business opportunity delivering an exciting range of services from Video on Demand and interactive gaming on the mobile network.Mobile data is overtaking messaging as a revenue source and is growing rapidly as the biggest success since voice
  • P1 CEO, Michael Lai in his Keynote speech at WiMAX Forum SEA Regional Focus Conference 2010.
  • What is the secret formula for a well connected society?
  • The higher the bandwidth, the more sophisticated the applications. Richer in content, more powerful and connectivity dependent.Opens up new opportunities for monetization.
  • Developing countries are the most enthusiastic users of social networking, according to a new survey of over 50,000 people worldwide.Market research firm TNS found that countries such as Egypt and China  have much higher levels of digital engagement - over 50 percent - than mature markets such as Japan (20 percent), Denmark (25 percent) or Finland (26 percent) - despite the fact that the latter have a more advanced internet infrastructure.The heaviest users of social networking are in Malaysia, where they rack up nine hours per week, Russia, with 8.1 hours per week and Turkey with 7.7 hours per week.And Malaysians have most social network friends, averaging 233, closely followed by Brazilians with 231. The least social are the Japanese with just 29 friends and Tanzanians with 38. Surprisingly, Chinese consumers only have an average of 68 friends in their networks despite being heavy users of social networking sites.
  • User Generated Content (UGC).It can topple country like Egypt.
  • Number of Days to Reach 1 Million Units SoldiPad = 28 days (one of the fastest growing new consumer computing devices).iPhone = 74 daysNintendo Wii = 13 daysNointendo DS = 15 daysCompared to Mac which uses 6.37x compared to iPhone, iPad is about 2.07x and Blackberry about 0.09x
  • Need the third line combined effort MIMOS and Commercial Company
  • Difficult to justify venture to their bookVerbalize new market and international presence
  • Need the third line combined effort MIMOS and Commercial Company
  • Innovation Challenges in the Wireless Broadband Eco-System

    1. Unlike invention, which usually requires a flash of inspiration,innovation is a process of coordinated activities that, whenlinked with identified opportunities, generates new value for the organisation and the customer.
    2. Country 2008-2009 Rank Country 2009-2010 RankUSA 5.28 1 Iceland 4.86 1Germany 4.99 2 Sweden 4.85 2UK 4.84 3 Hong Kong 4.83 3Sweden 4.82 4 Switzerland 4.82 4Singapore 4.81 5 Denmark 4.72 5South Korea 4.73 6 Finland 4.66 6Switzerland 4.73 7 Singapore 4.65 7Denmark 4.69 8 Netherlands 4.62 8Japan 4.65 9 New Zealand 4.60 9Netherlands 4.64 10 Norway 4.59 10Canada 4.63 11 USA 4.57 11Hong Kong 4.59 12 Canada 4.55 12Finland 4.57 13 Japan 4.50 13… … … … … …Malaysia 4.06 25 Malaysia 3.77 28
    3. Communications -> Information -> Knowledge -> Power
    5. ChallengesSupporting Ecosystem
    6. “We create the Internet” “We use the Internet” “We live and breathe in the Internet” Create Use Live
    7. Devices/Users Gbytes Mobile Internet Capacity1,000,000 Mobile 14 Capacity Internet Demand 100,000 12 Desktop 10,000 Internet 10 1000 PC 10B+ 8 Connected +1B Devices 100 Minicomputer 6 Capacity +100M Supply 10 Mainframe 4 +10M 1 2 +1M 0 1960 1970 1980 1990 2000 2010 2020 2010 2011 2012 2013 2014 2015 2016 Source: Morgan Stanley Mobile Internet Report Dec ‘09 Source: Rysavy Research Feb;10
    8. Subscribers (MM) First 20 Quarters Since Launch 100 80 Mobile Internet 60 40 Desktop Internet 20 0 Q1 Q3 Q5 Q7 Q9 Q11 Q13 Q15 Q17 Q19 Quarters Since Launch Note AOL subscribers data not available before CQ3:94; Netscape users limited to US only. Source: Morgan Stanley Research Estimates, April 2010
    9. Global Mobile vs. Desktop Internet User Projection, 2007 – 2015EInternet Users(MM) 2,000 1,600 Desktop Internet Users 1,200 Mobile Internet Users 800 400 0 2007E 2008E 2009E 2010E 2011E 2012E 2013E 2014E 2015E Source: Morgan Stanley Research Estimates, April 2010
    10. Beyond email. Beyond voice 10GB 600 Average data usage per month Concurrent users per site 548GB Highest user consumption record in 1 month Over 57% 1,700TBRich Media activities on P1’s network Average monthly network traffic [SOURCE: Michael Lai Keynote Speech, WiMAX Forum SEA Regional Focus Conference 2010]
    11. AT&Ts iPhone Mess KDDI Confirms LTE Migration PlanThe iPhone has swamped AT&Ts But Will Use WiMAX and WIFI too KDDI’s President and Chairman, Tadashi data network and sparked a Onodera stated at GSMA Mobile Asia Congress consumer rebellion. 2010. TeleGeography Comms Update Cover Story Wed, 17 Nov 2010 February 3, 2010 A Network Optimized for Mobile Voice LTE will not be sufficient to cope with suchCannot Handle High Numbers of Mobile huge data demands so we also need to use Internet Users other technologies such as WiMAX and WiFi Traffic Equivalents* 1 Laptop= 15 Smartphones = 450 Voice Handsets [ Source: Cisco, 2009]
    12. A Broadband NationNeeds A Healthy DNA
    13. The Ecosystem for Wireless Broadband Devices Nation Eco- system DNAApplications Networks We Need the Right DNA!
    14. Devices
    15. Create High-Performance Creator Laptop UMPCInformation Laptop DIGI-Cam Usage Carry & Edit TV UMPC UMD eBook Consumer Navigation Dual Mode UMPC PMP Handset View Navigation Modem In-Car Gateway Entertainment Game PMP MP3 Player Fixed & Briefcase Handbag Palm In Vehicle Backpack Pocket Portability / Mobility
    16. Never Ending Battle for“Networks Superiority”Networks
    17. Disruptive TransformationBandwidth Applications • Apps and Apps Store • Higher quality-of-experience • Higher sessions and session rates • New monetization models Applications
    18. Android Market Windows App Store Marketplace Verizon Media Blackberry App Store World MobileTelus Mobility App Store App Stores Ovi Store - Nokia PlayNow Arena – Symbian Apps Sony Ericsson Samsung App PocketGear App Store Store
    19. Consumers increasinglywant to access the sameInternet content andservices on their mobilephones that they canfrom fixed access/PCs
    20. []
    21. 100M FBusers on mobile
    22. 500 Users 114 M M41 Login 27 everyday %% Login via30 37 mobile% %1 Update2 Status 52%% everyday
    23. UserGenerated Contents
    24. Exceeds 2 Billion views a day. Nearly double the prime-time audience of all 3 major U.S. broadcast networks combines 24 hours of video uploaded every minute Average person spends 15 minutes a day on YouTube More video uploaded to YouTube in 60 days than all 3 major US networks created in 60 years Hundreds of Millions of videos watched every month on mobile devicesThe YouTube is embedded across 10s of Millions of Website
    25. Net Traffic Exponential Growth! 1% Rule (Internet Culture) One will create content, 10 will "interact" with it (commenting or offering improvements) and the other 89 will just view it. 90-9-1 Principle 1% of people create content, 9% edit or modify that content, and 90% view the content without contributing.[Sysomos analyzed over 2.5 million YouTube videos that were embedded in blog posts between July and December 2009.]
    26. 1 All services executed in the Cloud 1. Ecosystem. Government Data 2. 2 Government Data Aggregation across Ministries. 3. 3 Dashboarding Reports for easy review. 2 4. Intelligent Services Delivery Platform for 4 quick public dissemination. 5. 5 Tablet/Slate machines for easy technology adoption. 5 Tablet for 5 Government 1 Secured Information Aggregation4 Information 3 Presentation Trademarks shown belongs to respective owner 29
    27. Sustaining the Innovation
    28. Helping to Position Malaysia Patent Ranking at the Global Level WIPO-World Intellectual Property Organisation PCT - Patent Cooperation Treaty2010 49% 51% 28th 302 Patents 38th 218 Patents2009 41% 186th 59% 30th 3,254th 2052008 91% 33rd Patents 0 5 10 15 20 25 30 35 40 PCT/WIPO Ranking MIMOS Other Malaysian Applicants
    29. Driving National Priorities • Economic Growth • Competitiveness • Productivity • High-income Jobs • Better Quality-of-LifeCreating the Global Malaysia Incorporated
    30. Innovation Driven EconomyTo Support The New Economic Model
    31. Revenue growth Late Majority, Conser Early vatives Majority, Pragma tists Early Laggards, Sceptic Adopters, Vision s airesLead Users,Innovators LU EA EM LM La Time The Chasm Crack 2 Crack 1 Crack 3 Communications Breakdown
    32. Manufacturer Product House System Integrator Telco Reseller &R&D Distributor Users Regulator Applications Content Developer Content Aggregator Provider App Stores
    33. Loyalty iPodThe “Cloud” iTunes iPhone Mobile Internet Innovation “Think Different”Entertainment Apple TV iPad Closing The Gap Macbook Air Mobile Computing
    34. Challenges ofCommercialization
    35. TECHNOLOGY CREATION RESEARCH DEVELOPMENT COMMERCIALISATION MARKET MIMOS Research & Development and Technology Transfer Venture Capital Universities Partners Technoprenuers Research Institute K-Industries Business Matching Market Research Market Research
    36. MIMOS’ Role in Industry & Market Creation Basic Applied Product System Service Market Research Research Company Integrator Provider Creation MIMOS’ Charter: Commercialisation Path: • IP Creation • Productisation • Prototype Development • Business Planning • Technology Transfer • Product Lifecycle • Manufacturing Inflection Point for • Regulatory Approval Commercialisation • Branding & Distribution Channel Industry Gap Commercial RiskRisk magnitude Critical Competency Technology risk lacking 39
    37. Issue #1: Local Product Companies Are Small - Minimal revenue; minimal impact on economic needle Global/Export - Require substantial Revenue handholding - No financial stamina to go globalReseller/Se System Product rvice Integrator Company Provider Domestic Revenue
    38. Small Companies Competency Design & Basic Applied System Service Product Market Research Research Integrator Provider Company Critical Competency BoxCompetency/ Skill Technology Business Competency Competency © 2010 MIMOS Berhad. All Rights
    39. Issue #2: Large Domestic Companies Are Not Product Companies - Not keen to invest in R&D - Risk averse in new technology - Difficulty in justifying new Global/Export Missing Revenue venture to the BoardReseller/Se System Product rvice Integrator Company Provider Domestic Revenue
    40. Large Companies Competencies Design & Basic Applied System Service Product Market Research Research Integrator Provider Company Business Critical Competency Competency Box TechnologyCompetency Competency
    41. Issue #3: Difficult for Small Local Product Companies to Engage MNCs• MNC reluctant to work with non reputable local product companies • Sustainability • Capability • Branding• Local product companies has problem to meet the stringent requirement of MNC • CMMI • ISO • IP protection
    42. Basic Product System Service Applied Market Research Company Integrator Provider Research (Universities) (Industry) (Industry) (Industry) DEVELOP TECH TRANSFER DRIVE SUPPLY• Center of Excellence • Domain expertise• Global IP Protection training• Technology Transfer NURTURE TECH VENTURE & INCUBATION DRIVE DEMAND GO-TO-MARKET WORLD CLASS PRODUCT GO GLOBAL• Market Proof of Concept/Pilot • Product development • Channel development• Leverage Government/GLC • Product Lifecycle Mgt • Business Matching with procurement process/projects • Manufacturing/Production MNC and market Strategies • Regulatory Approval
    43. ••••••
    44. Thank you