WSO2Con Asia 2014 - Exploiting the Digital Storm


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WSO2Con Asia 2014 - Exploiting the Digital Storm

  1. 1. Dr  Hans  Wijayasuriya   Director/Group  Chief  Execu2ve  Dialog    Axiata  PLC   &  Chief  Execu2ve  Officer  Axiata  Digital  Services,  Axiata    Group   EXPLOITING THE DIGITAL STORM INCLUSIVE CONNECTORS TO CAPTURE EMERGING MARKET OPPORTUNITY
  2. 2. THE DIGITAL STORM 2 In 2020 there will be >50,000 MN devices connected to the internet 9,000 50,000 ...5,000MN Internet Users 2010 2020 2000 2010 2020 394 2,000 5,000 A middle class citizen will have 10 devices connected to the Internet Resulting in 50 times growth in the digital universe of People Businesses and “Things” TV 2 3 101 PC Mobile Other X 50 20202010 0.8 ZB 40 ZB
  3. 3. ASIA ON THE MOVE IN THE EYE OF THE DIGITAL STORM? 54%of this middle class will live in Asia 67% of new employment will be created in emerging Asia (c.f. 1.8% in Europe) 3 By 2020 will be 40% bigger from an economicpoint of view 43% of the economic weight will be Asian 52% of the world population will be middle class A Smart Phone will be Affordable to 54% of Asians by 2015 and >80% by 2020
  4. 4. 0.5   Bn 2  Bn 4  Bn DIGITAL SERVICES WILL BE IRRELEVANT UNLESS THEY CAN TRANSFORM LIVELIHOODS Popula2onIndividual  Annual  Income <  $  3,260 $  3,260  -­‐  $  20,000 >  $20,000 Source: 4 ADVANCING DIGITAL ASIA THE OPPORTUNITY & CHALLENGE The  Asian  Region  will  Con2nue  to  be   Challenged  by  Economic  Dispari2es  and   Socio-­‐Economic  Divides  in  terms  of   Equal  Access  to  Basic  Rights  such  as   Educa2on,  Health  &  Access  to   Informa2on   36% of South Asians and 21% of South East Asians Live on $1.25 per Day
  5. 5. ASIA - DIVERSITY AND DISPARITY WEALTH COEXISTS WITH ACCESS ASSYMETRIES The Asian region is characterised by vast disparities – between sub-regions and countries as well as within countries. Singapore is ranked 18th under the UN Human Development Index (HDI), whereas Bangladesh and Pakistan are ranked 146th*). On average South East Asia’s Income Gini Coefficient is >40… (UNDP Human Development Report 2013) *2013  UNDP  Human  Development  Index  (HDI):  A  composite  index  measuring  average  achievement  in  three  basic dimensions  of  human  development—a  long  and  healthy  life,  knowledge  and  a  decent  standard  of  living.
  6. 6. Top of Pyramid: (TOP) Incumbent High-End Consumer Segment Middle and Base of Pyramid (MOP/ BOP) High Growth Consumer Segment λ  Heterogeneous λ  Mass Market - Global Influences - Homogenous - Cosmopolitan Rapid Expansion THE CUSTOMER SPACE DUALITY IN EMERGING ASIAN MARKETS ToP MoP  &  BoP The “Customer Space Duality Will Pervade Structural and Behavioural Dimensions of the Digital Opportunity”
  7. 7. Value Adaptation •   Inclusive •   Lower  Cost •   Relevant • High  Affinity DIGITAL TRANSFORMATION BI-FOCAL OPPORTUNITY IN EMERGING MARKETS Digital Transformation Can Bridge Across Asymmetry Flatten the Economic Pyramid & Create a More Equal World Digital Empowerment Digital Transformation Value Addition •   Cosmopolitan   Segments   • Exclusive  &  Premium   •   High  End    Innova2on Digital Bridge Equalizing  Asymmetries  in  Knowledge,   Informa2on,  Commerce  &  Access  to  Basic   Rights Digital Advancement
  8. 8. DIGITAL SERVICES DEFINED SOCIETAL/ECO-SYSTEM CONNECTORS AT THE CORE Connectivity & Technology Digital Economics, Digital Democracy, Plurality, Ubiquity Digital Society Digital Enterprise (DigitalConsumption) DIGITAL SERVICES Connect & Interlink • Commerce • Payment • Social Media • Advertising • Entertainment • Health • Education DigitalMoney&Payment Inter- Enterprise Engagement & Consumption Intra - Society Engagement & Consumption (DigitalEngagement) INTERLINK ENCOMPASSING DIGITAL ENTERPRISES AND DIGITAL SOCIETIES
  9. 9. INCLUSIVE DIGITAL SERVICES 4 CRITICAL SUCCESS CRITERION IN EMERGING MARKETS Affinity Personalisation, Experiential Alignment & Trust Affordability Total Cost of Service & Minimum Cost of Access Applicability Context based Offerings which have high Relevance Availability Immediacy & Reach The Four A’s of Inclusive Market Creation Leveraging Advanced Technologies to Deliver Inclusion & Robust Inter-linkages Between Digital Societies and Digital Enterprises will Maximise Socio- Economic Development Modern Technologies can be Leveraged to Drive Inclusive Market Creation
  10. 10. DIGITAL SERVICES ARE (ALSO) OFF-LINE TO ONLINE TRANSFORMERS Consumption & Engagement Consumption & Engagement Offline ONLINE Eco Systems Physical Electronic Offline Online Asymmetries Inclusion and Parity EMERGING MARKETS Digital Services should also Seamlessly Combine In the Emerging Market Context, the Off-Line World is Fraught with Asymmetry Digital Services will Trend Towards a Digital Democracy as Opposed to Digital Divide
  11. 11. The Last Mile is a Key Determinant of Inclusivity ‘LAST MILE’ FULFILLMENT EXPERIENCE DETERMINES INCLUSION Degree of Inclusion : Last Mile Challenged Against 4As (Affinity, Affordability, Applicability, Availability). Customer Facing Interface The ‘Last Mile’ is the Customer Facing Service Touch point & Includes the service eco-system and support system (including intermediaries) Inclusive FULFILLMENT is a key Determinant of Trust & Adoption Services Citizens Physical (Offline) Electronic (Online) Mobile (Online) Three Last Mile Scenarios
  12. 12. e-Service Last Mile M-Service Last Mile Physical INCLUSION DIMENSIONS OF E AND M-SERVICE LAST MILE E-Powered E-Centric Service Delivery (Selective/ e-Infra Dependent) M-Powered Evolved Mobile Digital Services (Inclusive/ Transactional) Physical (In person service delivery) m-Last Mile • Inclusive • High Immediacy • Affordable & Trusted Fulfillment • Location Sensitive • Personalised • Lower Transaction Cost e-Last Mile • Superior Experience • Urban Centric • Shared Access • Higher Transaction Cost
  13. 13. DIGITAL INCLUSION IN EMERGING MARKETS M-LAST MILE POTENT BUT FRACTURED Mobile Connectors to Scale Digital Services • Seamless Authentication & Validation • Robust Links – ToP, Enterprise, BoP • Relevant Apps for BoP and MoP • Seamless Payment and Fulfillment • Higher Affinity Customer Access Mediums • Contextual Ecosystems at MoP and BoP Realise Mobile Digital Services Opportunity e-Service Last Mile M-Service Last Mile Physical “Experience, Relevance, and Contextual Ecosystems - Key Focus Areas to Cure Affinity and Applicability Deficits of Mobile Digital Services”
  14. 14. …But Mobile Digital Services have not delivered to potential. (E.g. Mobile share in D- Commerce is circa 10%) Similar Deficit in M-Ads Entertainment and Payments FRACTURED INTERFACE BETWEEN DIGITAL & MOBILE WORLDS PERFORMANCE DEFICIT UNCOVERS OPPORTUNITY …Mobile Penetration in Asia exceeds fixed internet by 6-8X is the Primary Internet Access Medium Mobile Outstrips Alternatives vis a vis Basic Information Exchange But Lags in Digital Engagement – Leaves 90% Untapped Comparison with Developed Countries Promises Circa 100X Potential
  15. 15. 15 SCALABLE MOBILE CENTRIC API FRAMEWORK CAN BRIDGE FRACTURED MOBILE LAST MILE EXPERIENCE MOBILE.CO RICH DATA ASSETS CAN ORCHESTRATE NEXT GENERATION ENGAGEMENT > 7bn >3.5bn >$1.16Trn Connections Users Revenue Industry is the Primary Internet Access Medium Possess  the   required   assets Real  Time     Rich  Data   Assets
  16. 16. 16 LINKING THE DIGITAL WORLD TO THE MOBILE WOULD REQUIRE OPEN NETWORKS and API’S Global  Digital  Commerce Local  Digital  Commerce Long  Tail  User  Generated   Commerce Operator  API’s Mobile.Cos & Inclusive APIs can Orchestrate Secure Mediation & Positive Engagement Experience Consumers Payment   Channels SMS,  RCS-­‐E,   MMS Loca2on Device,   Customer   profile M2M Complex  Event/ Ac2vity Key  Partnerships “Plug  &  Play  APIs  can   create  a  Digital-­‐Mobile   Inter-­‐linkage  which  can   create  Explosive  Inclusion   &  Enhanced  Engagement   Experience” Social  and  Empowerment Secure  ID Privacy
  17. 17. λ Regulation λ Verification λ Trust Framework ORCHESTRATING MOBILE INCLUSION (& INTRUSION) KEY PRINCIPALS Sacheted - MicroX Service Fragmentation Proportionality Experience Translation Enterprise, ToP, BoP/MoP Immediacy - In time and space Engagement - Multi-Media (Voice, Text, Data, Video) Real Time, Omnipresent, Personal & Private
  18. 18. AFFORDABILITY ENHANCEMENT API FRAMEWORKS SHOULD FACILITATE SERVICE FRAGMENTATION Buy Micro & ‘No Commitment’ Psyche Affinity to ‘Cash’ and ‘ Liquidity’ Minimise Gap in Time Between Payment and Consumption Variability in Cost (relative to) Volume, Quality, Spend per period High Volume Consumer Key Triggers Addressed ThroughSachet MarketingPrinciples Digital Sacheting - “Breaking the Bulk” Micro-X (Voucher, Insurance, Finance, ……) Contextual Fit of the Payment Instrument vis Consumption Model will Determine Viability
  19. 19. Citizen Empowerment TRANSLATING DIGITAL ECOSYSTEMS AT TOP AND BOP KEY DELIVERBALE FROM API FRAMEWORKS e- Last Mile m- Last Mile Transaction fulfilment Transaction fulfilment Sustainable Digital will span both e and m fulfillment & Link Enterprises at the ToP to the MoP and BoP m- Implementation will drive a broader pool of consumption
  20. 20. Mobile Money P2P transfers, Institutional and OTC Payments USSD, APP, NFC Interface >1.3mn  Subscribers Micro Insurance Daily Payment & Coverage Rs.1mn to 5mn for Rs 1 and 5 per day. SMS, USSD, M-Money and Operator Billing Fulfillment Most  Subscribed  Accident  Policy   in  Sri  Lanka  >225K  Subscribers SERVICE INNOVATION CENTRED ON MOBILE FULFILLMENT SRI LANKA MOBILE MARKET CASES Digital Vouchers Gift Voucher via SMS USSD Product Code. Fulfillment via SMS, USSD, APP, Operator Billing, Loyalty Points, Mobile Money >11,000  Vouchers  Sold  From   Launch
  21. 21. API Rich Application Development Environment with plug and Play Connectors to SMS, USSD, Location, ID, M- Ads, Mobile Money & Operator Billing. 1,500  Applica2ons,   350K  Users Medical Appointments Booking & Payment System. Fulfillment via Web, Call Centre, IVR, Operator Billing, Mobile Money, . INTERNET PAYMENTS (Via Mobile Money) Mobile Money payment with two factor authentication Largest  Distributor  of  Medical   Appointments  >30,000  pm E & M Education Secondary, Tertiary, Language and Vocational Education Web, SMS, USSD, Mobile Money and Operator Billing Fulfillment >23,000  subscribers SERVICE INNOVATION CENTRED ON MOBILE FULFILLMENT SRI LANKA MOBILE MARKET CASES >100  Web  Sites  
  22. 22. of  the  global  ci<zen Digital  Empowerment INFORMATION SOCIETY will bridge ToP and BoP Global-Local, Enterprise-Citizen & ToP-BoP INTERLINKAGE WILL SPAWN INCLUSIVE DIGITAL SOCIETIES Mobile can Accelerate the Establishment of Citizen Driven Digital Societies which Span the Socio Economic Pyramid, are Inclusive and Empowering Inclusive Digital Commerce will Create a more equal (Commercial) World & Sustainable Socio-Economic Development
  23. 23. SUSTAINABILITY CHALLENGE ? SHARED VALUE CREATION DRIVES EXPANDED CONSUMPTION Shared   Value Crea2on Social Economic Environmental Development ConsumpIon Diligent Focus on Net Footprint and Environmental Impact will ensure Shared Value Creation sums to Sustainable Development
  24. 24. CONVERGENCE ACROSS E, M, ToP and BoP HOLISTIC SOCIO ECONOMIC DEVELOPMENT MULTIPLIER CONVERGENCE E and M Convergence via Smart Devices ToP and BoP Convergence via Information Societies CONSUMER SURPLUS Productivity + Efficiency Dividend Delivered Via Digital Empowerment of Citizens and Enterprises can be as high as 4 x Direct Investment INDIRECT CONTRIBUTION
  25. 25. Thank  You