Future networks wrap-up
The 2015 Digiworld summit sessions devoted to telecoms gave off a view on the move toward very high speeds in mobile, fixed and satellite and how this is strongly supported by the EC.
Customer push for higher speeds
The discussion started around customer needs. The Gigabit race is driven by a strong customer demand for speed and volume Mr. Maloberti highlighted. Customers need good network quality and experience and that is the reason why telcos will continue to invest in networks.
Valérie Chaillou, head of telecoms at IDATE confirmed this trend. She gave a wide panorama on VHB fixed broadband connections in the world. There were 265 million VHB fixed connections in the world as at end 2014 according to IDATE (three main architectures are considered as VHB: FTTH/B, FTTN and FTTx/D3.0 deployed by cablecos). FTTH/B is largely available in most-advanced Asian countries and the most deployed architecture among FTTX connections above VDSL and far from FTTxDOcsis3.0. At a regional level, major discrepancies remain.FTTx Docsis 3 dominates in North America while FTTH is the main technology deployed in other regions. Pierre Michel Attali had a more French focus and mentioned 3% of French people get fiber-based internet access at home. On the mobile side, Valérie Chaillou mentioned that more than 500 million LTE subscribers were registered at world level as at end December 2014. She illustrated how massive is LTE adoption among mobile operators and customers. Distribution of LTE mobile connections is not homogeneous and the most-advanced Asian countries are again eading the pack. China the guest country of this 37th edition of the Digiworld Summit jumped at the second world rank in the first half 2015 with a total of 225 million subscriptions (compared to almost 100 million at year-end 2014). And migration to LTE is really much faster than 3G.
A Gigabit race being run at a different pace across the globe, but with one thing in common: the growing involvement of local authorities
In the USA, Google fired the starting gun for the Gigabit race in the US. Google’s very local approach attracted a great deal of attention from cities which, when they failed to be chosen as one of the company’s rollout locations, elected to become involved in deploying their own infrastructures, in some instances in partnership with other local bodies such as universities. AT&T, which had initially focused its efforts on VDSL but is now also deploying FTTH networks, which has enabled the carrier to introduce its 1 Gbps Gigapower plan.
In Europe, Gigabit networks are also making headlines in Europe, although the situation is very different, largely because operators there are taking more wide-ranging technological and commercial approaches. Some were quick to gain a foothold in this new market, while others are waiting for market demand to build. Although the targets for connection speeds set in Europe Digital Agenda and mentioned by Anna K from the DG Connect are more modest, Gigabit-speed access could nevertheless become an industry standard for both public and private sector players, as local authorities begin to play a larger role in SFB/UFB network rollouts. The EC public consultation on the needs for internet speeds and quality beyond 2020 runs til December 7th, 2015.
Fixed, mobile and satellite are in the game
On the fixed side, several promising technologies to reach 1 Gbps. Valérie Chaillou highlighted that theoretically, several technologies (FTTH, Docsis3.1, FTTN) are capable of providing end users with a 1 Gbps connection. Naturally, end-to-end fibre connections are currently the fastest ones available. The technologies used by new solutions that rely in part on copper or coaxial networks, and which have recently been standardised, will become commercially available in the coming months.
A number of technologies on the mobile side should have a significant positive impact on mobile network performance: Licensed-Assisted Access (LAA) which will bring more flexibility to mobile operators for improving throughputs and capacity through the use of widely available and freely usable unlicensed spectrum, LTE Wi-Fi Aggregation/ LTE-H is expected to unify both LTE and Wi-Fi, improvements in carrier aggregation, adapting LTE for machine type communication, Device to Device (D2D) is a mode that enables two devices to discover themselves directly and communicate with or without the need for a network. 5G is expected to deliver 1 Gpbs internet. But 5G is at an early stage even widely accepted by the industry. 5G basic principles are widely accepted within the industry but it is in an early stage. It aims to provide 1000 times higher wireless area capacity and more varied service capabilities compared to 2010. The big change, understood to be the one that will not be compatible with LTE evolution, pertains to the new radio interfaces, which must be developed for 5G.
There are, currently, in the industry, many different proposals of foundations for those new air interfaces and there is still relatively little on the choice to be made. There are basically two types of air interfaces, one based on orthogonal waveform and that is more or less an evolution of that currently used in LTE OFDM, and another, based on non-orthogonal waveforms. To support those multiple waveforms, the frame structure will be adaptive.
But Jean-Hubert Lenotte from Eutelsat asserted satellite is coming back in the game. “Infrastructuer is the main bottleneck to more growth.”
He highlighted that satellite performs well compared to terrestrial standards and is also competitive in certain circumstances. "Cost for satellite is going down: divided by 5. Much more capacity on satellite, much more flexibility”
Satellite is able to deliver high speed internet at reasonable cost in remote regions and rural areas where terrestrial infrastructure/coverage is lacking.
Is network virtualization a game changer?
In addition to the race in the deployment of fixed and mobile superfast systems (link to forum#1), networks’ future evolution is directly linked to the integration of cloud architectures and the virtualization solutions. The concepts of SDN, NFV and network virtualization are considered as the main upcoming technological disruptions in networking architectures and are at the heart of telcos’ and equipment suppliers’ strategies.
Round-table: Reality check
Moderated by : Vincent BONNEAU, Head of Innovation Business Unit
Mervyn KELLY, EMEA Marketing Director, Ciena
François LEMARCHAND, Head of SDN product strategy, Ericsson
Michael RITTER, Vice President Technical Marketing and Analyst Relations, Adva Optical
Laurent BILLES, VP Network Architecture, Orange Labs Networks, Orange
Software Defined Network and Network Function Virtualization are two very hot topics in the telecommunication industry. What are their benefits, what is the maturity of the solutions available, the challenges that will have to be faced and most importantly as well with which outlook for the coming years? Those were the questions raised and answered during this session at the Digiworld Summit 2015.
What are NFV and SDN?
SDN stands for Software Defined Network. It is the decoupling of the control plane and the user plane in the network. Network Function Virtualization on the other hand is the softwarization of network function that are run on legacy x86 IT servers rather than on dedicated and proprietary hardware today found in mobile networks.
Several benefits can be listed
- Financial savings notably through CapEx and OpEx savings. While OpEx saving were mentioned as quite obvious in near future, interviewees were more cautious regarding possible CapEx saving, noting that it would take more time to materialize.
- Energy savings resulting from a more efficient and flexible network where resources can be pooled and distributed on the field depending on real usage,
- Time to Market: Virtualization of the network enable to launch services more quickly and thus to be more competitive and reactive on the market
- Foster innovation : thanks to the flexibility and agility that SDN and NFV enables, new services can be launched and the reliance of operators or service providers on infrastructure equipment provider development cycle is less important
Although a hot topic, the stage of maturity of SDN and NFV is still at the beginning. Around 30 proof of concept have been demonstrated, some trials have been carried out, some commercial solutions are even available but very few commercial deployments so far.
What came out is the fact that for a greenfield operator, SDN and NFV can be deployed quite quickly and quite successfully. Challenges are met when SDN and NFV have to be integrated in existing network.
Interoperability today is a real issue. There are a lot of solutions from multiple vendors using very different standards. While the number of initiatives tells a lot about the opportunity that the industry sees in SDN and NFV, it also raises its own problems.
In this context, open source will be a key driver to enable interoperability between all vendors and more importantly to foster innovation by enabling new players to develop their own service.
Extrait du live-tweet
— eric debeau (@ericdu22) 19 Novembre 2015
Challenges and impact on the industry
The two main challenges for the years to come will be the interoperability of solutions as well as the ability to handle security very seriously. Price of course is a big question. Of course, pricing should be more affordable but to what extent is the big question. By 10%? 20%? Currently we have not enough hindsight to give an answer to this question.
What is sure is the fact that SDN and NFV will have a big impact on the industry. Operators and service providers will have to move from a telecom centric environment to an IT centric environment, which is not a small thing for an operator. Indeed, Mobile Network Operators will have to rethink their organization and way of thinking. The transformation of infrastructure from a product to a service will usher many opportunities but surely require adaptation.
As warned during the session, business plans will have to be very conservative because we still lack some hindsight as most deployment will take place between 2018 and 2020
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— eric debeau (@ericdu22) 19 Novembre 2015
More than 3,000 industry professionals met in Montpellier to debate the crucial issues shaping the digital economy
IDATE’s annual international conference has taken hold as one of the rare opportunities for frank and open discussion on the economic and strategic issues that digital innovation stakeholders are grappling with. The success of this 37th edition confirms the importance of having a premier annual event in France and in Europe to debate the shared evolution of the Internet, telecoms and digital media industries, and the many sectors now entering a new stage in their digital transformation.
François Barrault stressed that, “with the dramatic circumstances that marked this year’s edition, we were especially touched by the presence of all of the invited speakers who travelled from the four corners of the globe to be here, and by the loyalty of the participants who made the event such a success. So I would like to extend our warmest thanks to each and every one of them”.
The DigiWorld Summit’s popularity has not waned. Attendance was strong once again for this 37th edition, with more than 1,200 participants on hand (a 3% increase over last year) to debate the issues with 120 invited speakers, during plenary sessions devoted to the core theme of “Digital first”, and at the many thematic forums: Connected things, TV & Video, Future networks: the Gigabit era, Future networks: virtualisation, Video games, Smart city and Digital economy.
But it was the quality of the speakers and their talks that made this such an outstanding year, along with the involvement of IDATE experts whose job was to provide context and perspective on each of the topics. If it is impossible to provide a full account of many points of view expressed during the two days of the DigiWorld Summit, we will cite as noteworthy the debate between Sébastien Soriano, Chairman of French telecom regulator, ARCEP, who called for a rebalancing of the regulation governing telcos and the Internet giants, saying, “to regulate the barbarians, regulation needs to be barbaric,” whereas Bruno Lasserre, Chairman of France’s Competition authority, in theory prefers not to impose regulations on the Internet which is a still untapped source of innovation, and because, “we do not regulate in the name of economic protectionism”. Another highlight was the keynote from the representative of Youku Tudou, often called the Chinese YouTube, which surprised everyone with the power and originality of its business model, and which has announced the launch of a European version in Q1 2016, starting in France, Germany and the UK. Also noteworthy were much talked about contributions from Airbnb, Booking.com, Sigfox and the LoRa alliance, IBM, Telefonica, SFR and Orange, along with newcomers to our event, now in the throes of a major digital transformation, including General Electric, Legrand, SEB and TV networks such as the BBC, France Télévisions and TDF…
This year was also an opportunity to place the DigiWorld Summit firmly at the heart of DigiWorld Week. Wikipedia founder Jimmy Wales travelled to Montpellier as our special guest and to talk about the power of crowdsourcing, which does note need massive spending on marketing to succeed and continue to deliver an open approach, such as providing free access to the famous digital encyclopaedia in Africa thanks to partnerships with mobile operators. A week devoted to all things digital that played host to more than 3,000 industry professionals and over 300 speakers at some 40 events of all shapes and sizes (symposiums, workshops, hackathons, one-on-one meetings, exhibits, etc.), exploring a wide range of topics and formats: the Internet of Things, e-health, smart agriculture, video games, speed recruiting, start-up marathon, design applications, the digital arts… A hugely popular event that has helped to confirm the Languedoc-Roussillon region and Montpellier, its French Tech city, as a vibrant hub on the global digital industry map.
The first edition of the DigiWorld Awards, hosted in partnership with Business France and La French Tech, capped off the week’s events by throwing the spotlight on start-ups created by French entrepreneurs outside of France. And the winners were: Sharalike (USA), Locarise (Japan), Powertime (South Africa) and Fruition Sciences (Special Jury Prize, France).
Find the complete details on the 2015 DigiWorld Summit plenary sessions, forums, exhibitions and evening events:
French Minister of the Economy, Industry and Digital affairs
In the Digiworld Economic Journal No. 100
ICTs do not constitute a sector of our economy: they are its defining new element. We have indeed rarely seen technological breakthroughs that simultaneously alter the three pillars of an economy: its production, its consumption, its labor relations. Whatever their outcome, they already amount to a new "Great Transformation" of our societies.
First, and most classically, ICTs were the main source of productivity gains in the recent period. From the 1990s on, their production with an ever-increasing efficiency (in the so-called "ICT producing sector") but also their diffusion and their use in the broader economy were a major element in an otherwise moderate output growth environment. Between 2001 and 2007, its contribution to annual GDP growth in eight major EU economies  was estimated by CORRADO & JAEGER (2014)  to be as high as 1 percentage point.
Second, ICTs offer new goods to consume and, more interestingly, even change what "consuming" means, legally, statistically and culturally. Let me provide some examples. "Big data" make tailor-made products always more available, but raise difficult property rightsquestions, at the intersection of privacy, innovation and growth: we can neither wave all personal controls, nor destroy all incentives for the first-collecting firms, nor prevent the rest of the economy from exploiting them to their full value. A new compromise must be forged, with relevant tradeoffs between privacy and innovation being discussed openly. The "platform model", with its natural tendency towards network effects and economies of scale, must be integrated within our competition policies. The "sharing economy" has met a well-deserved enthusiasm, especially in France, but a big part of it is still not included in GDP figures. The "Internet of Things" is an impressive promise, but cannot fit the traditional boundaries between sectors, and will probably run into traditional management culture's resistance.
Third, ICTs create a new demand for untraditional forms of workforce. By reducing and transforming the need for intermediaries, by improving matching efficiency between customers and providers, they make work more flexible and more independent. In France, the secular movement towards payroll-employment has stopped in the early 2000s. Since 2006, the share of independents in total workforce, when excluding agriculture, has even risen by 26%! The status called "autoentrepreneurs", for instance, has found a real success, with one million people now declared, precisely because it allowed for the required simplicity and flexibility.
Our infrastructure is already first rate. Broadband access is higher than the OECD average. Though we lag behind in terms of fiber development (which accounts only for a little less than 4% of high speed subscriptions against 17% for the OECD average), we are rapidly catching up (fiber subscriptions grew by more than 60% in 2013-2014). More generally, in recent years, increased competition has generated lower prices, simpler offers and more innovation.
But our social and political institutions, inherited from a period of Taylorism, mass consumption and catching-up development are ill-suited to meet these new challenges. Their inertia has long been seen as a source of protection, but may now be stifling economic dynamism to a greater extent than we thought, while not even serving well their primary goal of social protection and individual empowerment.
To rejuvenate their spirit, we must ensure that they still support innovation, diffusion and inclusiveness. These are the three targets of my nationwide economic goals: deliver "Nouvelles Opportunités Economiques" (New Economic Opportunities).
Innovation is a complex phenomenon. It requires a subtle mix of flexibility, investment, cooperation and competition: firms must have the means to innovate, the opportunity to learn and the incentive to develop. We already made a historical effort to support the profitability of corporates and indeed profit margins which were falling since 2007 have been up since mid-2014. We also boosted the development of good practices through the "Industries du Futur" initiative. But we need to go further in removing barriers to entry in overregulated sectors and opening up data to competitors. We should also support the development of venture capital, which has proved a key element in the transformation of our numerous startups (where Paris ranks 2nd in Europe) into "unicorns" (where France ranks only 5th in Europe). Banking intermediation is indeed inadequate when risks are high, close screening is required and immaterial collateral is not easily pledgeable.
Diffusion is a slightly related, though different, issue. The productivity slowdown is much less salient at the technological frontier than in the rest of the economy: in OECD countries, output per worker increased annually by 3.5% between 2001 and 2007 for the 100 most productive firms in each manufacturing sector, compared to 0.5% for the others. In services, these figures are respectively 5.5% and 0.3%! This gap is not only very large, it has widened. There is something broken in the diffusion machine. It is also worth remembering that productivity growth does not come from all firms increasing productivity. Around half of the aggregate productivity gains in industrialized countries are generated by faster growth of the most productive firms that attract more workers and more investors. We must encourage this factor reallocation (between firms and between sectors), be they labor – through increased flexibility – or capital – through lower bankruptcy costs.
Inclusiveness is key. The polarization phenomenon, whereby technology destroys "routine" jobs in the middle of the skill distribution and creates opportunities for both skilled and unskilled work, is well known and well documented. France is no exception for the hollowing out of routine jobs (bank clerks and secretaries for example). However, it exhibits a relatively high rate of unemployment among high school dropouts (16,1%) and more generally among low skill workers. It is an apparent paradox, since ICTs either improve their productivity – for instance by improving matching in personal services – or at least cannot act as a substitute– for all activities where social interactions are needed. We are dismantling outdated regulations and lowering labor costs to bring on the board of innovation the outsiders of the "old" industrial society.
Technology is inherently disruptive. But politics is about inclusiveness and trust. Forging a new social pact is not an additional burden on the road to a new economic model: it is a necessary step, for it conditions its long term sustainability. We must allow the necessary flexibility by making social protection better adapted to independent work, multiple activities and diverse careers. We must also provide the necessary skills (through training as well as initial education) to answer both the present and future demands.
At which speed will ICTs develop and what level of growth rate will they help us achieve? Robert GORDON has brilliantly exposed the "supply side" hypothesis of the "secular stagnation" debate. But at the other end, we hear also the arguments of those telling us we are on the verge of massive breakthroughs. Should we turn to statistics? Yes, they seem to show a slowdown in ICTs productivity but at the same time venture capital investments in the US, which were never higher in fifteen years, promise renewed dynamism.
Which employment structure will they foster? The studies on polarization now describe well what happened in the last decades. But in the coming years we may see a new surge in jobs with intermediate skills, for instance in the medical sector where the productivity of nurses could soon be multiplied. For example, by collecting data from a number of wearable devices or sensors, the "internet of me" in the health care sector will mean much more personalized demand from nurses who will become much more effective at responding to this demand. Again this requires investment in training.
All in all, these innovations are paved with uncertainties, as "industrial revolutions" always were. If you had asked an Englishman about the industrial revolution in 1780, he would have asked what you meant. In 1820, he would have expressed his longing for a vanishing agricultural society. In 1860, he would have claimed that it lifted millions out of poverty and opened the way to a supposedly everlasting progress.
I do not assume that present innovations will follow a similar course. But I believe that we cannot foresee, even less enclose, what is yet to be. We must take the best from our past (the ambition of our social protection, the talents of our industries, the quality of our infrastructures), seize the maximum from our present (the renewed demand for work, the widening of opportunities, the creation of new services and new markets) and be ready for the future.
 Austria, Finland, France, Germany, Italy, Netherlands, Spain and the United Kingdom.
 CORRADO, C. and K. JÄGER (2014): "Communication Networks, ICT and Productivity Growth in Europe", The Conference Board, New York, December.
More information on DigiWorld Economic Journal No. 100 "Digital innovation vs. secular stagnation?" on our website :
CEO, IDATE DigiWorld
The common perception is that digital innovation is everywhere, and that the pace of innovation is accelerating as it applies to every sector, every business and every organisation.
Despite which, economists are wary. Productivity gains have clearly been slowing since the mid-2000s, even before the economy collapsed in 2008. And this is not a phenomenon that is confined to Europe, which could explain why it lags behind market leaders, but applies to the US as well. We are reminded of the words of Nobel Prize winning economist, Robert Solow, back in the 1980s: “You see the computer age everywhere but in productivity statistics”. Although we are by no means enjoying gains comparable to those of the 1920s or the great post-war boom, the effects of the Internet revolution can still be seen in statistics for 1995 to 2005. In other words, before the iPhone, before the smartphone and mobile Internet explosion, before 4G, the cloud and the onset of Big Data…
So the experts are divided into two camps: the techno-pessimists aligning themselves with Robert J. Gordon are convinced that the potential for digital innovation is dwindling, sinking very quickly into useless innovations, the latest gadget for the latest smartphone. They do not see any disruptive innovation that will impact productivity and growth in a way that is comparable to the steam engine or the electric motor. After all, they point out, history does not end here: up until the latest industrial revolutions, people in Western societies lived with very moderate productivity gains and GDP growth.
Meanwhile, the techno-optimists aligning themselves with Brynjolfsson and McAfee remain confident, pointing to new waves of innovation with artificial intelligence, new generation robots, the Internet of Things and 3D printing. Even Moore’s Law – the Law named after the co-founder of Intel who, fifty years ago, predicted that the number of transistors in an integrated circuit would double every two years, and which, somewhat unfortunately, appears to have caught on as the measuring stick for the digital revolution’s maturity – is expected to continue to hold true for at least another ten years. From a more general perspective, there are some such as Joel Mokyr who express their optimism by saying we underestimate the effect that the Internet has on change and improving human welfare, on accelerating access to knowledge in every scientific and technical field.
Behind this very black and white division, there are those who are interested in the failures of the statistical apparatus, and of price effects (deflation) that can distort the measurement of the different sectors’ ICT spending. Ultimately, however, their attention is focused on the conditions that would help reduce lag time, which is perceived as the time it takes for digital technologies’ productivity potential to kick in. Here, authors such as Gilbert Cette and Philippe Aghion stress the importance of ambitious and efficient public policies on education and training, seeing them as the cornerstone of a successful innovation policy and an answer to the phenomenon of qualified job opportunities being concentrated in a few major cities. They also stress the importance of reforms if we want to see the Schumpeterian cycle of innovation play out in a fluid and positive way, reduce the divide between a small fraction of highly productive businesses and an economic fabric turning in mediocre performances, while building up the majority’s trust in the digital transformation. We will add that it is useful, as Larry Summers does on a regular basis, to stress the importance under these circumstances of investments in infrastructure (think fibre and superfast mobile) and that we are not forbidden, as Daniel Cohen suggests in his latest work, from calling for an examination of the wisdom and quality of innovation policies, by underscoring the ways in which digital technologies can contribute to turning the tide on climate change.
|Digital innovation vs. secular stagnation?
N° 100 - DigiWorld Econcomic Journal
The DigiWorld Economic Journal, is celebrating its 25th anniversary with this issue No. 100. For this jubilee issue, Gilbert Cette and Yves Gassot Editors have collected contributions from leading economists who examine the links between digital innovation and the associated developments, directly or indirectly, in terms of productivity, growth and job creation. The guest authors do not all adopt the same angle of analysis nor do they all share the same theses... But, in reading this issue, you will discover a different way of thinking about the big questions raised by these topics.
Buy the DigiWorld Economic Journal now !
Connected things as a strong market game changer?
Connected objects put together several markets. In 2015, 42 billion things are connected. In 2025, 155 billion things will be connected to Internet.
The value chain is different. Machine to machine implies a siloed connectivity, while the industrial network implies an interconnected connectivity.
Smart homes materializes a broad economic system, may be with too many possibilities. At present, the service is not up-front. There is a lack of services on the top of certain devices. The value added services isn't clear up to now. To take off the market needs to lift several barriers. First, price is the limit.
Connected objects will become one of the key pillars of tbe industrial giants in their servicisation strategy.
Luc Bretones, EVP Technocentre & Orange Vallée, Orange
To invent innovation locally you need to work at the local level so Orange has got offices in several countries.
IOT is a pillar of our innovation strategy. Orange has to work on value propositions. SIM-as-a-service is now on the market. New distribution models are created. At the same time, security has to be tackled. We want to customize customer experience.
Our company has a lack of good designers. The model is evolving from an Internet of things towards an Internet of services, from business to customer services, where you can monitor your home thanks to an SMS. Monitored security is on. Every area of life is under way. The car has got a specific need for connection.
Orange is an IOT data operator aiming to implement:
- connected devices
- internet of machines
- internet of objects
The objective is to get quickly a critical mass. To implement open innovation our company has to set up vertical partnerships. IOT is a broadfield in construction. On this topic data privacy is at the heart of Orange's concern.
What are the key current consumer applications and their business models?
- 90% value comes from services other than connected objects: Be it a better management of service to make it smooth, to guarantee the quality of service and delivery;
- Orange packs 4G in expectation to connect any objects, hybrid networks on different spectrum (LoRa and wifi);
- Orange connected services cover both B2B and B2C;
- Extend connectivity from cellular network, wifi to other wireless technologies: BLE, zigbee, etc.
- Spectrum of connected products and services: Orange Drive (critical, launched early 2015), Orange Smart Home, Silver cocoon (plug and go data platform), Pops by Citizen Science (connected health);
- Customer experience is the top priority – recruitment of designers as an example.
Orange ambition to be the data operator by 2020.
Orange Datavenue (data powered open platform): An IoT enabler platform for data storage, aggregation and securing, in wide range of verticals. Development of new B2B services that require to conclude major partnerships on verticals (entreprises and open data).
Round-table: How will connected objects impact our lives?
Moderated by: Olivier CARMONA, Director of Business Development, Awox
Xavier BOIDEVEZI, Vice President Business Development & Digital, SEB
Bernardo CABRERA, Head of M2M Marketing & Projects Management, Bouygues Telecom
Ludovic LE MOAN, CEO, Sigfox
Machine to machine is a reality. Today there are around 10 million of connected objects in France. 10% - 20% home appliances in the market have some connectable features.
From the car to consumer appliances, smart buildings, cities, any object can be connected now. At this level, there is a new business market emerging: security with two key elements simplicity and cost.
Generally four standards for connected devices exists, being endorsed by some telecom and internet giants like Google, Apple Homekit, Qualcomm.
What do I do with a connected object?
The key challenge is to make sense of usage for the consumer in terms of connectivity. The sector has to work more on positioning.
Today, music devices must be connected. For this segment connectivity is a must. For lighting, the market has been tackled with a different approach. With a connected lamp you can change its color right now. It's still a fragmented market.
The key driver is to work on the ecosystem of consumers. The global objective is to simplify life and offer embedded devices.
Experience should be at the benefit of technology. You're at the office and you want to start cooking your meal in the oven. How can we manage interoperability between products? It will bring added value. We need to explain what added-value this will bring to the end-user. So we need to move from manufacturing to service. At first, an innovation always seems crazy. Look at the mobile phone. Hackathons might be a way to develop applications and find a pool of ideas. We need to think big.
In terms of data monetization we have to find new models. There is a surge to be able to network vertical data and aggregate them from several fields of our lives (health, security, trips...). Digitalization and tools are increasing. Brands want to stick to consumers. The focus has to be laid on gather then analyse then exploit to finally aggregate.
Keynote: Paul-Edouard Launay - Jasper
Jasper is a start-up, working on operational excellence in IOT. Its aim is to launch, manage and monetize your IOT devices.
IOT is for everywhere and for all sizes of businesses. Services are for all of us. Jasper means to monitor and master the lifecycle of devices: manage / deploy / monetize. IOT always implies services we support. To deploy the equipment at the international level means having a seamless device.
- Business model is not clear yet (i.e. one of the invited company, SEB is still exploring its Business Model).
- Costs: Talking about Smart cit, how will the charges of connectable infrastructure and devices be covered, to whom?
- Energy: Identify the power consumption of devices; apply Low Power Wide Area (LPWA).
- Technologies come after consumer expectation: important to figure out what consumers value the most, what services can be offered to meet their needs? Then technologies come to serve the purpose.
To drive market taking-off:
- The majority of value will come outside the peripheries of home sensors or devices, but services.
- The market waits some model-effect of big manufacturers’ move, in expectation of lowering entry barriers, for example, lowering the costs.
- After the decision on what services to propose to consumers, both SEB and emphasized that true benefits/utilities will be delivered by partnership (open innovation) and by establishment of the ecosystem.
Data analytics allow home appliance makers to discover some key metrics associated with consumer expectation when the devices are being used, thus in return contributing to new services development ( transform themselves to service providers from pure manufacturers).
Advertising might be possible but commercial viability has not been proven yet. Data analytics are likely to make more sense, estimated by SEB.
Subsidiary of La Poste, DocaPost
- Again the key question is the users’ expectation from IoT
- The objective is to access services in wellness, energy, security, connected home and connected city to have a better life.
- “IoT, new vector to develop proximity services” according to David De Amorim
- The innovation will come from the combination of data from different objects and services . It's important to develop an ecosystem
- The way to develop IoT for DocaPost, subsidiary of La Poste will be done through the development of a cross vertical platform (called Le Hub) to be universal, advantages based on neutral both technically and positioning. La Poste wants to address France entirely. The hub will be launched next year and be showcased during the CES in Las Vegas in 2016 with Atol, BNP, Legrand, schools and other start-ups
- La poste wants to address all the sectors. That implies the use of the integration of many technologies to address specific sector such as Sigfox for smart meters or WiFI for cameras security
- For security concerns, La Poste has planned to enable users to manage data
Industrial Internet round table
Moderated by: Ezio ARMANDO, Managing Director in charge of Emerging Technology for Europe, Afriqua and Latin America, Accenture
Vincent CHAMPAIN, Operations Director, GE Corporate France
Andreas FIER, Head of Academic Relations, Deutsche Telekom AG
Didier GUILLOT, Innovation and multi-utilities Direction, director, Sagemcom
Rolf RIEMENSCHNEIDER, Head of Sector for Internet of Things, European Commission
Soline OLSZANSKI, VP Strategy & Innovation, Hub One
Olivier ROUXEL, in charge of RFID & IOT missions, DGE
The definition of IIoT (Industrial Internet of Things) remains blurred. Here, Accenture defined the IIOt as the connected applications and services for business purpose, a broader scope than the conventional definition focusing on manufacturing.
About the IoT architecture and the technologies:
- Deployment of the architecture is not the key question
- Low cost and very efficient architecture required
- The cost of connecting, analysing is almost zero according to GE
- Building consistent infrastructure to connect objects first !! then modules and devices
- The issue is to integrate, the challenge is who is managing and maintaining this architecture
- LoRa identified by panellists as a good technology thanks to the alliance behind
- Triangulation of technologies to locate objects; it’s the compilation of technologies that bring value
Main benefits from deploying IIoT:
- Additional productivity, more reliability especially for oil and gas sectors, new services to client
- From technical perspective : miniaturization, radio protocols and power consumption
- Environmental (energy, lighting), supervision and monitoring for building, assets and also staff, vertical applications
- Example in the airplane sector, many applications regarding the planes, the truck etc and also for the customer interaction
Keys of success for IIoT as the deployment path is currently low
- Business questions to be resolved : how to bring value out of the combination of the use of the technologies
- Security compliance to be resolved for some sector for instance in airplane sector
- 3 Focus to be addressed for Soline Olszanski from Hub One: what services bring, ecosystem to achieve a mass market, business model
- Standards questions to be fixed : fragmentation and lack of standards. Standardisation is coming
- No technologies war : Each technology will have its place in the IoT according to Didier Guillot from SagemCom
- Ecosystem is required otherwise development projects will take longer
- Needed for skilled people
- Continue beta tests
Next step is the finalisation of end users applications.
Consultante Senior, IDATE DigiWorld
The Gigabit race is now a reality, especially in the United States where private sector players and local authorities are all getting involved in furthering the deployment of new generation infrastructure. Elsewhere in the world, Gigabit access is already in place, notably in Asia, or, in places such as Europe, poised to become a new target product for the marketplace. This report explores regional approaches to Gigabit-speed access, and describes how the different types of players are positioned. Private and public sector stakeholders may not have adopted the same strategies, but all have a vital role to play in this search for increased network performance.
Several promising technologies but only a single solution available today
Theoretically, several technologies are capable of providing end users with a 1 Gbps connection. Naturally, end-to-end fibre connections are currently the fastest ones available. The technologies used by new solutions that rely in part on copper or coaxial networks, and which have recently been standardised, will become commercially available in the coming months. But this does not prevent ISPs wanting to implement them from already talking up how fast their new access plans will be. We should, however, be circumspect about the announcements we are hearing on Gigabit-speed networks. In the vast majority of cases, the headline speeds being announced are the absolute maximum speeds available, are not guaranteed, and depend heavily on circumstances such as where the customer is located, the technology employed, time of day, access conditions, etc.
A Gigabit race being run at a different pace across the globe, but with one thing in common: the growing involvement of local authorities
Even if Gigabit-related talk is still largely a marketing tool, most ISPs have set it as a target connection speed. It was Google that fired the starting gun for the Gigabit race in the US, as the company was tired of having to depend on ISPs’ disparate networks. Google’s very local approach attracted a great deal of attention from cities which, when they failed to be chosen as one of the company’s rollout locations, elected to become involved in deploying their own infrastructures, in some instances in partnership with other local bodies such as universities. The combined involvement of a local authority and a new competitor from the private sector has had a tremendous influence on veteran operators like AT&T, which had initially focused its efforts on VDSL but is now also deploying FTTH networks, which has enabled the carrier to introduce its 1 Gbps Gigapower plan.
Gigabit networks are also making headlines in Europe, although the situation is very different, largely because operators there are taking more wide-ranging technological and commercial approaches. Some were quick to gain a foothold in this new market, while others are waiting for market demand to build. Although the targets for connection speeds set in Europe’s Digital Agenda are more modest, Gigabit-speed access could nevertheless become an industry standard for both public and private sector players, as local authorities begin to play a larger role in SFB/UFB network rollouts.
Status of 1 Gbps plans around the world
Although users’ needs are increasing, Gigabit-speed access still seems “too much”
A great many companies, both ISPs and others, are working on developing new applications in the arenas of entertainment, video, health and education. Applications that need a great deal of bandwidth to run as smoothly as possible. But the bottom line has remained the same for years now: it is the increase in user numbers and devices being employed that drive up demand for bandwidth.
Two main pricing strategies: charge the same as before or monetise new features
Selling a Gigabit plan allows an ISP to position itself as an innovator, technically capable of delivering ever faster connections. From a marketing and commercial standpoint, however, the strategies being adopted for Gigabit plans are not really new: either an ISP will include a Gigabit plan in its product line as the logical next step in providing superfast access, charging more or less the same prices as before, or it will work to capitalise as much as possible on its new product by billing customers for each new feature enabled by its infrastructures – a good example of this being MyRepublic in Singapore.
Find out more information on "Content economics market" in our dedicated market report
Consultant Senior, IDATE DigiWorld
IDATE has just released its latest market report on connected cars, which is part of its ongoing series on the Internet of Things and M2M. The report provides an opportunity to take stock of a major market whose rate of development appears to be accelerating, with a series of announcements, veteran industry leaders such as Mercedes talking about driverless cars, the rise of newcomers such as Tesla, and connected car projects coming out of China, as foreshadowed by the new joint-venture between Internet giant, Alibaba and one of China’s first car-makers, SAIC Motors.
This is a market that every stakeholder along the value chain is gearing up for.
The strategy of most manufacturers is to make their cars connected. The main driver here is based on the regulation related to safety issues in Europe and the underlying revenue opportunity for them. In the USA, the recent GM announcement to embed 4G modules in all new cars is seen as a key trigger for market take-off. For telcos, the revenue opportunity could be interesting as the connected car will generate traffic that telcos will charge for indirectly (through the automobile manufacturer).
All main M2M mobile carriers are involved in the connected car space, as the connected car represents one of the major markets in volume. In a context where their traditional mobile revenues are flat and even declining in some regions, providing mobile connectivity in cars is a key business opportunity for telcos. Beyond car-related applications in driver assistance, from the perspective of a telco, the car can be seen as an additional cellular device, with a potential high-consumption service profile with such usage as the mobile Internet, entertainment on demand and mobile hotspot features. The prime business model remains the traditional wholesale relationship (B2B2C), even though some telcos like AT&T try to address end users directly through B2C models (through a retail data plan) and the integration of an automotive into the mobile share plan.
For Internet players, the strategy here is clear: the automobile is an additional connected device just as smartphones, tablets and laptops and needs to be addressed. However, Apple and Google do not have really the same approach. Indeed, whereas Apple aims to introduce its technology to interface with its products, Google is promoting the embedment of its technology into the car as a regular device. Google also wants to collect data to provide the most accurate advertising as possible, such as a related point-of-interest, based mainly on location.
A market that is starting to take off
On the market side, according to IDATE, in 2020, 420 million automobiles will be connected, representing a 34% CAGR on the 74 million connected vehicles in 2014. Nevertheless, this growth is not homogeneous for each category of connected cars. The embedded systems will lead the market by 2020.
Asia will lead the connected car market in 2020. Europe benefits from a 39% CAGR by 2020, mainly thanks to eCall regulation, entering onto market by end-2018.
In 2020, connectivity revenue for connected cars will exceed 9 billion EUR. In value, North America will be the leading zone, mainly due to higher ARPU than anywhere else in the world both for telematics and infotainment offerings. This encompasses direct connectivity through embedded systems but also indirect revenue related to smartphone usage. The major issues to be raised here are on the real willingness of the user to pay for such services. To encourage users to subscribe, telcos and manufacturers are already contemplating different revenue models including share plans. All the same, adoption is likely to remain limited over the next five years.
Forecast for connected car evolution, by implementation technique
worldwide, 2020 (%, Million units)
The headlines are full of the self-driving vehicle, which is on everyone’s lips in the industry. Automation could be framed at six levels, ranging from zero autonomy to fully automated. The leading manufacturers are, at the first steps, mainly luxury car providers. The traditional car manufacturers are focused on the semi-autonomous route, but the ‘upstarts’ from the realm of the Internet, such as Google and Apple, are straightaway testing the waters of the fully autonomous car. Nevertheless, many issues need to be removed to see the self-driving car market take off. Currently, they are legal (on how to handle accident responsibility), cultural (seeing no real demand from end users) and economical (on who will fund the infrastructure).
Find out more information on "Content economics market" in our dedicated market report
By Alexandre Jolin
Introduction by Florence Leborgne
The central question is: Will internet replace TV? More and more users are switching from their television sets to connected devices to watch TV, including their personal portable devices. This trend is at its most prevalent amongst the youngest viewers. Will this disruptive behaviour amongst 16 to 35 year olds become the status quo?
In terms of supply, TV programmes share their screen time with the Internet and its new forms of video content, such as UGC, professional and semi-professional shorts and VoD movies.
Of course, the traditional TV market is feeling the effects of this behaviour. Cord-cutting and cord-shaving are growing in the United States: 10% of TV households in the US are cord-cutters, 7% are cord-shavers and 3% are cord-nevers. Most of them are young people in the workforce who have never subscribed to a multichannel pay-TV service. In Europe, the situation is more mixed, and it is still impossible to say whether cord-cutting is becoming a trend, based on subscriber statistics.
We can, however, confirm that video on demand (VoD) is hugely popular across the board. Consumers still appear to be willing to pay to access the content they want. This willingness to pay is also contingent on price points which, for VoD, vary between 10 and 15 USD a month, compared to an average 60 USD for classic multi-channel cable, satellite or IPTV pay-TV plans.
SVOD services are also contributing more and more to financing TV productions, and becoming key actors in the rights market. In 2014, Netflix spent more than HBO on programming rights.
Even if the approach to marketing the content is completely different, the channels run by YouTubers are attracting as many if not more viewers than most pay-TV services. Moreover, we are seeing a sector of professional and semi-professional content produced specifically for distribution on social media sites emerge.
For now, the revenue generated by on-demand channels, SVOD and video advertising is still a far cry from the revenue generated by traditional linear TV.
But what does the future hold for television? Several models are emerging: syndicated offerings such as Hulu and Freeview Play, online multi-channel platforms such as Molotov TV, multi-channel networks that make it possible to target viewers who are still interested in TV content, but have abandoned classic distribution channels.
Interview – Olivier Huart
OTT services appear poised to oust traditional media in all areas. Should we be afraid of these new entrants, or instead welcome their arrival, and the innovation momentum they are setting off?
"OTT and live TV are bound to complement one another for several more years to come.” Live TV is still by far the most popular mass medium around the globe, including France. Even in the United States people still watch an average 4 hours and 30 minutes of live TV a day, compared to an average 30 minutes of OTT video.
Plus OTT video’s share of screentime far outweighs its market share in terms of value. Linear TV channels account for 96% of spending on TV production in France. Some content also remains fully the dominion of live television, namely sport. To paraphrase Mark Twain (or Steve jobs): "Reports of linear TV's death are greatly exaggerated".
Despite the massive popularity of mobile devices in everyday life, TV is still the device of choice for watching video content: 75% of the content viewed on Netflix is watched on a television. Smartphones, meanwhile, are tending to be used as a controller, a remote control for multi-screen platforms.
From an economic standpoint, there are clear advantages to using alternatives to broadcasting to distribute video content. The terrestrial TV network covers more than 97% of the population in France. Internet connection speeds still do not make it possible to deliver programmes in HD with the same high picture quality as broadcasting networks. Plus TDF was one of the first broadcasters worldwide to conduct trials on 4K UHD broadcasting. But additional spectrum resources will be required. This transition to UHD also depends a great deal on the willingness of channels wanting to monetise this new value proposition.
The future will be a mosaic of solutions, and less and less of a monolithic model. And consumers are the central ingredient. Seventy percent of them want a package that includes live TV and on-demand content they can play on multiple devices. So traditional channels have three paths available to them:
- create proprietary applications, such as myTF1;
- pool the content belonging to several channels onto a single platform, as with Freeview Play;
- have live TV viewers foot the bill for the transition to the open Web.
Round table – Ingredients of an OTT-only success story
François Abbé – Mesclado: moderator / Britta Schewe – gretegrote Interproduktion UG / Luc Reder – producer Page & Images
Luc Reder: Page & Images produces chiefly television documentaries, institutional films and transmedia storytelling systems. For now, the producers are still taking a wait-and-see attitude. “OTT models are seen as not lucrative enough compared to linear TV channels”. A lot of people are working on these avenues, but few on what we are putting out.
Production costs for video content dropped significantly when we made the transition from an analogue to a digital production chain.
Britta Schewe: I began working on the Internet before going to work for VIACOM and Deutsch Telekom, before realising that the Internet was a more dynamic sector. The keys to success on the Web are the same as on TV. “On both the internet and on television, you need to be able to produce attractive content and know how to reach your audience".
Luc Reder: The economic equation of TV production is still very much tied to the TV screen. Some of the content we are seeing on the Internet is either experimental or just what’s in fashion. Web documentaries, for instance, are tending to disappear. On the other hand, we are seeing a growing maturity in the production of video content for the Web.
Britta Schewe: The future of OTT distribution as a whole is hard to predict. I think that some TV channels will disappear. “The more a television channel bases its programming grid on purchasing broadcasting rights, especially to American shows, the greater its chances of going off the air.” “In the future, in-house production will be the dominant business model for channels.” Content is still king!
The issue of content discovery is key to successful online distribution.
Keynote Speaker – Nicolas Weil – AKAMAI TECHNOLOGIES
Our message is one of inverting yield curves between linear TV and on-demand services, mainly on the open internet. Every day, Akamai delivers 30% of the world’s internet traffic. Akamai believes in fully OTT channels, but picture quality is a crucial criterion. As the number of available 4K services grows, the bandwidth needed to receive these programmes increases dramatically.
The user experience is the central consideration, especially on mobile devices. Lag time affects usage. “50% of users are lost if a video does not launch within 10 seconds.” Only around 10% of households in Europe are able to receive video content in 4K over the open internet.
As the datarates required for online video increase exponentially, the investments that ISPs need to make in content delivery networks are becoming far too high. So the logic that governs CDN needs to be extended to users’ devices. There are several technical solutions that address this: Peer-Assisted Delivery (P2P), Store and Play Later and Multicasting.
Round table – From live TV to OTT: an inexorable shift for veteran players
Moderator: Eric Scherer – Director of Future Media – Groupe France Télévisions / Matthias Buechs: Director of Online – RTL Interactive / Roux Joubert: General Manager Platform – BBC Digital / Richard Lucquet: Verizon onCue – Director, Business Development Technology, Partnership & Licensing.
Eric Scherer: The road to OTT will be slippery for broadcasters. Linear TV start to show decreasing aspects. Cord-cutting appears to be real. Among young people in the US, 65% of video consumption happened on demand and mostly online. The online traffic on CBS news has shifted from 6% on mobile devices in 2011 to 60% in 2015. SVOD is surging everywhere but its growth remains lower in France and Germany.
The consumer is now at the centre of a new demand side driven economic paradigm. Consumers are now involved in the editorial process. They can help to fund the production of content with crowdfunding solution or even deciding of the deprogramming of a TV Show.
New internet players aren't only distributors. They tend to become producers & content creators including the creation of new format and story-telling schemes.
Matthias Buechs:Television is highly under pressure in Germany but still profitable. Amazon is the dangerous competitor as the service doesn't need to be profitable by itself. Video sharing platforms are competitors in terms of time consumption but not yet on consumer spent market.
Roux Joubert: The BBC has always been an innovator. Last year, it has been the first broadcaster to stop airing a linear TV channel to transfer it on Internet on an on demand format. It also provides pre-TV programs on BBC i>Player and broadcasted content available until 30 days after being aired.
Richard Lucquet: "Millennials are spending more time using their mobile devices than sleeping" on a daily base. To reach that audience, Verizon launched the go90 application, a service melting the best of TV and of online content on just one platform including social features. Verizon is planning than go90 could generate as much revenues as Fios TV within 5 years. "Internet is alive because of video".
Soichi NAKAJIMA, Senior Consultant for the Innovation Business Unit, IDATE
In the Internet world we now think at the platform level. Platforms play a great impact in the tourism industry. Hotel chains offer booking platforms.
How is the tourism industry evolving in the Internet era ? More than words I prefer to show you insightful Slideshares presented by the consultant (to be viewed on New Generation Platforms)
Click on the image to get the entire Pwt presentation
The market is divided between traditional tourism platforms and newcomers on this market. Booking.com aims to put the customer in direct contact with hotels to ease their choice and the final step: book.
The non-traditional room provider Airbnb came to disrupt and change the way rooms are sold. Airbnb focus on giving a wide array of room providers all over the world. The other disrupter expected to take its share is Google. It expects to bring new concepts.
Overview of Internet companies where the market is in the hands of American and Chinese companies.
Peter VERHOEVEN, Managing Director Europe, Middle East, Africa, Booking.com
We are in front of an ocean of opportunities. For 10 rooms available booking.com is selling 8 rooms. Previously named booking.nl, the company began a few years ago thinking about new ways to sell rooms. 19,000 are transacted over the platforms. This European startup is changing consumer trends.
But what made us successful? We're striving to get a real focus on accommodation. Booking made sure to have all the required resources, reminding itself to be always technology driven. Their motto in mind: transparency wins. Three catalysts have been identified to trigger action: price / location / peer reviews. Experience has an harnessing power. Everything you see today are the result of beta testing. 1,000 experiments are done everyday. Small test experimentation, data driven, always with the customer in mind made the result we have today.
86% of global travellers are likely to book using a smartphone. ⅓ bookings on booking.com come via a mobile device. We need to stay relevant. The customer wants instant confirmation and be part of the chain value. An hotel with 10 to 15 rooms located in the mountains wants to be present at an internet worldwide level. A lot of potentiality lies ahead.
Alex SCHLEIFER, Head of Design, AirBnB
We are dedicated to offer a platform presenting technical layers between guests, hosts and supplier transactions. We target to build a community where people?16 million travellers, can make friendships.
Europe now counts more than 50% of those travellers. Airbnb is present in 191 countries. France is a huge marketplace for Airbnb. Every trip on Airbnb is unique. The company is becoming good at matching and wants to speed up the sense of community. Their will is to customize and establish deep human contacts.
Alex Schleifer is mission driven and reminds their motto ‘Belong anywhere’. Create an environment and technology adapted to make it happen. He manages to change the way we look at travel.
What did you deeply transform?Community is a movement.The city as a whole is forward thinking. ‘You need to work with guts to make it happen’. Airbnb pays taxes in cities where people are hosted.
Technology is one step, the next is people and engagement. We facilitate human to human interactions. There’s place for everyone in that competition.
WEN Rui, Director of national Business Development, Youku Tudou
Youku Tudou is one of the largest video websites in China and was one of the first to produce its own content. Investments in linear television tend to have reached a plateau in China, and by 2016 investments in digital media will exceed those of TV for the first time.
Web-based content acts as an incubator. The power of the fan community is strong. The anchor for a web show offered to host a 4-hour show every 31 December for the next twenty years. Tickets to the show were sold for 1,000 USD each. 6,000 tickets were sold in the first 10 minutes.
We are also creating video commerce solutions that enable viewers to buy the items they see on-screen directly.
"The future of online video websites is about collaborating". And not being opposed to traditional producers.
Why do we consume TV? We crave belonging. TV engages us, it reaches millions of people in no time.
Mobile has implied time shift, liberated audiences. Youku Tudou is the Chinese Netflix founded in 2005. We entered a new era of Online Video Marketing. Our top priority is to get traffic to get more investors to get more advertisers.
The company targets to be N°1 across three screens: PC, phone, TV. Youku Tudou has:
- the power of video
- user loyalty
- time spent
In 2012, Youku acquired Tudou. Now they have merged.
‘We are connectors. We produce good content for our audience. We make revolutionized changes.’
IP (Intellectual Property) is a real issue as for song, movie, web based content. IP can be monetized and licensed to generate even more IP products. The company wants to explore things that have never been seen before.
Rui Wen presents Youku Tudou has a real beehive ‘Swiss knife’ dedicated to give customized and branded content to our audience.
And what if partnerships were the way forward for digital transformation?
Carlo d’ASARO BIONDO, President EMEA strategic relationships, Google
Dynamic disrupters are becoming more influential than the CAC 40. Google has and opens campuses all over Europe.. Frontiers of industries collapse. A structure has been created devoted to partnerships.
What’s the value we are bringing to customers?
Time is of people working together, transparently.
A quick look of another project underway launched by Alphabet: Google car.
How can we collaborate with car companies?
The era of companies doing things alone is now changing. We want to answer to a specific need and create from scratch. Standing still in a moving world is impossible. We make a wise and careful use of data.
/ICT players vs. the new disrupters? More and more, digital innovation is coming from outside the confines of ICT sectors. It is now materialising in every vertical market, as new disrupters emerge and change the rules. This new chapter in the digital revolution is synonymous with opportunities for IT market players, telcos and Internet giants, but also forcing them to rethink their business. /
What’s behind those words disrupters and ICT players? They sound quite fuzzy.
IDATE aims at anticipating. Yves Gassot, CEO, IDATE, points out that partners are part of the story.
Rob Van Den DAM, Global Telecommunications Industry Leader for the Institute for Business Value, IBM presents survey results to take a glance at the next wave of trends and technologies. 5,247 business leaders have been interviewed over 70 countries.
You have to make big strategic bets and redefine boundaries. Everyone has to reinvent themselves.
What’s keeping these C-suite executives awake and nervous on an everyday basis? Within 3 to 5 years more competitors will be there. A new trend is emerging where competitors are showing up from the outside, like out of nothing. Four Seasons and Airbnb have made their share of the market.
Every industry will be impacted by the Uber syndrome. Completely new business models have been imagined. Rob Van Den DAM states that we should prepare to face digital invaders who can move really fast without any infrastructure. They might act like greedy animals. They’re on the look-out for any move from the ecosystem.
Remember to be first, be best or be nowhere. Boundaries are blurring.
CxOs expect industry convergence to have the biggest impact on their business. In 2015, the workplace is anywhere, the aim is to share economy while having still in mind that cyber risk is increasing.
What external forces are impacting the industry? Data privacy has an impact on the industry. Innovators excel in financial performance. Torchbearers focus on having better products and new revenue models. At present the focus must really put on considering new customer segments in new markets.
Uber succeeded thanks to an application. Torchbearers want to be first so they realized they had to invent a new business model along with a new product.
Chairman: Xavier LORPHELIN, Managing Partner, Serena Capital
So how new platforms are disrupting the business world? Platforms have revolutionized the digital economy. GAFA or to explain it briefly Google, Apple, Facebook and Amazon equal in terms of worth the 40 first French quoted values. GAFA gave birth to new challenges and new services. To name but a few Alibaba -part of Chinese GAFA-, Spofify, gaming platforms: all playing in the same platforms and also the 40 years old Microsoft and Cisco.
What are they looking at? Their desire is to create value.
Booking platforms will be opened for hotels. The next step for the company SNCF is to bring about door to door services. Small is big. It’s where the value lies. GAFA creates value from small economy units. In this battle the importance lies in getting an intimate knowledge of the customer.
Who is going to survive and win the game?