ICT to be a catalyst for innovative transformation-
The convergence of various industries is expected to spark innovation opportunities. In particular, connected industries will benefit significantly through the use of information and communication technologies (ICT) in 2014. These connected industries will experience a boost in their efficiency and productivity by linking power, data, and signals to enable greater automation processes and creating “intelligent devices”. Key examples of industries expected to undergo ICT-driven transformation include automative (connected cars), health care (connected health), and manufacturing (smart manufacturing). All of these industries will be influenced by the Internet of things (IoT).
IoT is set to be a key area of interest for IT buyers and sellers in 2014. The explosion of IoT activity over the next few years will be driven by the convergence of low-cost sensors, cloud computing, advanced data analytics, and mobility. Numerous opportunities will emerge as more and more data are generated by machines than human beings.
Diverse institutions in the connected industries will display an improved ability to analyse and use vast amounts of data, as well as store data and source application functionality in/from the cloud. In addition, they will be able to create, manage, and support apps that enable the operation and management of IoT implementations. Finally, there will be high speed connectivity between objects and people, along with those who work with them and use them.
Telecom market will continue to experience positive growth
Revenue of the traditional telecom segment comprising voice and data, which is estimated at $532.5 billion currently, is expected to reach $608.5 billion by 2018. For the Southeast Asian region, the compound annual growth rate is expected to be 2.57 per cent over the next five years. The growth will be driven by generous voice and data packages through the bundling of services to reduce dropout rates and drive steady growth.
Service providers need to re-evaluate their portfolio and introduce new services targeted at the digital lifestyle of consumers. Consumers today play an important role in the paradigm of IoT driven by the increasing ubiquity of high speed connectivity of physical and virtual objects.
To stem the loss of revenue to third-party content providers such as Viber, operators will need to evaluate new partnership/business models with non-traditional value chain players or utilise effective pricing strategies.
Technology to drive health care transformation
The delivery of health care services is challenging, given the rapidly ageing populations, disparities in health care access, shortage of medical resources, and rising costs. An increasingly technology-conversant patient is rapidly raising expectations for better health care information and care.
Increasing applications of technology such as telehealth, along with mobile and digital health, can be instrumental in mobilising scarce resources and managing efficiency. Over the past decade, the focus has been on the implementation of technology and applications that improve operating efficiency and achieve cost savings.
Stakeholders in the health care industry, particularly providers and patients, are becoming far more aware of the benefits and applications of technology in health care. Health care providers are now looking for measurable returns on their investments. Technology areas demanded by providers include knowledge and tools to support better patient outcomes, improvements in workflow efficiency, and health care service mobility.
Immense possibilities for automobiles sector
The Google car provides a hint of the immense possibilities offered by the convergence of the car and the internet. For instance, its 360 degree laser detection (LIDAR) has made it possible to achieve map accuracy as close as 10 cm – a milestone in automotive navigation input capabilities.
Connecting the car to the cloud is likely to bring about a host of opportunities. They include self-driving cars, or involvement of artificial intelligence software.
We expect that the car will eventually be connected to the following areas: Home (home energy management system), original equipment manufacturer (location-based services), infrastructure (vehicle-to-vehicle communication), and social (social network).
However, as car manufacturers are not yet equipped to drive the transformation of “smart cars”, ICT companies stand to gain from working with automobile manufacturers to transform the industry.
Overall, we expect 2014 to be an exciting year for the ICT industry enabled by increasing connectivity between personal devices and machines which will result in significant efficiencies that were previously unheard of.
Nitin Bhat is Partner, ICT Practice, Frost & Sullivan, Asia Pacific.
He drives the company’s consulting business for the ICT Practice in the region and is responsible for the performance of all custom consulting studies as well as syndicated projects. He has amassed a wealth of knowledge of the telecom and government sectors, having worked on numerous consulting projects offering business strategies and recommendations to some of the world’s leading multinational corporations and regulatory bodies. Prior to joining Frost & Sullivan, Bhat worked in the Equity Research and Risk Management group at SBI Capital Markets Limited, India’s largest investment bank. In the past, he has also been responsible for the design and implementation of VSAT Network Management System and SCADA systems during his association with India’s largest telecommunications equipment manufacturer. He has also worked with one of India’s leading cellular service providers as well as a premier aviation design and manufacturing company.
Andrew Milroy is Vice-President, ICT Practice, Frost & Sullivan, Asia Pacific.
He joined the firm in 2006 and is responsible for research and advisory services across the region. He has spent more than 17 years in the ICT industry. He has held senior management roles at IDC and co-founded NelsonHall, a successful outsourcing advisory firm in the US. His recent roles have been focused on the development of research and consulting activities in Europe, Australia, and the Asia-Pacific region. His research focus has been ICT services, in particular BPO. He has developed new BPO research and consulting capabilities at Frost & Sullivan and has also led research and consulting projects in cloud computing and sustainable IT.
