Tag Archives: ecommerce

The Internet Of Things: State of Maturity in India

21 Dec

Digital India Smart Cities

With all the hype about Digital India, and Prime Minister Modi’s Smart City initiative, one question that keeps getting asked is the state of maturity of the Internet of Things in India.

Well, first of all, let me give you my take on the state of maturity of the IoT in the world – like most revolutionary waves that arise because of supply and not demand, at this stage a lot of the work on the IoT is more conceptual/ background building than application oriented. As a corollary of this, the real benefits haven’t trickled down to the end consumer – mainly also as the last mile connectivity applications are still being built. Early devices that purported to be based on the IoT were more bought than used (it is said 70% of fitness trackers bought are not used now); Google Glass is currently resting in a graveyard; IoT revenues are growing at 20-25% for even the top players in the space/ the facebook’s internet.org is getting into all kinds of hot water.

The eco system of companies in the IoT is still hyper fragmented and interoperability is still an issue (standards and protocols are still being worked upon – in fact, that’s where a large body of work is being done).

One of the big roadblocks to progress is miniaturization – specially of batteries. For ultra small sensing devices, either fitted into large industrial buildings, or on small wearable devices, the level of miniaturization requiredd of batteries is not funny – our smallest batteries are still how big

Having said that, there are many heartening examples of work that has been done – after all, ever since 2008, there have been more connected “things” than people in this world! Not the least of this is evident in Smart Cities. Songdo in South Korea has been one of the oldest cities to get ‘smart” – they have a smart energy grid which matches power supply and demand. They have no garbage – their waste gets automatically sucked into Sewage Treatment Centres.

Glasgow has recently announced a budget of 37 mil $ for its project. Their street lights will automatically switch off; they will map routes for easing traffic congestion; footfalls can be monitored, noise and air pollution levels are monitored; Delivery services are prioritized per criticality; there is CCTV coverage of the whole city to ensure higher safety levels.

When it comes to India though, 100 smart cities at a Rs. 7060 crores investment plan notwithstanding, there are a few further hurdles to quick penetration of the Internet of Things.

First of all, we need indigineous/ low cost hardware. Even now, some 65% of hardware that India uses is imported. Then, our bandwidths need to improve significantly. With a $ 12 – 15 billion IoT market revenues expected by 2020, we cannot make it happen with the current pathetic internet speeds. We need low cost/ low power devices that are pluggable into wi-fi. We need the basic infrastructure required for any technology to work. And finally, we need a thriving eco system of vendors building off the Internet of Things.

But maybe the biggest issue facing IoT development in India is that of usability – essentially, the Big problem to be solved/ prioritized still needs to be defined!

I think the first few areas that need/ will see IoT solutions, much like the rest of the world, will be: Utilities/ Smart cities; Agriculture and Healthcare. On the business front, it could be logistics and supply chain – with a newly booming e-commerce industry driving usage.

The overall/ global perceived risks of security threats still exist – as much in India as anyplace else, but I think at an overall level, this fear is becoming slowly marginalized. A higher risk is a more social one – on the one hand, tha of “de-humanization” – machines talking to machines/ robots and AI devices will slowly delimit human contact even more than the current whatsap culture is doing. On the other hand, there is a real “social apartheid” risk – these technologies, atleast till the time they focus high end customer acquisition, may just polarize the haves and have nots even more.

All in all, though, the IoT is coming – earlier in some places than in others, but the advance is real! One statistic said that by 2017, 50% of IoT solutions will come from companies that are less than 3 years old. So, get ready all, action stations!

Whose Sale Is It Anyway; or; come onnn – Differentiate!

4 May

Sale Sale
Seen on front pages of a newspaper, and its supplement yesterday. Made me think about what competition does to one. A few thoughts:

a) Media is amazing! No conflict of interest obviously right? Front pages of 2 sections of the SAME paper with 2 direct competitors BOTH sponsoring full page ads?

Oh btw, the next day got these – AGAIN!
Sale 1

b) No noticeable difference between the 2 (or even 4) – infact, till you look really deeply, you miss the store where the discounts are being held! (unless you are my girl Friday Tulasi, or my sister in law Niharika, both of whose bigtime source of entertainment is to check deals). So HOW are these stores expecting ROI? Footfalls, I may still assume they will get – if it’s general shopping season, and since these are regular grocery/ super marts, they will have a steady clientele anyway, but ROI for these ads (as in, increase in revenues/ attention/ whatever the objective was? ) – hmm not so sure

c) While topical/ day related catalogu-ish advertising was always something our “organized” retailers did, the flavour of these has gotten a bit different (more desperate) since the mega online guys-with-their-VC-money-funded-advertising has got! (Remember the unprecedented-and-then-much-maligned flipkart’s billion sale thingie?)….
flipkart big billion

….with the tried-hard-to-be-funny “ambush” campaigns by its competitors?
snapdeal-toi Biyani-ad

Just goes to show the impact of e-comm on even traditional/ middle class India! (well, maybe not. It’s really urban India that is getting affected by this)

This thing about “differentiation” also sparks a parenting thought (as all things do with me). My teenage daughter is kind of caught between a devil and a hard place almost, at times I think. Like most kids at that age, her prime desire – when interacting specially with parents, is to blend with the crowd – not do anything that gets her attention (so, mom yelling HAPPY NEW YEAR on the streets on christmas eve is a no-no….OK, that I grant to her :); but even if we need to get something clarified from say a store salesman, goes through severe angst at this whole “calling attention to herself” thing).
On the other hand, she actively looks for things to make her different – so, dip-dyed hair, her theatre classes – which is fairly unique in her circles, a desire to play the ukelele (of all things!), she is constantly looking to do things which may then get her “cooler” attention from her peers.

I think this is fairly similar to what any of us goes through too – a desire at the same time – to “belong” and yet to “stand out” — I think it’s basically the choice of where you want to belong vs. stand out that hones your essence!

On a randomly different (though related since we are talking of differentiation) thought, I came across some nice doppleganger pictures of celebrities (with even funnier descriptions)- enjoy!

AND one of Anne-Amal
anne amal

Coming back to the whole point of differentiation as competitive strategy, I think Amazon has done a super job recently – their “Aur Dikhao” ad, while on a seemingly over used plank, is just sheer brilliance in creative execution! Here it is:

And, talking of sales, their May sale ad, with many people dancing hilariously, is truly different too (couldn’t find it to post sadly! )

So, its desirable, even possible, one just has to work harder!