AA in India, China and Japan

Facts and Figures

How AI and IoT are gradually entering Indian telecom companies

  • The Indian telecoms sector has been going through a consolidation phase:
  • The major players are vying for the data services market, worth 950 billion rupees by 2020, and growing at an annual rate of 21%…
    • Bharti Airtel has consolidated its position as the No. 1 player with its acquisition of Tata Teleservices’ mobile business.
    • Vodafone’s acquisition of Idea will really change the pecking order.
  • Before Jio’s launch *, India was 155th in the world in mobile broadband penetration.
  • Today, India is No. 1 in mobile data consumption and wel on its way to becoming 1 in mobile broadband penetration in the coming months.
  • India has overtaken USA and China in mobile data usage.
  • With a population of 1.3 billion India is a humongous telecom market.
  • Jio Reliance Industries Ltd is a Fortune 500 company and the largest private corporation in India.
  • It is shaping the future of India by providing end-to-end digital solutions for businesses, institutions and households and bridging the rural-urban divide.
  • Reliance Jio offers a unique combination of telecoms, high speed 4G Internet data, digital commerce, media and payment services:
    • Team Jio over-delivered on the 100 million target set for them at its AGM (Anual General Meeting). In less than 170 days:
      • More than 100 million customers signed up for Jio’s services.
      • On average, Jio added 7 customers per second every single day.
      • This was the fastest adoption of any technology service, anywhere in the world: faster than Facebook, WhatsApp and Skype.
      • Today, Jio has over 125 million customers.
      • Jio users can make unlimited voice calls from anywhere to everywhere in Indiafree–.
      • Jio users consistently make more than 250 crore minutes of voice and video calls every single day.
      • In 6 months after its launch, data consumption in India went from 20 crore GB to 120 crore GB x month: it has been multiplying ever since.
      • Jio customers alone consume over 125 crore GB of data per month
        • Including 165 crore hours of highspeed video
        • Making Jio the largest mobile video network in the world.
  • Analytics Industry

    Survey conducted in March by Qlik: only 11% of employees from Chinese companies are data literate, higher than the 6% data literacy rate in Japanese firms, but lagging far behind the 45% rate in Indian companies and the 33% rate in US companies.

    China’s Big Data industry took off 20 years ago and is now in the middle of a rapid development phase.

    The Chinese Big Data industry’s value reached 16.8 billion yuan (2.65 bill $) in 2016, up by 45% year-on-year.

     The first enterprises that adopted Big Data in their infrastructure were the BAT triad (Baidu* – Alibaba* – Tencent*). They naturally have an edge in data competition because of the amount of data they have collected over the years from Chinese citizens:

      • Baidu gathers data from its users searching activities.
      • Alibaba owns transaction data.
      • Tencent has the largest social data in China.

    ——————————————————————————

    * Baidu: Chinese multinational technology company specializing in Internet-related services and products and Artificial Intelligence (AI).

    * Alibaba: Chinese multinational conglomerate specializing in e-commerce, retail, Internet and technology.

    * Tencent: Chinese  conglomerate focusing on Internet-related services and products, entertainment, Artificial Intelligence and technology both in China and globally.

     

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    • Those data can be applied outside the consumer and technology fields such as logistics, public sector and financial services.
    • However, emerging players likely to offer creative solutions within specific verticals.
    • The following are Chinese startups in the area of Big Data analytics:
      • Tencent-backed Mininglamp started serving provincial and municipal public security bureaus. Its technology enables police departments to achieve a 5%~20% increase in successful detection rates:
        • It has helped solve cases regarding production and sales of fake vaccines in more than 20 provinces in China
      • Tongdun Technology is a frontrunner in credit risk management and anti-fraud technology. The enterprise is serving over 10,000 companies, including the major financial institution CITIC Securities (CITIC Securities, Ltd. is China’s largest investment bank), China Merchant Bank, and China Pacific Insurance.
      • Big Data division, Sensors Data has secured investments from Warburg Pincus, Sequoia China and DCM Ventures, raising USD 66 million up to date and eyeing for an IPO in the next 5 years.
        • According to Sensors Data, it targets companies worth less than 3 bill $ and currently provides Big Data analysis services for over 300 companies.
  • Data Science

    The Growing Trend of Data Science in Japan

    • 2015 survey by Nikkei Asia:
      • 62% of firms say their biggest challenge is finding talent.
      • Most companies surveyed rely on educating internal employees to handle analysis needs.
      • 39% of firms use tools that can be conducted by employees without specialized skills.
    • You can integrate Data Science by promoting Microsoft Excel: the organization does not need to make large investments in expensive software or talented data scientists.
    • KD Nuggets survey: Excel makes up about 40% of tools used in Data Science.
    • Japan shows 0.2% of job posts are for data scientists, while in the US it is about 1.1% of listings.

     

    Searching for talent

     

    • A government task force showed that only 2,800 students currently complete a Master’s degrees in AI research.
    • Sompo Holdings, insurance provider, has provided an AI training program for people both inside and outside the company, starting in 2017.
    • The market rate for AI educators has increased over the last decade:
      • British staffing agency Hays:
        • Japanese data scientists make up to 12 million yen ($109,000) a year.
        • The average Japanese high school professor earns 4.32 million yen per year, while the figure rises to 5.52 million for college instructors.
        • This is less than the 1 million yuan ($148,000) earned in China.
        • And the 180,000 Singaporean dollars ($133,000) in Singapore.

Sources: The above text is a creative synthesis elaborated from the following sources: 

Ayushman Baruah (Emerj); Xie Jun (Global Times); Sylvia Liang (Equal Ocean); Mickey S (IZANAU); Minako Yamashita (Nikkei)

These sources have been selected from a total of 15 articles on the subject matter. Which in turn are the result of sifting through 99 articles.

THESES / MAIN IDEAS

  • As Indian consumers are increasingly becoming data hungry, telecoms players are betting big on the power of data.
    • TOBi helps customers seeking answers to basic questions over web chat.
    • Vodafone India recently launched an integrated solution known as “Super IoTwhich includes IoT applications like vehicle tracking, asset tracking & people tracking.
    • Airtel rolled out its digital innovation program Project Next, aimed at transforming customer experience across all its services and touch points.
    • Jio’s network connectivity enables its customers to participate on multiple digital platforms, including e-commerce, financial services, manufacturing, agriculture, entertainment, education & healthcare.
    • Telecom companies are adopting technologies like virtualization, SDN-NFV (Software Defined Networking / Network Functions Virtualization) and orchestration.
      • The main reason digital transformational programs fail is lack of leadership and organizational commitment.
      • A successful Chief Data & AI officer has a business-oriented profile that allows him to understand the details of the critical business problems the company is facing and to design Analytics & AI driven solutions for them.
      • The telecoms industry is immersed in a paradox: volume increases exponentially and prices fall exponentially every year.
      • Analytics & AI can make a difference: through cost efficiency and revenue stimulation initiatives.
      • The single largest opportunity in telecoms: optimizing the billions of dollars the industry invests in network equipment (mobile and fixed) every year, which requires analyzing great amounts of data:
      • Network traffic
      • Subscriber records
      • And external data.
      • Analytics can also help to optimize online and offline advertising spending.
      • Robotics process automation and AI technology can bring substantial short-term returns by:
      • Automating repetitive processes
      • To support functions such as finance & IT.
      • AI-driven chatbots, video-bots or intelligent agents can bring in:
      • High scalability
      • Better customer service, at a lower cost.Indian telecoms are already using AI to solve issues related to customer care, network coverage, billing and service/product offering.

        Advanced Analytics as a booster of Telecom Industry

      How AI and IoT are gradually entering Indian telecom companies

       The importance of the top four Indian telecoms: Vodafone, Bharti Airtel, Reliance Jio & BSNL.

  • A low data literacy rate might point to a top-down decision-making mechanism in firms.
  • China lacks the skills to fully leverage its information resources, at a time when its data is burgeoning is “worrying“.
    • But the country’s data literacy rate will improve in the next few years.
    • Only when penetration of data usage is deeper –meaning more lower-level employees are engaged in it– can a company fully flourish.
  • Instead of a company allowing only its IT department to do the job of collecting and analyzing data…
    • It is a better approach if all the company’s departments are given the opportunity to analyze and use data themselves to meet their own needs.
    • Data usage is not always about compiling data reports
      • What’s more important: insights provided through the data, such as…
        • Revealing where the market blind spots are…
        • The fundamental reasons behind selling success or non-success.
  • Data Science can be summarized as the solution to complex problems through analyzing data.
  • Common in Japan when it comes to answering a Data Science problem: the approach is to allocate more time to a problem rather than coming up with a better solution.
    • It comes down to requiring more people within a company that are versed in knowing what is available to solve a given problem.
    • The ability to understand, articulate and create a solution is the reason why data scientists are so sought after.
    • They provide a buffer between the business and raw data, breaking down the problem and offering solution options for the business to pursue.
  • According to a Government plan, Japan will try to increase the growth of talent proficient in Artificial Intelligence (AI) to 250,000 people a year.
  • Having 600,000 post-secondary graduates per year, the goal is 250,000 of them to possess advanced AI expertise.
  •  

Sources: The above text is a creative synthesis elaborated from the following sources: 

Bhasker Gupta (Analytics India)

These sources have been selected from a total of 16 articles on the subject matter. Which in turn are the result of sifting through 105 articles.

SCENARIOS

  • Advanced Analytics as a booster of Telecom Industry

    • Looking into 2019 and beyond, with a high likelihood of a recession in the global economy:
    • Shareholders are demanding shorter term cashflows…
    • At a time when massive investments in 5G are on the horizon.
    • It is unclear:
    • Which new services will really need 5G’s ultra-high speed.
    • And whether customers will pay extra for them.
    • There’s a significant opportunity in using data to fuel new revenue streams outside the core business, while preserving customers’ privacy.

    How AI and IoT are gradually entering Indian telecom companies

  • Airtel said it would ‘leverage Amdocs’ innovation centers, delivery expertise and its ecosystem of startups…
    • To help pre-empt and self-heal operational issues
    • Introduce smartbots into digital channels
    • And quickly launch and activate new services
      • Thereby enabling a seamless customer experience.
    • Airtel plans to launch several digital innovations to simplify and enhance interactivity of their customer experience…
      • Airtel said Project Next complements Airtel’s massive investments in building a future-ready network under Project Leap…
      • For which the telecom major has committed an investment of 600 billion rupees in the next 3 years.
    • Reliance Jio is on a mission to include the 500 million feature phone users of India (out of 780 million) who have been left out of the digital revolution.
    • Mukesh Ambani (Chairman of Reliance Industries):Jio’s network connectivity enables its customers to participate on multiple digital platforms…” and “these will be powered by mobile-based Software as a Service (SaaS), Big Data Analytics, Artificial Intelligence and Automation Tools, Cloud Services and Blockchain Technologies, to name just a few”.
    • AI, robotics, IoT & Big Data Analytics will be the enablers of a new wave of wealth and employment creation.
    • AI may play a significant role in:
      • Seamless integration of technologies…
      • Automating the networks.
    • AI adoption is also set to increase in India with the introduction of the much awaited
    • Indian telecoms are beginning to make AI deployments through strategic partnerships:
      • Airtel’s partnership with SK Telecom
      • BSNL’s collaboration with Coriant
        • Which help the telecoms leverage the technology expertise of these companies to build smarter networks.
  • Will have the youngest workforce by 2022 and the largest by 2027.
  • If Indian feminine workforce reaches the world’s average 48%, India could increase its Gross Domestic Product by 700 bill $.
  • The Government publishes data that people can use to make up irrigation policies, allocating the budget and reducing corruption.
  • Companies are considering the barriers that hamper their transformation –such as cybersecurity, regulations or weak digital governance— as American and European companies started doing since 2012 (with the birth and later expansion of Big Data).

RECOMMENDATIONS

  • How AI and IoT are gradually entering Indian telecom companies

    • Vehicle tracking: a solution that allows customers to have real-time visibility of their fleet.
    • Mobile asset tracking: with this solution, customers can completely transform their supply chain & logistics operations and deliver goods faster with more operational efficiency.
    • Employee safety: a set of smart solutions that offers safety of employees in and out of the workplace.
    • Student safety solution for schools: helping parents, school authorities and school bus transport managers keep track of children’s location.
    • India needs to instill confidence in new technologies such as AI, robotics, IoT and Big Data Analytics.
    • Western companies must take into account that almost 100% of India’s commercial transactions are digital already…
      • To be ready to take advantage of all the generation of data to come in the near future.
  • How Advance Analytics is boosting Chinese business

    • Key benefits for China associated with Big Data are:
      • Its larger population base, which has contributed to much more meaningful data.
      • The country’s less restrictive privacy control enables Big Data service providers to collect data more easily.
    • The major Chinese startups in the area of Big Data Analytics are:
      • Public security: Mininglamp
        • Mininglamp’s knowledge maps are applied in financial services to identify suspicious insider trading activities.
      • Financial risk management: Tongdun Technology
        • It develops online software solutions for anti-theft and fraud management
        • It helps enterprises strengthen risk controls through multi-level, multi-dimensional and full-scale scenario
      • Business Intelligence: Sensors Data
        • It seeks to create the deepest understanding of data intelligence demand in the Internet, financial services and retail companies.
      • China less restrictive privacy control and larger population base –which will provide more quantity of meaningful data– will become an important threat in the future for Western companies…
  • Data Science

    • The target of 250,000 talent proficient in Artificial Intelligence per year may seem like a high bar…
      • But this is the level necessary to ease the labor shortage for AI experts, with the gap reaching 300,000 by the end of 2020.
    • The lopsided demand from businesses could limit the number of AI instructors available to teach college students.

Sources: The above text is a creative synthesis elaborated from the following sources: Bhasker Gupta (analyticsindiamag.com); Ayushman Baruah (emerj.com); Mickey S, (izanau.com); Minako Yamashita (asia.nikkei.com); Xie Jun (global Times); Sylvia Liang, (equalocean.com)

These sources have been selected from a total of 21 articles surveyed on the subject matter. Which in turn are the result of sifting through a total of 66 articles.