To channel the flood of data generated by the Internet of Things, companies need to move away from standard software platforms and move over to flexible, multifunctional versions. In so doing, they are already taking the first step to a secure future in the volatile era of digitization, writes DR. WOLFRAM JOST, CTO Software AG.
Smartphones, apps, wearables—IT moved into the everyday lives of consumers long ago. As the Internet of Things (IoT) segment grows, smart refrigerators, self-driving cars and other networked smart items will also become part of daily life. The main thing that makes these devices unique is that they communicate with each other. This generates one thing above all else: data. IT experts predict that by the year 2020, around 50 billion networked machines and devices will generate a data volume of about 40,000 exabytes (1 exabyte is equal to circa 1 million terabytes)—more than five times the level in 2015. To channel this flood of data productively, companies need to strip off their stiff corset of standard software and use flexible, multifunctional platforms instead. In so doing, they are already taking the first step to a secure future in the volatile era of digitization.
Traditional ERP systems cannot provide the speed of process restructuring and innovation needed these days. Cloud computing and mobile applications have been highlighting the limits of the monolithic approach with intertwined software packages for some time now. Static, inflexible legacy programs make updates time-consuming and costly. Even the concept of service-oriented architecture (SOA), which accelerates processes with flexible middleware without completely replacing the old systems, proved to be a temporary solution. As data volumes continue to grow along with the number of (mobile) devices, agile jacks-of-all-trades such as enterprise apps are taking the place of standard applications. These programs allow companies to combine analytical functions and transactional capabilities to design flexible business process. At the same time, apps support smart decision-making and offer a link to social networks.
Entrepreneurial spirit in the digital transition
Social media and custom apps enable businesses to speak the customer’s language since their everyday lives were appified long ago. Uber, Amazon, Facebook, Zalando—behind all of these apps and business models stand companies that have left behind traditional processes in favor of being a digital business. In so doing, they have blurred the lines between the spheres of the digital and physical worlds.
Agility, scalability, speed and responsiveness are the attributes of the “digital business.” They generate dynamic business processes that serve the customer’s needs faster and better with the greater differentiation and customization. Only personalized offers that are available 24/7 will keep customers loyal in today’s excess supply of options. The competition isn’t snoozing through digitization, and competitors who handle it better are already heading to the starting blocks.
Achieving success through co-innovation
There are a few paths into the digital business world. For example, the change can start with designing business processes or analyzing customer data that a company has collected. Generally speaking, there is no clear sequence here: Companies provide the starting point with their IT and business activities—and the IT service provider stands by their side as a software expert.
First they collaborate to develop a digitization roadmap. This includes the company’s digital strategy, business objectives and models, as well as the appropriate strategy for apps, IoT and cloud computing. The digital capability map is based on this roadmap and provides an overview of the company’s future digital capabilities and its new IT structure. Based on experience, up to two months should be allotted for this discovery phase. Then the IT service provider trains the IT organization and different departments on how to use the new systems. Users learn in real-world examples how to integrate cloud systems and link them with the backend, among other things. The goal for users is to work as independently as possible under initial supervision on implementation, execution and controlling within the new business processes, learn from them and improve them through further innovation. Experienced service providers allocate around six months for such an innovation cycle.
User companies should concentrate on planning, realizing and later autonomously developing the minimum of innovation needed. However, neither side should lose sight of the roadmap and both need to ensure that they communicate the necessary knowledge in small steps so users are not overwhelmed, which could place the entire digitization process at risk. Moreover, these agile methods give the team a certain leeway to familiarize themselves with the digitization processes on their own. Shaping IT projects themselves will require some companies to rethink their approach.
A secure future thanks to digital business platforms
Digital business requires open, fast IT. Aside from the technology being used, whether and how quickly companies develop, implement and improve promising business ideas also plays a key role. Companies that unite all these factors are successful—whether as a digital player in the business world or in public administration. That and the opportunity to integrate all process controls in the backend are the advantages of the platform strategy.
A platform pursues a generic approach, so it gets by without business logic and offers functions for designing, controlling, managing and developing software. It is not about software packages, but rather about flexible, changeable, individual applications that are customized for specific needs. These include cloud-capable services, in-memory databases, and CEP, integration and process engines.
Digital business platforms unite these and other functions in modular core components that can be implemented and expanded individually, but can also be built on each other and interlock like teeth on gears. These building blocks can be assigned different levels, such as data management and analysis, integration, modeling or process and program logic. This offers a structure that allows companies to remain competitive while focusing immediately on known weak points and expanding the platform incrementally over the medium term. The situation in the digital market is constantly in flux and innovations that will revolutionize processes are increasingly difficult to predict. Monolithic ERP systems are obsolete. Only digital platforms allow the greatest possible flexibility and reaction time to be prepared for all eventualities of the race of digitization speeding ahead.
Rain, Telkom Mobile, lead in affordable data
A new report by the telecoms regulator in South Africa reveal the true consumer champions in mobile data costs
The latest bi-annual tariff analysis report produced by the Independent Communications Authority of South Africa (ICASA) reveals that Telkom Mobile data costs for bundles are two-thirds lower than those of Vodacom and MTN. On the other hand, Rain is half the price again of Telkom.
The report focuses on the 163 tariff notifications lodged with ICASA during the period 1 July 2018 to 31 December 2018.
“It seeks to ensure that there is retail price transparency within the electronic communications sector, the purpose of which is to enable consumers to make an informed choice, in terms of tariff plan preferences and/or preferred service providers based on their different offerings,” said Icasa.
ICASA says it observed the competitiveness between licensees in terms of the number of promotions that were on offer in the market, with 31 promotions launched during the period.
The report shows that MTN and Vodacom charge the same prices for a 1GB and a 3GB data bundle at R149 and R299 respectively. On the other hand, Telkom Mobile charges (for similar-sized data bundles) R100 (1GB) and R201 (3GB). Cell C discontinued its 1GB bundle, which was replaced with a 1.5GB bundle offered at the same price as the replaced 1GB data bundle at R149.
Rain’s “One Plan Package” prepaid mobile data offering of R50 for a 1GB bundle remains the most affordable when compared to the offers from other MNOs (Mobile Network Operators) and MVNOs (Mobile Virtual Network Operators).
“This development should have a positive impact on customers’ pockets as they are paying less compared to similar data bundles and increases choice,” said Icasa.
The report also revealed that the cost of out-of-bundle data had halved at both MTN and Vodacom, from 99c per Megabyte a year ago to 49c per Megabyte in the first quarter of this year. This was still two thirds more expensive than Telkom Mobile, which has charged 29c per Megabyte throughout this period (see graph below).
Meanwhile, from having positioned itself as consumer champion in recent years, Cell C has fallen on hard times, image-wise: it is by far the most expensive mobile network for out-of-bundle data, at R1.10 per Megabyte. Its prices have not budged in the past year.
The report highlights the disparities between the haves and have-nots in the dramatically plummeting cost of data per Megabyte as one buys bigger and bigger bundles on a 30-day basis (see graph below).
For 20 Gigabyte bundles, all mobile operators are in effect charging 4c per Megabyte. Only at that level do costs come in at under Rain’s standard tariffs regardless of use.
Qualcomm wins 5G as Apple and Intel cave in
A flurry of announcements from three major tech players ushered in a new mobile chip landscape, wrItes ARTHUR GOLDSTUCK
Last week’s shock announcement by Intel that it was canning its 5G modem business leaves the American market wide open to Qualcomm, in the wake of the latter winning a bruising patent war with Apple.
Intel Corporation announced its intention to “exit the 5G smartphone modem business and complete an assessment of the opportunities for 4G and 5G modems in PCs, internet of things devices and other data-centric devices”.
Intel said it would also continue to invest in its 5G network infrastructure business, sharpening its focus on a market expected to be dominated by Huawei, Nokia and Ericsson.
Intel said it would continue to meet current customer commitments for its existing 4G smartphone modem product line, but did not expect to launch 5G modem products in the smartphone space, including those originally planned for launches in 2020. In other words, it would no longer be supplying chips for iPhones and iPads in competition with Qualcomm.
“We are very excited about the opportunity in 5G and the ‘cloudification’ of the network, but in the smartphone modem business it has become apparent that there is no clear path to profitability and positive returns,” said Intel CEO Bob Swan. “5G continues to be a strategic priority across Intel, and our team has developed a valuable portfolio of wireless products and intellectual property. We are assessing our options to realise the value we have created, including the opportunities in a wide variety of data-centric platforms and devices in a 5G world.”
The news came immediately after Qualcomm and Apple issued a joint announced of an agreement to dismiss all litigation between the two companies worldwide. The settlement includes a payment from Apple to Qualcomm, along with a six-year license agreement, and a multiyear chipset supply agreement.
Apple had previously accused Qualcomm of abusing its dominant position in modem chips for smartphones and charging excessive license fees. It ordered its contract manufacturers, first, to stop paying Qualcomm for the chips, and then to stop using the chips altogether, turning instead to Intel.
With Apple paying up and Intel pulling out, Qualcomm is suddenly in the pound seats. It shares hit their highest levels in five years after the announcements.
Qualcomm said in a statement: “As we lead the world to 5G, we envision this next big change in cellular technology spurring a new era of intelligent, connected devices and enabling new opportunities in connected cars, remote delivery of health care services, and the IoT — including smart cities, smart homes, and wearables. Qualcomm Incorporated includes our licensing business, QTL, and the vast majority of our patent portfolio.”
Meanwhile, Strategy Analytics released a report on the same day that showed Ericsson, Huawei and Nokia will lead the market in core 5G infrastructure, namely Radio Access Network (RAN) equipment, by 2023 as the 5G market takes off. Huawei is expected to have the edge as a result of the vast scale of the early 5G market in China and its long term steady investment in R&D. According to a report entitled “Comparison and 2023 5G Global Market Potential for leading 5G RAN Vendors – Ericsson, Huawei and Nokia”, two outliers, Samsung and ZTE, are expected to expand their global presence alongside emerging vendors as competition heats up.