Learning to innovate

Mankind’s progress is measured by the depth of creativity and the number of innovations in every period. The human race has an irresistible urge to make things smarter, faster, and better. While modern technological marvels like the airplane, the laptop or an LCD TV continue to amaze us, people in these industries will most probably concur that most of the developments that have happened in these domains have been in small increments over long periods of time. Barring a few breakthrough discoveries like calculus by Isaac Newton or the Theory of General Relativity by Albert Einstein most of the innovations that have happened have been incremental and are the result of careful analysis, sudden insight after several days of thoughtful deliberation, or sound judgment.

Creativity need not be sensational nor even path breaking. There is neither a silver bullet for innovation nor a magic potion to inspire creativity. Creative ideas can just be incremental. Not all ideas happen in the spur of the moment or are serendipitous.
Innovation and creativity can be deliberate and well thought-out. However there are certain e principles of innovation that keep repeating time and time again. Almost all innovations are based on the constant need for simplicity, reliability, being disaster proof, extendibility or safety. “Invention is the child of Necessity” and innovations happen when there is strong need for it. This article explores some of the eternal principles behind the various innovations of the ages. It looks at the motivation and the thought processes behind those inventions. Various common day-to-day gadgets, processes or devices are explored to determine the principles behind the particular improvement or advancement.

Some of the principles behind mankind’s creativity are looked at below in greater detail

a. Simplicity
Several innovations are based on the principle of simplicity. Smaller, simpler, faster has been the driver of several innovations. .For e.g. RISC (Reduced Instruction Set Computer) design strategy is based on the insight that simplified instructions can provide higher performance. The philosophy behind this is that simplicity enables much faster execution of each instruction as opposed to CISC (Complex Instruction Set Computer). In favor of simplicity, are regular English alphabet text based protocols like HTTP, SIP as opposed to the more esoteric telecommunication or data communication protocols which send and receive messages in binary 1’s & 0’s and have complicated construction rules. The tradeoff for simplicity, however, is the consequent increase in bandwidth or the increase in the communication pipe capacity. To counter the increase in bandwidth there are several innovative techniques to compress the text message. These compression algorithms compress the text messages before sending them on the communication pipe. These compressed messages, on reception are uncompressed to obtain the original message.

b. Safety
Some incremental changes result from the need to increase safety. It is based on the principle of disaster-proofing the devices or to provide safety to us human beings and protect us from freak accidents. For e.g. the safety pin is an incremental improvement over the regular pin. The electrical fuse and the safety valve in a pressure cooker are two such innovative improvements that are based on the principle of safety. The electrical fuse is an interesting innovation and is based on the principle that when there is an abnormal surge of current in the fuse wire, the resulting heat produced will melt the wire, thus breaking the electrical connection. This protects the gadget and the more expensive internal circuits from serious damage. Also the safety valve in the pressure cooker will give way if the pressure inside the cooker goes beyond safety limits. This protects the cooker from bursting due to excess pressure and causing damage to humans and property.

c. Judgment:
Some innovations are based on the principle of sound engineering judgment and to large extent common sense. One such innovation is the LRU technique of an Operating System like Windows or UNIX. This technique or algorithm helps the computer in deciding which specific “page” or section of a large program in the computer’s Random Access Memory (RAM) should be moved out or swapped to the disk (only a limited number of pages can be in the RAM at a time). The computer makes this decision based on the “Least recently Used” (LRU) technique. Obviously, amongst many pages in the computer’s RAM, the page that has been used the least, in the recent past, can be moved out to the disk under the assumption that it less likely to be used in the future.
Another wonderful innovation, based on sound engineering judgment, is Huffman’s method of coding. This technique is used in computer communication for the most efficient method of encoding the English text. It is based on a simple rule that more frequently occurring letters in the text should be assigned a smaller number of binary digits (0 or 1) or bits and less frequently occurring letters be assigned a larger number of binary digits. Since the letter ‘e’ occurs most frequently in the English language it is assigned the least number of binary digits and the letter ‘z’ number of binary digits. The resulting binary string thus obtained is most efficient and optimal. This technique clearly shows the ingenuity in the algorithm.

d. Paradigm Shift
The light bulb invented by Thomas Alva Edison was truly a path breaking, paradigm shifting invention in the age of gas-filled lights. Similarly, the move from vacuum-tube based electronics for e.g. the diode; triode to the more compact, smaller & less power consuming semi-conductor devices was a major paradigm shift in the realm of electronics. So also the move from cassette tapes to compact discs (CDs) and from VHS video tapes to the now compact DVDs were game changing innovations. Similarly the move from film-based cameras to the now digital cameras is a huge paradigm shift. Innovations which are based on a paradigm different from an existing philosophy truly require an out-of-box or a lateral thinking coupled with great perceptiveness and knowledge of the field.



e. Logical induction/deduction
In the mid 19th century many great and powerful inventions/ discoveries were made by giants like Faraday, Lenz, Maxwell, and Fleming in the field of Electro Magnetism. One the finding was that, there was a production of a voltage, and hence a current, across a conductor situated in a changing magnetic field. This consequently led to the invention of the Electro-mechanical Generator for generating electricity. Conversely, it was found that if a current carrying conductor is located in an external magnetic field perpendicular to the conductor, the conductor experiences a force perpendicular to itself and to the external magnetic field. This principle, which results in a force on the conductor, promptly led to the invention of the still prevalent Electro-mechanical Motor.

f. Cause-Effect –Cause
There are many inventions which are based on the cause-effect-cause principle. In this category of innovations the cause & effect are interchanged in different situations to handle different problems. For e.g. thermal energy may be converted to electrical energy as in the case of a steam turbine. Or conversely electrical energy may be converted to heat for e.g. in the electric cooker. Similarly there are inventions, where light energy and electrical energy are transformed based on the specific need. A recent investigation into the possibility of a remote power outlet led the author on an interesting journey. Since electrical energy can be converted to microwaves (microwave cooker) the author wondered whether the reverse is possible i.e. could microwaves be transmitted across space and at the receiving end be converted to electricity. An internet search showed that this is very much possible and has been thought of more than a decade back. This is known as Microwave Power Transmission (MPT). However practical applications of this are not possible because of the radiation hazards of microwaves. However, MPT is used in outer space.

g. Feedback principle
An excellent example of this is the room Air Conditioner (A/C). The room air-conditioner maintains a constant temperature. If there is an increase in room temperature it increases the cooling and if there is a drop in temperature it decreases the rate of cooling. There are many day to day inventions that are based on the principle of feedback where the result is fed back and manipulated internally such that resultant output is maintained at a constant level.

h. Insight & Ingenuity
Vacuum tubes and the semi-conductor transistor can be made to toggle between 2 distinct states (on & off). This property and the insight and knowledge of binary arithmetic soon led to utilization of electronic devices for binary arithmetic. This soon led to the development of electronic circuits for simple addition, subtraction, and multiplication etc of binary numbers. Invention after invention and innovation after innovation led to development and metamorphosis of the now ubiquitous Personal Computer.



Conclusion
In conclusion innovations can be incremental. There are numerous examples of human cleverness and innovation all around us. One just needs to notice and pretty soon we begin to appreciate human ingenuity. We need to reflect on the thought processes behind each incremental innovation which have made our lives more pleasant and convenient. Hopefully, as we become more aware, someday, some of us may have a defining “eureka” moment.

Monetizing Mobile Data Traffic

Published in Telecom Asia - May 31, 2010 - Monetizing mobile data traffic
Published in Telecoms Europe - June 1,2010 - Blood from a phone - Squeezing value from mobile data

Abstract: In the last couple of years mobile data traffic has seen explosive growth and has in fact crossed the voice traffic. CSPs have been forced to upgrade their access, core and backhaul networks to be able to handle the increased demands on the network. Despite the heavy growth in mobile data traffic the corresponding ARPU for mobile data traffic has only been marginal. So what is the way out for the Service Providers? This article looks at some of the avenues through which CSPs can increase their revenue in the face of increasing traffic demands by converting the growth in mobile traffic from a challenge to an opportunity.

Growth in Mobile Data Traffic
Mobile data traffic is exploding in carrier networks. In a recent report by Ericsson the findings show that mobile data traffic globally grew 280% during each of the last two years, and is forecast to double annually over the next five years. This exponential growth in data traffic has been fueled by the entry of smartphones, laptops with dongles and other devices hungry for bandwidth. The advent of smartphones like iPhone, NexusOne and Droid has resulted in several data hungry applications squeezing the available bandwidth of carriers. Smartphones are here to stay. Social networking sites on mobile devices and mobile broadband-based PCs also now account for a large percentage of mobile data traffic. In fact it is rumored that a major carrier’s network started to choke as a result of these bandwidth hungry smartphones.

Marginal ARPU issue
Nowadays professionals everywhere use their laptops with dongles for checking their emails, browsing or to perform high bandwidth downloads. However the ARPU from data traffic has been relatively flat or at most marginal. In fact one report claims that despite the phenomenal growth in data traffic the ARPU from data traffic has not grown proportionately. In fact the ARPU from voice traffic continues to exceed that of the ARPU of data traffic. This clearly defies logic. On the one hand there is enormous growth of data traffic but there are no corresponding returns for the Service Provider. To add to this situation there are now new devices like the iPad and its soon-to-be competitors which will start its demands on the wireless network. One of the reasons why the growth in ARPU for data traffic is not proportional to the data traffic growth is because of data schemes like “all-you-can- eat” or flat-rate charging. Such charging schemes result in excessive usage with little or no consequent increase in revenue generation. To make matters worse Over the Top (OTT) video service and other third party services place a heavy data load on the networks while siphoning away the revenue. Also the increased demands on the network necessitate the need to upgrade the access, core and backhaul networks to handle the increasing data traffic loads. The CSPs are forced to upgrade to LTE/WiMAX to improve the access and move their backhaul to the Evolved Packet Core (EPC). Hence the CSPs are faced with the situation where they do “more for less”. While they have to increase their CAPEX there is no corresponding ROI for the new hardware. This article looks at some of the possible ways the CSPs can monetize this growth in traffic.

Avenues for CSPs
There are four ways for turning this bandwidth crunch into an opportunity
1) Policy Based Traffic
The first technique is to study the usage patterns of the subscribers. The CSPs need to identify the applications that are most frequently used and have high bandwidth demands. The CSPs may be required to perform Deep Packet Inspection (DPI) to determine the kind of traffic in the network. The CSPs can then apply premium charging for these types of traffic. The CSPs need to have Policy Servers that apply different policies based on the type of traffic (data, video etc). The Service Providers can charge a premium for specific kinds of traffic usage based on the policies set. However the downside of this approach is that it may not go down well with the subscribers who have been using the flat rate charging

2) Mobile Ads
The second method which carriers can use is through mobile ads. This method avoids increasing the charge on customers. The carriers can maintain a fixed charge for the subscriber or in other words provide a subsidy to the subscriber by having the subscriber receive commercial advertisements, The Service Provider s can have a business model with the commercial provider and receive a small fee for carrying the commercial to the mobile. The mobile ads should be non-intrusive and should be non-distracting to the user. They can be displayed at the top or the bottom of the mobile phone for example when the subscriber is looking through his/her contact list. Alternatively if the subscriber is using a data intensive application the user may be required to watch a 30 sec commercial prior to the start of the video clip.

3) Revenue sharing with Content Owners
The third technique for the CSPs is to enter into an innovative business model with the content provider or content owner. Some lessons can be learnt by the business model of successful enterprises like Google, Yahoo, eBay or PayPal. These organizations receive a small fee for facilitating a particular service for example hosting an ad on the web page or facilitating a payment. So also the carriers should enter into a business model with the content owners where a small fee is received by the Service Providers for providing the network infrastructure for the music or video service. This would be akin to paying a toll for using a well maintained highway. So also the carriers should levy a small toll for the usage of it network highway.

4) App Stores
The carriers can also maintain app stores which besides providing downloadable applications should also provide for downloadable content for e.g. Music or video. So the carriers can generate revenue both from providing the content and also from providing the infrastructure for transport of the content to the mobile.

Conclusion: Some avenues for revenue generation in these times where the growth of data traffic is increasing at a tremendous pace is for the Service Providers to
1) Have the ability to differentiate traffic and use a policy manager and charge based on the data being transported. Provide a personalized service to individual users based on traffic types and charge appropriately
2) Subsidize usage for the subscriber through the delivery of mobile ads and enter into revenue share with the organization for whom the commercials are being provided
3) Levy a small charge to the content owners for the delivery of their content to the mobile users
4) Creatively use app stores for providing apps, music, video and other differentiated content.

The evolutionary road for the Indian Telecom Network

Published in Voice & Data Apr 14, 2010

Abstract: : In this era of technological inventions, with the plethora of technologies, platforms, paradigms, how should the India telecom network evolve? The evolutionary path for the telecom network clearly should be one that ensures both customer retention and growth while at the same time be also capable of handling the increasing demands on the network .The article below looks at some of the technologies that make the most sense in the current technological scenario

The wireless tele-density in India has now reached 48% and is showing no signs of slowing down. The number of wireless users will only go up as the penetration moves farther into the rural hinterland. In these times Communication Service Providers (CSPs) are faced with a multitude of different competing technologies, frameworks and paradigms. On the telecom network side there is the 2G, 2.5G, 3G & 4G. To add to the confusion there is a lot of buzz around Cloud technology, Virtualization, SaaS, femtocells etc., to name a few. With the juggernaut of technological development proceeding at a relentless pace Senior Management in Telcos, Service Providers the world over are faced with a bewildering choice of technology to choose from while trying to maintain the spending at sustainable levels. For a developing economy like India the path forward for Telcos and CSP is to gradually evolve from the current 2.5G service to the faster 3G services without trying to rush to 4G. The focus of CSPs and Operators should be in customer retention and maintaining customer loyalty. The drive should be in increasing the customer base by providing superior customer experience rather than jumping onto the 4G bandwagon. 4G technology, for example LTE and WiMAX, make perfect sense in countries like US or Japan where smart phones are within the reach of a larger set of the populace. This is primarily due to popularity and affordability of these smart phones in countries like the US. In India smartphones, when they come, will be the sole preserve of high flying executives and the urban elite. The larger population in India would tend to use regular mobile phones for VAS services like mobile payment, e-ticketing rather than downloading video or watching live TV. In US, it is rumored, that iPhones with their data hungry applications almost brought a major network to its knees. Hence, in countries like US, it makes perfect sense for Network Providers to upgrade their network infrastructure to handle the increasing demand for data hungry applications. The upgradation to LTE or WiMAX would be a logical in countries like US. In our nation, with the growth in the number of subscribers, the thrust of Service Providers should be to promote customer loyalty by offering differentiated Value Added Service (VAS) service. The CSPs should try to increase the network coverage so that the frustration of lost or dropped calls is minimal and focus on providing superior customer experience. The Service Providers should try to attract new users by offering an enhanced customer experience through special Value Added Services (VAS). This becomes all the more important with the impending move to Mobile Number Portability (MNP). Once MNP is in the network many subscribers will switch to Service Providers who offer better services and have more reliable network coverage.
Another technique by which Service Providers can attract and retain customers is through the creation of App Stores. In US, app stores for iPhone have spawned an entire industry. Mobile Apps from app stores besides providing entertainment and differentiation can also be a very good money spinner. While the economy continues to flounder the world over the Service Providers should try to reduce their Capacity Expenditure (Capex) and their Operating Expenditure (Opex) through the adoption of Software-as – Service (SaaS) for their OSS/BSS systems. Cloud technology, besides reducing the Total Cost of Ownership (TCO) for Network Providers can be quite economical in the long run. It is quite possible that prior to migrating to the Cloud all aspects of security should be thoroughly investigated by the Network Providers and critical decisions as to which areas of their OSS/BSS they would like to migrate to the Cloud. While a move to leapfrog to 4G from 2G may not be required, it is imperative that with the entry of smartphones like iPhone 3GS, Nexus One and Droid into India the CSPs should be in a position to handle increasing bandwidth requirements. Some techniques to handle the issue of data hungry smartphones are to offload data traffic to Wi-Fi networks or femtocells. Besides, professionals these days use dongles with their laptops to check email, browse and download documents. All these put a strain on the network and offloading data traffic to femtocells & Wi-Fi have been the chosen as the solution by leading Network Providers in the US.
Conclusion
So the road to gradual evolution of the network for the Network Operators, Service Providers are
1. Evolve to 3G Services from 2G/2.5G.
2. Create app stores to promote customer retention & loyalty and offer differentiated VAS services
3. Improve network coverage uniformly and enhance the customer experience through specialized App stores
4. Judiciously migrate some of the OSS/BSS functionality to the cloud or use SaaS after investigating the applications of the enterprise that can move to the cloud
5. Offload data traffic to Wi-Fi networks or femtocells.
Tinniam V. Ganesh
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