What Are Smart Contracts On Blockchain?
December 22, 2022
Smart contracts in blockchain are a subject of interest today, with varied applications across the industry spectrum.
Smart contracts in blockchain are a subject of interest today, with varied applications across the industry spectrum.
The audience at the Digital Success Summit V3.0 was in for a treat, as Naman Shah, the CEO at NowPurchase, talked about secrets behind developing successful B2B (business-to-business) marketplaces. He returned around five years earlier to India and began his journey towards developing his company. A Basic Look At Marketplaces And B2B A B2B marketplace is any type of service where business may purchase/sell goods/services with the help of technology in a more transparent/easier way. It is also possible that a business may not require an app/website to purchase goods or services. Technology is required for helping them make these vital purchases. B2B is not B2C- Strategies and other blueprints will be radically different, especially where smaller and bigger entities operate differently despite producing similar products. The business has to be defined specifically in terms of the industry segment and the scale while beginning any B2B business/marketplace. One should always consider things that add value and the role played by technology. However, the latter should not be a force-fit even though digital transformation is inevitable. Technology should help grow margins, speed, or build a major differentiator in order for it to be viable. It should do at least one or more of these things. Businesses have numerous stakeholders. There are persons raising enquiries, paying for the product, decision-makers, and actual users. Hence, B2B marketplaces should understand the decision-maker, user, and the one who is going to pay, along with the application of what they are purchasing for any specific business/customer segment. Naman Shah also talked of how NowPurchase began as a B2B marketplace which was greatly successful, although they ultimately realized how people were purchasing goods but they were not generating ample value. Another dimension was added and the company started selling to the retailer category and attempted to know the actual sweet spot in terms of value. It eventually focused only on casting producers as its customer segment. NowPurchase went for a value-driven approach, while refining their segments and built SOPs on factory management and other topics as part of its content engine, along with printers and posters on how to keep workplaces safe during COVID-19. The current platform (procurement based) could only launch after the pandemic. Vital Pointers According To Naman Shah He drew on his experience at NowPurchase, talking about using technology to build a successful B2B marketplace. Technology can help simplify buyer access- WhatsApp bots, price discovery, delivery tracking, etc. may be potent tools. Seller segment may gain greater value through technologies such as customized WhatsApp bots. SaaS layers for manufacturing clients helped reduce costs of production. The website or app should not be the first step, since it is time-consuming and expensive. First go for interactions offline, understand the applications, and then build the digital use cases accordingly. No market in India is small and creating value for customers will make each vertical a billion-dollar opportunity. Do not focus overly on customer acquisitions or users acquired. NowPurchase, for instance, has an internal tracker called SOPW (share of procurement wallet). He also outlined a personal philosophy which is to avoid over-analyzing, while talking about how the right attitude always matters. Luck only comes to people who try enough and persevere according to Naman Shah. The ultimate mantra according to Naman Shah is that B2B is a space where one should go as deep as possible, without going wide. Full coverage of the session Secrets of building a successful B2B marketplace by Naman Shah at Digital Success Summit 2022
Lavin Mirchandani, the founder at Mirc Media, discussed Web3.0 and its future potential with an engaged audience at Digital Success Summit V3.0. He left listeners in no doubt about how Web3.0 use cases are only going to increase in the future and how it is steadily shaping almost every aspect of our daily lives. Web3.0 – Some Basics Lavin Mirchandani demystified Web3.0 at a very basic level, outlining how Web1.0 was about helping people read, while Web2.0 enabled people to not only read but also write or respond, ushering in the social media age. He talked of how Web3.0 enables not just reading and writing, but also ownership. From a platform standpoint, according to him, Web1.0 had companies owning their platforms, while Web2.0 saw companies becoming platforms themselves. However, Web3.0 is more inclined towards increasing user ownership of platforms. Previously companies earned revenues from users, business owners, and creators while Web3.0 will enable ownership and money-making from platforms all by oneself. Some other pointers worth noting included the following: Web3.0 ensures a permission-less economy minus multiple authorizations that we usually require for each activity in the Web2.0 world. Web3.0 worlds have companies not owning data and this is instead stored on a decentralized database or blockchain. You pay differently for the same and there is no single source. There are domains being sold as NFTs in the Web3.0 ecosphere as well, with everything established on the blockchain and without renewal requirements. For every app or platform that is owned by a centralized entity in the Web2.0 world, Web3.0 has a decentralized counterpart. Four Key Traits of Web3.0 Lavin Mirchandani also outlined the four key traits of Web3.0 which also help from an identification standpoint. These include the same: Decentralization– Web3.0 shifts away from a central owner or deciding entity. Blockchain Driven– Web3.0 platforms are driven by blockchain that enables smart contracts. Universal Identity– Every Web2.0 app needs signing up and logging in, along with several details and IDs. Web3.0 will shift to a system of universal identity with something called a wallet. This does not function like a conventional payment wallet although it can also store money. Pseudonymous– Web3.0 is not anonymous at all and transactions and their locations can be traced without difficulties. Use Cases, Layers and More Use cases have already covered aspects like security, banking, finance, insurance, data storage, and identity across the blockchain framework. Other use cases include financial services, NFT marketplaces, social networks, and gaming. There are several layers contributing toward the Web3.0 ecosystem. There is a protocol or fundamental layer along with an access layer like the browser in Web2.0 or the wallet in Web3.0 and use case layer. There are products that are scaling up these infrastructure or fundamental layers. There are apps being built on blockchain with self regulating or smart contracts. Valuations of different chains like Solana or Ethereum now depend on more apps being built on them, more user activity, and economic activity as well. Every chain is building ecosystems equivalent to the Web2.0 framework in the first and fundamental layer. Lavin Mirchandani also talked about deFI or decentralized finance where investments, savings, insurance, and banking are already being explored as financial services or use cases on most blockchains. He highlighted the pioneering AMM (automated market maker), citing the example of Uniswap, the self-regulated marketplace which functions like an exchange minus any governing body. He also added that codes are replicable and transparent and this is what is propelling the development of exchanges. Success in this space is measured through TVL (total value locked) and this stands at $68.62 billion that has been locked across platforms globally today according to him. NFTs are gaining prominence with their smart contracts, enabling people to gain membership, hold assets, and covering things like gaming and royalty rights as well. DAOs (decentralized autonomous organizations) ensure on-chain governance which is spurred by smart contracts and voting that is community-based. There will also be more employee-driven organizations in future. Cryptocurrency is another fast-emerging use case in the Web3.0 world and they encompass assets, stable coins (which mostly operate like currencies), security tokens, and utility tokens. He also outlined the need for more responsibility and awareness while using the platform. Greater freedom automatically underlines the need for more alertness in using and securing wallets. More education and awareness on Web3.0 is hence necessary according to him. He also advised people who are absolutely new to the space to start interacting with others and create groups on Discord, Crypto Twitter, and Telegram among other platforms to gain a better understanding.
Privacy and blockchain go hand in hand. There has been a massive debate on Blockchain privacy or the lack of it and also how it safeguards privacy. Many have flagged predominant Blockchain privacy issues including the vulnerability toward transactional data leaks. Why was this a concern? This is because public keys of all networks are ever-visible. Security breaches have also been reported in the recent past, related to smart contracts and Ethereum. When it comes to blockchain security, there is a concept of public and private keys. Blockchain based systems make use of something called asymmetric cryptography for securing transactions taking place between the users. Every user has his or her own private or public key in the system which is a number string without any relation. The question now is, in spite of these pressing aspects, why is Fintech still biting the bait? What lies behind its all-out desire to embrace blockchain for greater consumer safety and privacy? Let’s find out! Privacy And Blockchain- How Things Stand The fintech space is no stranger to this technology which is already the hottest moot point within the Government, industry, start-up and media spaces. And why not? Blockchain enables secure data recording, making it almost-impossible to break into the system or modify it in any manner. The bonhomie between blockchain and fintech makes more sense when you perceive the former as a digital ledger with its own blocks or records. These are deployed for asset tracking and transaction recording within the network. This makes operations more democratic, providing higher security and transparency in a more optimal model for the sector, while decentralizing privacy in a way of speaking. Transactions are noted in real-time while there is a reliable transaction record, taking away the issue of modifying earlier ones. What it means is that blockchain technology can virtually make all future transactions completely bullet-proof in terms of privacy and reliability. No wonder it is becoming the new poster boy for fintech companies of varying sizes. Privacy And Blockchain- An Accepted Fact Now The trends have not gone unnoticed amongst the Mandarins in power. The Government has established its own Centre for Excellence in Blockchain Technology, as part of the Union Ministry of Electronics and Information Technology. In essence, the Government is already making use of this technology for its Digidhan platform that enables accurate reporting, monitoring and analysis of all types of digital payments transactions in the country. Talk about Blockchain going mainstream and the proof lies in the pudding. The Government has already shown the way forward, embracing innovation and Blockchain hand in hand. In fact, moving forward, Blockchain could well generate millions of worldwide jobs while adding significantly to global economies in the next decade. Fintech players are finding greater value in aligning with this technology for ensuring the absolute privacy and safety of each individual transaction. Blockchain is mostly being used for digital identity, transferring funds and setting up proper infrastructure for digital payments. These are already flagship offerings for several BFSI start-ups, fintech entities and even conventional banking players in the digital space. India is already home to 500+ blockchains throughout the financial services spectrum as per estimates. In fact, with Web 3.0 set to make a bigger splash in the coming years, blockchain (which Web 3.0 will depend upon), will assume a more significant role. It will make the banking system near-indestructible for anybody to break in or pilferage information. It will also centralize this entire network simultaneously, while lowering fraud risks for financial transactions and ensuring a higher level of consumer security. Blockchain is what will contribute towards a transparent, reliable and easily accessible system of peer-to-peer or digital lending which will be more customized across banks or fintech companies. Blockchain technology is also not stagnant; it will continue on its path toward evolution, offering newer fintech upgrades periodically. Privacy And Blockchain- What Lies Ahead? The Indian Government is already doing its bit for promoting start-ups and financial inclusion. With the Government connecting the dots between privacy and blockchain, private players will not be too far behind. Blockchain technology will be prioritized for creating these transparent, reliable and bullet-proof fintech and lending ecosystems of the future. And of course, new-age fintech start-ups and associated companies will drive this trend without a doubt. Blockchain technology is currently a beacon of hope for the fintech space in terms of higher consumer safety and privacy. However, more needs to be done to ensure its rapid adoption. Key Takeaways: Blockchain is finding favour in the fintech space. The sector is relying on blockchain for next-generation customer safety and privacy. While some security concerns remain, Blockchain has decentralized data ownership and control, thereby creating the foundation for a potentially fool-proof future ecosystem. FAQ How does blockchain support data privacy? Blockchain based transactions enable users to fully control their own information via public and private keys. They can own their data and privacy in a decentralized manner. There are no third-parties or intermediaries who can get this data and potentially misuse it. Personal information stored on blockchains are accessible and controllable by owners. They will have full control over the access of their data by third parties.
Neobanks is a term that many of us have heard increasingly over the last couple of years and with good reason. The banking and financial services industry (BFSI) is finally seeing widespread digital transformation over the last few years. New or neobanking is a phenomenon that encompasses multiple new moot points for the sector. These include widening the customer net to include more younger adults and teenagers or the tech-savvy generation to swift and hassle-free onboarding processes, contactless payments, greater financial literacy and user-friendly content, and most importantly, easier access to loans and other offerings. A Little More About Neobanks Neobanks may help in filling up the vacuum between services offered by conventional banks and increasing customer expectations in a digital era. They are rapidly transforming the very nature of fintech as we know it and this trend looks set to continue in 2022. However, neobanks, while similar to digital banks, are slightly different propositions. They are financial institutions providing more affordable options to conventional banking for customers. They do not have physical branches in most cases, providing more inclusive services than conventional players and in a more efficient manner. They deploy AI and other technologies for personalizing services while lowering operating expenditure. These neobanks may not have their banking licenses but depend upon licensed services from banking and other partners. The RBI still does not permit 100% digital banks and hence this unique operational model. While conventional banking players have earned the trust of customers over decades and are better funded, they are sometimes bogged down by legacy mechanisms while finding it harder to quickly keep up with the evolving requirements of tech-savvy and younger generations of customers. At the same time, there is a large section of un-served or under-served customers who are not under the purview of the conventional banking sector and never will be. Neobanks are steadily making finance solutions for this ever-expanding demographic. Core Pointers Worth Noting Neobanks are deploying technological expertise and innovation toward launching newer customer offerings and partnering with more providers for serving customers faster than their conventional counterparts. They cater majorly to SMEs and retail customers who are under-served at conventional lenders. They tap into mobile-driven operational models while ensuring superior customer support. Neobanks are finding acceptance amongst investors who envision a brighter future for these institutions. To put a few statistics into context, neobanks raised a whopping $230 million in 2020 alone as per reports. The growth potential is immense- India had 54% of the population covered by smartphones as of 2020 and this could jump to 96% by 2040 according to estimates. Although 80% of the country has access to a single bank account at least, universal financial inclusion is still some way off. Gen Z surprisingly executes 80% of transactions using cash despite being digitally savvy. They are under-served by the mainstream banking sector which mainly targets salaried customers. A majority of this population enters working life without much knowledge of finance and financial products. Simultaneously, with financial independence, they desire more customized products and simplified knowledge-gathering and marketing interfaces. Neobanks are taking care of this category with 2022 poised to witness rapid expansion with youth-based finance offerings. Traditional banks do not always enable stand-alone bank accounts for minors without guardians. Neobanks are filling up this gap rapidly. Neobanks are also offering comfortable and phone-based finance experiences while enjoying exclusively curated, simplified and gamified content for increasing financial literacy. With fast onboarding, quicker digital account set-up procedures, minimal documentation and other features, neobanks are swiftly scaling up their customer base. How Does It Stack Up? As mentioned, 2022 could be the year of youth-centric financial services and products. From contactless and prepaid cards to other contactless financial offerings, online payments, and category-wise spending limits, a lot is in store for customers. Neobanks are empowering younger customers while encouraging them to be financially responsible. This will be ensured through gamified and highly intuitive financial content for higher awareness and education alike. Of course, the neobanking industry is anticipated to touch $333.4 billion in market size by the year 2026, indicating a CAGR (compounded annual growth rate) of 47.1%. However, neobanks do have their own sets of advantages and disadvantages as observed to date. The trust factor is of course where they will face hurdles in mounting challenges to conventional banks. Neobanking may come up with models such as freemium subscriptions, memberships and other ‘experiences before you pay’ initiatives for building trust. Neobanks have lower costs and credit risks, enabling them to offer inexpensive products and solutions to customers with maintenance fees levied every month. These banks also ensure app-based or mobile banking solutions along with facilitating the faster establishment of accounts while processing reports quickly as well. Those providing loans may bypass the regular lengthy application procedure, choosing highly innovative blueprints for credit evaluations instead. Of course, regulatory issues will be there since the RBI does not officially provide recognition to neobanks as of now, especially since they lack physical branches. Customers may also face some hurdles concerning getting support in person as well. At the same time, the overall service spectrum at neobanks is comparatively lesser than conventional banking institutions. Yet, 2022 could well be the year of neobanking, a year when conventional models give way to simplified, youth-centric, and most importantly, more convenient personal finance solutions.
Environmental impact, natural calamities and global warming are the biggest moot points today among policymakers and corporates worldwide. While Nature’s Fury is not fully in our hands, technology can be a future safeguard in terms of better response systems, mitigation strategies and correcting environmental impact. With World Earth Day around the corner on 22nd April 2022, now is the time for countries and authorities to adopt comprehensive digital technologies for managing environmental impact, and conditions and contribute towards futuristic, sustainable and sound policymaking. Digital Technologies- How They Stack Up? Digital technologies may enable easier decision-making and response systems through their integration into environment-linked data. For instance, with New Delhi suffering from toxic air quality last winter, residents were able to track everything on the GEMS Air (Global Environment Monitoring System Air) site in real-time. GEMS Air is one of the numerous technologies deployed by the UNEP (United Nations Environment Programme) for tracking environmental conditions at local, global and national levels. In the near future, integrated digital data platforms will help countries understand, track, manage and mitigate environmental hazards including growing air pollution and harmful emissions. Multiple public and private sector players are already tapping into digital technologies and data for scaling up environmental action plans. At a time when the world is battling pollution, loss of biodiversity and climate change, digital technologies are enabling transformational measures for safeguarding nature, lowering pollution and boosting overall sustainability. GEMS Air for instance is the biggest air pollution network worldwide, encompassing almost 5,000 cities. More than 50 million people accessed it in 2020 as per reports. It is now playing a crucial role in alerting citizens about risks with real-time updates. How Other Digital Tools Are Contributing To Much-Needed Environmental Action? Big data and other technologies are helping generate timely and effective insights. For instance, farmers now have accurate data on weather and predictive modelling/forecasting applications. They can lower the usage of water, conserve natural resources and prepare for calamities. Applying digital technologies to environmental information is helping in better management and regulations. For instance, migrations of birds are hard to track and cover various regions. This is a major obstacle to conservation efforts in this space. Yet, forecasting models are now helping understand patterns and variances in migration. This knowledge is helping combat migration issues with better policies. Non-governmental change agents are also being mobilized through environmental insights and information, including corporates, communities and organisations. Some tools are already tapping data on emissions of methane already and offering analytics to companies for building future sustainability goals. Simultaneously, digital technologies are playing a role in enhancing overall accountability among all stakeholders, veering policy-making away from distractions towards hardcore and understandable analytics and environmental data. Minimizing environmental impact, identifying potential problems and finding solutions are processes made faster and easier through digital technologies. AI and big data analytics along with IoT, social platforms and mobile applications are contributing towards enhanced sustainability, lower resource usage and greater awareness. At a rudimentary level, these technologies are digitizing workplaces, production units and establishments, making them more environment-friendly and conserving more resources as a result. More corporates are depending on AI and IoT along with analytics for coming up with futuristic and more sustainable practices that lower carbon emissions and minimize wastage. Big data analytics is already at work in certifying products based on their environmental sustainability quotient. Blockchain may be used for greater sustainability in the future, scaling up lifecycles of products, maximizing usage of resources and lowering emissions, thereby greatly contributing to lowering environmental impact. These are only a few of the multifarious use cases of digital technologies and their role in mitigating environmental impact. One aspect is crystal clear- A fusion of environmental understanding, policies and sustainability with digitization is mandatory. It is digital transformation that will enable countries to move towards lower resource wastage, higher conservation and more sustainable ecosystems. On World Earth Day, it is time to embrace the power of technology and use it for environmental good.
Challenger banks have witnessed phenomenal growth over the last few years, becoming marshals of the global fintech space. These banks have set the cat amongst the pigeons in conventional banking globally with more innovation, digital-led offerings and unique and multi-dimensional customer service. With a customer is king template and the spirit of coopetition or positive collaborations in the space, challenger banks could well be the fast-growing Davids amidst banking Goliaths today. A Little About Challenger Banks Challenger banks are intrinsically technology companies, tapping their expertise and software to streamline and digitize conventional retail banking. These entities are strongly leveraging digital channels for distribution (usually mobile-based) to provide highly competitive services in the retail banking segment. These include savings and checking accounts, credit cards, insurance and even loans. How Do They Differ From Their Regular Peers? Retail banking has always emphasized the presence of a branch and in-person experiences, while challenger banks are always tech-driven, depending on desktop/mobile platforms. They harp on customer experiences and continual improvement, targeting those desirous of online banking without visiting any retail point. Challenger banks are gaining ground among customers who are shying away from conventional bankers and institutional players post the worldwide financial crisis. They are posing a literal challenge (true to their name) to the business models of retail bankers. This is being done through low and transparent fees charged to customers, faster service offerings and superior user experiences via 24-7 agile digital platforms, which can give legacy banking software a run for its money. Challenger banks are also reaching out to under-served or un-served demographics (for conventional retail banks), including those in lower-income groups or without credit histories, for instance. The Digital Banking Revolution And What It Means Reports highlight 240,000 bank branches throughout Europe in 2019 when digital banking was still in its nascent stages. Yet, challenger banks are expanding with the premise of people moving completely towards mobile and digital banking in the future. Digital banking has broken records ever since, with branch counts in Europe reducing to 165,000. It could well go down even more over the next few years, per domain experts. Some reports forecast how 3.6 billion global citizens (almost 1 out of 2 adult individuals) will use digital banking by 2024, across desktop and mobile channels. The United Kingdom (UK) has already embraced the Digi-banking wave and more countries in the continent are in the queue. The coronavirus outbreak added fuel to the fire, leading to the closures of several retail banking branches and accelerating the adoption of digital banking platforms. Global usage of mobile payment and banking apps went up by 26% in H1 2020, per surveys. Challenger banks are feeding off this digital shift, while conventional bankers continue maintaining branch-based models, developing their online offerings simultaneously. How Coopetition Is The New Mantra For Challenger Banks? What is this new keyword coopetition that is being widely discussed at a global level? What has it got to do with worldwide fintech and challenger banks? The word fuses the terms competition and cooperation. This means that challenger banks are partnering with conventional banking institutions for building new services, products and industry solutions. Many industry stakeholders feel that this is the best future pathway for the banking and financial services sector in terms of innovation. They highlight collaboration and teamwork as necessary virtues for creating a future ecosystem that serves customers even better and in more innovative ways. Key Schools Of Thought And Developments The collaboration will ultimately unearth higher consumer benefits, and feel industry veterans. Fintech players/challenger banks and conventional banks may not always be competing in the same segments. They may have different customer sectors and demographics. This may help in building newer avenues for feeding off each other, stimulating a spirit of continual learning and growth. Coopetition may not only encompass teaming up to build new products and services but also knowledge exchange via webinars, forums, industry conferences and best practices. Some feel that competition and coopetition represent similar ideals. Businesses will always have goals putting them directly against other entities in the same industry. However, this does not hinder collaborative work in areas beyond the competition. Some of these areas highlighted by experts include enhancing overall financial inclusion for instance. Several challenger banks are already partnering with conventional peers for enhancing outcomes for consumers, including more people who would not normally fit into traditional lenders’ profiles. Some Other Things Worth Noting Some industry experts also opine that almost 1/3rd of the millennial generation may have already switched to digital banks as primary providers of checking accounts. Hence, they claim that digital entities are not challenger banks anymore but are a part of the mainstream. Some claim that this indicates how digital banks have already won the battle against their traditional counterparts while some indicate this as a natural response to the shifting demands of consumers. Some feel that banks and institutions should sync their future goals digitally with building experiences for consumers. More than 50% of people will only work with institutions offering digital account opening in the future according to these experts. Many flags the role played by legacy vendors in the global banking sector with outdated technological expertise and acquisition-driven approaches toward future innovation. The Core Takeaway The whole world is closely following the next phase of the ever-evolving relationship between conventional lenders and fintech players (challenger banks). How will it pan out? Can conventional lenders adopt a more agile mechanism towards shifting consumer preferences, teaming up with challenger entities to speed up their procedures, include more people into the portfolio and build innovative experiences for customers? Can coopetition work in such a hotly contested space? Will this become a successful operational model for the BFSI sector globally? An insular way of doing business is no longer possible technologically at least. If you keep that aspect in mind, think how Apple offers Google apps in its App Store or how Microsoft has gone ahead to include not just the Windows OS for
ESG (environmental, social, and governance) criteria are a set of standards that are creating a splash across boardrooms. It suffices to say that ESG will play a defining role in future operations across all business sectors and insurance is no exception. In this context, insurtech can play a pivotal part in driving seamless ESG adoption. The interesting bit here is that many societal components have an equally crucial role in spurring ESG adoption. It is but natural that insurers are steadily taking up technology as a pillar in this regard. Insurtech And ESG- How They Are Linked The insurtech space could accelerate ESG for the entire insurance industry according to experts like the founding partner at Eos Venture Partners, Sam Evans. Insurance is what offers security against mishaps, and unfortunate natural disasters enhance financial strength and offer protection in case of any death or injury to policyholders. It also plays a part in enhancing the overall well-being of policyholders. Several core components in ESG are also connected to data and technological tools, which are naturally the prerogative of the insurtech space. Right from enhancing healthcare/wellbeing quality to higher engagement with un/underserved communities to filling up the gaps in protection and coming up with metric-driven solutions or tapping into big data, insurtech is expected to do its bit in ensuring the biggest premise or principle of all- Fill up the gap in protection. Aspects Worth Noting How Insurtech Can Help Signing Off Even Deloitte has stated how insurance companies are increasingly appointing chief sustainability officers in response to ESG demands while investing more in insurtech solutions for better metrics in line with the same. The ESG concept is being more efficiently integrated into the entire underwriting journey. Scoring systems, tools for analysis, and other insurtech products may help in driving ESG-compatible development of insurance products. Right from the industrial, household, and automotive sectors to healthcare, there is a diverse scope of application.
The marriage of Indian healthcare with technology has been a productive one, with both parties anticipating a never-ending honeymoon ahead. If there were ever a metaphorical statement for the rapidly growing health-tech segment in the country, then this would be it. In fact, even NITI Aayog agrees, based on the clarion call given by its CEO, Amitabh Kant, highlighting the growing health-tech opportunities to the Indian healthcare system. Governmental Innovation Is Propelling The Sector The Indian Government is laying a steady foundation for the growth of digital healthcare and newer platforms. The Ayushman Bharat Digital Health Mission has been a game-changer and Amitabh Kant, the NITI Aayog CEO, stated that it is now on the technology players, start-ups, and healthcare players along with other stakeholders to create new offerings in the field of digital health which meet growing demand and spur the same as well. Amitabh Kant’s statements came at the 8th Annual Summit of Nathealth and assume greater significance once you consider the backdrop. The country already has the infrastructure to create “compelling, accessible healthcare solutions that provide equitable access and can be rapidly deployed and scaled up” as per Kant. Take other factors into consideration like the increasing penetration of internet connectivity and smartphones throughout the country and the increasing trend towards e-pharmacy, telehealth, and digital healthcare solutions during the COVID-19 pandemic, and you get the picture. Digital healthcare or health-tech presents a massive opportunity for growth, particularly in still-nascent segments like technology-driven home healthcare, e-diagnosis, and e-pharmacy services. Conventional healthcare institutions, investors, and start-ups would find this the right time to enter the space and “build a position which would be hard to beat in subsequent years” according to Kant. Now take the National Health Policy of 2017 into context. It creates a roadmap for creating a digital health-tech-based ecosystem and integrates various aspects like health delivery, cloud, wearables, and IoT (Internet of Things). It also envisions a National Digital Health Authority for the regulation, development, and deployment of digital healthcare solutions throughout the entire care spectrum. The policy recommends deploying digital solutions for greater efficiency of the entire healthcare setup along with better outcomes, in addition to ensuring a healthcare information system that caters to all stakeholders. The aim here is to ensure superior outcomes in terms of quality, access, reduced disease burden, affordability, and better tracking of health-based citizen entitlements. Some other Government initiatives that have struck a chord include the following: The National Health Stack concept, which became the National Digital Health strategy and the final National Digital Health Mission, launched on 15th August. Integrated health data and information portal with the aim to integrate EHR within the purview of the medical setup. Pradhan Mantri Jan Arogya Yojana 2.0 IT portal which wishes to integrate insurance and provider platforms for various benefits. Every individual will have a health ID, offering access to integrated healthcare solutions, enabling Universal Healthcare coverage and delivery. How And Why India Is Bullish On The Health-Tech Opportunity? Consider a few facts in this regard: E-health services and similar platforms may completely revolutionise healthcare. 65% of current e-commerce users are projected to use digital healthcare offerings in the future. Nathealth created its vision paper which emphasised Rebuilding, re-structuring, and re-imagining resilient healthcare systems in India in a post-pandemic era. The clear takeaway is that the pandemic ushered digital healthcare into the mainstream and consumers now consider it a necessary service. KPMG reports indicate a valuation of INR 116.6 billion for the digital healthcare sector in 2018 while this is anticipated to touch INR 485.4 billion by the year 2024, indicating a 27.4% CAGR (compounded annual growth rate) in this period. With face-to-face interaction going down, patients are increasingly opting for online services in healthcare, with a demand for solutions that enable more affordable healthcare consultations and accessible interfaces. The digitalisation of the healthcare space is helping in filling up availability gaps in Tier-II cities and rural zones. E-Pharmacies have also helped in transparent price listings and better consumer options along with better accessibility. KPMG estimates this opportunity at a whopping $30 billion in healthcare technology. It has also talked about how start-ups will play vital roles in enabling healthcare access throughout the country. Estimates of 70% of the population of India (roughly 892 million individuals) living in rural zones with limited/zero healthcare access and the fact that India spends just 4.7% of the GDP on healthcare, throw up the magnitude of the opportunity. KPMG encourages start-up hubs for encouraging more players to invest in the health-tech space and advocates national and local Governmental support for the same along with a health innovation fund. The biggest pharmaceutical players, hospital brands, and diagnostics brands should adopt a mentorship role and sync with these health-tech companies. The market size was estimated at $830 million for telemedicine in India (as of 2019). It is projected to shoot up to $5.5 billion by 2025 (indicating a 31% CAGR). The NITI Aayog and Ministry of Health and Family Welfare have already released their telemedicine guidelines, with more than 1 million consultations taking place by December 2020 via e-Sanjeevani in 550 Indian districts. Health-tech in India grew by 51% (annual) in 2021 as per Redseer, collectively encompassing consultation, pharma, and diagnosis. 47% is the growth in the NPS (Net Promoter Score), indicating how customers are more inclined towards using e-health platforms and are clearly recommending them to their loved ones. The Redseer report also highlighted how the average consumer acquisition cost had reduced for players, indicating scope for growth and profitability. E-Pharma still dominates this segment owing to rewards and discounted offerings. Redseer estimates acceleration in GMV to $9-12 billion by 2025 for the e-Health space and possibly $40 billion GMV by 2030. The Take-Aways (What Is Happening And What Can Happen?) Indian mainstream healthcare is at the tipping point of future-proofing itself through technology, while meeting rising demand via technology. These are the core takeaways that we need to keep in mind. Indian healthcare industries
Have you watched the documentary The Man vs. The Machine? Do you remember the historic match of the reigning global chess champion Garry Kasparov versus the IBM computer Deep Blue? If not, let’s refresh your memory once. On May 11, 1997, Deep Blue became the first machine to defeat a world champion in a six-game match under conventional time constraints. After witnessing the historic match, many people started to believe that machines would take over the world in the coming years. Imagine a world without people and full of computers. So, will there be life? No, because creativity is the soul’s spark. It’s the people who have souls not machines. It’s the people who create lives, and machines serve the role of catalysts. People are an integral part of a business’s success. The three pillars or Ps of a successful business model are: People, Process, and Product. We often hear the advice to focus on the three Ps and everything will fall into place. But with time, companies focus predominantly on the process and product of our businesses and keep our people at bay. Why people-centric? Business leaders are increasingly recognising the advantages of building people-centric companies that prioritise employee happiness. Many companies emphasise the importance of their employees in their mission and vision statements. But the question remains, how many business leaders practise what they preach? What does it actually mean to ‘put people first’? Well, if we consider the formal definition of ‘employment’, it goes something like this – “The fact of someone being paid to work for a company or organisation” This is true to some extent. But the reality is that employees are still considered like gears in a machine whose main function is to generate outcomes mechanically and consistently. The return on investment of an employee is equal to whatever output he or she produces on behalf of the company. The understanding and recognition that an employee will contribute to a company to the extent that they feel appreciated, respected, and recognised is lacking from this outmoded equation. The finest companies recognise and understand this, which is why they prioritise their employees. Can computers make judgments? If we think deeply, computers assist people in analysing and comprehending patterns as well as future possibilities when making judgements. But they are incapable of making judgments on behalf of humans. Humans are innovative and creative. Unlike computers, humans can create and invent new things. But computers work with mechanical brains designed and programmed by humans. Computers have artificial intelligence (AI), whereas humans have intellect and emotions. Businesses need to strike the perfect balance between humans and machines to get the best results. “Tools are just tools” Do you know what Steve Jobs said in an interview? He said, “Technology is nothing. What’s important is that you have faith in people, that they’re basically good and smart — and if you give them tools, they’ll do wonderful things with them. Tools are just tools. They either work, or they don’t work.” AI should complement rather than replace human intelligence Humans rely on the memory, computational capacity, and thinking abilities of their brains. But AI-powered robots rely on data and instructions input into the system. In many businesses, AI is used to automate repetitive and redundant clerical jobs. On the other hand, human brains can focus on higher level activities that require critical thinking and decision making. Road ahead While investments in technology increase manifold YoY, resulting in disruptions and failures alike, a World Economic Forum report forecasts that 133 million new jobs are expected to be created by 2022, and guess what, not one of those hirings will ever result in a 100% failure. At the end of the day, it’s our people who make the difference. When you establish a business on the foundation of its employees, you have a solid platform on which revenues can organically grow and legacies can be naturally built.