Capture New Value from Your Existing Tech Infrastructure - HBR.org Daily A Malaysia-based telecommunications conglomerate created a promising new business by using APIs to allow small businesses to use its technology assets to create over 90,000 services. Across the New York region, we find that subway expansion increased total real-estate prices by as much as $5.8 billionenough to pay for the $4.5 billion cost of construction. To make money from innovation, you must drive your industry's evolution even before the industry exists. The Infrastructure Institute is launching a study to examine the potential to capture increased land value resulting from new transit infrastructure. Three important insights emerged. Answer: you build an innovation ecosystem for customers. Source: https://hbr.org/2022/05/capture-new-value-from-your-existing-tech-infrastructure. Its experiences can help other incumbents figure out how to tap the potential of their technol It leveraged its network assets to help small businesses, including startups, launch over 90,000 services in Sri Lanka and Bangladesh that generated revenues of more than $100 million in 2021 for Axiata. The government's initiative to support the viability of such projects through one-time grants known as viability gap funding also faces budget constraints. When senior managers think about how to respond to the threats and opportunities of technological change, they often dream of the same thing: If they just could start a new company or division that isnt held back by conventional thinking or outdated business models. Capture New Value from Your Existing Tech Infrastructure Harvard Business Review | Stefan Thomke and Anthony Rodrigo | May 2022 When senior managers think about how to respond to the threats and opportunities of technological change, they often dream of the same thing: If they just could start a new company or division that isn't held back by . So Axiata taught them how to do it. Source: Capture New Value from Currently, user fees seldom cover the cost of building or even operating major infrastructure projects. Source: Capture New Value from Realizing this, Axiata created web-based tools and dozens of standard feature templates that made the companys network features available to all small businesses. Value capture is both fair and efficient because real estate and infrastructure are complements. Telcos, like Axiata, used these systems to track and bill mobile phone usage, to sell SIM cards, and to introduce targeted product promotions (e.g., phone upgrades), among other activities. This is a copyrighted PDF. May 6, 2022 - Axiata Group, a Malaysia-based telecommunications conglomerate, created a promising new business by using APIs to allow small businesses in Sri Lanka and Bangladesh to use its technology assets to create over 90,000 services. 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A small team of 10 people in Sri Lanka supports the local Ideamart ecosystem. It leveraged its network assets to help small businesses, including startups, launch over 90,000 services in Sri Lanka and Bangladesh that generated revenues of more than $100 million in 2021 for Axiata. Capture New Value from Your Existing Tech Infrastructure Axiata Gathering, a Malaysia-based media communications combination, made a promising new business by utilizing APIs to permit private ventures in Sri Lanka and Bangladesh to utilize its innovation resources for make north of 90,000 administrations. Value capture is a means by which the value produced by the infrastructure expansion itself can be used to fund some of the cost of the project. But what if they asked themselves instead how they might extract the real value of their technology assets? Its experiences can help other incumbents figure out how to tap the potential of their technology assets. Realizing this, Axiata created web-based tools and dozens of standard feature templates that made the companys network features available to all small businesses. Earn badges to share on LinkedIn and your resume. Copyright 2022 Harvard Business School Publishing. Published: June 22, 2016 2.11am EDT. News. About us. Value capture is attracting much attention as a funding source that could be used more widely. Value capture (or perhaps more accurately, value uplift capture) is when governments impose a tax on the increase in value of a . Its experiences can help other incumbents figure out how to tap the potential of their technology assets. Up to $140 billion of the cost of a potential east coast high-speed rail link could be paid for by capturing future increases in land and property values, new analysis from UNSW's City Futures . Axiata discovered that developing the software was the easy part. Deployment of a new platform, completely revamping company software. Many of the small businesses were unfamiliar with writing software. The Discussion Paper acknowledges: the fiscal constraints currently faced by governments and how those constraints . That's according to a report by the Energy Technologies Institute (ETI . This infrastructure may include road infrastructure, parks, social, health and educational facilities, social housing, climate adaptation . Businesses owners were now empowered: They became the innovators that could come up with ideas for new services that worked for them, and no telco involvement was required. Facebook Twitter Pinterest Linkedin. and pay only $8.25 each, Buy 500 or above To operationalize all of these models, the company had to run experiments to ascertain the prices that small businesses would accept, which were usually small as the business did everything themselves. Telecommunications companies used their services to monitor and charge mobile phone usage, sell SIM cards, and implement targeted product advertising. Save my name, email, and website in this browser for the next time I comment. Value capture is commonly conceived as a mechanism by which all or a portion of the financial benefits to property owners generated by a geographically targeted public capital investment are appropriated by a local public authority. "Capture New Value from Your Existing Tech Infrastructure. - Join . In addition to the data pipes, Axiatas network assets included systems needed to run its mobile communications business: location data, billing, messaging, quick codes that enabled mobile phones to communicate with a telcos computers for queries such as checking if a customer had a negative account balance, and much more. In only three years, their contribution to Axiatas income has risen from 0.5% to 16.5%.in addition, Axiata has organized events geared for empowering female business owners. Many of the small businesses were unfamiliar with writing software. Its experiences can help other incumbents figure out how to tap the potential of their technology assets. Input your search keywords and press Enter. Its experiences can help other incumbents figure out how to tap the potential of their technology assets. For over 45 years we have built a world-class reputation for delivering creative, value led solutions for an ever challenging world. */accounts/ (?P<account>\d+). Upgrading your Brand New Adventure with @Commercewise. Within 18 months, about 1,800 developers participated in the Ideamart and launched new services. The value of ACCESS to water & sewer is reflected in the value of the land. How a Malaysia-based telecom discovered a new revenue model. In addition to the data pipes, Axiatas network assets included systems needed to run its mobile communications business: location data, billing, messaging, quick codes that enabled mobile phones to communicate with a telcos computers for queries such as checking if a customer had a negative account balance, and much more. Its experiences can help other incumbents figure out how to tap the potential of their technology assets. This includes both IT infrastructure and traditional infrastructure that is sufficiently . Specialisms. Capture New Value from Your Existing Tech Infrastructure . How does value capture work? The concept of value capture appeared many decades ago in the form of special . It has also run events that target women entrepreneurs, which succeeded in increasing their contributions to Axiata from 0.5% of its revenues to 16% in just three years. How do you capture more value from your technology assets? Capture New Value from Your Existing Tech Infrastructure Stefan Thomke Anthony Rodrigo 20228- Jorg Greuel / Getty Images API9 Capture New Value from Your Existing Tech Infrastructure hbr.org 39 3 Comments Like Comment Share . John Spacey, March 28, 2018. By interviewing small businesses that had shown interest in getting involved, the team learned that business owners had many ideas for new services, knew how to write the required software, but didnt know how to market new services to customers. Axiata Group, a Malaysia-based telecommunications conglomerate, created a promising new business by using APIs to allow small businesses in Sri Lanka and Bangladesh to use its technology assets to create over 90,000 services. Latest News Post Team May 5, 2022. the Evidence. The capture function allows you to use regular expressions in your queries and extract focused data. View Course Explorer teaching center Integration into existing infrastructure using Application Programming Interfaces (APIs) 2. How a Malaysia-based telecom discovered a new revenue model. Axiata Group, a Malaysia-based telecommunications conglomerate, created a promising new business by using APIs to allow small businesses in Sri Lanka and Bangladesh to use its technology assets to create over 90,000 services. To support such businesses, Rodrigo and his team decided to experiment with a radical approach: turn them into do it yourself innovators. Axiatas traditional business had primarily consisted of voice and data products and services that were customized for different markets. There is a strong rationale for the public sector to capture income or value that is created by new infrastructure but And when the team was asked to move from a scrappy building to a shiny corporate headquarters in Colombo, its members declined, fearing that small business owners, who often wear shorts and flipflops, would be intimidated by a high-rise office tower. To support such businesses, Rodrigo and his team decided to experiment with a radical approach: turn them into do it yourself innovators. Within 18 months, about 1,800 developers participated in the Ideamart and launched new services. The local governing body designates a zone in which it will promote a transportation project. Tapping into the new value created by infrastructure projects, a funding mechanism called "value capture" should be part of the conversation as federal legislation takes shape. Discover new ideas and content for your coursescurated by our editors, partners, and faculty from leading business schools. As you analyze the list of resources, suspend disbelief and convention. It exploited its network assets to assist small Sri Lanka and Bangladesh companies in launching over 90,000 services that produced more than $100 million in revenue in 2021. The first is the request_url: the attribute containing the URL string. Yet another lesson: The team had to work in a setting appropriate for its customers. It leveraged its network assets to help small businesses, including startups, launch over 90,000 services in Sri Lanka and Bangladesh that generated revenues of more than $100 million in 2021 for Axiata. Achieving the right balance between user fees and access fees can help us create both efficiency and equity in the provision of public goods and services . In 2013 one of us (Rodrigo) and his team set out to capture more value from the companys network assets. A company that provides access to its network for small enterprises produces large income. Share your thoughts about this. Rodrigos team realized Ideamart would require a different approach. Want to buy more than 1 copy? Axiata Group, a Malaysia-based telecommunications conglomerate, created a promising new business by using APIs to allow small businesses in Sri Lanka and Bangladesh to use its technology assets to create over 90,000 services. Access more than 40 courses trusted by Fortune 500 companies. existing or new/amended mechanisms to capture additional tax receipts, including in some cases (such as Stamp Duty Land Tax) the proposed local retention (or hypothecation) of a proportion of the additional tax income. Axiata developed web-based tools and hundreds of standard feature templates to make its network capabilities accessible to all small enterprises. Technology Capture New Value from Your Existing Tech Infrastructure May 5, 2022 euthinktank Axiata Group, a Malaysia-based telecommunications conglomerate, created a promising new business by using APIs to allow small businesses in Sri Lanka and Bangladesh to use its technology assets to create over 90,000 services. It isn't exactly malicious, and it won't stop your iPhone from working, but it's certainly curious and perhaps a little impolite . A better way to capture existing conditions accurately and completely is to implement a reality capture process where a digital 3D model representation of an object, building, or site is created by scanning it in the real world using static, mobile, and aerial laser scanning and/or photogrammetry. Expensive . But what if they asked themselves instead how they might extract the real value of their technology assets? These include the physical hardware and facilities (including data centers), data storage and retrieval, network systems, legacy interfaces, and software to support the business goals of an enterprise. That's what the Malaysia-based telco Axiata did. Typically, the. Accelerate your career with Harvard ManageMentor. And when the team was asked to move from a scrappy building to a shiny corporate headquarters in Colombo, its members declined, fearing that small business owners, who often wear shorts and flipflops, would be intimidated by a high-rise office tower. Capture New Value from Your Existing Tech Infrastructure Capture New Value from Your Existing Tech Infrastructure. Axiata also learned that it had to change internal business practices. by Rhonda Germany and Raman Muralidharan. Thats what Axiata Group, a Malaysia-based telecommunications conglomerate that operates in emerging Asian economies and has annual revenues of $6 billion, did. This is particularly the case for landowners and developers. *') The capture function takes two arguments. Axiatas traditional business had primarily consisted of voice and data products and services that were customized for different markets. Telcos, like Axiata, used these systems to track and bill mobile phone usage, to sell SIM cards, and to introduce targeted product promotions (e.g., phone upgrades), among other activities. Keywords Innovation; Technology; Ecosystem; Incubators; Technological Innovation; Telecommunications Industry; South Asia; Malaysia Citation To promote and grow the innovation ecosystem, the Axiata team has run hundreds of hackathons and educational programs each year. Accessibility to transit stops is an important amenity, so new transit improvements increase the value . The team selected five businesses, developed a marketing plan for them, helped them grow the customer base, and showcased their stories to the Ideamart community. 14 Examples of Technology Infrastructure. and pay only $8.50 each, Buy 50 - 499 May 5, 2022 May 5, 2022 by Stefan Thomke. The Three Phases of Value Capture: Finding Competitive Advantage in the Information Age. In the past, Axiata had offered large companies access to its network features, but giving it to each often took months. No coding is required: A small business can design a service online by simply checking boxes and Axiata generates the software automatically. Value capture secures some of the benefits delivered by public investment to offset the costs of provision. How a Malaysia-based telecom discovered a new revenue model. The team was frustrated that companies such as Facebook and Google were growing their businesses on the back of Axiatas data pipes, relegating the company to a utility that delivered reliable connectivity to customers. Creating value is just the beginning. It also had to make transaction revenue information available to the small businesses in real time. Report this post Sahan Weerasinghe talks about our #cloud and #datacenter offerings. Rodrigos team realized that Axiatas network assets could be especially valuable to very small businesses that operated in markets where the usage of credit-card or online payments was low and which couldnt design and promote new services because they couldnt access digital channels to reach potential customers. Perhaps Axiata could use its IT assets to enable tiny local firms such as a hair salon, a food stall, an astrologer, a tutoring business, or a game developer to reach potential customers, make appointments, and quickly get paid. HBR Learnings online leadership training helps you hone your skills with courses like Sharpening Your Business Acumen. 4 minutes read How a Malaysia-based telecom discovered a new revenue model Read More This tool can be used by local entities to advance transportation projects. No coding is required: A small business can design a service online by simply checking boxes and Axiata generates the software automatically. To promote and grow the innovation ecosystem, the Axiata team has run hundreds of hackathons and educational programs each year. 5 May 2022 14:15, Business News. Businesses owners were now empowered: They became the innovators that could come up with ideas for new services that worked for them, and no telco involvement was required. A small team of 10 people in Sri Lanka supports the local Ideamart ecosystem. Its experiences can help other incumbents figure out how to tap the potential of their technology assets. The building and engagement of the small business community was much harder. The Federal Government yesterday released a discussion paper titled Using Value Capture to Help Deliver Major Land Transport Infrastructure and called for submissions on the use of value capture to help fund the delivery of major transport infrastructure in Australia. It leveraged its network assets to help small businesses, including startups, launch over 90,000 services in Sri Lanka and Bangladesh that generated revenues of more than $100 million in 2021 for Axiata. Thats what Axiata Group, a Malaysia-based telecommunications conglomerate that operates in emerging Asian economies and has annual revenues of $6 billion, did. Take your career to the next level by learning business and finance basics, and developing an enterprise mindset. Axiata made its network assets available through application programming interfaces (APIs), which could be accessed and configured through an app or web interface. The corporation had a few days to choose how to transmit the income it gathered on behalf of small companies. So Axiata taught them how to do it. With the Australian Government issuing a discussion paper in late 2016 into 'Using value capture to help deliver major land transport infrastructure', it is important to understand what value capture is and how it might be levied. Introduction. Like Axiata, they need to be more creative and experiment with new innovation models to capture their full value. SHARE: Background. Capture New Value from Your Existing Tech Infrastructure | HBR May 10, 2022 174 0 Shutterstock / Contributor monticello Mission October 24, 2022 A company that provides access to its network for small enterprises produces large income. However, most of the existing literature about value capture focuses on land value increments, such as capturing land value increments created by public investments in infrastructure (Rybeck, 2004 . In Texas, an innovative value capture tool has been in use since 2007, when the Texas Legislature provided the guiding framework for a transportation reinvestment zone (TRZ). Tapping into the new value created by infrastructure projects, a funding mechanism called "value capture" should be part of the . Capture New Value from Your Existing Tech Infrastructure - How a Malaysia-based telecom discovered a new revenue m. Axiata discovered that developing the software was the easy part. Projects. 2022 - current. Approximately 1,800 developers joined the Ideamart community and offered new services within 18 months. How a Malaysia-based telecom discovered a new revenue model. But what if they asked themselves instead how they might extract the real value of their technology assets? 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It needed to allow customers to create tailored services and had to design new revenue models, which included charging customers a share of revenue, transaction fees (lower than other payment services), and fees for specific services (e.g., helping a pizzeria target 1,000 customers in a product campaign). Value capture is not an additional tax burden stacked on top of property taxes; it is a quid-pro-quo, an even exchange for land premiums received by property owners . The team was frustrated that companies such as Facebook and Google were growing their businesses on the back of Axiatas data pipes, relegating the company to a utility that delivered reliable connectivity to customers. Technology infrastructure are foundational technology services, software, equipment, facilities and structures upon which the capabilities of nations, cities and organizations are built. Value Capture for Infrastructure. 5th May 2022 | 01:15pm. | Technology - Changing Our World The IT infrastructure consists of all elements that support the management and usability of data and information. Axiata Group, a Malaysian telecommunications corporation, generates $6 billion in yearly sales. When senior managers think about how to respond to the threats and opportunities of technological change, they often dream of the same thing: If they just could start a new company or division that isnt held back by conventional thinking or outdated business models.