T&M Industry in India : What can be learned as we move ahead?

The T&M industry in India is very forward looking,as the way they have taken to new approaches in the organisation design, development of processes and commercial systems and adoption of Global Best practices it is safe to assume it is much to look ahead. The main issue seems to be reaching a revenue base which is critical for taking off,as most of  the T&M boxes businesses are highly concentrated in few cities, few customers and few end use sectors as such. The reason why it is so concentrated is perhaps because the two sectors which could have gone long way  - Education and Manufacturing  could not.

Be it that may, Here we are ! We need to see what can we learn with the Global trend in T&M technologies and development of new architectures and platforms besides making sure that the portables type of T&M products also  are with the modern trend elsewhere.On portables first,there is clear emphasis  on developing  MINIMALIST  features which have sufficient attributes but stripped of loaded Costs and prices. We do find lot of very low cost products developed for the Field Service applications eg  Low Cost Signal Generators and Spectrum Analysers in the Global market. Another interesting feature is the hooking to the keyboard with the USB or even Super-USB connectors.Also there is abundant miniaturisation by nano-technology or newer lithographic  techniques to reduce platform size.

New architectures are also emerging which is driven by standardisation to PXI modules.This helps many times the ATE design more compact and suits test OEMs immensely. Along with the switches and other accessories the ATE becomes more compact and economical.I think the T&M architecture in immediate future is heading in PXI way going by the Dollar figures accrued to this format year over year.

I think both these major trends internationally will support the needs of the Indian market. Our markets in emerging fields of Aerospace / Defense and also the other field service markets of Commercial communication and broadcasting require these type of formats extensively.Let us see if the local industry tunes into these forms and architectures to develop volumes here!

T&M Industry in India : Can Cloud Testing & Mobile Data be our growth trigger?

The T&M industry is  providing enough signals how a tech intensive business can stagnate and we are not finding a growth mechanism? The industry is supposed to be laced with all the complex modern techniques and processes,but for its own growth it remains hamstrung with its user Industries , like Defense and Telecom, Semiconductors etc . If these industries stagnate we in T&M stagnate too. So, what can we do under the circumstances. Perhaps the newer technologies of Big Data , Analytics and Mobile Apps can be the answers!

We can try and use our Marketing campaigns through Mobile Data Apps as we know the populations of Smartphones as percentage of  Total is increasing day by day.This is also encouraged by the large 15-35 yrs population who are increasingly accessing net on their Smartphones.If we use the power of this mobile data and reach users of T&M equipment ( known thru Analytics and other resources,and other Unknown too) we can create lot of qualified and hot leads of the users intending to buy T&M equipment!

The industry figures estimate India to have 360-370 million users of internet in 2015.The penetration of internet and Smartphones in our society needs to be leveraged for growing the T&M Pie in the Country.At a larger level we can even aim for T&M $ per capita of Indian population at large! I am sure this will interest every well wisher of T&M industry everywhere particularly in India.
 

T&M Industry in India : Some feeble signs Mega activity

As usual the T&M Industry in India is highly erratic being still driven by large scale Government Policy frame work and how Global money will travel in sunrise investments here.Yet the signs are "positive" notwithstanding gloom because of Current Account Deficit,Inflation and not much growth on the investment pick up. But we need to understand the dynamics of growth from the policy point of view as well.Growth on overall basis is dependent on our Labour and Capital Productivity and right now the inflow of Capital investment and its Productivity needs stimulation.So, the Government needs to incentivise the potential investors ( Domestic and Foreigners) to invest in sectors which have large consumption story as well as possibilities of Value Addition and thus provide boost to its exports too.

We are therefore a little fortunate to see the large Business Houses are getting interested in two main markets (hitherto untouched by them : Defense & Security and now Semiconductors Fab).It appears that the programs of couple of Big Corporates are seriously rolling out.This augurs well because these sectors within the gambit of Electronics are not only going to be Capital intensive,but specifically big booster to T&M systems spending and investment.At least the process is seen to begin and this time around we can see " This time is going to be different" syndrome.If right choice of Vendor and incentives are there,we hope to see some big ticket sector opening for private participation. Let us all hope India triggers a new front opening and we are able to attract investment and IP both.More than any other segment, T&M Industry in India stands to get a Booster!

T&M Industry in India : Are green shoots started appearing?

Finance Minister presented a "please-all" very bland budget. He tried to simulate the investment in the Economy by announcing innovative index-linked saving bonds too.He made a point that importing Gold through the drainage of Foreign Exchange is not only not in the interest of nation but the individuals as well.But it may sound only preachy to the common man,as there are no opportunity to save and protect the Funds, except buying speculative bullion,or the real estate in the cities! The current account deficit and inflation all around ( CookingGas,Fuel,Power and Water) is eroding the financial savings and so investment elsewhere!

Some external investor institutions are trying to see optimism in this budget.For one thing they see the FM with good track record in liberalisation,and Expenditure cutter. So they feel India has potential to grow and projects will take off. Well in the Defense sector there is cut on the expenditure and in the Telecom,particularly in the 4G area there are a ripple of deals getting signed.Looks like the LTE deployment is going to happen and we definitely see the few mega T&M businesses getting done before Mar 31 ! Will it lead to a positive turnaround? Jury is still out.

 

T&M Industry in India : Visioning a new Architecture(2)

It is good to be back with our thoughts on the art and Science of visioning new architecture for the T&M industry and its markets.One of the thing being thought up is by replacing all the existing boxes and applications by PXI based modules.This itself is quite a big breakthru in a country which has very old legacy of portable installed bases.PXI internationally has been accepted in last decade or so very well and holds out promise for newer Product/Applications.The physical frame and the connectors etc are also standardised.In fact , going by todays stat the VXI seems to be yielding the space to PXI. The application layer is also expanding and standard datasheeted products are regularly hitting the market. But can it be, Should it be the prima facie architecture of choice,in India, for a lrge unwieldy and Government dominated installed base of India?

Another associated question is Should there be a new architecture ,or ANY architecture at all? Why not first try to look from the " Need behind the Need " angle? By this phrase I mean Why the instrument is needed and need to measure the parameters -like some conformance to the testing standard,or some other regulatory imposition on the applications? If we isolate all the "soft" and "hard" part from the boxes we can get the basis of practically virtualising the T&M box instrument and automating the test process,if needed externally.

What else can be the alternative architecture? Can the newer standards getting announced be applied to Indian conditions? Or should we think of absolutely brand new approach? We will discover more in our future posts,because this is critical from the growth of the market here.Watch this space! 

 

T&M Industry in India : Visioning new Architecture!

At this time of the year many of us active in the T&M industry Globally are back from the Holidays and for others it is biginning of the Financial year as well. I thought it will be in order to do just some imagineering and kite-flying on our industry.

Well our industry is fantastic no doubt, yet it will not hurt if we encounter few innovations in place both in terms of selling and supporting to newer users and applications but also defining new platformsand architecures.And these innovations need to be relevant to Indian conditions and the needs of the user Industry here,which is being served by our Professionals. Towards that I seek our being able to reach out Global Standards of Modulars,a new methodology of common platform of testing across frequencies and may be a new indigeneously developed integration of hardware and software/services.

We in India are somehow stuck in old portable mentality and all technology based new announcements are going waste.We are just commoditising more and more and in the bargain we are losing price-realisation and not moving up the value chain of technology/integration or applications.In any industry with time,the Services oriented Architecture drives the total revenues.And the paradigm thinks bigger and bigger envelope of Hardware plus Services.So,in that respect we need to think beyond the box,and outside the box simultaneously.

For an immediate thought I propose we start replacing and substituting portable instruments by modular instruments (may be PXI architecture) to leverage maximum work being done Globally.This will have twin advantage of using standardised modular instrument and also encourage us to think "systemic" by using packaged software and other data sheeted services from T&M companies.The functionality of test will improve and ultimately the user will gain in terms of Quality,Productivity and Profitability. The possibility for T&M will be incremental business for hardware and services finely tuned for the user.

I will discuss these thoughts and road maps in future Blog Posts. Trust you are off to a good start in 2013 ! 

T&M Industry in India :Economic Linkges with Macros !

As the new year takes off,and we are past one fortnight some indications of the Government mood looks to be distinctly changing for the better.There is little bit economic pragmatism shown and the major part related to T&M industry is the signals of halving the CDMA spectrum price for next round of option.Supreme Court also lets the licenses continue till the March First week,enabling prominent players in CDMA taking part in the option. I think Government is finally realising the market call on selling Spectrum.It augurs well for Capex once these players are motivated to deploy network.

Likewise,there seems to be lot of customer churn and infact decline in number of subscribers and count among top ranked operators and only small hinterland based operators are gaining traction due to both focus and lower base effects.This is really giving a fillip to OSS/BSS activity and keeping tight grip on the Quality Management of Network.Its outfall can be positive to the T&M industry uptake. The sale of Smartphones catering to lower value segments is being upped by proper promotions as well. T&M may see some growth in maintaining wide customers devices there.

There is a little bit of talk on cutting back by 10% the Defense Budget of Rs 193000 Cr to address the current account deficit staring the Government finances ( Subsidy on Food,Fuel,Fertilisers).But its effect on ultimate T&M purchases will not be significant due to little size in comparison to overall pie.I think large scale deals of T&M through the DGS&D and otherwise direct from the users labs and field organisations should come through in this JFM period.As far as the smaller T&M players below the Top deck are concerned,they seem to be on good growth traction this year.So,overall the FY13 should exit with a small but sort of positive growth tone.We are expected to hold up to the overall revenue. More to come.

Happy new year. 2013 definitely hold HOPE and positivism ahead!