Carriers and UsersCan we all live together?

- Considerations in Smart Ecosystem, Symbiosis, and Co-evolution -

Yasushi OkamuraDirector, Global Client Advisor

Oracle Corporation

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What is to be Symbiosis?Example of Symbiosis

Clownfish( 흰동가리 ) and Anemones( 말미잘 )Clownfish needs territoryClownfish protects from anemone-eating fishAnemone’s stinging tentacles protect the clownfish from

its predatorsMucus on the clownfish protects it from the stinging

tentaclesThey help each other and live together in perfect

harmonyCan Carriers and Users be Symbiosis?

From Wikipedia, the free encyclopedia

4

More known “Symbiosis”Symbiotic Marketing (Commensal Marketing)

Marketing activities in free market economy whose priority is in building “trust” rather than “profit” for company & company, company & consumers, nation & nation, human & nature

Especially this trend is visible in drug and food industry where losing “trust” may potentially damage the company and put it out of business

This is considered to be “Social Responsibilities” as well as “Social Cost”For Symbiotic Marketing, focus is on 4C (Commodity, Cost, Channel,

and Communication) - See “7Cs COMPASS MODEL” Since 60s, marketing focused on 4P (Product, Price, Place, and Promotion)

In Symbiotic Marketing, companies and people should be able to live together (be symbiotic) in the free market economy even in the time of hard economy or the worst case some natural disaster

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Other “Symbiosis”Symbiotic care services and salons for the elderly as

social infrastructureSymbiotic facilities that minimize the damage to the

nature and environment including housing complex, shopping malls, or resorts

and…Symbiotic network society where person & person,

people & people, parents & children & grandchildren can be “connected” through the means of Social Media and M2M

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What is to be Co-evolutionally?Example of co-evolution

Hummingbird( 벌새 ) and Ornithophilous( 난초과 )Hummingbird (bird) and Ornithophilous (flower) have co-evolved Flower has nectar suited to bird‘s diet (needs high energy)

Bird’s high energy requirements, which are the most important determinants of their flower choice

Flower’s color suits the bird’s visionFlowers tubular shape fits that of the bird’s bills

Tubular flowers force a bird to orient its bill in a particular way when probing the flower and this also allows the plant to place pollen on a certain part of the bird's body

Blooming time of the flower coincide with bird’s breeding seasonThey had a mutual benefit to evolve togetherWill Carriers and Users co-evolve?

From Wikipedia, the free encyclopedia

8

Have we become Symbiosis?Have we Co-evolved?Internet and us…

We have became symbiosis and have co-evolvedSince the inception of ARPANET in 1960 and the changes

made from ARPANET to TCP/IP in 1983…We have become symbiosis with internet as we live together

with the internet and cannot imagine the world without itI am pretty sure internet (if it had its own mind) cannot imagine

having no usersWe have also evolved to adapt internet into our working and

personal lives very deeply Even my parents who are very very analog by nature use emails for

some of their communicationsMankind is symbiosis to internet and has evolved in this past 29

years and so did internet

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What is a Carrier?How do you consider telecommunication carrier within your life?

Carrier to usPhone line?

Maybe to my parents…Utility?

Probably not as critical as water, electricity, or gas, but it is close to become important social infrastructure…

Highway? We do feel frustrated when the traffic is heavy and responses are slow…

Broadcast or Media? To my kids, “Yes”… My daughter (20 years old – lives alone) does not own a TV, but

have desktop and note PCs, and mobile phone; and she tells me these are good enough source of information…

Library? When I forget something or want to research, I don’t look up dictionaries or go to

library any more… When my wife cooks something new, she gets the recipe from her mobile phone…

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Business EnvironmentWhat is going on?

Sold 55 Million in less than 2 years

It took 5 years to sell that many…

…and 22 years to sell that many

- Tim Cook, February 14th , 2012 at Goldman Sachs Technology and Internet Conference in San Francisco, CA.

Apple

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• Innovative Products?Absolutely…

• How about a tightly integrated very smart ecosystem?

Of course…

• … with a customer experience that delights and drives strong loyalty

What is driving Apple’s explosive growth?

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Why Apple so successful?Apple knows

Who you are…Where you are…What you do…When you do things…Why you do things… How you do things…How much…and has very sophisticated recommendation engine…

Other companies who may be in the similar situation and successful… and potentially

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Cloud Services

Apple vs. Google vs. Microsoft

Hardware (devices)

• Handsets (iPhone)• Tablet PCs (iPad)• PCs (Mac)• STBs (Apple TV)• Other (iPod)

• Handsets• Tablet PCs• STBs (Google TV)

• Handsets• PCs (including Booklet 3G)• Other (Zune, Xbox)

Software

• Handsets (iOS)• Tablet PCs (iOS)• PCs (Mac OS and various other applications)• STBs (iOS)

• Handsets (Android)• Tablet PCs (Android)• PCs (Android, Google Chrome OS, Google Docs)• STBs (Android and Google Chrome for Google TV, Dreampark IPTV middleware)

• Handsets (Symbian, Windows Phone 7)• Tablet PCs (Windows 7)• PCs (Windows are various other applications)• STBs (Microsoft Mediaroom)

Content aggregation and distribution

• Music, video (iTunes) • Music (Google Music Beta), video (YouTube)

• Music, video, games (Ovi Store, Zune, Xbox LIVE)

Applications • App Store • Android Market • Ovi Store, Windows Marketplace for Mobile

Key assets of the major integrated communications and media solution providers [Source: Analysis Mason, 2011]

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Assessment of selected integrated solution providers [Source: Analysis Mason, 2011]

Integrated SolutionApple

Closed, proprietary ecosystem across devices (PC, TV, mobile, and tablet)

GoogleOpen source software and open ecosystem

MicrosoftIn between Apple and Google

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Softbank and NTT DoCoMoSoftbank

Recorded 6.6 % increase in revenue and 65.4% increase in profit

Will spend close to 600B JPY (16% increase) in capital investment for in FY12

NTT DoCoMoAnnounced its Smart Phone service “d-Market

VIDEO Store” now has over 1 million “paying” users

“d-Market VIDEO Store” started just 6 months ago (November, 2011) 525 JPY / month – all you can view on more than

5,000 movies, anime, and dramas

- “Mainichi” Newspaper, April 27, 2012

- “Mainichi” Newspaper, April 26, 2012

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What is neededfor Smart Ecosystem?Ecosystem in Entertainment…

Digital Assets

Humans Gone DigitalSo we are symbiosis and have co-evolved with carriers

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Convergence of TV, Internet and Mobile Communications

Video ServicesSocial Networking News and General Information

Communications

Photo Services

Other Internet Services

TV WIDGETS

Call notification

Voicemail

Messaging

New ways to connect and Ecosystem

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TV Widget Solutions

London Olympic, TV, Smart Phone, and SNS (i.e Twitter)

Content / Service Providers

Carriers, Providers, Cable Operators Internet

CommunicationsService Delivery

WIDGETS

Application

Server (AS)

Fixed

Payment

Mobile

more...

TV Viewer

Supported for: To be available on:

Collab

Converged Triple play TV Widget Solution

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Consumer Entertainment

Smart Ecosystem

Comprehensive Entertainment and Technology

MusicContents

GameContents

Video Services

Social Networking

News and Information

Communications

Photo Services

Other Internet Services•Call notification

•Messaging•Vocemail

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Digital LifestyleOnce again we are symbiosis and have co-evolved

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Connected Digital Lifestyle

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CarriersSubscribers

Content Providers Advertisers

Contents

Deliver

Advertisement

Marketing & Advertising

Use or View

원

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Layering Real-time info onto the Real World

What’s around me?Who else is here?

Adds context to the real-world

Augmenting Reality

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Seeing Opportunities Ahead

29

Providers and Carriers challengeWho can help?

The Business Challenge Presented

Manage the Customer Experiences

Increase Revenues and Staying Relevant

Manage PartnersSpeed to deploy

New Services and Offers

Business Challenges

31

Business Architecture

Industry Challenges

Business Strategy &

Vision

IT Strategy & Vision

Business Architecture Dimensions

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• Per Application User• Per Transaction• Per Program / Activity

• Per Hour• Per Input / Output• Per Message

• Per Item• Per Group• Per Discount / Incentive

Multi-channel DistributionINTERNET

SaaS

WebCall Center

The combined network and cloud offering can become a big differentiator

Service offerings

Platform offerings

Physical goods offerings

Partner offerings• Per Bundle• Flat Rate / Subscription• Per Trial offer period

Partner Ecosystem

Business Management

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User Generated Content s& Events

Multi-Platform Comm.

Classified & Commerce

Affiliation tools

AdvertiserTools

Locationtools

ExclusiveInformation

Personal Publishing

(blogs, video, photo)

Media Sharingtools

Events & Meeting Tools

Mobilization

CulturalCommunity

tools

Discovery Access

BelongingSharing

Confidence

Knowledge

Self Expression

Recognition

Identification&

Individuality

• Understand core 　 needs and facilitate

Filling NeedsSociological Approach

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Service Delivery ChallengesMultiple silo-ed architectures Inconsistent customer touch

pointsDisparate data centers, no

virtualizationPoor visibility to customers

and ordersWeak analytics

Cloud services

35

Content Partners

Digital Content Store

Store

CommercePromotionDiscovery

Warehouse

Device MgmtContent MgmtPartner Mgmt

Consumers

Marketing & Advertising Campaigns

Billing

Digital Rights Mgmt

Channel Mgmt

Support

Self Service

Call Center

Knowledge Mgmt

Collaboration

email

calendar

chat

Social Int.

Iden

tity

Mgm

t

Components required for Smart Ecosystem

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Platform Reference Architecture

Business Services Layer

User Interaction Layer

High Availability Infrastructure Layer

Information & Content Layer

Enterprise Managem

ent

Enterprise Service

Repository

Top Dow

n Automated M

anagement

End-to-End Continuous Monitoring

Information

Lifecycle M

anagement

Mod

ellin

g &

Des

ign

Tool

s

Dev

elop

men

t Too

ls

Ente

rpris

e D

evel

opm

ent

Aggregations & Summaries Unstructured Data

Master & Reference Data

Operational Data Media Images

Storage DW Servers

Distributed Caching

User Interaction Experience and Advanced Personalization

Collaboration and Community Management

Data Integration

Process Management Event management

Enterprise Service Bus

Busi

ness

Rul

es

Identity & Access M

anagement

Data Security

Security

Service Delivery Platform

Multi-Device Management

Virtualization

Customer Contact Management

Digital Rights Management

Registration & Activation

Advertising Management

Serv

ice

Crea

tion

E-Commerce Services

Product Data Management

Enterprise Business Services Portfolio

Recommendation & Search

Partner / Channel Integration

Developer Enablement

Orchestration

Pricing & Promotion Management

CorporateAdm

inistration

Payments & Subscriptions

Application Services Layer

Application Servers

Databases / Grid OLTP Servers

Fault Tolerance / DR

Customer Loyalty Services

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Different Worlds Merging…

Signaling System No.7 – MTP, SCCP, ISUP

99.9% or 99.99%

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You need lots of smiling faces… You need to know your customers and treat them just like your family

MusicContents

GameContents

Video Services

Social Networking

News and Information

Communications

Photo Services

Other Internet Services•Call notification

•Messaging•Vocemail

In order to create Smart Ecosystem…

39Could services are the key to the success in creating new Smart Ecosystem

Cloud Computing

40

• Enable an integrated Smart Ecosystem

• Improved your customer’s experience

• Increase customer loyalty

MusicContents

GameContents

Video Services

Social Networking

News and Information

Communications

Photo Services

Other Internet Services•Call notification

•Messaging•Vocemail

Services BillingCatalogue

Update

Online OfferPromotion

Management

Daily RevenueReconciliation &

Recognition Management

Service Usage &Charging

ServiceAuthorizationSubscriber Service

Purchase & Wallet Top-up

Subscriber CampaignPlanning

Subscriber Billing &Dispute Resolution

Billing Reporting &Account-level AnalyticsOnline

ServicesDesign

Subscriber Account

Management

Oracle can deliver a solution to…

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My last thoughts…What should we keep in mind?

Earthquakes, Aftershocks, and TsunamiWhat happened on 2011-3-11 and after…

Providers’ Internet was not connectable for the households who had no electricity Carriers telephone lines were out of service due to the damage and no electricity TVs were not viewable for the households who had no electricity Emergency phone services were provided by carriers which was helpful where you

can leave a voicemail for the rest of the family and relatives to hearBut…

Twitter was the best way to communicate through mobile phones

YouTube was the best way to learn what is going onThis was the “WIN” for carriers In the world of new Smart Ecosystem, ones who pay “premium” for better

and faster services with much bandwidth should enjoy the benefits…but I believe carriers have social responsibility to be “biased towards

emergency “43