ptolemus hec mobile business sept 2010

Mobile Business: New entrepreneurial opportunities around location

HEC Web & HEC Entrepreneurs

Frederic Bruneteau - Association HEC - Paris - 13th September 2010

3

Introduction

We just published the most comprehensive study ever written on the location business and technologies

• 230 pages of analysis about positioning technologies and their impact on the location industry, built on

- Interviews with over 100 executives from all sides of the industry, from Admob to Yahoo!,

- 6 months of desk research and primary research, notably an online survey,

• An in-depth investigation of the current value chain and expected changes

• A detailed market model so as to combine strategic and technology analysis with hard figures

• Free version (115 pages) can be downloaded on www.ptolemus.com/study

Is location just built on buzz?

3

What to know about location?

17

Location is coming to all mobile phones

0

50

100

150

200

2006 2007 2008 2009 2010 2011 2012 2013 2014

GPS-enabled mobile phones sold in Europe

GPS-enabled low-end & feature phonesGPS-enabled smartphones

Source: PTOLEMUS

0

50

100

150

200

2006 2007 2008 2009 2010 2011 2012 2013 2014

WiFi-enabled mobile phones sold in Europe

WiFi-enabled basic and feature phonesWiFi-enabled smartphones

What to know about location?

4

Location and connectivity are also penetrating all devices

Source: PTOLEMUS

Low HighTotal solution intelligence

Local device intelligence

High

Low

Connected PND

Connected car

Smartphone

Connected plug

Die-cutting machine

Connected photoframe

Connected train

WiFi router

Connected copier

Parking metre

Tractor

Airplane

Fixed phone

Laptop

Connected truck

Connected vending machine

Server

OvenTraffic light

Air conditioning system

Elevator

Layering machine

Fridge

Lawn mower

Hairdryer

Washer

Toaster

Connected watchConnected

videocamera

Cash register

What to know about location?

Location goes beyond location-centric applications

6

What you see / hear

What to know about location?

Location goes beyond location-centric applications

7

What you see / hear

The silent revolution

What to know about location?

20

A smart use of location can be a key ingredient to build a great product

Skyhook's WiFi positioning

system

• Fix in less than 1 second

• Indoor location possible

Cellular tower triangulation

(Google)

Skyhook's WiFi positioning

system

• Almost universal coverage

Cellular tower triangulation

(Google)

Skyhook's WiFi positioning

system

GPS

• Universal coverage• High accuracy

outside cities

GPS

Cellular tower triangulation

(Google)

Skyhook's WiFi positioning

system

Compass

• A sense of direction!

GPS

Cellular tower triangulation

(Google)

Skyhook's WiFi positioning

system

Compass

• Indoor navigation unlocked

Gyro

What to know about location?

Source: PTOLEMUS

Location-based social networking will take off

• Not thanks to Foursquare and Gowalla!

• Not even thanks to Google Latitude.

• Despite a sure backlash against impact on privacy

• But thanks to existing, mainstream networks such as Facebook, Twitter, LinkedIn, Viadeo, Mobiluck, Gypsii, etc.

• They have more users, users' (relative) trust

• Location is a add-on, not the core value proposition of a social network

9

At least 6 clear use cases

Navigate to friend

Find friends nearby

Nearby friend alert

Locate friends

Share place

Find Friend's place

What to know about location?

Mind the gap... between your company and the 4 "silos"

10

LBA

Map

A-GPS

WPS

OS

iAd (Quattro Wireless)

iPhone OS

Safari

App Store

Browser

Google Maps

supl.google.com

Chrome / Webkit

OVI map + Navteq

supl.nokia.com

Symbian+ Maemo + Moblin

OVI StoreApp store

Network infra.

iPhoneDevice

PlaceBase

AdMob

Android Marketplace

Google Maps

Navteq

Nokia

Navteq

Nokia Siemens

Bing

Microsoft Advertising

Windows MarketPlace

Android

Internet Explorer

Windows Phone

Novarra

The four location silos

What to know about location?

Source: PTOLEMUS

Numerous European startups have succeeded in the last 20 years

11

Early stage Confirmed Mature

Success

How to succeed in mobile location

And certain European start-ups were acquired

12

How to succeed in mobile location

Source: PTOLEMUS

New location technologies & services in Europe, based on Gartner's Hype Cycle

Technology trigger

Peak of expectations Disilusionment Enlightenment Maturity

Where are the next waves?

13

How to succeed in mobile location

Source: PTOLEMUS

New location technologies & services in Europe, based on Gartner's Hype Cycle

Technology trigger

Peak of expectations Disilusionment Enlightenment Maturity

Where are the next waves?

14

TrackingNavigation

LBSN

Social POIs

PAYD

eCall

Connected navigation

New LBS technologies & services, based on Gartner's Hype Cycle

RUC Location-based services

LBA

Eco-driving

Car-sharingMobile

tracking

Parking

How to succeed in mobile location

bCallE112

SVR

RUC

Location-based

content

Source: PTOLEMUS

New LBS technologies & services, based on Gartner's Hype Cycle

New location technologies & services in Europe, based on Gartner's Hype Cycle

Technology trigger

Peak of expectations Disilusionment Enlightenment Maturity

Where are the next waves?

15

TrackingNavigation

LBSN

Social POIs

GPS

PAYD

eCall

Connected navigation

Hybrid location

WPS

Galileo

Glonass

Cell-ID

IP location

New LBS technologies & services, based on Gartner's Hype Cycle

WPS Underlying location technologies

RUC Location-based services

LBA

Eco-driving

Car-sharingMobile

tracking

Parking

How to succeed in mobile location

bCallE112

SVR

RUC

Location-based

content3D maps

AR

Pedestrian maps

Crowd-sourced content

Indoor location

MEMS

Location-triggered decisions

Location data

management

Source: PTOLEMUS

New LBS technologies & services, based on Gartner's Hype Cycle

New location technologies & services in Europe, based on Gartner's Hype Cycle

Technology trigger

Peak of expectations Disilusionment Enlightenment Maturity

Where are the next waves?

16

TrackingNavigation

LBSN

Social POIs

GPS

PAYD

eCall

Connected navigation

Hybrid location

WPS

Galileo

Glonass

Cell-ID

IP location

New LBS technologies & services, based on Gartner's Hype Cycle

WPS Underlying location technologies

RUC Location-based services

LBA

Eco-driving

Car-sharingMobile

tracking

Parking

How to succeed in mobile location

bCallE112

SVR

RUC

Location-based

content3D maps

AR

Pedestrian maps

Crowd-sourced content

Indoor location

MEMS

Location-triggered decisions

Location data

management

Source: PTOLEMUS

23

Conclusion

Location is becoming mainstream

• You will increasingly need to understand location to understand mobile & vice-versa

• Innovation will come from new hardware, software, services and business models:

- Mix the ingredients to obtain a good recipe

- Start & finish with the end-user's problem

• This is a global business, with 4 leaders (Nokia, Google, Apple and Microsoft) building vertically integrated "silos"

• However, there is a plenty of room for entrepreneurs bringing new propositions

Strategies for Mobile Companies

Brussels - Paris - Londoncontact@ptolemus.comwww.ptolemus.com

Frederic BruneteauManaging Directorfbruneteau@ptolemus.comTwitter: @PTOLEMUS