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Post on 26-May-2015
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NOTE:
This presentation was created by a team of MBA students for educational purposes and in no way reflects the
views and beliefs of Ericsson.
Part One: VisionSea of Connectivity
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“Sea of connectivity” for the next decade
“Sometimes our industry is limited, not by our abilities, but by our vision”
Metaphor: an all-communicating world– More than technology connectivity
– Convergence: telecom, mobile internet and media sectors
– Strategic partnership: deliver value to customers and consumers
– Impact on society and life (thought leadership)
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Going beyond as a company and the industry as a whole– Industry: multibillion devices connected to IP networks
– Ericsson itself: shift in business model
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Ericsson’s differentiators
Transformation not only in technology but also in business model
“Customer centric” value proposition with a dynamic role– Navigator
– Integrator
– Trusted advisor
– Innovator
– Thought leader
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Customer-centric value proposition
Who’s Ericsson’s customer– Telecom operators
– End-consumers
– Strategic partnership with operators, alternative players, government and end consumers
Due diligence– Situational analysis (Geographic, demographic, industry sector, etc.)
– Potential of penetration
– Execution guidelines
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Align Ericsson’s resources– Technology leadership
– Well-poised in 2010
– A global company with local commitment
Listen and respond: The shift of business model– Fee structure: how to capture value and monetization mechanism
– Apps
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– Eco-system: co-create value through new business model• Telecom operators
• Network providers
• Handset makers
• Growing social networks
Part Two: ExecutionChinese Agriculture Sector
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Current Agriculture Information System Developing Slowly In China
Agriculture Information system development is a hot issue in China.
Computer based agriculture information system is facing difficulties.
Demand:
- Low education level in rural area.
- Limited budget for digital devices.
- Diversity of information demand.
Supply:
- Quality of Information.
- Do not have knowledge sharing system.
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The Largest Potential Market of Mobile Services
Huge market include 1/8 of the whole world population, 2/3 of the families own cell phones.
Insufficient demand hamper the following mobile network infrastructure development.
Great potential information exchanging demand in agriculture industry.
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Integrate information
Partner: China Mobile
- Widest signal coverage.
- Largest user base (70% of the 700million mobile phone users in China).
Agriculture Comprehensive Information System (ACIS)
Suppliers Information System(fertilizer, seeds & facilities) :
1. Real-Time suppliers market information.
2. Order in advance. (Can be used as a guarantee to apply for small loans)
Market Information System:
1. Real-Time marketing information
2. Order in advance. (Can be used as a guarantee to apply for small loans)
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Agriculture Information Shop (APP Store)
- Prices fluctuation cycle analysis reports.
- Agricultural technology materials.
- Video study materials for Agricultural skills developing.
- Professional Agricultural Applications.
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Fee Structure
Entry package which charges a very low monthly fee: (Applicants can use agriculture engagement certifications to do the application.)
- Basic services and 10Mbps data flow per month what can support the basic use.
Basic information services(free for charge):
- Basic market information
- Basic agriculture technology instruction materials
- Free versions of professional agriculture applications
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Value-Added Information Services(charges subscription fee and Ericsson can charge commission fees):
- Advanced agricultural technology instruction materials.
- Detailed market information analysis reports.
- Full versions of professional agricultural applications.
App Store:
All the basic information materials and value-added information materials should be downloaded from the App Store.
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Expanded Applications
ACISGovernment
Support
MarketInformation
AgricultureTech.
Information
SuppliersInformation
Agriculture Industry
(Entertainment, Education etc.)
Suppliers
Government
Customers
ResearchOrganizations
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Integrate Stakeholders Interests
Research center/technology
provider
Agricultural product buyers
FarmersAgricultural Material Supplier
Government
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Eco-system
Customer Demand
Demand Hardware Capacity
Create Demand to Balance Eco-system
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Profit Model
In Short Term:
Government investment& subsidies
Commission fee from China Mobile
In Long Run:
Commission fee From China Mobile
Revenue from value-added services
Expanded Information Services
Advertisement
Part Three: ImpactChinese Agriculture Sector
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Business model change
How will the change work?
(New revenue, partnership)
High level impacts
(On Ericsson, local government and China mobile)
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BUSINESS MODEL CHANGE
Focus on service:
Network builder service solution provider
Focus on undeveloped market:
Traditional telecom industry agriculture in emerging China
Focus on information integration:
Ecosystem with constant information circulation
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HOW WILL THE CHANGE WORK?
Potential demand:
Undeveloped market
A huge group of potential users
Ericsson’s competency:
Familiarity with China market,
Advantage on technology,
Brand recognition,
Credibility already built (since 1894),
…
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HIGH LEVEL IMPACTS
Mutual benefits on both sides sustainable partnership in long run
Enhancement on government relation
All results in:
Financial gain on both sides
Industry awareness of Ericsson
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Thank You!
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