telco adoption of web 2.0 & open innovation issue 1
TRANSCRIPT
1© 2008 Alan Quayle
Alan QuayleBusiness and Service Development
www.alanquayle.comwww.alanquayle.com/blog
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TELCO ADOPTION OF WEB 2.0 PRINCIPLES AND OPEN INNOVATION FOR RAPID
APPLICATION DEVELOPMENT
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What’s Changed?
Action PlanDeveloper Needs
Who’s Really Doing What?
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What’s Changed?
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Re-Launch
An Operators Product Development Process
Opportunity Identified
18-36 months
Market Research
Find Budget
New product development processLaunch
12-18 months
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What’s Changed?
Expectations
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What customers expect
6-12 months
Weekly
18-36 months
4 months
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8© 2008 Alan Quayle
Where is the Money?
• The collective market capitalization of web-based service providers such as Google, Amazon Web Services, Facebook, My Space, etc. is significant
• Google alone has a larger capitalization than the majority of Tier 1 Communication Service Providers in the world today– Google’s market cap is larger than those of Comcast,
Verizon, Telefonica, China Telecom, China Netcom, NTT DoCoMo, NTT, Hutchison Whampoa and Deutsche Telekom, etc.
– Google is 10 years old (founded in 1998), and none of these service providers existed prior to 1994
• The capital that has flowed to them has been diverted from incumbent communication service providers
http://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_MktVal.html
$270Billion
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RetailStores
SubsidizedPhones
NetworkControl
EcosystemControl
CustomerRelationship
Brand
BillingRelationship
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Who’s Really Doing What?
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Operator Activities in Opening the Network
• Telenor Content Provider Access (CPA) – Generate within Norway roughly $100m a year in revenue, that is
6% of Telenor’s total subscription revenues.
• O2 Litmus (www.O2litmus.co.uk) – Recently announced by O2, to be launched in late 2008,
extensively leveraging web 2.0 principles.
• Telecom Italia NexTIM– Telecom Italia’s web 2.0 site exposing new services to its early
adopting ‘360 degree innovators.’ Letting the market decide what services to launch, rather than solely internal product management processes.
• SingTel Partners Program– Leverage external 3rd party developers to tap into their potential
of unlimited innovation to drive new revenues. Promote access tolimited network resources and capabilities; reduce time-to-market for launching new services and provide mechanisms for 3rd parties to be paid.
• ProgrammableWeb– An aggregator of APIs across operators and the internet, including
Orange Partners and BT’s 21C APIs.
12© 2008 Alan Quayle
Operator Activities in Opening the Network
• Orange Partner– As a simple case study, it took only seven months from Orange’s
first meeting with a developer called mob-it (www.mob-it.com) to launch a public beta of that service integrated into Orange’s picture service Pikeo, using its open APIs.
• Verizon Open Development Initiative – Verizon’s ODI (Open Developers Initiative)– Device centric ODIS (Open Device Interface Specification) defines
what a device must do to interface to the VZ RAN (between the device radio hardware and the access network)
• Sprint’s Business Mobility Framwork– Sprint’s Business Mobility Framework launched in 2004. It
enables third parties to develop services using capabilities of the Sprint network, such as location, presence and messaging. It is based on Parlay X.
• And many more:– AT&T’s devCentral, GSMA 3rd Party Access Initiative, BT, Telus
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Developers’ Needs
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Background on Research
• Results collated from over one year of market research• From a maintained list of over 1000 web/voice/telco 2.0 application developers
130 developer’s feedback is included in these results covering:– Detailed questionnaires (40+ open-ended questions)– Face-to-face meetings (1-2 hours, structured)– Phone interviews (30min – 1 hour, structured)
• Representative Application Developer mix
CommunityVoice 2.0
Web 2.0
Games / adver-gaming
LBS Content / Search
UGC
Enterprise
eInclusion
Canada
US
UK / IrelandSingapore /
APAC
Rest of Europe
Company Name DescripitionContext Based Business Social Financial
Enter- tainment Voice 2.0 Telco 2.0 Viable Cool
Telco Value
23half MMS visual search X X X 3 5 5AirG Mobile Community (20M+) X X 5 5 3Axis Remote survillance solutions X 4 4 5Blinkx Video sharing site X X 3 5 5Bluefire security mobile security X X 4 4 5Credant mobile security X X 4 4 5Dexterra Enterprise application mobilization X X X 4 4 5Diversinet Mobile security X X 4 4 5GreyStripe Ad supported gaming X X 3 5 5Integra5 Converged services platform X X X X X 5 3 5Kore Wireless M2M solution provider X 5 4 4Krillion Mobile shopping - location based X X 3 5 5Livewire mobile Music centric mobile application developer and infra X X 5 3 5Mint Personal money management X 4 5 4NewBay Mobile UGC sharing X 4 5 4Spinvox Voicemail to text X X X 5 4 4Movial Social communicator tool (mobile/PC) X 3 5 5Trust Digital Mobile security X X 4 4 5U-Locate location application company X X 4 5 4Useful Networks Location application company X X 4 4 5Utterz Voice based social publishing / network X X X 3 5 5Veoh TV 2.0 X 4 5 4Voxmobili Next generation address book X X X 4 4 5Wavemarket LBS, family finder X 4 4 5Way Systems Mobile POS X 4 4 5Evryx SnapNow mobile marketing platform X 3 4 52waytraffic Digital content / games publisher (Sony trying to buy) X 5 4 33Bill Mobile payment services X 3 4 5Adomo Enterprise UC X 4 4 4Agito Enterprise application mobilization X 3 4 5Angel.com Hosted IVR / Voice 2.0 X X 4 4 4Appello Mobile navigation X 3 4 5Bambuser Mobile blog - video based X 3 4 5Bebo Social Network (bought by AOL) X 5 3 4Bluepulse Mobile Community X X 4 4 4BubbleMotion VoiceSMS / BI / Community X X 4 4 4
Web/voice/telco 2.0 list
Very Small
Small
Medium
Large
<5<25
<70
>70
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Developer Issues and Requests
Issues with Current Initiatives• No live testing environment for end-to-end
testing• No developer sandbox• Very limited access to key capabilities for
providing interesting applications and services
• Often have a web of stakeholders within the operator which slows/halts the decision-making and/or approval process
• Typically no single point of contact• Inadequate operational support, e.g. VPN
set-up, switch configuration, etc.• Little or no support for billing system
integration• Lack of support for remote monitoring• Lack of flexibility / willingness to try new
business models• Rigid rules & guidelines for contributing an
application• No/limited device independent platform• No/limited embrace of browser based
services
Requests• A live testing environment / access
to test lab• Single point of contact for technical
issues• Consistent operational support, e.g.
network connectivity, SMSC, security
• Willingness to experiment in business models
• Clear path of decision-making up the chain of command
• Real project with full organizational commitment from operators - not a 'fashion accessory.'
• VPN access to on-site systems for remote monitoring
• Delegate testing and approval to third party testing houses.
• ‘Approved developer’ certification for the ability to fast-track approvals, operational requests, etc.
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Capabilities Application Developers Seek
• Single sign-on• Address Book API• Age Verification• Billing/Charging• Identity/Authentication• Location• Messaging• Profile API• File Browsing• Browser based API• Presence• SIP/VOIP/Call Control• Mobile Lookup• Connection status• Discoverability• Short codes• Plus lots and lots more……
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Potential Telco API capabilities (from App Vendor Survey)
• Authentication & Single Sign-on• Presence (device, application, call state)
and Availability• Device Capabilities / Software• Location (accuracies and freshness),
Proximity, Heading, Speed• Preferences (policies or rules)• Context – a combination of presence,
location, device status, application status, meeting status (calendar), etc.
• Customer data (business intelligence)• Call Control• Messaging • Network address book• Group List Server (buddy lists)• Enterprise Mobilization• VoIP / SIP: tone insertion• Call Flow: ACD, IVR, CRM, Helpdesk• Charging / Billing• Call Log / Call events • Directory • Message Store
• Home Network Enabler• Content Delivery• Policy (Quality of Service)• IPTV enablers• IPTV STB enablers• Content Enablers• Collaboration Enablers• VoIP / SIP call control including invoking
supplementary services• Fulfilment and other BOSS capabilities• Digital Rights Management• Device Management• Local dial in number provisioning • Ringtone purchase integration• Video-ringtone platform• Subscription status• Mobile Video• CDR number frequency search• Calling Name dip
And the list goes on, much further on….. Prioritization is critical
High
Pop
ular
ity
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Distribution Discovery
PredictableProcess
Clear Pathto Cash
Developers’ Problems an Operator must Solve
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Critical Findings• Operators must:
– Implement processes to ensure ADC (Application Development Community is used by the operator (not repeat the mistakes of the past)
– Reverse developer scepticism by listening, implementing what they need, and show the ADC working
• Application developers will not pay for capabilities exposed
• Customer access is critical
• REST and SOAP/XML is the preferred API
• Full testbed is essential to the ADC
• Copy Apple’s App Store, just copy better
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Action Plan
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New revenue and increase customer value through Open Innovation
Clear Vision
Open the network to 3rd parties and share in
value createdAgreed Strategy
Short-term OPEX savings, long term revenue growth
Realistic Plan
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OrganizationalCommitment
Promote the Winners
Things to do List
Copying is OK
It’s NOT the Technology
It’s your PLAN!
22© 2008 Alan Quayle
Suggested Reading
Microtrends, Mark Penn
Here Comes Everybody, Clay Shirky
The Gridlock Economy, Michael Heller
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