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Transcript

  • 1.
  • 2. 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.
  • 3. Part One: Vision
    Sea of Connectivity
  • 4. “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)
  • 5. Going beyond as a company and the industry as a whole
    Industry: multibillion devices connected to IP networks
    Ericsson itself: shift in business model
  • 6. 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
  • 7. 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
  • 8. 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
  • 9. Eco-system: co-create value through new business model
    Telecom operators
    Network providers
    Handset makers
    Growing social networks
  • 10. Part Two: Execution
    Chinese Agriculture Sector
  • 11. 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.
  • 12. 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.
  • 13. 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:
    Real-Time marketing information
    Order in advance. (Can be used as a guarantee to apply for small loans)
  • 14. Agriculture Information Shop (APP Store)
    - Prices fluctuation cycle analysis reports.
    - Agricultural technology materials.
    - Video study materials for Agricultural skills developing.
    - Professional Agricultural Applications.
  • 15. 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
  • 16. 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.
  • 17. Expanded Applications
    (Entertainment, Education etc.)
    Agriculture Industry
    Government
    Suppliers
    Customers
    Research
    Organizations
  • 18. Integrate Stakeholders Interests
  • 19. Eco-system
    Demand
    Hardware Capacity
    Create Demand to Balance Eco-system
  • 20. Profit Model
    In Short Term:
    Commission fee from China Mobile
    Government investment
    & subsidies
    In Long Run:
    Expanded Information Services
    Revenue from value-added services
    Commission fee From China Mobile
    Advertisement
  • 21. Part Three: Impact
    Chinese Agriculture Sector
  • 22. Business model change
    How will the change work?
    (New revenue, partnership)
    High level impacts
    (On Ericsson, local government and China mobile)
  • 23. 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
  • 24. 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),

  • 25. 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
  • 26. Thank You!
    Q&A