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  • 1 Dr. for every 4 people in the US98% births covered by skilled healthcare professional1 hospital bed for 300 people

Transcript

  • 1. Navigating in a
    Sea of Connectivity
    Jaison Justin
    Pranav Khanna
    Orlando O’Neill
    Robert Schwartz
  • 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. Within ten years there will be 50 billion connected devices…
  • 4. Your life in a connected world
    In the car
    At home
    At the mall
  • 5. Your life in a connected world
    At home
  • 6. Your life in a connected world
    In the car
  • 7. Your life in a connected world
    At the mall
  • 8. Partner incentives
    Standards/
    Integration
    Technology Limitations
    Impediments to a connected world
    Current flat fee pricing model does not incent network investments
    Ericsson orchestrates a networked ecosystem through partnerships with all key players and is the gateway to information flow
    Different standards across devices/platforms impede interoperability
    Return on investment for technology providers is unclear
  • 9. Virtually integrated value network
    Suppliers
    • Raw material providers
    • 10. Outsourced manufacturers
    Complementors
    Collaborators
    Channel Partners
    How does Ericsson capture value?
  • 21. Ericsson enables each layer of the connected world
    Apps
    Integration Platform
    Global Network
    Infrastructure
  • 22. Application business models will require a paradigm shift
    High
    Data Use
    Per Use - High Fee
    Subscription – High Fee
    End User
    Video Broadcasting
    Video on Demand
    $
    App Developer
    Per use – Low Fee
    Subscription – Low Fee
    $
    Carrier
    Telematics
    eReader
    Low
    Data Use
    Pacemaker
    Intermittent Use
    Always On
    Economic cost of broadband usage must be born by the applications themselves
  • 23. Ericsson enables connectivity through
    its integration platform expertise
    Integration Platform
    Open Interconnectivity Standard
    Broadband Modules
    • Connectivity implementation professional services
    • 24. Broadband module sales
    $
  • 25. Ericsson licenses the underlying network infrastructure
    Operator Owned Network Model
    Managed Service Model
    Network Operations
    Maintenance & Upkeep
    Tower Build & Optimization
    $
    $
    $
    $
    $
    Equipment Expenditures
    Software Licenses
    Support Fees
    Equipment Expenditures
    Software Licenses
    Support Fees
    Network Operations
    Maintenance & Upkeep
    Tower Build & Optimization
  • 26. The proposed value network removes major obstacles to the connected world
    Partner incentives
    Standards/
    Integration
    Technology Limitations
    Value Network Solution
    Current flat fee pricing model does not incent network investments
    • Customized pricing by nature of usage
    Different standards across devices/platforms impede interoperability
    • Ericsson drives industry to common standards
    Return on investment for technology providers is unclear
    • New technologies find bigger markets
  • New challenges to be addressed in a connected world
    Ericsson uniquely placed due to its position as leading global network provider
    Who gets to be the “Orchestrator”?
    How should value be shared with partners?
    Ericsson should focus on growing the pie vs. maximizing its share
    Who is accountable to the customer?
    Explicit commitment for accountability within value network
  • 27. Tremendous financial impact for Ericsson in getting this right
    Ericsson Revenues by Sector
    Sector Choice
    $B
    Smart Grid
    Healthcare
    Communications
    Potential to reach $100B in revenues by 2020
  • 30. Implementation timeline
    2011-2020
    2010
    2019
    2018
    2017
    2016
    2015
    2014
    2013
    2012
    2011
    Sectors
    Mobile Communication
    • Test market in Japan
    • 31. Rollout in NA & Europe
    • 32. Broad Rollout in APAC/Lat. Am.
    Healthcare
    • Test mobile healthcare in India
    • 33. Rollout in China
    • 34. Rollout in Africa/other parts of APAC
    Energy
    • Test market in France
    • 35. Rollout in rest of NA/Europe
    • 36. Rollout in APAC/LatAm
  • Healthcare in India: a grim story
    42% of births attended by a skilled healthcare professional2
    1 doctor for every 1700 people1
    700 million people have no access to specialist healthcare2
    1 NationMaster
    2 World Health Organization
    Source
  • 37. Solution for dealing with healthcare inequities
    Remote Doctor
    Reports
    Treatment
    Cloud Processing
    Patient
    Mobile Diagnostics
    Diagnostics
    Data Processing
  • 38. Mobile healthcare delivery value network
    Suppliers
    • Direct material suppliers
    Complementors
    Collaborators
    • Govt. – Ministry of Health
    • 39. Non-profit organizations
    • 40. Diagnostic equipment providers
    • 41. Telesurgery solutions providers
    • 42. Standards setting bodies
    • 43. Industry Consortia
    Channel Partners
    • Operator e.g. Airtel
    • 44. Healthcare professionals
  • Business models in mobile healthcare delivery
    Monetization mechanisms
    Apps
    App. Developers charge end users i.e. Govt., Insurance or Indivual
    Airtel charges usage/subscription fees to diagnostics providers
    Integration Platform
    Ericsson captures value through:
    • Broadband modules for networked devices
    • 45. Licensing fee from Airtel
    Global Network
    Infrastructure
  • 46. This application has a revenue potential of $2B for Ericsson by 2015
    Indian healthcare market size
    Value-share among ecosystem players
    $B
    Ericsson
    Airtel
    Device Manufacturers
    Solution Providers
    Healthcare Providers
    • $2B opportunity each for Ericsson & Airtel
    • 47. CapEx outlay offset by government subsidies & licensing revenues
    • 48. Significant social impact, catalyst for worldwide rollout
  • Within ten years there will be 50 billion connected devices… enabled by Ericsson
    App Ecosystem
    Carriers
    Ericsson
  • 49. Appendix: Financial model for revenue projections
    Existing Business
    Networked communications
    Healthcare
    Energy
    Sectors
    Existing Business
    Networked communications
    Healthcare
    Market size & trajectory
    (based on research reports)
    Share of new networked model
    (benchmarked with similar business model shifts)
    Ericsson’s value-share within new model
    (benchmarked with similar value-creation models)
    Consolidated Revenues