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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