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Defining valuein the FutureInternet                 Simon Delaere                 IBBT-SMIT, Vrije Universiteit Brussel   ...
About us IBBT – Interdisciplinary Institute for Broadband  Technology – funded by Flemish government, 1000  researchers i...
Main messages Apples are not pears It’s not only about numbers It matters for FI and FinES                             ...
1. Apples are not pears          15/05/2012      4
Context matters Technological determinism vs interdisciplinary  approach Research is about technology, but technology is...
The context of value - The example of CR         Cost/complexity of CR         technology                   “POLAR EXPEDIT...
The context of value - The example of CR                                                                                  ...
The context of value - The example of CR                                                               Niche, exclusive,  ...
The context of value - The example of CR                                                                                  ...
Different BM exercises, different results                                        10
Different BM exercises, different results                                        11
Different BM exercises, different results                                        12
Different BM exercises, different results                                        13
Different BM exercises, different results                                        14
Different BM exercises, different results                                        15
2. It’s not only about the numbers        15/05/2012                   16
Of course numbers are important Quantitative evaluation is necessary    Cost-efficient research = cost-efficient technol...
Business Models as configuration of controland value                                              18
The rise of platforms                        19
Platforms are emerging everywhere…                 ISSUER    MNOTSM          15/05/2012                 20
21
Rising questions   Platform dynamics: multi-sided    markets   Dynamic and complex competition    processes between larg...
objectives are diluted because of the mediation of         the Infrastructure Owner – who interferes with the         exis...
Casey, T.R., & Töyli, J. Mobile voice diffusion and service competition: A system dynamicanalysis of regulatory policy. Te...
SIMBU – Business Model Simulation                                    25
3. It matters for FI and FinES          15/05/2012             26
FI-PPP needs business assessment Ambitious programmes linking FI underlying  infrastructure to concrete application domai...
FI-PPP EBM             28
First EBM WG White Paper in draft FI-PPP Technical and Business Architecture    FI-PPP Core Platform: Technical and Busi...
How about the value of enterprise solutions? Future Internet may open new roads to value for  enterprises, both competing...
Methodologies need adaptation          15/05/2012            31
Wrap-up Apples are not pears It’s not only about numbers It matters for FI and FinES              15/05/2012        32
https://www.linkedin.com/e/fpf/14529507    http://www.twitter.com/minosrext   +32 2 629 16 22e   simon.delaere@vub.ac.be  ...
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P1 3-simon delaere

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Simon Delaere from IBBT-SMIT, Vrije Universiteit Brussel presented "Defining value in the Future Internet" (FInES Workshop at Aalborg)

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  1. 1. Defining valuein the FutureInternet Simon Delaere IBBT-SMIT, Vrije Universiteit Brussel FinES Workshop, FIA Aalborg, 9 May 2012
  2. 2. About us IBBT – Interdisciplinary Institute for Broadband Technology – funded by Flemish government, 1000 researchers in # groups across # Flemish universities IBBT-SMIT: Founded in 1990, based in Brussels, part of IBBT’s Digital Society Department Specialising in socio-scientific research on media/ICT Currently some 60+ researchers Combination of quantitative and qualitative methods for  User research  Policy analysis  Business modelling 2
  3. 3. Main messages Apples are not pears It’s not only about numbers It matters for FI and FinES 3
  4. 4. 1. Apples are not pears 15/05/2012 4
  5. 5. Context matters Technological determinism vs interdisciplinary approach Research is about technology, but technology is void without knowing about  How it is regulated  How it may be used/how it is actually used  How value can actually be created Value is a hetereogeneous concept  What is invaluable to one is worthless to the next  What is worthless now may be priceless tomorrow  Value creation and capture is a strategic configuration process 5
  6. 6. The context of value - The example of CR Cost/complexity of CR technology “POLAR EXPEDITION” “TYCOONS’ Level 1 PARTY” HIGH Non-commercial pilots Super-rich telcos’ toy “DO-IT-YOURSELF “BLOSSOMING WORLD” GARDENS” LOW Localised “hot-spots” Specialist CR providers NO YES Emergence of viable CR business case?A. Medeisis, S. Delaere (2011). High-Level Scenarios for the Future of Cognitive Radio Business. Paperpresented at PIMRC 2011, 11-14 September 2011, Toronto, Canada 6
  7. 7. The context of value - The example of CR Level 2Barrie, Delaere & Ballon. Classification of business scenarios for spectrum sensing.IEEE 21st International Symposium on Personal Indoor and Mobile Radio Communications (PIMRC) 2010,Istanbul (T), 26-30 Sept. 2010 7
  8. 8. The context of value - The example of CR Niche, exclusive, Groups, high barriers to entry human-oriented, management UA V Event management/theme Field deployable network parks, zoos Monitoring & drug Level 3 delivery Security & First CCTV Tele-health responder Costs Emergency broadcast Education Mobile Rural truck & broadband cash in VoD transit Gaming Travel/planning VANETs Utility/grid monitoring Home analytics Government, necessity, Potential market growth social benefit Consumer, high volume, Quickly evolvingK. Nolan, V. Gonçalves & M. Sandmann (2011). COST TERRA – WG3 Working Paper: Marlets,Opportunities, Technologies & Regulation. 8
  9. 9. The context of value - The example of CR Level 4Tytgat, L., M. Barrie, V. Gonçalves, O. Yaron, I. Moerman, P. Demeester, S. Pollin, P. Ballon, and S. Delaere,"Techno-economical Viability of Cognitive Solutions for a Factory Scenario", DySPAN, Aachen, Germany, 05/2011 9
  10. 10. Different BM exercises, different results 10
  11. 11. Different BM exercises, different results 11
  12. 12. Different BM exercises, different results 12
  13. 13. Different BM exercises, different results 13
  14. 14. Different BM exercises, different results 14
  15. 15. Different BM exercises, different results 15
  16. 16. 2. It’s not only about the numbers 15/05/2012 16
  17. 17. Of course numbers are important Quantitative evaluation is necessary  Cost-efficient research = cost-efficient technologies  Business Case construction is a crucial step  Many FI technologies promise reduction in CAPEX/OPEX, but what do they deliver? But it is often too early to ask  Infrastructure, element cost, uptake unknown  Competition/complementarity with legacy tech unclear  Macro, meso and micro economic factors And it is still research  Does it make sense to ask detailed, confidential exploitation plans in a STREP? Cost and revenue are just two strategic considerations 17
  18. 18. Business Models as configuration of controland value 18
  19. 19. The rise of platforms 19
  20. 20. Platforms are emerging everywhere… ISSUER MNOTSM 15/05/2012 20
  21. 21. 21
  22. 22. Rising questions Platform dynamics: multi-sided markets Dynamic and complex competition processes between large number of platforms or platform wannabes Importance of technological configurations, interoperability, openness, bundling and adding features Greater scope for variety of platform and non-platform strategies Abstract and static conceptions of ‘platforms’ need to be replaced by analysis of changing boundaries of platforms, various levels of integration and control, different types of platform business models Regulation not equiped for dealing with platorms 22
  23. 23. objectives are diluted because of the mediation of the Infrastructure Owner – who interferes with the existing operator-customer relationship by deploying and managing the CONSERN network Multiple complementary methods all by himself. Actor – Actor Interaction (MAA) On the other hand, the Divergence graph shows that the BO IO EU DM ASP WNONetwork Operators (BO, WNO) and Infrastructure Owner(IO) are in clear divergence with each other: firstly, because BOofIOthe Operator-Independent strategy employed by theInfrastructure Owner and secondly because of the direct EUinteraction between the Infrastructure Owner and the DeviceManufacturer, which in more Operator-Centric models were DMmediated and managed by the Network Operator. Since we ASPadopt an Operator-Independent strategy, adopting Operator- WNOCentric or 3rd Party-Centric Models can yield entirelydifferent sets of convergences and divergences amongst theactors. Ecosystem Convergence & Divergence WNO – BO: converge and diverge on all issues IO – (WNO+BO): diverge because of Operator Independent Business Model involved. IO-ASP-DM : Strongly converge and support OI BM Focal Actor – Convergence & Divergence ASP-(WNO+BM) : ASP diverge and would like Figure 6: Divergence and Convergence [MAA] to operate independently 23 The I O’s role within the network-centric group of
  24. 24. Casey, T.R., & Töyli, J. Mobile voice diffusion and service competition: A system dynamicanalysis of regulatory policy. Telecommunications Policy (2011), doi:10.1016/j.telpol.2011.07.002 24
  25. 25. SIMBU – Business Model Simulation 25
  26. 26. 3. It matters for FI and FinES 15/05/2012 26
  27. 27. FI-PPP needs business assessment Ambitious programmes linking FI underlying infrastructure to concrete application domains Both generic enablers and resulting applications need to be tested for business impact IBBT’s role  IBBT chairs Exploitation and Business Modelling working group within FI-PPP (through CONCORD)  Established 22 February 2012  Objectives  provide internal (FI-PPP) and external (FP7-CIP) insights into Future Internet exploitation plans and business models; and,  support the FI-PPP projects’ individual exploitation and business modelling efforts.  First F2F meeting at this moment 27
  28. 28. FI-PPP EBM 28
  29. 29. First EBM WG White Paper in draft FI-PPP Technical and Business Architecture  FI-PPP Core Platform: Technical and Business Architecture  FI-PPP Use Cases: Technical and Business Architecture  FI-PPP: Unified Business Architecture Innovative Business Models for FI-PPP Services and Applications  FI-PPP Use Case Example(s) and Business Models  The Business Challenges and Opportunities  Lessons Learned and Best Practices from External Cases  Innovative Business Models  e.g. X as a Service models; Smart Cities/Region models, SME application stores, etc. Societal Benefits and Economic Impact of the FI-PPP  FI-PPP Core Platform and Domain Usage Areas Benefits and Impact  FI-PPP Market Opportunities  Generic Benefits of the Future Internet 15/05/2012 29
  30. 30. How about the value of enterprise solutions? Future Internet may open new roads to value for enterprises, both competing and collaborating Value can be created by  Infrastructure  Data  Platforms IBBT is working on all these topics PPP concept changes very concept of value 15/05/2012 30
  31. 31. Methodologies need adaptation 15/05/2012 31
  32. 32. Wrap-up Apples are not pears It’s not only about numbers It matters for FI and FinES 15/05/2012 32
  33. 33. https://www.linkedin.com/e/fpf/14529507 http://www.twitter.com/minosrext +32 2 629 16 22e simon.delaere@vub.ac.be IBBT-SMIT Vrije Universiteit Brussel Pleinlaan 9 – 1050 Brussels Belgium
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