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

1. Defining value
in the Future
Internet
Simon Delaere
IBBT-SMIT, Vrije Universiteit Brussel
FinES Workshop, FIA Aalborg, 9 May 2012

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. Main messages
 Apples are not pears
 It’s not only about numbers
 It matters for FI and FinES
3

4. 1. Apples are not pears
15/05/2012 4

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. 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. Paper
presented at PIMRC 2011, 11-14 September 2011, Toronto, Canada
6

7. The context of value - The example of CR
Level 2
Barrie, 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. 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 evolving
K. Nolan, V. Gonçalves & M. Sandmann (2011). COST TERRA – WG3 Working Paper: Marlets,
Opportunities, Technologies & Regulation.
8

9. The context of value - The example of CR
Level 4
Tytgat, 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. Different BM exercises, different results
10

11. Different BM exercises, different results
11

12. Different BM exercises, different results
12

13. Different BM exercises, different results
13

14. Different BM exercises, different results
14

15. Different BM exercises, different results
15

16. 2. It’s not only about the numbers
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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. Business Models as configuration of control
and value
18

19. The rise of platforms
19

20. Platforms are emerging everywhere…
ISSUER MNO
TSM
15/05/2012 20

21. 21

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. 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 WNO
Network Operators (BO, WNO) and Infrastructure Owner
(IO) are in clear divergence with each other: firstly, because
BO
ofIOthe Operator-Independent strategy employed by the
Infrastructure Owner and secondly because of the direct
EU
interaction between the Infrastructure Owner and the Device
Manufacturer, which in more Operator-Centric models were
DM
mediated and managed by the Network Operator. Since we
ASP
adopt an Operator-Independent strategy, adopting Operator-
WNO
Centric or 3rd Party-Centric Models can yield entirely
different sets of convergences and divergences amongst the
actors.
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. Casey, T.R., & Töyli, J. Mobile voice diffusion and service competition: A system dynamic
analysis of regulatory policy. Telecommunications Policy (2011), doi:10.1016/j.telpol.2011.07.002
24

25. SIMBU – Business Model Simulation
25

26. 3. It matters for FI and FinES
15/05/2012 26

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. FI-PPP EBM
28

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. 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. Methodologies need adaptation
15/05/2012 31

32. Wrap-up
 Apples are not pears
 It’s not only about numbers
 It matters for FI and FinES
15/05/2012 32

33. https://www.linkedin.com/e/fpf/14529507
http://www.twitter.com/minosrex
t +32 2 629 16 22
e simon.delaere@vub.ac.be
IBBT-SMIT
Vrije Universiteit Brussel
Pleinlaan 9 – 1050 Brussels
Belgium