Team Ericsson Tokyo

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    Team Ericsson Tokyo - Presentation Transcript

    1. Value Creation in the Future Multimedia Convergence Ericsson Tokyo Stefano Di Genua Julia Goessler Shirley Liu Leo Tumwattana
    2. Recommendations
      • “ Gate Keeper to Digital Life”
      • Superior Content
      • Enable Personalized Marketing
      Julia Goessler
    3. Agenda
      • Customer of Tomorrow & Value Creation in the Future
      • Structure of Vodafone Business Model
      • Action Plan & Financials
      • Competition
      • How Ericsson Will Support Vodafone
      Shirley Liu
    4. Customers of the future
      • Shirley Liu
      $ Content Ugly truth: Customers are no longer willing to pay for content
    5. Customers of the future
      • Shirley Liu
      Premium Content e.g. Reuters, Bloomberg, Live TV Food, Clothes, Cars, etc. $ Customers would only like to pay for premium services, necessities and digital life $ $
    6. Customers of the future
      • Shirley Liu
      Premium Content e.g. Reuters, Bloomberg, Live TV Food, Cloths, Cars, etc. Attract The value is created by subscription premium services and digital advertisement $ $ $ $
    7. Recommendations
      • “ Gate Keeper to Digital Life”
      • Superior Content
      • Enable Personalized Marketing
      Shirley Liu
    8. Agenda
      • Customer of Tomorrow & Value Creation in the Future
      • Structure of Future Vodafone Business Model
      • Action Plan & Financials
      • Competition
      • How Ericsson Will Support Vodafone
      Julia Goessler
    9. 1. “Gatekeeper to Digital Life”
      • Julia Goessler
      Voice Location Music TV Customers Internet Vodafone All-in-one service provider – “Gate Keeper to Digital Life”
    10. 2. Superior Content
      • Julia Goessler
      IPTV Music GPS Applications Premium Content Strong partnerships with leading content providers
    11. 3. Personalized Marketing
      • Julia Goessler
      Personal Data Access to Potentially 212 Million Subscribers Advertisers meet Customers TV Location Music Reuters … Vodafone Platform Partners Digital Persona Vodafone enables advertisers to target specific consumers
    12. MOBILE ADVERTISEMENTS
      • Leo Tumwattana
    13. Mobile Advertising
      • Very personal thing
      • Do it right: great opportunity
        • e.g. Google
      • Do it wrong: ignored
        • e.g. spam
      • Leo Tumwattana
      • Requires attention to interface design:
        • Unobtrusive
        • Relevant
        • Easy to use
    14. WHAT DO WE PROPOSE? Leo Tumwattana
    15. EXAMPLE 1
      • Location and profile based coupon delivery application
      Leo Tumwattana
    16. Example 1: Coupon Delivery
      • Leo Tumwattana
    17. Example 1: Coupon Delivery
      • Leo Tumwattana
      2:00 PM Contacts Phone
    18. Example 1: Coupon Delivery
      • Leo Tumwattana
      2:00 PM Contacts Phone
    19. Example 1: Coupon Delivery
      • Leo Tumwattana
      2:00 PM Contacts Phone
    20. Example 1: Coupon Delivery
      • Leo Tumwattana
      2:00 PM Contacts Phone Banana Republic Coupon: 20% off dress pants   Get Coupon Code
    21. Example 1: Coupon Delivery
      • Leo Tumwattana
      2:00 PM Contacts Phone Banana Republic Coupon: Buy one t-shirt get one free   Get Coupon Code
    22. Example 1: Coupon Delivery
      • Leo Tumwattana
      2:00 PM Contacts Phone Banana Republic Coupon: Buy one t-shirt get one free Coupon Code: xxxxxxxx Done
    23. Example 1: Coupon Delivery
      • Leo Tumwattana
      2:00 PM Contacts Phone Would you like to be notified of future promotions from this store? No Yes
    24. … REPEAT… Leo Tumwattana
    25. Example 1: Unobtrusive Ads
      • Leo Tumwattana
      2:00 PM Contacts Phone
    26. Example 1: Unobtrusive Ads
      • Leo Tumwattana
      2:00 PM Contacts Phone Ralph Lauren Coupon: 50% off T-Shirts   Store Location
    27. Example 1: Unobtrusive Ads
      • Leo Tumwattana
      Ralph Lauren Ralph Lauren Get directions 2:00 PM Contacts Phone Power of advertising with Vodafone
    28. Example 1: Coupon Delivery
      • Advantage of that scenario:
        • Get user data (profile)
        • Promotional service for our customers
        • Create personalized link between brand and customer
        • Get permission from customer for further advertisement from this and similar companies
      Leo Tumwattana
    29. EXAMPLE 2
      • Mobile IPTV Application with Ads
      Leo Tumwattana
    30. Example 2: Unobtrusive Mobile IPTV Ads Leo Tumwattana
    31. Example 2: Unobtrusive Mobile IPTV Ads Leo Tumwattana x
    32. Example 2: Unobtrusive Mobile IPTV Ads Leo Tumwattana
    33. Example 2: Unobtrusive Mobile IPTV Ads Leo Tumwattana Regular ads during natural commercial breaks
      • Advantages of this scenario:
        • Ticker Ads
          • Unobtrusive
          • Users can turn them off
        • Break-time ads can be targeted to subscriber
          • Service “quality” differentiation
          • By target customer vs. mass broadcast
      Example 2: Unobtrusive Mobile IPTV Ads Leo Tumwattana
    34. Brief summary
      • Interface design cannot be an afterthought
      • Form a department focused on design mobile applications:
          • Tailored to specific devices
          • Easy to use
          • Or else it will never work!
      Leo Tumwattana
    35. Agenda
      • Customer of Tomorrow & Value Creation in the Future
      • Structure of Vodafone Business Model
      • Action Plan & Financials
      • Competition
      • How Ericsson Will Support Vodafone
      Stefano Di Genua
    36. Value Creation
      • Stefano Di Genua
      Phase 1 Deployment of the new platform in the key markets Phase 2 Revenues increase with geographic expansions Phase 3 Value acceleration with all European territory coverage
    37. Key Assumptions Stefano Di Genua             Assumptions Today Our assumptions     Revenues USD 2.6 billion USD 5.3+ billion     Subscriptions 4 times year on year 2%     Clicks-through average of 4/person 2     Price 3G priced at USD 60 USD 58     Market growth 12% 5%     Costs       New Infrastructure 13%     Partnering program 7%     Other expenses   Kept equal to now             Increased the enterprise value of almost $3.5 billion US
    38. Facts Stefano Di Genua Break-even after 3 years
    39. Agenda
      • Customer of Tomorrow & Value Creation in the Future
      • Structure of Vodafone Business Model
      • Action Plan & Financials
      • Competition
      • How Ericsson Will Support Vodafone
      Julia Goessler
    40. Competitive Advantage Strong Alliances O2 T-Mobile Virgin E-Plus Orange Pannon MTN Julia Goessler Strong Partnerships create an inimitable competitive advantage
    41. Agenda
      • Customer of Tomorrow & Value Creation in the Future
      • Structure of Vodafone Business Model
      • Action Plan & Financials
      • Competition
      • How Ericsson Will Support Vodafone
      Julia Goessler
    42. Ericsson’s Role
      • Julia Goessler
      • New applications require an upgrade of infrastructure & handsets over the next 2-3 year
      Ericsson will be main provider of infrastructure & handsets
    43. Ericsson’s Benefits
      • Julia Goessler
      • Stronger Partnership with Vodafone
      • Increased business of upgrading networks
      “ Ericsson is a winner if our customers are winners” Carl-Henric Svanberg, CEO of Ericsson
    44. Recommendations
      • “ Gate Keeper to Digital Life”
      • Superior Content
      • Enable Personalized Marketing
    45.  
    46. BACKUP SLIDES
    47. Win-Win Situation
      • Julia Goessler
      Player Revenue Additional Value Content Providers Subscription by Vodafone Access to Vodafone Customer base Google Advertising Access to Vodafone Customer base Advertisers Consumer buying Targeted Advertising Customers -- Low priced content & personalized unobtrusive advertising Vodafone Subscription fees & Advertising Creation of a powerful value network Vodafone platform creates value for all players
    48. How subscription transfer work
    49. Advantages of transferable subscription
      • 1 IPTV subscriptions per family
        • 1 subscription per person
        • Hence much higher potential subscription
        • Track individual subscribers viewing behaviours
    50. The Overview Of Multimedia Market Internet Media Telecom Difficult to set up structures related to customers need Searching & Sharing Little or no experience with customers but want to own their own content The future multimedia market is the convergence of Telecom, Internet and Media
    51. The Overview of Multimedia Market ---Customers Side
      • Consumers spending on digital media increases rapidly
      • Source: U.S. Census Bureau (Statistical Abstract of the United States: 2007)
      Customers are more interested on digital media based on internet
    52. The Overview of Multimedia Market ---Suppliers side
      • Global advertising revenues will grow at a CAGR of 84%, from $1 billion in 2006 to $23 billion by 2011;
      • Advertising revenues currently make up 4% of the total global consumer multimedia market, and will increase to 13% by 2011
      Digital advertisement will become the main revenues of multimedia providers
    53. The revenue of future
      • Digital Advertisement
      • Advertiser
      • Direct and strong tie with customers
      • Customers
      • Tailors to their interests
      • Operators
      • Additional resources of revenue
      The first mover to digital advertisement stands to gain most
    54. VALUE CREATION
      • Stefano Di Genua
      Superior Content Deployment of the new platform Revenues start to increase Value acceleration Phase 1 Phase 2 Phase 3 Phase 4
    55. PRICING STRATEGY
      • Stefano Di Genua
      In offering more for less , Vodafone can tap an unexploited market
    56. SENSITIVITY ANALISYS
      • Stefano Di Genua
      Even in the worst case scenario for all the parameters, the project still offers good prospects               Sensitivity Analysis           Parameter Worst Base Best     Subscriptions (‘000s) 220,000.00 440,000.00 880,000.00     Price 20.00 29.00 39.00     Value per click 1.00 1.00 1.00     Number of clicks-through per customer 1.00 2.00 4.00     Cost of capital 9.50% 8.42% 5.64%     NPV (‘000s) 40,338.16 1,441,918.58 9,428,655.19     IRR 12% 37% 54%            
    57. SOUNDED ASSUMPTIONS
      • Growth is sustainable because:
        • Only 20% of the data network is used;
        • Nevertheless, we believe that customers’ needs will change and additional infrastructure will be needed after the first 2/3 years;
        • Revenues will start to grow considerably after the 3 rd year when the new infrastructure will help Vodafone to tap the new market through LTE;
        • Metcalfe’s law concludes that the new network will have a higher value;
        • The solution proposed will need a decrease in cells’ size in order to sustain the speed of the data stream (consistent with the bandwidth law);
        • Moore’s law should be applied in predicting the capacity of the new network and its needs for further expansions.
      • Stefano Di Genua
      The project will generate an NPV of almost $1.5 billion USD and and IRR of 37% with a cash multiple of almost 10x
    58. OPERATING EXPENSES STRUCTURE
      • Stefano Di Genua
      Other initial costs concern the deployment of the infrastructure and platform

    + StefanoStefano, 2 years ago

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