Profitable & long-term partnerships in M2M  Joost Fleuren MSc MBA Strategy & Business Developer Marketing Strategy & Innov...
Content <ul><li>Overview KPN (Royal Dutch Telecom)  </li></ul><ul><li>How M2M differs from traditional MNO services </li><...
KPN Group <ul><li>Summary: </li></ul><ul><li>Company owned mobile networks in Netherlands, Germany, Belgium </li></ul><ul>...
Acknowledge the difference <ul><li>From an MNO (Mobile Network Operator) perspective M2M has a different… </li></ul><ul><l...
Traditional: laptop data card supply chain Hardware MNO (connectivity) Direct sales customer sales <ul><li>Uniform offerin...
M2M: more actors involved directly to end-customer Hardware Connectivity Connectivity  mgmnt platform Integrator services ...
Explained: separated offerings prevent efficiency Hardware Connectivity Connectivity  mgmnt platform Integrator services c...
Explained: not easy to vertically integrate or partner module gateway or embedded hardware device mgmnt platform Connectiv...
Explained: standardization Technical supply chain reality <ul><li>Standardization: </li></ul><ul><li>Currently no company ...
MNO’s have influence but get a small slice of the pie… …especially compared to regular Voice and Data offering. Money maki...
The answer?
From this… Hardware Connectivity Connectivity  mgmnt platform Integrator services ASP Hardware Connectivity Connectivity  ...
… to this. Hardware Connectivity Connectivity  mgmnt platform Integrator services ASP Hardware Connectivity Connectivity  ...
Make money in the meanwhile… …start with partnering for M2M solutions & integrator services <ul><li>Required for enduring ...
Practice what you preach…
KPN’s track record in M2M Hardware Connectivity Connectivity  mgmnt platform Integrator services ASP - 2007 2008 2009 M2M ...
KPN’s partnership approach – please contact us M2M Connectivity partners <ul><li>for connectivity resellers,  EU wide . </...
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Kpn Presentation Profitable M2M Partnerships

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Presented at the M2M Exchange in Brussels, November 2009

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Kpn Presentation Profitable M2M Partnerships

  1. 2. Profitable & long-term partnerships in M2M Joost Fleuren MSc MBA Strategy & Business Developer Marketing Strategy & Innovation department KPN Business Market M2M Exchange, Brussels, 17 November 2009 Break out session: Telecoms Business Strategy
  2. 3. Content <ul><li>Overview KPN (Royal Dutch Telecom) </li></ul><ul><li>How M2M differs from traditional MNO services </li></ul><ul><li>Where M2M has to evolve to </li></ul><ul><li>How to make money together in the meanwhile </li></ul><ul><li>KPN product offering and partnerships </li></ul>
  3. 4. KPN Group <ul><li>Summary: </li></ul><ul><li>Company owned mobile networks in Netherlands, Germany, Belgium </li></ul><ul><li>Worldwide connectivity partners (roaming networks) </li></ul><ul><li>EU considered as ‘home market’ for M2M </li></ul><ul><li>36.702 FTE staff (2008) </li></ul><ul><li>€ 14.6 billion revenues (2008) </li></ul><ul><li>€ 2.6 billion operating profit (2008) </li></ul>
  4. 5. Acknowledge the difference <ul><li>From an MNO (Mobile Network Operator) perspective M2M has a different… </li></ul><ul><li>Marketing & Sales reality </li></ul><ul><li>Technical supply chain reality </li></ul><ul><li>A different ‘money making’ reality </li></ul>
  5. 6. Traditional: laptop data card supply chain Hardware MNO (connectivity) Direct sales customer sales <ul><li>Uniform offering, as such recognizable for end-customer </li></ul><ul><li>One (co-) branded product </li></ul><ul><li>Channel conflicts, but manageable </li></ul>Distribution partners sales Product marketing Product marketing Marketing & sales reality
  6. 7. M2M: more actors involved directly to end-customer Hardware Connectivity Connectivity mgmnt platform Integrator services customer ASP sales sales sales sales sales <ul><li>inefficient marketing and sales efforts </li></ul><ul><li>Results in problems with operational & technical reality: </li></ul><ul><li>longer development time and higher development risks </li></ul><ul><li>higher Operational and Total Cost of Ownership </li></ul><ul><li> higher adoption barrier for the end-customer </li></ul>Marketing & sales reality
  7. 8. Explained: separated offerings prevent efficiency Hardware Connectivity Connectivity mgmnt platform Integrator services customer ASP accountability accountability accountability accountability accountability <ul><li>Technical and process integration best served with stable (longer term) partnerships </li></ul><ul><li>No formal accountability towards each other = no optimalization of technical design & processes </li></ul><ul><li>Competing on services that can be delivered by more than one player in the value chain, but not with the same efficiency </li></ul><ul><li>No coherent approach on ‘educating the customer’ </li></ul>Technical supply chain reality
  8. 9. Explained: not easy to vertically integrate or partner module gateway or embedded hardware device mgmnt platform Connectivity Connectivity mgmnt M2M integration services ICT Integration M2M Application EU US Asia Satellite Network stability Usage statistics provisioning Large quantities Time To Mrkt Data optimization Battery powered WiFi Zigbee WiMax Helpdesk tools Secure trans. Mission critical Configuration mgmnt Usage statistics power usage size power usage size Technical supply chain reality harsh environments Dual GSM Quatro GSM WiFi # I/O ports data logging updates local funct. Firmware update harsh environments Repair by replace Updat mgmnt WiMax Access control usage alerts pre- / postpaid selfservice Industry spec. Time To Mrkt API’s Security Multilingual B2C helpdesk Each solution requires a different set of capabilities from the value chain partners. # produced
  9. 10. Explained: standardization Technical supply chain reality <ul><li>Standardization: </li></ul><ul><li>Currently no company (-group) is that dominant that it can push a standardization. </li></ul><ul><li>A single standard is never optimal for every application. </li></ul>For now the choice of A - specializing and vertical partnerships / integration, B - settling for casual relationships in an not-standardized world.
  10. 11. MNO’s have influence but get a small slice of the pie… …especially compared to regular Voice and Data offering. Money making reality * Beecham research, “M2M and the Internet of things”, October 2008
  11. 12. The answer?
  12. 13. From this… Hardware Connectivity Connectivity mgmnt platform Integrator services ASP Hardware Connectivity Connectivity mgmnt platform Integrator services ASP Hardware Connectivity Connectivity mgmnt platform Integrator services ASP Hardware Connectivity Connectivity mgmnt platform Integrator services ASP customer customer customer customer customer
  13. 14. … to this. Hardware Connectivity Connectivity mgmnt platform Integrator services ASP Hardware Connectivity Connectivity mgmnt platform Integrator services ASP Hardware Connectivity Connectivity mgmnt platform Integrator services ASP Hardware Connectivity Connectivity mgmnt platform Integrator services ASP Customers Application type 1 Customers Application type 2 Customers Application type 3 Customers Application type 4 M2M solution M2M solution M2M solution M2M solution Together as partners: marketing consultive selling development deployment
  14. 15. Make money in the meanwhile… …start with partnering for M2M solutions & integrator services <ul><li>Required for enduring and profitable solution partnerships: </li></ul><ul><li>Know what specific value you add in the chain – be complementary. </li></ul><ul><li> For example: brand, local sales force, connectivity, core mobile network. </li></ul><ul><li>Do make a choice what fits you to focus on. </li></ul><ul><li> For example: connectivity and VAS based upon that </li></ul><ul><li>Be focused on who to target the solution at. </li></ul><ul><li> For example: OEM, complementary VAS resellers as integrators </li></ul><ul><li>EU / Global scope to have critical mass in one solution. </li></ul>
  15. 16. Practice what you preach…
  16. 17. KPN’s track record in M2M Hardware Connectivity Connectivity mgmnt platform Integrator services ASP - 2007 2008 2009 M2M Development partners 2010 initiatives in development M2M Connectivity partners To partner with us to provide EU wide connectivity, outside our NL, D, B sales footprint. Continue to offer best in class connectivity platform. To ensure that requests for M2M services are being met with the best partners available. Be the preferred partner for ASP’s who want to become and stay most efficient by offering integrated global communication Core capability
  17. 18. KPN’s partnership approach – please contact us M2M Connectivity partners <ul><li>for connectivity resellers, EU wide . </li></ul>M2M Development partners <ul><li>for solution developers / M2M Integrators, EU wide . </li></ul><ul><li>benefitting from our state-of-the art SIM Management platform and EU & WorldWide connectivity offering </li></ul><ul><li>for solution providers / ASP, EU wide . </li></ul><ul><li>benefitting from our state-of-the art SIM Management platform and EU & WorldWide connectivity offering </li></ul>

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