Time machine effect_@_tuhh-tokyo_tech_research_forum_20130923
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Full Slide : Time Machine Effect ...

Full Slide : Time Machine Effect

Time Machine Effect was observes at music service of Japanese Mobile Service from the view of trajectory 1999-2008.

The service platform of Japanese Music Service over the mobile internet was made mature rapidly. This was because unified design of devices. Mobile handsets were designed by the same spec. The contents for the service were made to fill the gap of device performance that made spoil unique innovation of respective handset manifatures.

The device suppliers should know the demerit of perticipation of well-designed service platform, which may spoil techinology innovation merits.

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Time machine effect_@_tuhh-tokyo_tech_research_forum_20130923 Presentation Transcript

  • 1. TUUH-Tokyo Tech Research Forum Monday, Sep/23/2013 Effect of Service Platform on Innovation Trajectories of Value Network Players; The Case of Japanese Mobile Music Services Takayuki OTSUKA Advisor: Prof. Kumiko MIYAZAKI Ph.D. Graduate School of Innovation Management Tokyo Institute of Technology 1
  • 2. 0. Background Industrial Product : Motor Car Export Tangible Asset: Products/ Schematic /Parts/Production Process Guidance Trade/ Production at Outside of Original Country Every Player Get Merits Product Innovation Technology Innovation 2
  • 3. 0. Background Tracing Trajectory of Service innovation / Export Service Expand to Outside of Original Country Service @ Global AA+B Internet Lots of Intangible Asset: Service Offering / Mechanism / Contents Supplier/ Contents to be fit Local Service AA+B Does Every Player Get Service Merits? AAA+BB+C Service A Non-Internet Internet Internet Service Innovation Technology Innovation 3
  • 4. Hypothesis: • Original success is supported by Value Network which has been providing Contentious Innovation Merit. • Continuous Innovation won’t be occurred at Different New Place than Original Success was realized without creation of Optimized Value Network which fit to the New Place. RQ What is the connection between Environment for Contentious Innovation and Value Network Structure and Players? How and what Innovation merit was lost of Japanese Mobile Phone Maker? 4
  • 5. Today’s Topic Effect of Service Platform on Innovation Trajectories of Value Network Players; The Case of Japanese Mobile Internet Services Japanese Mobile Internet Services : Music Service What happened to Platform : Service Japanese Players ? Service is offered Where Value Network Players Value Network Players Value Network Players Music Service Platform A Non-Internet Music Service Platform AA+B Internet Service Innovation Music Service Platform AAA+BB+C Internet Technology Innovation 5
  • 6. II. Japanese Mobile Market Fig. 1 Japanese Mobile Service subscriber, the penetration ration of service subscriber against population and 3G coverage of the device in use Service Evolutions Technology Evolutions 1979 Voice Service for Auto Mobile 1979 Analogue (1G) 1989 New Mobile Operator Entrant 1993 Digital (2G) 2001 UMTS/WCDMA(3G) 2010 LTE (3.9G) 1999 2010 Mobile Internet Services LTE High Speed Data Service Table1 : JAPANESE MOBILE SERVICE AND TECHNOLOGY EVOLUTION 1996: The first Music Service 1999: i-mode / NTT docomo(DCM) Mobile Internet to the pocket Music over i-mode 2008: Smart Phone / iPhone Mobile exceeded PC for Internet Access Music over Internet 6
  • 7. II. Japanese Mobile Market 2008: Smart Phone emerged rapidly 2008-2012 Japanese Players lost Share Fig. 2 Device shipment market share by manufactures in Japan Fig. 3 Changes of Device shipment market share by manufactures in Japan 7 2008-2012
  • 8. Today’s Topic Effect of Service Platform on Innovation Trajectories of Value Network Players; The Case of Japanese Mobile Internet Services Japanese Mobile Internet Services : Music Service Objective What was happened to Platform Service Why Japanese players lost : Japanese Players ? Service is offered Where competitiveness Value Network Players Value Network Players Value Network Players Music Service Platform A Non-Internet • Publication • Interview Music Service Platform AA+B Internet Service Innovation Music Service ValuePlatform Network AAA+BB+C Analysis Internet (VNA) Technology Innovation 8
  • 9. II. Methodology Analysis Fit to the Case of • Internet based service can be better analyzed (Funk/ Li and Whalley / Peppard and Rylander / Weiner, Nohira, Hichman and Smite) Value Network • Many divergent mutual interactions between the company and customer are more important than the activity of the company’s internal process. • Strategic Study of Industries (Porter) Value Chain • Flow of value creation from material to be processed and produced for distribution 9
  • 10. II. Methodology : VNA Step1 Step2 Step3 Step4 Step5 • Define Network Objective • Identify Players • Define Role and Value of Players • Identify Exchange between Players  Tangible Asset  Intangible Asset • Define Connection between Players and Mapping in Chart • Analyze Connection and Its background Reason
  • 11. II. Methodology : VNA Step1 Step2 Step4 Step5 Step3 Analyze Players between Players Connection • Identify Connection and Its background Reason in Chart •Define Role and Value of Players and Mapping Define Network Objective • Identify Exchange between Players  Intangible Asset from External VN-X Music Service  Tangible Asset PLAYER C PLAYER B PLAYER D from External VN-Y PLAYER A PLAYER G PLAYER F PLAYER E From External VN-Z
  • 12. III. Case Evidence: Value Network Analysis Results 2008 1999 2008 1996 1999 1996 12
  • 13. III. Case Evidence: Music Service for Mobile Phones A) Music Service before i-mode -1996 1. Hinting the first Music Service for Mobile Phone • Ringtone : Single Beep • Ringtone was Pre-installed • Competitive Egde • # of Hit Songs • Songs were NOT latest because of Design-Production lead time (Lead Time : 6 Months +) • Ringtone Customization : Denso 1996 • Technology Innovation happened among Handset Makers • Stimulate other industries >>>> Music became Service • Music Industry • Ad-Agencies IDO D319 by Denso/1996 13 (C)JDP/GOOD DESIGN AWARD/ http://www.g-mark.org • Publishers
  • 14. III. Case Evidence: Music Service for Mobile Phones A) Music Service before i-mode 2. 1996- Ringtone Music Data Distribution by Paper Media • • • • The first Music service for Mobile was not via Over-The-Air but PAPER Song input specification was fragmented since no Standard Manufactures driven Standard-Silos with Magazine Publishers Service Innovation involving Technology Innovation • Cross Industry : Hand Set Makers and Magazine Publisher • Utilized Market Feedback for improving service quality and usability Fig. 3 Ringtone song magazines and an instruction page IDO D319 by Denso/1996 14 (C)JDP/GOOD DESIGN AWARD/ http://www.g-mark.org
  • 15. III. Case Evidence: Music Service for Mobile Phones A) Music Service before i-mode 1996- 3. Value Network Analysis of Ringtone Music Distribution by Paper media Exchange of Tangible asset Exchange of Intangible asset • Makers were Suppliers of DCM • Publishers were major service provider of Ringtone music data (printed) • Music Consulting Firm provided know-how • Music Publishing Rights were managed by Society (JASRAC), Fee was Post-Pay. Fig.4. Value Network of Music Data Distribution by Paper • No strong control from DCM and 15 Music VN
  • 16. III. Case Evidence: Music Service for Mobile Phones B) Music Service over i-mode Synthetic Audio Music Ringtone19993. Value Network Analysis of Synthetic Audio Music Ringtone Service over i-mode Exchange of Tangible asset Exchange of Intangible asset • DCM was driving specification • Device / Chip / Contents tools • Service Quality • Music became less-competitive category due to Equalization (Faith) 16 Fig.8. Value Network of Synthetic Music Ringtone Service over i-mode
  • 17. III. Case Evidence: Music Service for Mobile Phones B) Music Service over i-mode Synthetic Audio Music Ringtone19993. Value Network Analysis of Synthetic Audio Music Ringtone Service over i-mode Exchange of Tangible asset Exchange of Intangible asset • DCM was driving specification • Device / Chip / Contents tools • Service Quality • Music became less-competitive category due to Equalization (Faith) 17 Fig.8. Value Network of Synthetic Music Ringtone Service over i-mode
  • 18. III. Case Evidence: Music Service for Mobile Phones B) Music Service over i-mode Synthetic Audio Music Ringtone1999Faith established Equalization Procee Original Musical Score File Format Musical Key Board Ringtone Convert SMF Digitize DCM Ringtone Tool PC SW Tool Temporary Mfi Files Polyphony x Chip x Device 4 16 32 64 128 Rohm Yamaha Fuetrek Others Fig.7. Music Ringtone Data Creation Process Total 100 + Device specific Files Test & Optimization Final Packaging Adding Test Device x Art of Technique Meta Data Copyrights DRM 18
  • 19. III. Case Evidence: Music Service for Mobile Phones B) Music Service over i-mode Synthetic Audio Music Ringtone19993. Value Network Analysis of Synthetic Audio Music Ringtone Service over i-mode Exchange of Tangible asset Exchange of Intangible asset • DCM drove specification • Device / Chip / Contents tools • Service Quality • Music became less-competitive category due to Equalization (Faith) 100 data for 1 Song • Limited room to compete in Features and Quality : High Tech but Commoditized • User behavior information was fully utilized by DCM which brought Service Innovation • Limited User data to Makers to help Product Innovation cycle 19 Fig.8. Value Network of Synthetic Music Ringtone Service over i-mode
  • 20. III. Case Evidence: Music Service for Mobile Phones C) Full Music Song service • Value Network Analysis of Full Music Song Service over i-mode and Internet 2008- Exchange of Tangible asset Exchange of Intangible asset • Music Service Platform became quite similar because of higher data speeds and Player Capability between PC and Mobile • Weaken DCM’s control on Spec of Device and Service along with emergence of Smart Phone • Getting influence from Music VN and Music Service Platform is communized • Again, • Device Music Feature become competitive field 20 Fig.9. Value Network of Full Music Song Service
  • 21. III. Case Evidence: Music Service for Mobile Phones E) Losing Competence WHO LOST COMPETENCE • Publisher : 1999 ⇒ • Overseas Handset Makers : 1999⇒2007 (i-mode Spec. : Challenge to Enter Market ) • Japanese Handset Makers : 1999⇒ (i-mode Spec. : Controlled Commoditization ) Pre-i-mode/ Paper 1996-1998 i-mode / Synthetic 1999- Full Music /non-DCM 2008- DCM Control for SVCS none STRONG Weak Environment to occur Innovation Yes/ Freely No/ Limited in Freedom of development Limited/ Fully Marketing by Maker Available Limited Limited/ Fully Oversea Marketing of J-Maker Not Available (2G) Available(3G) w/ DCM Less Experience No Brand awareness Good-Weaker (2G) Weak (i-mode) Strong Global Competitors In Japan 21
  • 22. IV. Discussion and Conclusion How Japanese Mobile Handset Manufactures Lost Competence DCM VN didn’t created well at Outside Japan • DCM VN worked only where valid VN Players exist • J-Makers didn’t gain merit Axial Root : Major Players Fibrous Roots : who own know-how, to water which contains Local Trend • Same component to limit Innovation (Good Procure though): Forced Commoditization • Product didn’t fit to the Market outside Japan • User Profile • Culture • High spec Device was too expensive • Who pays Service fee? • Lost Marketing discipline • Lost Brand • Lost Business Resource Competence 22
  • 23. Dilemma : Service Platform and Players Good Service Platform • • • • Same Higher and Stable Quality More Users Stable Procurement Less Fragmentation Music Service Platform Owner’s Action Platform Player’s Damage Quality Realized Dominant Design Same Performance Player • Specified HW • Equalization of Contents Less Competitive Field More User Attractive New Service which require High Tech Higher cost, Less Adoptability to Global Market Stable Procurement Multi Sources Fewer Volume Less Fragmentation Control Design and Changes Less Field of Differentiation Lost Merit of Innovation 23
  • 24. Time Machine Effect of Service Platform -Service Platform pursued CommoditizationDevice Maker Competitive Value Service Platform gained merit by shortening Time to Commoditized Service Platform Operation Efficiency Device Maker lost Innovation Merit by being shortened technology Life Commoditized T1 T2 24
  • 25. V. Limitation and Direction for Future Research Lack of success case analysis of both J- Mobile Operators and Makers • Same Brand Maker succeeded in Audio and Visual. E.g, Panasonic, Sony, Sharp etc • J- Car Makers keeping one of leading position outside Japan Success Case vs Failure Case Comparison • Difference of Service Platform and Service Value Network • Perspective : Interaction, involvement, leadership • Global Makers, Apple and Samsung, are building remarkable growth in global as well as in Japan Other than Music but with Traceable Trajectory • Book, Magazine, News Paper : Paper , PC Internet, Mobile Internet to e-book • Gaming: Arcade, Home to Mobile, Solid to Network True Success Reason Investigation of Other J-Industry Players Outside J. • Consumer Electronics, Analogue and Digital Still Camera, Car and Motor Cycle Measurement of Damage • Activity of Publication of technology study and Patents filed 25
  • 26. Thank you! 26
  • 27. Q&A 27
  • 28. Back Up 28
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