SlideShare a Scribd company logo
1 of 35
Download to read offline
ARM’s Entry into PC Market
- A Business Model

      MT5016: Business Models for Hi-Tech Products


          Group Members:
        Chen Liang (A0082053N)
         Li Jianwen (A0077040N)
  Wong Jian Wen, Desmond (A0082079Y)
        Wu Ai Long (A0089182W)
        Yen Jia Ting (A0082031X)
Agenda
    Introduction
    Customer Selection and Market
     Segmentation
    Value Proposition
    Value Capture
    Scope of Activities
    Strategic Control
Introduction
ARM Embedded Processor
                 Main CPU Chip
                 (SoC)
                     ARM Embedded
                     Processor
Background
 ARM successful in current smartphone and tablet markets
      (>95% Market Share)

 Still, multiple suppliers are designing ARM-based CPU for
         other devices like servers



 Processing Power required for PC:

   Smartphone (low)                   Server (high)
                               PC
Question: Can ARM leverage its PC entry on the
momentum generated in their already successful
Smartphone market??
Types of Personal Computers
                     Personal Computer PC



        Stationary                         Mobile



Workstation     Home
               Theatre
        Desktop
                          Laptop               Netbook
                                   Ultrabook             Tablet


      Higher Processing Performance
ARM’s Processor Performance Vs.
    Different Market Needs
                                                160




                                                      Server
                                                140
                                                      PC
                                                      ARM High Perfromance
                                                      ARM




                          Overall Performance
                                                      Tablet
                                                120




                                                      Mobile Phone



                             Requirement
                                                100




                                                80




ARM TechCon in Nov’2012                         60




                                                40




                                                20




                                                  0




                                                                             Time
PC Market is Diversifying
Existing PC Market


             +                 =

  Dominant partnership
 between Intel and Microsoft

  Strong Brand Names
 over the years
Existing PC Value Chain

 Equipment                             Software/OS
  Vendor                               Development


  Design       CPU         CPU            System          PC
  Service     Design   Manufacturing     Level R&D   Manufacturing


  Processor
    Core
Development
Intel in PC Value Chain
 Equipment                            Software/OS
  Vendor                              Development

Design        CPU         CPU            System          PC
Service      Design   Manufacturing     Level R&D   Manufacturing

 Processor Core
 Development
What is happening right now?


                       +          =
                 CPU       OS
  Time for ARM                  Happening
    to Enter!



                                       All
      CPU                              Supporting
Embedding                              ARM
      ARM
 Processor
Customer Selection &
Market Segmentation
ARM in PC Value Chain
        Equipment                                     Software/OS
         Vendor                                       Development

         Design           CPU             CPU            System          PC
         Service         Design       Manufacturing     Level R&D   Manufacturing

          Processor Core
           Development




       Vertical
       Disintegration
       :: ARM ONLY                   Microsoft
       DEVELOPS                       Google

       PROCESSOR
                                      Apple

       CORES



CPU Designers: AMD, Nvidia, Apple, Samsung, Qualcomm, Broadcom
OEMS: Dell, HP, Levono, Acer, Sony, Samsung
Semiconductor Foundries: TSMC, Globalfoundries, Samsung, UMC
Who are the possible customers?
Direct Customers
 CPU Designers


Indirect Customers
 OEMs (Dell, HP)
 End Users
                        Microsoft
                         Google
Strategic Partners       Apple

 OS Vendors
 Manufacturing
  Foundries




                CPU Designers: AMD, Nvidia, Apple, Samsung, Qualcomm, Broadcom
                OEMS: Dell, HP, Levono, Acer, Sony, Samsung
                Semiconductor Foundries: TSMC, Globalfoundries, Samsung, UMC
Value Proposition
Strategy Canvas for PC OEMs
High
HP, IBM (Servers, Workstations)

Intel, AMD (Desktops)



ARM (Tablet, Laptops)




 Low
                Power               Instruction               Cost
             Consumption                Set              (mips/$, area)
             (mips/Watt)
                            Time                  Peripheral
   Performance                                      Design           Application
   (mips, GHz)               To                                        Scope
                           Market                 Complexity
Value Proposition for End-users
(PC Consumers)

                           Value Proposition

                           Lower Processor Cost = Lower costs to produce
                           PCs = Lower PC prices for consumers




    High          Medium
    Performance
                                   Cortex A50)
             INTEL                                ARM
Value Proposition for End-users
 (PC consumers)

Value Proposition

Lower Power = Longer Battery Life
Value Proposition
                                                                           Semiconductor Foundry
                                                                           •Opportunities for them to
CPU Designers                                                              cater to customers who want
•Simpler and Customizable Designs                                          ARM-based PCs
• Easier instruction set                                                   •Effects of Vertical
• Shorter time to market                                                   Disintegration :: Economies
•Effects of Vertical Disintegration                                        of scale in terms of
::Economies of scale in R&D             Value Proposition                  manufacturing


                                        Low Power
    OEMs                                Lower Cost                       End Users- PC Consumers
    •Power-efficient feature                                              •Lower Purchase Price
    •Wider Range of Selection
                                        Shorter Time to                  •Lower Power consumption
    •Effects of Vertical                Market                            •Less Heat generated
    Disintegration :: Lower                                               •Longer Battery Time
    system costs                        Customized Designs
                                        Differentiation
                                        Opportunities
  OS Vendors
  •Opportunity for them to                                                  Apps Developer
  penetrate wider market by                                                 •Opportunity for them to
  providing processor-                                                      enter PC markets by
  compatibility to the OS installed                                         providing processor-
  •Synchronize OS across devices                                            compatibility to the Apps




                                      CPU Designers: AMD, Nvidia, Apple, Samsung, Qualcomm, Broadcom
                                      OEMS: Dell, HP, Levono, Acer, Sony, Samsung
                                      Semiconductor Foundries: TSMC, Globalfoundries, Samsung, UMC
Scope of Activities
Vertical Disintegration



   Processor
                CPU Design
                                                        O
  Core Design                     Manufacturing
                                                        E
                Value Proposition
                                                        M
                 Lower Cost
                 Longer Battery Life
                 Short Time to Market
                 Customized Design
                 Product differentiation
                 Opportunities to enter wider market
Vertical Disintegration



   Processor
                CPU Design
                                             O
  Core Design                Manufacturing
                                             E
                                             M
Vertical Disintegration

                   Vertical Disintegration
                   • Architecture platforms by ARM

                   •   Joint development with OS
                       providers

                   •   Multiple logical and physical
                       designers

                   •   Multiple manufacturers

                   •   Value provided to Value Chain
                         Unique ARM Architecture
                         R&D resource Pooling
                         Customized design
                         Quick time to market


               Longer Battery Life and Lower cost
Value Capture
How does ARM gets its revenue?
 Perform Research & Development
 Design Processors chips as per customers needs
 Sell design to Semi-Conductor Partner for license and
  royalty fees




                $
                $
Strategic Control: How
should ARM protect and
sustain its Profitability?

Building an Ecosystem
Industrial Architecture
IP Management
Building an Eco-System
                                                          Components
                         Foundries




 Partnership on
chip development
                                                        Operating System
                               Manufacture Chip



                        CPU Designers                        OEMs




         Provide                          Provide CPU
       Embedded
     Process for CPU


                       Business Development
Building an Eco-System
High level of disintegration requires:

   Strong collaboration among stakeholders
   Business development with OEMs
   Strong partnership increases ARM
    competitive advantage


       ARM is successful only if
       Partners are successful!
Industry Architecture
Currently, High level of control by Microsoft and Intel:
   Control interface between operating system, processor
    and personal computers

However, with strong collaboration with OS partners:
   ARM can be successful
         Microsoft – Value proposition of a power efficient
                     and low cost processor

         Google   – Leveraging on its Android partnership to
                    strengthen Chrome in the PC market

   Control interface can be changed
IP Management
ARM to have Strong IP management by:

  Protecting its existing core IP portfolio

  Creating IP in new domains

  Expanding IP portfolio by acquiring
   smaller start-ups

  Retaining high-quality R&D staff
Summary
  Time is ripe for ARM to enter the PC
   Processor market

  Attractive Value Proposition
   Value Proposition
    Lower Cost
    Longer Battery Life
    Short Time to Market
    Customized Design
    Product differentiation
    Opportunities to enter wider market
Summary
  Participate in the Vertical Disintegration
Summary
  Become a Key Part of the Value Chain




   Microsoft
    Google
    Apple
End

More Related Content

What's hot

3D V-Cache
3D V-Cache 3D V-Cache
3D V-Cache AMD
 
Scrumban - applying agile and lean practices for daily uncertainty by Vidas V...
Scrumban - applying agile and lean practices for daily uncertainty by Vidas V...Scrumban - applying agile and lean practices for daily uncertainty by Vidas V...
Scrumban - applying agile and lean practices for daily uncertainty by Vidas V...Vidas Vasiliauskas
 
Scrum vs SAFe | Differences Between Scrum and Scaled Agile Framework | Edureka
Scrum vs SAFe | Differences Between Scrum and Scaled Agile Framework | EdurekaScrum vs SAFe | Differences Between Scrum and Scaled Agile Framework | Edureka
Scrum vs SAFe | Differences Between Scrum and Scaled Agile Framework | EdurekaEdureka!
 
Short TRIZ Workshop for the University of the Philippines
Short TRIZ Workshop for the University of the PhilippinesShort TRIZ Workshop for the University of the Philippines
Short TRIZ Workshop for the University of the PhilippinesRichard Platt
 
Broadcom PCIe & CXL Switches OCP Final.pptx
Broadcom PCIe & CXL Switches OCP Final.pptxBroadcom PCIe & CXL Switches OCP Final.pptx
Broadcom PCIe & CXL Switches OCP Final.pptxMemory Fabric Forum
 
What is a SCRUM Master
What is a SCRUM MasterWhat is a SCRUM Master
What is a SCRUM MasterJoost Mulders
 
Agile Requirements - Journey of a User Story
Agile Requirements - Journey of a User StoryAgile Requirements - Journey of a User Story
Agile Requirements - Journey of a User StoryCara Turner
 
Product management deck
Product management deckProduct management deck
Product management deckAkiva Weiss
 
agile with scrum methodology
agile with scrum methodology agile with scrum methodology
agile with scrum methodology rahul reddy
 
Gestión Lean de Portafolios de Empresariales - Guía de Implementación
Gestión Lean de Portafolios de Empresariales - Guía de ImplementaciónGestión Lean de Portafolios de Empresariales - Guía de Implementación
Gestión Lean de Portafolios de Empresariales - Guía de ImplementaciónJohnny Ordóñez
 
Scaled Agile Framework (SAFe) Roles and Meetings
Scaled Agile Framework (SAFe) Roles and MeetingsScaled Agile Framework (SAFe) Roles and Meetings
Scaled Agile Framework (SAFe) Roles and MeetingsRob Betcher
 
What's new in the Scaled Agile Framework (SAFe) 6.0 - Agile Indy May 10th Meetup
What's new in the Scaled Agile Framework (SAFe) 6.0 - Agile Indy May 10th MeetupWhat's new in the Scaled Agile Framework (SAFe) 6.0 - Agile Indy May 10th Meetup
What's new in the Scaled Agile Framework (SAFe) 6.0 - Agile Indy May 10th MeetupYuval Yeret
 
FPGA Accelerated Computing Using Amazon EC2 F1 Instances - CMP308 - re:Invent...
FPGA Accelerated Computing Using Amazon EC2 F1 Instances - CMP308 - re:Invent...FPGA Accelerated Computing Using Amazon EC2 F1 Instances - CMP308 - re:Invent...
FPGA Accelerated Computing Using Amazon EC2 F1 Instances - CMP308 - re:Invent...Amazon Web Services
 

What's hot (20)

The innovator’s dilemma,
The innovator’s dilemma, The innovator’s dilemma,
The innovator’s dilemma,
 
Scrum Framework
Scrum FrameworkScrum Framework
Scrum Framework
 
3D V-Cache
3D V-Cache 3D V-Cache
3D V-Cache
 
Scrumban - applying agile and lean practices for daily uncertainty by Vidas V...
Scrumban - applying agile and lean practices for daily uncertainty by Vidas V...Scrumban - applying agile and lean practices for daily uncertainty by Vidas V...
Scrumban - applying agile and lean practices for daily uncertainty by Vidas V...
 
Scrum vs SAFe | Differences Between Scrum and Scaled Agile Framework | Edureka
Scrum vs SAFe | Differences Between Scrum and Scaled Agile Framework | EdurekaScrum vs SAFe | Differences Between Scrum and Scaled Agile Framework | Edureka
Scrum vs SAFe | Differences Between Scrum and Scaled Agile Framework | Edureka
 
Short TRIZ Workshop for the University of the Philippines
Short TRIZ Workshop for the University of the PhilippinesShort TRIZ Workshop for the University of the Philippines
Short TRIZ Workshop for the University of the Philippines
 
Broadcom PCIe & CXL Switches OCP Final.pptx
Broadcom PCIe & CXL Switches OCP Final.pptxBroadcom PCIe & CXL Switches OCP Final.pptx
Broadcom PCIe & CXL Switches OCP Final.pptx
 
What is a SCRUM Master
What is a SCRUM MasterWhat is a SCRUM Master
What is a SCRUM Master
 
Scrum values
Scrum valuesScrum values
Scrum values
 
Agile Requirements - Journey of a User Story
Agile Requirements - Journey of a User StoryAgile Requirements - Journey of a User Story
Agile Requirements - Journey of a User Story
 
Product management deck
Product management deckProduct management deck
Product management deck
 
agile with scrum methodology
agile with scrum methodology agile with scrum methodology
agile with scrum methodology
 
Gestión Lean de Portafolios de Empresariales - Guía de Implementación
Gestión Lean de Portafolios de Empresariales - Guía de ImplementaciónGestión Lean de Portafolios de Empresariales - Guía de Implementación
Gestión Lean de Portafolios de Empresariales - Guía de Implementación
 
SAFe Roadmap
SAFe RoadmapSAFe Roadmap
SAFe Roadmap
 
Scrumban
ScrumbanScrumban
Scrumban
 
Scaled Agile Framework (SAFe) Roles and Meetings
Scaled Agile Framework (SAFe) Roles and MeetingsScaled Agile Framework (SAFe) Roles and Meetings
Scaled Agile Framework (SAFe) Roles and Meetings
 
What's new in the Scaled Agile Framework (SAFe) 6.0 - Agile Indy May 10th Meetup
What's new in the Scaled Agile Framework (SAFe) 6.0 - Agile Indy May 10th MeetupWhat's new in the Scaled Agile Framework (SAFe) 6.0 - Agile Indy May 10th Meetup
What's new in the Scaled Agile Framework (SAFe) 6.0 - Agile Indy May 10th Meetup
 
FPGA Accelerated Computing Using Amazon EC2 F1 Instances - CMP308 - re:Invent...
FPGA Accelerated Computing Using Amazon EC2 F1 Instances - CMP308 - re:Invent...FPGA Accelerated Computing Using Amazon EC2 F1 Instances - CMP308 - re:Invent...
FPGA Accelerated Computing Using Amazon EC2 F1 Instances - CMP308 - re:Invent...
 
Presentation ADM - SCRUMBAN
Presentation ADM - SCRUMBANPresentation ADM - SCRUMBAN
Presentation ADM - SCRUMBAN
 
Introduction to Agile and Scrum
Introduction to Agile and ScrumIntroduction to Agile and Scrum
Introduction to Agile and Scrum
 

Similar to Biz Model for ARM

John Muir presentation
John Muir presentationJohn Muir presentation
John Muir presentationMagenTys
 
Open compute technology
Open compute technologyOpen compute technology
Open compute technologyAMD
 
Necessity of 32-Bit Controllers
Necessity of 32-Bit ControllersNecessity of 32-Bit Controllers
Necessity of 32-Bit Controllersmohanav
 
How to Select Hardware for Internet of Things Systems?
How to Select Hardware for Internet of Things Systems?How to Select Hardware for Internet of Things Systems?
How to Select Hardware for Internet of Things Systems?Hannes Tschofenig
 
Seyer June06 Analyst Day
Seyer June06 Analyst DaySeyer June06 Analyst Day
Seyer June06 Analyst Daylalowder
 
Simulation Directed Co-Design from Smartphones to Supercomputers
Simulation Directed Co-Design from Smartphones to SupercomputersSimulation Directed Co-Design from Smartphones to Supercomputers
Simulation Directed Co-Design from Smartphones to SupercomputersEric Van Hensbergen
 
142 - Enabling an Immersive Mobile Internet Experience with the ARM Cortex-A8...
142 - Enabling an Immersive Mobile Internet Experience with the ARM Cortex-A8...142 - Enabling an Immersive Mobile Internet Experience with the ARM Cortex-A8...
142 - Enabling an Immersive Mobile Internet Experience with the ARM Cortex-A8...Brian Carlson
 
Balance, Flexibility, and Partnership: An ARM Approach to Future HPC Node Arc...
Balance, Flexibility, and Partnership: An ARM Approach to Future HPC Node Arc...Balance, Flexibility, and Partnership: An ARM Approach to Future HPC Node Arc...
Balance, Flexibility, and Partnership: An ARM Approach to Future HPC Node Arc...Eric Van Hensbergen
 
Reconfigurable Computing
Reconfigurable ComputingReconfigurable Computing
Reconfigurable Computingppd1961
 
AMD Bridges the X86 and ARM Ecosystems for the Data Center
AMD Bridges the X86 and ARM Ecosystems for the Data Center AMD Bridges the X86 and ARM Ecosystems for the Data Center
AMD Bridges the X86 and ARM Ecosystems for the Data Center AMD
 
The Future of Hardware and Software Design Technologies
The Future of Hardware and Software Design TechnologiesThe Future of Hardware and Software Design Technologies
The Future of Hardware and Software Design TechnologiesS3
 
Operating System Windows CE 7.0 and Processor ARM Advantages and Disadvantages
Operating System Windows CE 7.0 and Processor ARM Advantages and DisadvantagesOperating System Windows CE 7.0 and Processor ARM Advantages and Disadvantages
Operating System Windows CE 7.0 and Processor ARM Advantages and DisadvantagesFatih Özlü
 
AMD Embedded G-Series Press Presentation
AMD Embedded G-Series Press PresentationAMD Embedded G-Series Press Presentation
AMD Embedded G-Series Press PresentationAMD
 
BeRTOS: Free Embedded RTOS
BeRTOS: Free Embedded RTOSBeRTOS: Free Embedded RTOS
BeRTOS: Free Embedded RTOSDeveler S.r.l.
 
ARM architecture and boards
ARM architecture and boardsARM architecture and boards
ARM architecture and boardsdalilah clipatra
 
Arm processor architecture awareness session pi technologies
Arm processor architecture awareness session pi technologiesArm processor architecture awareness session pi technologies
Arm processor architecture awareness session pi technologiesPiTechnologies
 
Summer training embedded system
Summer training embedded systemSummer training embedded system
Summer training embedded systemArshit Rai
 

Similar to Biz Model for ARM (20)

John Muir presentation
John Muir presentationJohn Muir presentation
John Muir presentation
 
Open compute technology
Open compute technologyOpen compute technology
Open compute technology
 
Necessity of 32-Bit Controllers
Necessity of 32-Bit ControllersNecessity of 32-Bit Controllers
Necessity of 32-Bit Controllers
 
How to Select Hardware for Internet of Things Systems?
How to Select Hardware for Internet of Things Systems?How to Select Hardware for Internet of Things Systems?
How to Select Hardware for Internet of Things Systems?
 
Seyer June06 Analyst Day
Seyer June06 Analyst DaySeyer June06 Analyst Day
Seyer June06 Analyst Day
 
Simulation Directed Co-Design from Smartphones to Supercomputers
Simulation Directed Co-Design from Smartphones to SupercomputersSimulation Directed Co-Design from Smartphones to Supercomputers
Simulation Directed Co-Design from Smartphones to Supercomputers
 
142 - Enabling an Immersive Mobile Internet Experience with the ARM Cortex-A8...
142 - Enabling an Immersive Mobile Internet Experience with the ARM Cortex-A8...142 - Enabling an Immersive Mobile Internet Experience with the ARM Cortex-A8...
142 - Enabling an Immersive Mobile Internet Experience with the ARM Cortex-A8...
 
Balance, Flexibility, and Partnership: An ARM Approach to Future HPC Node Arc...
Balance, Flexibility, and Partnership: An ARM Approach to Future HPC Node Arc...Balance, Flexibility, and Partnership: An ARM Approach to Future HPC Node Arc...
Balance, Flexibility, and Partnership: An ARM Approach to Future HPC Node Arc...
 
Reconfigurable Computing
Reconfigurable ComputingReconfigurable Computing
Reconfigurable Computing
 
AMD Bridges the X86 and ARM Ecosystems for the Data Center
AMD Bridges the X86 and ARM Ecosystems for the Data Center AMD Bridges the X86 and ARM Ecosystems for the Data Center
AMD Bridges the X86 and ARM Ecosystems for the Data Center
 
Arm white
Arm whiteArm white
Arm white
 
The Future of Hardware and Software Design Technologies
The Future of Hardware and Software Design TechnologiesThe Future of Hardware and Software Design Technologies
The Future of Hardware and Software Design Technologies
 
Operating System Windows CE 7.0 and Processor ARM Advantages and Disadvantages
Operating System Windows CE 7.0 and Processor ARM Advantages and DisadvantagesOperating System Windows CE 7.0 and Processor ARM Advantages and Disadvantages
Operating System Windows CE 7.0 and Processor ARM Advantages and Disadvantages
 
AMD Embedded G-Series Press Presentation
AMD Embedded G-Series Press PresentationAMD Embedded G-Series Press Presentation
AMD Embedded G-Series Press Presentation
 
Pres
PresPres
Pres
 
Ip so c-30sept2010
Ip so c-30sept2010Ip so c-30sept2010
Ip so c-30sept2010
 
BeRTOS: Free Embedded RTOS
BeRTOS: Free Embedded RTOSBeRTOS: Free Embedded RTOS
BeRTOS: Free Embedded RTOS
 
ARM architecture and boards
ARM architecture and boardsARM architecture and boards
ARM architecture and boards
 
Arm processor architecture awareness session pi technologies
Arm processor architecture awareness session pi technologiesArm processor architecture awareness session pi technologies
Arm processor architecture awareness session pi technologies
 
Summer training embedded system
Summer training embedded systemSummer training embedded system
Summer training embedded system
 

More from Jeffrey Funk Business Models

Ola Cabs: Dominating India and Challenging Uber at Global Level
Ola Cabs: Dominating India and Challenging Uber at Global LevelOla Cabs: Dominating India and Challenging Uber at Global Level
Ola Cabs: Dominating India and Challenging Uber at Global LevelJeffrey Funk Business Models
 
Zomato: Transforming the Global Restaurant Business
Zomato: Transforming the Global Restaurant BusinessZomato: Transforming the Global Restaurant Business
Zomato: Transforming the Global Restaurant BusinessJeffrey Funk Business Models
 
Beyond Flipped Classrooms and MOOCs: The future of engineering and management...
Beyond Flipped Classrooms and MOOCs: The future of engineering and management...Beyond Flipped Classrooms and MOOCs: The future of engineering and management...
Beyond Flipped Classrooms and MOOCs: The future of engineering and management...Jeffrey Funk Business Models
 
Network Effects, Platforms, Standards, and Complex Systems
Network Effects, Platforms, Standards, and Complex SystemsNetwork Effects, Platforms, Standards, and Complex Systems
Network Effects, Platforms, Standards, and Complex Systems Jeffrey Funk Business Models
 
Value Propositions and Billion Dollar Startup Club
Value Propositions and Billion Dollar Startup ClubValue Propositions and Billion Dollar Startup Club
Value Propositions and Billion Dollar Startup ClubJeffrey Funk Business Models
 

More from Jeffrey Funk Business Models (20)

Online Education: A New Business Model
Online Education: A New Business ModelOnline Education: A New Business Model
Online Education: A New Business Model
 
Biz Models for High-Tech Products
Biz Models for High-Tech ProductsBiz Models for High-Tech Products
Biz Models for High-Tech Products
 
Ola Cabs: Dominating India and Challenging Uber at Global Level
Ola Cabs: Dominating India and Challenging Uber at Global LevelOla Cabs: Dominating India and Challenging Uber at Global Level
Ola Cabs: Dominating India and Challenging Uber at Global Level
 
PlugSurfing: global network of charging stations
PlugSurfing: global network of charging stationsPlugSurfing: global network of charging stations
PlugSurfing: global network of charging stations
 
Zomato: Transforming the Global Restaurant Business
Zomato: Transforming the Global Restaurant BusinessZomato: Transforming the Global Restaurant Business
Zomato: Transforming the Global Restaurant Business
 
Vishuo Biomedical
Vishuo BiomedicalVishuo Biomedical
Vishuo Biomedical
 
Beyond Flipped Classrooms and MOOCs: The future of engineering and management...
Beyond Flipped Classrooms and MOOCs: The future of engineering and management...Beyond Flipped Classrooms and MOOCs: The future of engineering and management...
Beyond Flipped Classrooms and MOOCs: The future of engineering and management...
 
Network Effects, Platforms, Standards, and Complex Systems
Network Effects, Platforms, Standards, and Complex SystemsNetwork Effects, Platforms, Standards, and Complex Systems
Network Effects, Platforms, Standards, and Complex Systems
 
Value Propositions and Billion Dollar Startup Club
Value Propositions and Billion Dollar Startup ClubValue Propositions and Billion Dollar Startup Club
Value Propositions and Billion Dollar Startup Club
 
Augmented Reality for Travel: A Business Model
Augmented Reality for Travel: A Business ModelAugmented Reality for Travel: A Business Model
Augmented Reality for Travel: A Business Model
 
Molecular Sensor from SCIO
Molecular Sensor from SCIOMolecular Sensor from SCIO
Molecular Sensor from SCIO
 
Garena Online
Garena OnlineGarena Online
Garena Online
 
Expliseat - World's Lightest Seats
Expliseat - World's Lightest SeatsExpliseat - World's Lightest Seats
Expliseat - World's Lightest Seats
 
Google Cardboard
Google CardboardGoogle Cardboard
Google Cardboard
 
Theranos Biz Model
Theranos Biz ModelTheranos Biz Model
Theranos Biz Model
 
Airware for Drones
Airware for DronesAirware for Drones
Airware for Drones
 
Wireless charging: Qualcomm and Bosch
Wireless charging: Qualcomm and BoschWireless charging: Qualcomm and Bosch
Wireless charging: Qualcomm and Bosch
 
Jasper, Internet of Things
Jasper, Internet of ThingsJasper, Internet of Things
Jasper, Internet of Things
 
Slack
SlackSlack
Slack
 
Oscar health insurance
Oscar health insuranceOscar health insurance
Oscar health insurance
 

Recently uploaded

Features of a Call Recorder Spy App for Android.pdf
Features of a Call Recorder Spy App for Android.pdfFeatures of a Call Recorder Spy App for Android.pdf
Features of a Call Recorder Spy App for Android.pdfOne Monitar
 
Cyber Security Training in Office Environment
Cyber Security Training in Office EnvironmentCyber Security Training in Office Environment
Cyber Security Training in Office Environmentelijahj01012
 
MEP Plans in Construction of Building and Industrial Projects 2024
MEP Plans in Construction of Building and Industrial Projects 2024MEP Plans in Construction of Building and Industrial Projects 2024
MEP Plans in Construction of Building and Industrial Projects 2024Chandresh Chudasama
 
1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdf1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdfShaun Heinrichs
 
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...SOFTTECHHUB
 
NAB Show Exhibitor List 2024 - Exhibitors Data
NAB Show Exhibitor List 2024 - Exhibitors DataNAB Show Exhibitor List 2024 - Exhibitors Data
NAB Show Exhibitor List 2024 - Exhibitors DataExhibitors Data
 
Jewish Resources in the Family Resource Centre
Jewish Resources in the Family Resource CentreJewish Resources in the Family Resource Centre
Jewish Resources in the Family Resource CentreNZSG
 
Neha Jhalani Hiranandani: A Guide to Her Life and Career
Neha Jhalani Hiranandani: A Guide to Her Life and CareerNeha Jhalani Hiranandani: A Guide to Her Life and Career
Neha Jhalani Hiranandani: A Guide to Her Life and Careerr98588472
 
TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024Adnet Communications
 
Appkodes Tinder Clone Script with Customisable Solutions.pptx
Appkodes Tinder Clone Script with Customisable Solutions.pptxAppkodes Tinder Clone Script with Customisable Solutions.pptx
Appkodes Tinder Clone Script with Customisable Solutions.pptxappkodes
 
Lessons from Shanavas M.P. (AKA SHAN) For The Mastering in Entrepreneurship
Lessons from Shanavas M.P. (AKA SHAN) For The Mastering in EntrepreneurshipLessons from Shanavas M.P. (AKA SHAN) For The Mastering in Entrepreneurship
Lessons from Shanavas M.P. (AKA SHAN) For The Mastering in EntrepreneurshipDoge Mining Website
 
20200128 Ethical by Design - Whitepaper.pdf
20200128 Ethical by Design - Whitepaper.pdf20200128 Ethical by Design - Whitepaper.pdf
20200128 Ethical by Design - Whitepaper.pdfChris Skinner
 
Excvation Safety for safety officers reference
Excvation Safety for safety officers referenceExcvation Safety for safety officers reference
Excvation Safety for safety officers referencessuser2c065e
 
WSMM Media and Entertainment Feb_March_Final.pdf
WSMM Media and Entertainment Feb_March_Final.pdfWSMM Media and Entertainment Feb_March_Final.pdf
WSMM Media and Entertainment Feb_March_Final.pdfJamesConcepcion7
 
Planetary and Vedic Yagyas Bring Positive Impacts in Life
Planetary and Vedic Yagyas Bring Positive Impacts in LifePlanetary and Vedic Yagyas Bring Positive Impacts in Life
Planetary and Vedic Yagyas Bring Positive Impacts in LifeBhavana Pujan Kendra
 
EUDR Info Meeting Ethiopian coffee exporters
EUDR Info Meeting Ethiopian coffee exportersEUDR Info Meeting Ethiopian coffee exporters
EUDR Info Meeting Ethiopian coffee exportersPeter Horsten
 
How do I Check My Health Issues in Astrology.pdf
How do I Check My Health Issues in Astrology.pdfHow do I Check My Health Issues in Astrology.pdf
How do I Check My Health Issues in Astrology.pdfshubhamaapkikismat
 
Environmental Impact Of Rotary Screw Compressors
Environmental Impact Of Rotary Screw CompressorsEnvironmental Impact Of Rotary Screw Compressors
Environmental Impact Of Rotary Screw Compressorselgieurope
 
digital marketing , introduction of digital marketing
digital marketing , introduction of digital marketingdigital marketing , introduction of digital marketing
digital marketing , introduction of digital marketingrajputmeenakshi733
 
Send Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.comSendBig4
 

Recently uploaded (20)

Features of a Call Recorder Spy App for Android.pdf
Features of a Call Recorder Spy App for Android.pdfFeatures of a Call Recorder Spy App for Android.pdf
Features of a Call Recorder Spy App for Android.pdf
 
Cyber Security Training in Office Environment
Cyber Security Training in Office EnvironmentCyber Security Training in Office Environment
Cyber Security Training in Office Environment
 
MEP Plans in Construction of Building and Industrial Projects 2024
MEP Plans in Construction of Building and Industrial Projects 2024MEP Plans in Construction of Building and Industrial Projects 2024
MEP Plans in Construction of Building and Industrial Projects 2024
 
1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdf1911 Gold Corporate Presentation Apr 2024.pdf
1911 Gold Corporate Presentation Apr 2024.pdf
 
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...
 
NAB Show Exhibitor List 2024 - Exhibitors Data
NAB Show Exhibitor List 2024 - Exhibitors DataNAB Show Exhibitor List 2024 - Exhibitors Data
NAB Show Exhibitor List 2024 - Exhibitors Data
 
Jewish Resources in the Family Resource Centre
Jewish Resources in the Family Resource CentreJewish Resources in the Family Resource Centre
Jewish Resources in the Family Resource Centre
 
Neha Jhalani Hiranandani: A Guide to Her Life and Career
Neha Jhalani Hiranandani: A Guide to Her Life and CareerNeha Jhalani Hiranandani: A Guide to Her Life and Career
Neha Jhalani Hiranandani: A Guide to Her Life and Career
 
TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024
 
Appkodes Tinder Clone Script with Customisable Solutions.pptx
Appkodes Tinder Clone Script with Customisable Solutions.pptxAppkodes Tinder Clone Script with Customisable Solutions.pptx
Appkodes Tinder Clone Script with Customisable Solutions.pptx
 
Lessons from Shanavas M.P. (AKA SHAN) For The Mastering in Entrepreneurship
Lessons from Shanavas M.P. (AKA SHAN) For The Mastering in EntrepreneurshipLessons from Shanavas M.P. (AKA SHAN) For The Mastering in Entrepreneurship
Lessons from Shanavas M.P. (AKA SHAN) For The Mastering in Entrepreneurship
 
20200128 Ethical by Design - Whitepaper.pdf
20200128 Ethical by Design - Whitepaper.pdf20200128 Ethical by Design - Whitepaper.pdf
20200128 Ethical by Design - Whitepaper.pdf
 
Excvation Safety for safety officers reference
Excvation Safety for safety officers referenceExcvation Safety for safety officers reference
Excvation Safety for safety officers reference
 
WSMM Media and Entertainment Feb_March_Final.pdf
WSMM Media and Entertainment Feb_March_Final.pdfWSMM Media and Entertainment Feb_March_Final.pdf
WSMM Media and Entertainment Feb_March_Final.pdf
 
Planetary and Vedic Yagyas Bring Positive Impacts in Life
Planetary and Vedic Yagyas Bring Positive Impacts in LifePlanetary and Vedic Yagyas Bring Positive Impacts in Life
Planetary and Vedic Yagyas Bring Positive Impacts in Life
 
EUDR Info Meeting Ethiopian coffee exporters
EUDR Info Meeting Ethiopian coffee exportersEUDR Info Meeting Ethiopian coffee exporters
EUDR Info Meeting Ethiopian coffee exporters
 
How do I Check My Health Issues in Astrology.pdf
How do I Check My Health Issues in Astrology.pdfHow do I Check My Health Issues in Astrology.pdf
How do I Check My Health Issues in Astrology.pdf
 
Environmental Impact Of Rotary Screw Compressors
Environmental Impact Of Rotary Screw CompressorsEnvironmental Impact Of Rotary Screw Compressors
Environmental Impact Of Rotary Screw Compressors
 
digital marketing , introduction of digital marketing
digital marketing , introduction of digital marketingdigital marketing , introduction of digital marketing
digital marketing , introduction of digital marketing
 
Send Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.com
 

Biz Model for ARM

  • 1. ARM’s Entry into PC Market - A Business Model MT5016: Business Models for Hi-Tech Products Group Members: Chen Liang (A0082053N) Li Jianwen (A0077040N) Wong Jian Wen, Desmond (A0082079Y) Wu Ai Long (A0089182W) Yen Jia Ting (A0082031X)
  • 2. Agenda  Introduction  Customer Selection and Market Segmentation  Value Proposition  Value Capture  Scope of Activities  Strategic Control
  • 4. ARM Embedded Processor Main CPU Chip (SoC) ARM Embedded Processor
  • 5. Background  ARM successful in current smartphone and tablet markets (>95% Market Share)  Still, multiple suppliers are designing ARM-based CPU for other devices like servers  Processing Power required for PC: Smartphone (low) Server (high) PC Question: Can ARM leverage its PC entry on the momentum generated in their already successful Smartphone market??
  • 6. Types of Personal Computers Personal Computer PC Stationary Mobile Workstation Home Theatre Desktop Laptop Netbook Ultrabook Tablet Higher Processing Performance
  • 7. ARM’s Processor Performance Vs. Different Market Needs 160 Server 140 PC ARM High Perfromance ARM Overall Performance Tablet 120 Mobile Phone Requirement 100 80 ARM TechCon in Nov’2012 60 40 20 0 Time
  • 8. PC Market is Diversifying
  • 9. Existing PC Market + =  Dominant partnership between Intel and Microsoft  Strong Brand Names over the years
  • 10. Existing PC Value Chain Equipment Software/OS Vendor Development Design CPU CPU System PC Service Design Manufacturing Level R&D Manufacturing Processor Core Development
  • 11. Intel in PC Value Chain Equipment Software/OS Vendor Development Design CPU CPU System PC Service Design Manufacturing Level R&D Manufacturing Processor Core Development
  • 12. What is happening right now? + = CPU OS Time for ARM Happening to Enter! All CPU Supporting Embedding ARM ARM Processor
  • 14. ARM in PC Value Chain Equipment Software/OS Vendor Development Design CPU CPU System PC Service Design Manufacturing Level R&D Manufacturing Processor Core Development Vertical Disintegration :: ARM ONLY Microsoft DEVELOPS Google PROCESSOR Apple CORES CPU Designers: AMD, Nvidia, Apple, Samsung, Qualcomm, Broadcom OEMS: Dell, HP, Levono, Acer, Sony, Samsung Semiconductor Foundries: TSMC, Globalfoundries, Samsung, UMC
  • 15. Who are the possible customers? Direct Customers  CPU Designers Indirect Customers  OEMs (Dell, HP)  End Users Microsoft Google Strategic Partners Apple  OS Vendors  Manufacturing Foundries CPU Designers: AMD, Nvidia, Apple, Samsung, Qualcomm, Broadcom OEMS: Dell, HP, Levono, Acer, Sony, Samsung Semiconductor Foundries: TSMC, Globalfoundries, Samsung, UMC
  • 17. Strategy Canvas for PC OEMs High HP, IBM (Servers, Workstations) Intel, AMD (Desktops) ARM (Tablet, Laptops) Low Power Instruction Cost Consumption Set (mips/$, area) (mips/Watt) Time Peripheral Performance Design Application (mips, GHz) To Scope Market Complexity
  • 18. Value Proposition for End-users (PC Consumers) Value Proposition Lower Processor Cost = Lower costs to produce PCs = Lower PC prices for consumers High Medium Performance Cortex A50) INTEL ARM
  • 19. Value Proposition for End-users (PC consumers) Value Proposition Lower Power = Longer Battery Life
  • 20. Value Proposition Semiconductor Foundry •Opportunities for them to CPU Designers cater to customers who want •Simpler and Customizable Designs ARM-based PCs • Easier instruction set •Effects of Vertical • Shorter time to market Disintegration :: Economies •Effects of Vertical Disintegration of scale in terms of ::Economies of scale in R&D Value Proposition manufacturing Low Power OEMs Lower Cost End Users- PC Consumers •Power-efficient feature •Lower Purchase Price •Wider Range of Selection Shorter Time to •Lower Power consumption •Effects of Vertical Market •Less Heat generated Disintegration :: Lower •Longer Battery Time system costs Customized Designs Differentiation Opportunities OS Vendors •Opportunity for them to Apps Developer penetrate wider market by •Opportunity for them to providing processor- enter PC markets by compatibility to the OS installed providing processor- •Synchronize OS across devices compatibility to the Apps CPU Designers: AMD, Nvidia, Apple, Samsung, Qualcomm, Broadcom OEMS: Dell, HP, Levono, Acer, Sony, Samsung Semiconductor Foundries: TSMC, Globalfoundries, Samsung, UMC
  • 22. Vertical Disintegration Processor CPU Design O Core Design Manufacturing E Value Proposition M  Lower Cost  Longer Battery Life  Short Time to Market  Customized Design  Product differentiation  Opportunities to enter wider market
  • 23. Vertical Disintegration Processor CPU Design O Core Design Manufacturing E M
  • 24. Vertical Disintegration Vertical Disintegration • Architecture platforms by ARM • Joint development with OS providers • Multiple logical and physical designers • Multiple manufacturers • Value provided to Value Chain  Unique ARM Architecture  R&D resource Pooling  Customized design  Quick time to market Longer Battery Life and Lower cost
  • 26. How does ARM gets its revenue?  Perform Research & Development  Design Processors chips as per customers needs  Sell design to Semi-Conductor Partner for license and royalty fees $ $
  • 27. Strategic Control: How should ARM protect and sustain its Profitability? Building an Ecosystem Industrial Architecture IP Management
  • 28. Building an Eco-System Components Foundries Partnership on chip development Operating System Manufacture Chip CPU Designers OEMs Provide Provide CPU Embedded Process for CPU Business Development
  • 29. Building an Eco-System High level of disintegration requires:  Strong collaboration among stakeholders  Business development with OEMs  Strong partnership increases ARM competitive advantage ARM is successful only if Partners are successful!
  • 30. Industry Architecture Currently, High level of control by Microsoft and Intel:  Control interface between operating system, processor and personal computers However, with strong collaboration with OS partners:  ARM can be successful Microsoft – Value proposition of a power efficient and low cost processor Google – Leveraging on its Android partnership to strengthen Chrome in the PC market  Control interface can be changed
  • 31. IP Management ARM to have Strong IP management by:  Protecting its existing core IP portfolio  Creating IP in new domains  Expanding IP portfolio by acquiring smaller start-ups  Retaining high-quality R&D staff
  • 32. Summary  Time is ripe for ARM to enter the PC Processor market  Attractive Value Proposition Value Proposition  Lower Cost  Longer Battery Life  Short Time to Market  Customized Design  Product differentiation  Opportunities to enter wider market
  • 33. Summary  Participate in the Vertical Disintegration
  • 34. Summary  Become a Key Part of the Value Chain Microsoft Google Apple
  • 35. End