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Telco Adoption Of Web 2.0 & Open Innovation Issue 1

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Telco adoption of Web 2.0 principles and open innovation for rapid application development.

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Telco Adoption Of Web 2.0 & Open Innovation Issue 1

  1. 1. 1 © 2008 Alan Quayle Alan Quayle Business and Service Development www.alanquayle.com www.alanquayle.com/blog www.linkedin.com/in/alanquayle TELCO ADOPTION OF WEB 2.0 PRINCIPLES AND OPEN INNOVATION FOR RAPID APPLICATION DEVELOPMENT
  2. 2. 2 © 2008 Alan Quayle What’s Changed? Action PlanDeveloper Needs Who’s Really Doing What?
  3. 3. 3 © 2008 Alan Quayle What’s Changed?
  4. 4. 4 © 2008 Alan Quayle Re-Launch An Operators Product Development Process Opportunity Identified 18-36 months Market Research Find Budget New product development processLaunch 12-18 months
  5. 5. 5 © 2008 Alan Quayle What’s Changed? Expectations
  6. 6. 6 © 2008 Alan Quayle What customers expect 6-12 months Weekly 18-36 months 4 months
  7. 7. 7 © 2008 Alan Quayle
  8. 8. 8 © 2008 Alan Quayle Where is the Money? • The collective market capitalization of web- based service providers such as Google, Amazon Web Services, Facebook, My Space, etc. is significant • Google alone has a larger capitalization than the majority of Tier 1 Communication Service Providers in the world today – Google’s market cap is larger than those of Comcast, Verizon, Telefonica, China Telecom, China Netcom, NTT DoCoMo, NTT, Hutchison Whampoa and Deutsche Telekom, etc. – Google is 10 years old (founded in 1998), and none of these service providers existed prior to 1994 • The capital that has flowed to them has been diverted from incumbent communication service providers http://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_MktVal.html $270 Billion
  9. 9. 9 © 2008 Alan Quayle Retail Stores Subsidized Phones Network Control Ecosystem Control Customer Relationship Brand Billing Relationship
  10. 10. 10 © 2008 Alan Quayle Who’s Really Doing What?
  11. 11. 11 © 2008 Alan Quayle Operator Activities in Opening the Network • Telenor Content Provider Access (CPA) – Generate within Norway roughly $100m a year in revenue, that is 6% of Telenor’s total subscription revenues. • O2 Litmus (www.O2litmus.co.uk) – Recently announced by O2, to be launched in late 2008, extensively leveraging web 2.0 principles. • Telecom Italia NexTIM – Telecom Italia’s web 2.0 site exposing new services to its early adopting ‘360 degree innovators.’ Letting the market decide what services to launch, rather than solely internal product management processes. • SingTel Partners Program – Leverage external 3rd party developers to tap into their potential of unlimited innovation to drive new revenues. Promote access to limited network resources and capabilities; reduce time-to-market for launching new services and provide mechanisms for 3rd parties to be paid. • ProgrammableWeb – An aggregator of APIs across operators and the internet, including Orange Partners and BT’s 21C APIs.
  12. 12. 12 © 2008 Alan Quayle Operator Activities in Opening the Network • Orange Partner – As a simple case study, it took only seven months from Orange’s first meeting with a developer called mob-it (www.mob-it.com) to launch a public beta of that service integrated into Orange’s picture service Pikeo, using its open APIs. • Verizon Open Development Initiative – Verizon’s ODI (Open Developers Initiative) – Device centric ODIS (Open Device Interface Specification) defines what a device must do to interface to the VZ RAN (between the device radio hardware and the access network) • Sprint’s Business Mobility Framwork – Sprint’s Business Mobility Framework launched in 2004. It enables third parties to develop services using capabilities of the Sprint network, such as location, presence and messaging. It is based on Parlay X. • And many more: – AT&T’s devCentral, GSMA 3rd Party Access Initiative, BT, Telus
  13. 13. 13 © 2008 Alan Quayle Developers’ Needs
  14. 14. 14 © 2008 Alan Quayle Background on Research • Results collated from over one year of market research • From a maintained list of over 1000 web/voice/telco 2.0 application developers 130 developer’s feedback is included in these results covering: – Detailed questionnaires (40+ open-ended questions) – Face-to-face meetings (1-2 hours, structured) – Phone interviews (30min – 1 hour, structured) • Representative Application Developer mix CommunityVoice 2.0 Web 2.0 Games / adver- gaming LBS Content / Search UGC Enterprise eInclusion Canada US UK / Ireland Singapore / APAC Rest of Europe Company Name Descripition Context Based Business Social Financial Enter- tainment Voice 2.0 Telco 2.0 Viable Cool Telco Value 23half MMS visual search X X X 3 5 5 AirG Mobile Community (20M+) X X 5 5 3 Axis Remote survillance solutions X 4 4 5 Blinkx Video sharing site X X 3 5 5 Bluefire security mobile security X X 4 4 5 Credant mobile security X X 4 4 5 Dexterra Enterprise application mobilization X X X 4 4 5 Diversinet Mobile security X X 4 4 5 GreyStripe Ad supported gaming X X 3 5 5 Integra5 Converged services platform X X X X X 5 3 5 Kore Wireless M2M solution provider X 5 4 4 Krillion Mobile shopping - location based X X 3 5 5 Livewire mobile Music centric mobile application developer and infra X X 5 3 5 Mint Personal money management X 4 5 4 NewBay Mobile UGC sharing X 4 5 4 Spinvox Voicemail to text X X X 5 4 4 Movial Social communicator tool (mobile/PC) X 3 5 5 Trust Digital Mobile security X X 4 4 5 U-Locate location application company X X 4 5 4 Useful Networks Location application company X X 4 4 5 Utterz Voice based social publishing / network X X X 3 5 5 Veoh TV 2.0 X 4 5 4 Voxmobili Next generation address book X X X 4 4 5 Wavemarket LBS, family finder X 4 4 5 Way Systems Mobile POS X 4 4 5 Evryx SnapNow mobile marketing platform X 3 4 5 2waytraffic Digital content / games publisher (Sony trying to buy) X 5 4 3 3Bill Mobile payment services X 3 4 5 Adomo Enterprise UC X 4 4 4 Agito Enterprise application mobilization X 3 4 5 Angel.com Hosted IVR / Voice 2.0 X X 4 4 4 Appello Mobile navigation X 3 4 5 Bambuser Mobile blog - video based X 3 4 5 Bebo Social Network (bought by AOL) X 5 3 4 Bluepulse Mobile Community X X 4 4 4 BubbleMotion VoiceSMS / BI / Community X X 4 4 4 Web/voice/telco 2.0 list Very Small Small Medium Large <5 <25 <70 >70
  15. 15. 15 © 2008 Alan Quayle Developer Issues and Requests Issues with Current Initiatives • No live testing environment for end-to-end testing • No developer sandbox • Very limited access to key capabilities for providing interesting applications and services • Often have a web of stakeholders within the operator which slows/halts the decision- making and/or approval process • Typically no single point of contact • Inadequate operational support, e.g. VPN set-up, switch configuration, etc. • Little or no support for billing system integration • Lack of support for remote monitoring • Lack of flexibility / willingness to try new business models • Rigid rules & guidelines for contributing an application • No/limited device independent platform • No/limited embrace of browser based services Requests • A live testing environment / access to test lab • Single point of contact for technical issues • Consistent operational support, e.g. network connectivity, SMSC, security • Willingness to experiment in business models • Clear path of decision-making up the chain of command • Real project with full organizational commitment from operators - not a 'fashion accessory.' • VPN access to on-site systems for remote monitoring • Delegate testing and approval to third party testing houses. • ‘Approved developer’ certification for the ability to fast-track approvals, operational requests, etc.
  16. 16. 16 © 2008 Alan Quayle Capabilities Application Developers Seek • Single sign-on • Address Book API • Age Verification • Billing/Charging • Identity/Authentication • Location • Messaging • Profile API • File Browsing • Browser based API • Presence • SIP/VOIP/Call Control • Mobile Lookup • Connection status • Discoverability • Short codes • Plus lots and lots more…… 8 © 2008 Alan Quayle Potential Telco API capabilities (from App Vendor Survey) • Authentication & Single Sign-on • Presence (device, application, call state) and Availability • Device Capabilities / Software • Location (accuracies and freshness), Proximity, Heading, Speed • Preferences (policies or rules) • Context – a combination of presence, location, device status, application status, meeting status (calendar), etc. • Customer data (business intelligence) • Call Control • Messaging • Network address book • Group List Server (buddy lists) • Enterprise Mobilization • VoIP / SIP: tone insertion • Call Flow: ACD, IVR, CRM, Helpdesk • Charging / Billing • Call Log / Call events • Directory • Message Store • Home Network Enabler • Content Delivery • Policy (Quality of Service) • IPTV enablers • IPTV STB enablers • Content Enablers • Collaboration Enablers • VoIP / SIP call control including invoking supplementary services • Fulfilment and other BOSS capabilities • Digital Rights Management • Device Management • Local dial in number provisioning • Ringtone purchase integration • Video-ringtone platform • Subscription status • Mobile Video • CDR number frequency search • Calling Name dip And the list goes on, much further on….. Prioritization is critical High Popularity
  17. 17. 17 © 2008 Alan Quayle Distribution Discovery Predictable Process Clear Path to Cash Developers’ Problems an Operator must Solve
  18. 18. 18 © 2008 Alan Quayle Critical Findings • Operators must: – Implement processes to ensure ADC (Application Development Community is used by the operator (not repeat the mistakes of the past) – Reverse developer scepticism by listening, implementing what they need, and show the ADC working • Application developers will not pay for capabilities exposed • Customer access is critical • REST and SOAP/XML is the preferred API • Full testbed is essential to the ADC • Copy Apple’s App Store, just copy better
  19. 19. 19 © 2008 Alan Quayle Action Plan
  20. 20. 20 © 2008 Alan Quayle New revenue and increase customer value through Open Innovation Clear Vision Open the network to 3rd parties and share in value createdAgreed Strategy Short-term OPEX savings, long term revenue growth Realistic Plan
  21. 21. 21 © 2008 Alan Quayle Organizational Commitment Promote the Winners Things to do List Copying is OK It’s NOT the Technology It’s your PLAN!
  22. 22. 22 © 2008 Alan Quayle Suggested Reading Microtrends, Mark Penn Here Comes Everybody, Clay Shirky The Gridlock Economy, Michael Heller www.alanquayle.com/blog

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