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BIJ
18,5                                   Roadmapping the convergence
                                      of technologies for services over
                                                 broadband
668
                                                                A benchmarking effort
                                                                              Tugrul U. Daim
                                                   Portland State University, Portland, Oregon, USA, and
                                                                              Pranabesh Dash
                                                             Intel Corporation, Hillsboro, Oregon, USA

                                     Abstract
                                     Purpose – This paper aims to present an application of the technology roadmapping approach for
                                     exploring the implications of technologies converging for a service sector.
                                     Design/methodology/approach – The paper uses the fundamental concepts behind creating a
                                     technology roadmap. These include market and business analysis, product analysis, technology
                                     analysis and resource allocation.
                                     Findings – The study demonstrates the use and modification of technology roadmaps for technology
                                     driven service business segments.
                                     Originality/value – The process of developing a roadmap for services over broadband presented in
                                     this paper can be used as a standard process of developing a technology roadmap for any organization
                                     in a similar business.
                                     Keywords Strategic planning, Services industries, Mix mapping, Digital technology,
                                     Broadband networks
                                     Paper type Research paper


                                     Introduction
                                     Technology Roadmapping (TRM) which is getting broad attention in technology
                                     industry is a technique that helps organizations to do strategic planning and align
                                     technology with business objectives. This paper presents creation of a technology
                                     roadmap to deliver services for digital data streaming over broadband.
                                     The ever-expanding demand for mobility and digital content has created great
                                     market opportunities for cable and telecom companies. Products such as desktop,
                                     laptop, PDAs, cell phones, and digital players are part of the main customer drivers in
                                     accessing the digital contents. Every digital content owner is eager to access their paid
                                     and private information from everywhere. Therefore, there is a real demand for reliable
                                     portable solution to enable the mobile users to be more productive and happier.
                                     A number of companies around the world already deliver similar products but limited
                                     services. This paper explores what it would take to offer the service in the Northwest
Benchmarking: An International       USA. A benchmarking effort will be conducted among the actual companies with actual
Journal                              products. The market analysis, benchmarking and roadmapping process presented in
Vol. 18 No. 5, 2011
pp. 668-693                          this study can be used by any company interested in offering similar services in a region.
q Emerald Group Publishing Limited
1463-5771
                                     A hypothetical company named Company X, planning to be a player in the market, will
DOI 10.1108/14635771111166811        be assumed for which the aforementioned analyses are conducted. The product features
will be introduced progressively to either accommodate newer technologies or introduce          Roadmapping
other changes. The study includes creation of roadmaps of market, product, technology,        the convergence
research and development (R&D) and environment. These factors are considered very
important for organizations that are sensitive to emerging technologies in the maturing        of technologies
broadband market. The proposed approach at the end will help identify market
opportunities. Considering traditional TRM methodologies the effect of environment
has been identified as a gap. This paper emphasizes the importance of environment                         669
along with the traditional TRM layers. The process of developing a roadmap for services
over broadband presented in this paper can be used as a standard process of developing
a technology roadmap for any organization in similar business.
    The availability of broadband and the arrival of WiMax technology in the Portland
metro area (WiMAX, 2010) opened a lot of opportunities for new products and services.
To exploit the availability of bandwidth and reach of internet, companies can make
any legal digital content (Russell, 2008) that one can access on a home or fixed system
go mobile (Digital TV Europe, 2010) while keeping security in mind.
    There are situations when people want to show the software installed on their home
computer to a friend at a location away from home, using a mobile laptop. Another
situation to consider is where a person has subscribed to certain premier channels on
Cable TV but is traveling, and hence missing out on some of the favorite programs.
If the user has paid for it, why should there be the constraint that he or she cannot watch
it while away from home? Also a situation where a person wants to access his voicemail,
fax received at home or state of home security system to be accessible from anywhere.
    TRM is planning framework widely used in industry for strategic and long-range
planning. The traditional TRM presented by Phaal et al. (2004) consists of three layers
(technology, products and markets). This paper will emphasize on the importance of
future environment conditions (R&D and government policies). The environment
condition is presented as an additional layer in the TRM. This study will clearly show
how the additional factors can have high influence on the destiny of the technology.
    The paper is organized as follows. A hypothetical company named Company X,
planning to be a player in the marker, is assumed whose profile matches a typical
consumer for this study. First, an overview of the company and its product offerings are
presented. Followed by the overview, the impact of the environment and policy that affects
functioning of Company X in the market is studied. Then a detailed market analysis is
conducted by segmenting the market and discussing the customer value drivers (CVDs)
for Company X. Next a detailed product technology analysis is presented that
subsequently helps in scenario planning and roadmapping presented in the final section.

Literature review
TRM helps organizations communicate and explore relationships between evolving and
developing markets, products and technologies over time (Phaal et al., 2004). TRM can
also be used as a tool to integrate corporate strategy with technology strategy for better
profitability (Phaal et al., 2005; Kameoka et al., 2003). The TRM process being very flexible
there are multiple ways to representing a technology roadmap and are used for different
purposes (Phaal et al., 2004; Phaal and Muller, 2009). The flexibility of TRM process was
seen as a roadblock for adoption in case of some organizations. There were some proposed
approaches to customize the TRM process to achieve a balance between personalization
and standardization (Lee and Park, 2005). TRM approach also has been suggested to help
BIJ    better decision making in long term. The decisions under consideration are new
18,5   technology product development by incorporating factors beyond finance based and
       return on investment (Petrick and Echols, 2004). Roadmaps provide a compact visual of
       the high-level view of an organization and the technology under review. The visual nature
       of the roadmap supports better communication among stakeholders and considered to be
       the main reason behind the attractiveness of TRM method (Phaal and Muller, 2009).
670        Technology development is part of a complex system of knowledge generation and
       transfer and has dependencies on factors such as technical barriers, associated change
       required and organization strategy. Most of the time TRM process assumes a given future
       and finds possible paths to get there. The future might consists of alternatives and it is
       important to incorporate it into the TRM process (Lizaso and Reger, 2004). Scenario
       planning is one of the tools for making strategic decisions in an environment of uncertainty.
       It helps anticipate changes and identify discontinuities, reduces risk, provides a common
       framework for discussing and dealing with complex situations (Chermack et al., 2001).
           Wide deployment of broadband has enabled real-time and rich-media collaboration.
       This has helped create new markets and strategies for broadband-based technologies.
       This topic has been dealt in detail in the compilation by Austin and Bradley
       (2005). Though the work does not create a roadmap for broadband in the traditional
       sense it clearly demonstrated the importance of policy making and environment on
       future of broadband. The TRM process presented here tries to incorporate the
       environment and scenarios during roadmap creation.

       Client overview
       A typical consumer of this study is a company that is already in the video streaming,
       providing limited place-shifting (Sling Media, 2010) or time-shifting (The eMarketer Blog)
       solutions and content providers such as cable TV service providers. Though new
       entrants are also targeted but it might take more capital investment to acquire technology
       and creating relationships with content providers (Digital TV Europe, 2010). After doing
       a review of various solutions in the domain that exists today, almost all of them include
       some dedicated hardware that goes along with application software (Sling Media, 2010;
       Video Streamer; Place-Shifter; Mobile TV, 2010; TV2MEw, 2010; SonyStyle USA, 2010;
       Orb, 2010). Company X’s proposed solution will focus on software creation for various
       mobile platforms while trying to minimize the target hardware-related cost. A company
       having experience in streaming software applications will have an advantage over other
       companies. Profit margins will vary depending on the investment and decisions to
       develop technology in-house or, acquire existing technology.
          Clients considered here are medium to large-sized companies for its business.
       Companies with revenue over $250M and more than 5,000 employees qualify as large
       businesses. Medium businesses can have anywhere from a few hundred employees to a
       couple of thousands.

       Product overview
       The digital revolution has reached the home front, primarily with the introduction of the
       internet and its associated technologies. The internet was originally designed to act as a
       mechanism to exchange electronic data. This has begun a worldwide demand for access
       to computing and communications from anyplace at anytime (Internet Trends,
       Morgan Stanley, 2010).
Company X product will be a “place-shifting” solution which enables to user not to          Roadmapping
be restricted by location for certain content, similar to what “time-shifting” had done       the convergence
for scheduling. With special interconnecting cables and networking adjustments one
can watch TV or TiVo, or DVD player from just about anywhere (ArsTechnica, 2010a)              of technologies
one can get a network connection – be it at office, in a hotel room, or the other side of
the planet. Company X targets to transform any internet connected/enabled laptop,
PC, PDA or cell phone to a personal media device. Company X proposes to start out                           671
with a stand-alone product – a combination of hardware and software solution, trying
to leverage as much as possible from existing solutions (Figure 1).
    The customers pay a one-time device cost and install the Company X compatible
hardware device at home. The Company X hardware at home can connect to any
component, storing or streaming media content. The Company X software is a
client-installation required for the mobile devices which will act as receivers for the
data. The onus is completely on the customers to ensure legal streaming of data.

Product introduction
The Company X box converts analog signals to digital signal (if needed) (Fcc.gov,
2010a), converts those into IP packets (BroadbandSuitee, 2008) and sends securely over
internet to the authorized device. The analog signal can be the analog TV signal or,
FM radio signals. The hardware-encoding device does the encryption and compression
(Russell, 2008) of the content before sending it over the internet. The compression is done
with connection speed consideration to deliver high quality streaming. Industry
standard encryption is done to meet minimum security requirements.
   Company X software gets installed on the mobile device such as a laptop, PDA or
cell phone. The user can login to the home network remotely using secure
authentication and stream content from TV or other digital storage device.
   Some of the product features of Company X include:
    . Remote access to digital (streaming) data on cell phone, laptop, PDA, remote PC,
      IP TV.
    .
      Wireless-enabled Company X hardware.
    .
      Multicast feature support (simultaneous remote and local viewing).
    .
      Multiple source, multiple user support.
    .
      Peer-to-peer sharing.
    .
      Pause, rewind, fast forward controls.
    .
      Record and burn to DVD.

                  Content
                subscription



                                                  Internet
            Data in PC         ABM HW                                 ABM SW                            Figure 1.
                               "streaming                          "client/receiver"            Company X solution
                                 server"
                                                                                                         overview
BIJ    Product description
18,5   The following devices can be connected to Company X hardware box at home using a
       cable for the input signal – TV or IPTV, Home PC, DVR, DVD player, satellite radio
       receiver. The Company X box can also connect to any wireless enabled device at home
       such as a laptop, PDA or, cell phone.
           Company X is introduced with the unicast feature where at any point of time, only a
672    single remote device can be connected to access the content. In the future products,
       multicasting will be supported where multiple remote devices can connect and access
       the same content. However, it will be done only with content provider’s consent
       and with taking care of digital distribution rights. The idea is somewhat similar to that
       of the pay-per-view service. In case of multicasting, the appropriate content provider
       will be notified for billing purposes. Peer-to-peer connection support will help sharing
       of the content between customers owning Company X box as long as the legalities are
       met (Russell, 2008).
           Company X solution alternatives are the following.
       Software-only solution
           .
             Supports TV, PC, mobile device (laptop/cell phone/PDA).
           . Needs a PC at home and a TV tuner card.
           .
             Company X server software on PC and client software on mobile devices.

       Hardware/software solution
         . Supports TV, mobile device (laptop/cell phone/PDA).
         .
           Company X compatible hardware connected to TV and other home media
           storage devices.
         .
           Company X client software on mobile devices.

       Value proposition
       Company X proposes a solution for consumers that want to have access to all digital
       media at home even while they are traveling. The user who might have subscribed to a
       lot of TV programs but is not able to access while outside of home. Company X makes
       it possible by providing a secure and unified access to contents stored on a personal
       computer, digital television and any other digital storage media devices.
       The attractiveness of the solution is that it envisions a single point of control for all
       aspects of a consumer’s digital home incorporating advanced wireless technology and
       provides value to the customer at a very reasonable cost.
           The competition in this market space is still not clearly defined. However, a host of
       companies such as Sling Media (2010), Monsoon Multimedia (Video Streamer;
       Place-Shifter; Mobile TV, 2010), TV2Me (TV2MEw, 2010), etc. are already present in
       this domain. Large players such as Sony (SonyStyle USA, 2010), Apple (Apple TV,
       2010), Microsoft (Windows Media Center, 2010), Intel (Intelw Viive Technology, 2006),
       etc. are also showing interest in this market space.
           A gap analysis of the functionalities in the product against those currently present
       in these competitive products. Figure 2 shows the data in a tabular form. The market is
       divided into three segments, main street, techno-geek and media savvy, explained in
       details later in the market segment section.
Roadmapping
                                                                                                           the convergence




                                                  Sling box
                     Competitive




                                    COMPA




                                                              Vulkano




                                                                                    TV2Me




                                                                                                  Market
                      advantage
                                                                                                            of technologies


                                            NYX




                                                                              Orb
                         TV         2011                                                    Main
                                                                                                                          673
                         Radio      2011                                                    All

                                                                                            Media,
     Data sources




                         Computer   2011
                                                                                            tech


                         Media                                                              Med,
                                    2011
                         storage                                                            tech

                         Video
                                    2013                                                    Tech
                         phone
   Internal
    conn.




                         Wireless   2011                                                    Tech



                                                                                            Main,
                         Home       2011
     Multi casting




                                                                                            med


                                                                                            Med,
                         Remote     2013
                                                                                            tech                       Figure 2.
                                                                                                                Gap analyses for
                                                                                                             competitive products
                                       High          Medium             Low

Environment and policy
Our literature search identified the major factors that influence the success of a
product. The factors can be broadly divided into two categories, environment (Digital
Media Content Creation Technology Roadmap, 2009; Hwang, 2005) and technology.
Figure 3 shows how external environment will be affecting the development of the
Company X solution over the years. The section “A” in the figure shows the various
external factors that will affect the product releases (product type 1, product type 2,
etc.) from Company X over the next few years. Section “B” shows the technologies that
Company X depends on for providing the solution.

Content providers
Owing to the stringent copyright policies for rebroadcast of contents, it is very important
to create tie-up with content providers and have streaming rights. The following content
providers need to be considered for negotiation of content streaming rights:
    .
       TV content broadcasters such as ABC (ABC.com, 2010).
    .
       Cable TV provider such as Comcastw (Comcast Official Site, 2010).
BIJ                               E   Content provider            Scenario I
18,5                              n
                                  v
                                      Competitor
                                      Policy/regulation        Scenario II
                                  i
                                  r   Ecosystem/infrastructure                        Market drivers
                                  o
                                  n
674                               m
                                  e                                           Product type 4     2013
                                  n                                  Product type 3       2012
                                  t                         Product type 2        2011




                                                                                                                   Technologies
                                                      Product type 1     2011                Compression
                                                                 2010                        Security
                                                      2010                                   Video mail service
Figure 3.                                                             Wired connection       Digital rights
Effect of environment                                                 Multicasting           Management
on product development                                                Stream live video      Wireless connection


                            .
                                Movie studios such as Disneyw (Disney, 2010).
                            .
                                Internet content providers such as EROS entertainment (Eros Entertainment, 2010).
                            .   Satellite radio such as SIRIUSw (SIRIUS Satellite Radio, 2010).
                            .
                                Local FM radio channels.

                         Most of the TV programs get to customers’ home through cable. The cable providers
                         sometimes just act as carriers and do not interfere with the content being distributed.
                         However, the retransmission rights still need to be discussed with the source owners
                         such as broadcast TV channels and movie studies that provide the content for movie
                         channels. Cable TV providers control mostly the advertising and pay per view channel
                         accesses (Fcc.gov, 2010b).
                            Internet content providers allow their content to be viewed at home on PCs or
                         IP-enabled TVs. Many of these content providers have special agreement with the
                         internet service providers to customer’s home. The streaming of such content through
                         the home PC over internet to a mobile device might require consent from the content
                         providers. If a user has subscribed to satellite radio service, he or she needs a signal
                         decoder/receiver to enjoy the content. However, this is not portable enough to be moved
                         around. With Company X, this receiver could be placed at home and remote access of
                         programs can be supported. Company X’s technology will help convert the decoded
                         signals to IP packets and stream it. Again retransmission rights have to be acquired
                         from the satellite radio companies.

                         Competitors
                         Although there are currently no players in the digital data streaming market in the
                         Portland area, few companies are getting into this industry in other parts of the world:
                         Slingbox (Web TV wire, 2010), HAVA/Vulkano (Video Streamer; Place-Shifter; Mobile
                         TV, 2010) and Sony LFX (SonyStyle USA, 2010). Slingbox solution is a combination of
                         hardware and software; however there is no built-in wireless support in it. Vulkano is a
                         comparable product with built-in wireless networking support from Monsoon
multimedia and Sony’s location-free TV has added PSP compatibility in addition to                 Roadmapping
wireless networking support. TV2Me (TV2MEw, 2010) provides with exceptional                     the convergence
streaming video quality on PC, large-screen TV, PDA or phone but it is very expensive.
Further details are available at Sadoun.com (2010).                                              of technologies

Government policy
Policies are what drive innovation, widespread adoption of a technology or product                         675
and encourage competition. Based on the nature of the local government’s role, four
categories of actions can be distinguished (Gillet et al., 2004):
   (1) government as broadband user;
   (2) government as neutral rule-maker;
   (3) government as financier; and
   (4) government as infrastructure developer.

As stated in (Hwang, 2005):
   Federal and state policymakers are exploring initiatives to promote the deployment and
   adoption of broadband services, and in recent years, an increasing number of local
   governments have joined them. While the first generation of narrowband dial-up access was
   able to piggyback on the near universal availability of the mature telephone network,
   broadband relies on communications infrastructure that is both more heterogeneous and less
   evenly distributed.
The same paper states regarding a 1999 telecommunications survey conducted by the
International City/County Management Association that found 93 percent of local
governments had a franchise agreement with a cable company, with a 12.2-year
average term length. A specific example of Portland, Oregon is mentioned which
attempted to force the cable providers to offer unrestricted access to the cable network
by unaffiliated Internet Service Providers (Gillet et al., 2004).
   With no clarity in the state of legislation in the USA, the world of fair use makes
way for a dodgy environment for digital content reuse scenarios. The conflict between
Hollywood and software developers over the creation of DVD backups is a good
example to emphasize the issues associated with fair use rules (Wired.com, 2010).
To add to the complication US Copyright Law makes it illegal to circumvent
encryption for any kind of use (ArsTechnica, 2010a). For place-shifting, the situation is
even more confusing because the ability to record contents and the basic portability of
content are supported by the digital devices by default (HomeTheater.about.com, 2010)
and respected by the right holders. Recording and moving content online, however,
upsets the content producers (ArsTechnica, 2010a).
   The license requirement in the scenario of streaming music over the internet, from
one system to another, is still murky (IP Communications, 2010) and the situation seems
similar in case of video. The digital content owner wants to draw extra/continuous
revenue from once legally purchased content by one user and how it is shared or
distributed later (Intellectual Property Watch, 2010).
   It is clear that broadcasters are not doing enough to reach to their customers. The
existing gaps are filled by products like Slingbox and when content providers realize
that someone else is exploiting the gap, they also want a share of the pie (ArsTechnica,
2010b). It seems time-shifting has come of age as the practice been upheld by the courts,
BIJ    and TiVo like devices have become widespread. Place-shifting needs a similar
18,5   legislation in place and should help protect consumer rights while not constricting
       innovation (ArsTechnica, 2010a).

       Ecosystem
       The ecosystem involved with the Company X’s product is wide and varied. Figure 1
676    show how the product fits into the complete picture of content delivery. The different
       players involved are the following:
          .
             cable TV content providers;
          .
             cellular service providers;
          .
             internet service providers; and
          .
             government agencies and policy makers.

       As stated earlier broadcasters want to make money from certain kind of
       content “place-shifted” by entities like Slingmedia. The independent operation of
       content providers and “place-shifters” is having is having a negative effect on content
       providers’ business models (ArsTechnica, 2010b).
          Company X, on the other hand, suggests creating a new business model where all
       these stakeholders are involved and play a role. The future of this industry might need
       collaboration between the content providers, government and the innovating companies.

       Scenarios
       Some of the scenarios for Company X to take into consideration are as follows:
          Scenario 1. Content providers object to Company X’s feature for multicasting.
          Multicasting would mean multiple users being able to access content. This would in
       turn result in content providers modifying their policy of one-user per connection. There
       needs to be a way in which billing for each additional viewer or channel needs to be devised.
          Scenario 2. Cable TV company provides Company X box’s functionalities in its own
       setup box.
          This means Company X will work with cable TV companies to make sure that the
       ecosystem for Company X solution is standardized and focus completely on its
       software solution.

       Market analysis
       As seen in the research, there is a huge potential in this market that is still untapped.
       The streaming media market is still in an introductory phase. And there is a growing
       need for this technology. The streaming media market revenue is projected to hit
       $6 billion by 2011, up from $915 million in 2005 (Insight Research, 2010). Major media
       distribution solutions existing today are PC based (upcoming devices like mobile
       phones are yet to work seamlessly with existing TV and other devices). However, the
       consumer electronics-based solution, which Company X offers, is expected to enhance
       the PC media server-based systems in the next few years.

       Market segment overview
       The markets for the streaming media are segmented into three classes for simplicity,
       namely, “main street”, “media savvy” and “techno-geek” as shown in Figure 4.
Roadmapping
                                                                                            the convergence
                                                                                             of technologies

                                                                                                           677




                                                                                                        Figure 4.
                                                                                           Market segment overview


These signify the mass market, the sophisticated market, and the experimental market.
Although media savvy present the biggest market size and high potential growth rate,
the segment attractiveness analysis shows that the preference of main street and
techno-geek also matches Company X’s capability, potential and focus. This finding
provides a direction for Company X’s future product strategy development and market
driver planning. By focusing on techno-geek, Company X can also monitor the
evolution of the streaming media industry and better react to the trend shift.
    Main street. The “main street” group love their TV, movies, and music but are not
concerned about where they come from. This consumer group is made of people who
are not technology enthusiasts. They are typically more than 35 years old, working
men and women, who have low computer literacy. They use electronic equipment such
as audio-video systems, computers, electronic security systems, personal organizers,
cell phones, etc. – but they have very little understanding of the technology behind
these products. Though these consumers are price-sensitive, their buying decision is
not completely influenced by price of the product.
    This group’s need for Company X solution can be attributed to their heavy
dependence on the very simple use of complex technologies. They want to access their
TV programs while at a friend or neighbor’s place. These people seem to naturally fit
in the profile of the “late majority” in the “Technology adoption life cycle” (Moore and
McKenna, 2002). They like to buy proven, bundled, pre-assembled packages, which
they can start using with minimum setups. Quality and post-sale service and support is
a major factor in this group’s buying decisions. This group is very sensitive to past
experiences and will not soon forget an unpleasant experience with a particular brand.
This will influence future purchase decisions. This segment inherently resists new
technology products. Nevertheless, this segment has a huge potential when the
proposed product becomes popular in the mainstream market.
    Media savvy. The “media savvy” group is very knowledgeable about the latest media
contents coming to the marketplace and always wants to be at the forefront. This group
of people is mostly traveling and would like to not have to carry their data around with
them. They would like seamless access to all digital content at home as well as
their favorite subscribed TV programs while they are away from home.
BIJ    This segment is comprised of consumers who share some of the “techno-geek” users’
18,5   ability to relate to technology, but ultimately they are driven by the strong sense of the
       practical applications of the product (the ability of that product to achieve a high level of
       satisfaction) and how they are perceived by their friends (These people do not want to feel
       “left behind”. The status of having new and proven technology gives them the feeling of a
       smart consumer who is able to make good choices and get the most out of a purchase).
678    They do have a strong interest in incorporating technology in their lifestyle. They have
       basic knowledge of technology components and their uses, and they are willing to
       experiment to a certain degree, but are unwilling to adopt them until they have been
       validated by the market (i.e. they are not the first movers, but may be willing to adopt
       earlier than the mainstream market). They are interested in developing their knowledge
       where it can help them become more efficient. Products that leverage the existing proven
       technologies (such as wireless, internet, etc) could easily interest this group.
          Techno-geeks. The “techno-geeks” are fascinated with new technologies and keep
       updated with new equipment as it becomes available. They love the concept of being
       able to access their data on a single device and on-the-go. This group naturally fits into
       the “Innovator” or “Early adopter” segment in the “Technology adoption life cycle”.
       Their advanced knowledge of technology gadgets tempts them to want only the
       newest devices, with plenty of options, all the time. They would make an excellent
       segment for planning the “beachhead” – mainly due to the fact that technology is part
       of their lifestyle. They can be labeled “do-it-yourself” group, since they generally
       require minimal installation services or product support.
          This group’s non-stop pursuit to use the newest devices available in the market
       leads us to believe that this group will be an ideal segment to start with. This segment
       looks for other key factors such as “multi-use” capabilities and flexibilities, ability for
       after-market customization, etc. Another key factor for this group would be the “social
       implication” – the thrill of owning the latest technology. They are more concerned with
       how the new device helps them personally rather than how it affects their friends’
       perception of them. The small size of this segment is a cause for concern – it may be
       difficult to sustain growth catering just to this group.

       Segment attractiveness factor analysis
       After identifying three candidate segments, the second step of the analysis is to select
       segment attractiveness factors and use these factors to evaluate the attractiveness of
       each segment. The requirement for these factors is that they must be connected to the
       characteristics of the product and relevant to CVDs for media controller (Lazarevski
       and Dolnicar, 2009). Table I captures this data.

       Customer value drivers
       The second type of the attractiveness factor is CVDs. CVD are “decision-related
       attributes that are perceived by the customer to be the most important” to the product
       choice process (Harmon and Laird, 1997). The preference of each segment on these
       factors will influence the level of attractiveness for Company X. The preference of each
       segment is presented in Table II.
          Figure 5 shows the plot of the value attractiveness curve for each of the customer
       segment on a scale of 1-10. Data were collected after identifying customers in each
Roadmapping
              Features                     Advantages                   Benefits
                                                                                                     the convergence
Techno-geek  Streaming data                Watch streaming media        Do not have to store and      of technologies
             accessibility through         anywhere obtained            carry content along while
             ultra-mobile device using     through subscription only    on the move
             high BW wireless              accessible at home today
             connection.                   Share the latest cool s/                                                  679
             PDA, cell phones, IP          w.game installed at home
             enabled mobile media dev      PC
Main street  Accessibility of subscribed   Watch the cable subscribed   Do not have to miss a
             programs away from home       live/stored program at a     program while visiting
             (friend/neighbour)            friend/neighbors place       neighborhood
             IPTV
Mobile savvy Streaming data                Seamlessly access digital    Do not have to worry about                  Table I.
             accessibility through high    data on PC and cable TV      forgetting to carry some          Preference of each
             BW connection on a device     storage                      data or video content           segment on product
             away from home.                                            stored at home while away          feature, analysis,
             Remote PC, laptop                                          from from                             benefit factors


segment and asking them to rate each CVD factor. Other factors such as product life
cycle and segment size will also influence the attractiveness.

Market drivers
From the data and analysis in the previous sections, Company X derived the major
drivers for this emerging market. A rapid growth in laptop and mobile phone penetration
over the past few years has brought an increase in the number of mobile internet users
(SMART, 2010). With broadband access being available to a greater segment of the
population, people are beginning to realize the potential of high bandwidth. Increased
connectivity has brought users to a point where they have become used to staying
connected anywhere at all times to almost everything. Content on demand has become
the theme of the present times. And statistics show that people are willing to pay for the
content as well (Bain & Company, 2009). With ever increasing growth of digital
subscriptions such as cable TV, satellite TV, etc. people do not want to miss out for their
favorite programs only because they are not at home to watch those. For users, it is legal
entertainment for which they have paid a price, why get restricted to stay at home to
enjoy it? There is a segment of the customers who are driving newer applications such as
video services, online gaming, mobile gaming, etc. And with consumers’ desire for a
one-stop solution, Company X like solutions should be ready to fill the gap.

Competitor analysis
Industry structure strongly influences in determining the competitive rule of the game
as well as the strategies potentially available to the firm. Companies have unique
strength and weakness in dealing with industry structure. Therefore, understanding
industry structure should be performed first for the net assessment. Porter (1996)
suggested five competitive factors whose forces jointly determine the intensity of
industry competition and profitability. The strongest force or forces are governing and
becoming crucial from the point of view of strategy formulation. Figure 6 shows the
competitor analysis done for players like Company X in the current market.
BIJ
                                               Main street (40s, own        Media savvy (mid 30,        Techno-geeks (mid 20,
18,5                     Factors               small business)              mobile professional)        college student)

                         Economic
                         Cost of ownership   Would not buy products Concern more on product             Not a big concern, but
                                             which need lots money to performance than cost             should have high
680                                          maintain                                                   quality
                         Degree of budget fit Must fit their budget     Somewhat important                Not a big concern
                         Performance
                         Faster/easier       Need products which are Prefer easy to install             A plus in comparison
                         installation and    easy to install          products                          to competitors
                         maintenance
                         Feature set         Less likely to need best Prefer the best feature set       Very important to this
                                             feature set                                                group
                         Supplier
                         Resource            Conservative buyers.     They would consider             Reputation for
                         credibility,        Only buy from familiar   reputation more or less         innovation is
                         reputation          companies                                                important, but willing
                                                                                                      to take risks
                         Innovative problem They focus more on              Need innovation solutions An important
                         solver             quality                         for their mobile system   motivation for
                                                                                                      purchase
                         Motivation
                         Recognition, want     Prefer to buy mature         They do not care being the Always wants to be
                         to be the first        product with quality and     first adaptor so much       the first adopter
                         adopter to the        reliability. Not important
                         product
                         Desire to be viewedThey will like to be            Want to buy a product of    Not a huge factor in the
                         as a problem solverviewed as a problem             the company which can       buying decision
                                            solver                          solve various situations
                         Self image – brand Not connect their self          Sensitive to the brand      Not as important to
                         image              image with that                 image                       this segment
                         Situation
                         Buyer’s task       They do not have much           Want to make their mobile   This would be
                         requirement        task requirement                live easier                 somewhat important
                         Organizational/    Word of mouth may affect        They would consider what    Affected by their
                         social influences                                   other suggested             immediate peer group
Table II.                Buyer’s experience Experience has no or little     Experience with streaming   Most have had
Customer value drivers   with related       influence                        media may affect            previous experience
for each segment         products

                         Threat of entry. The entry barrier of this industry is medium. “Economics of scale” of
                         this industry provide opposition by forcing the entrant. Providing a software solution
                         does not need a huge capital investment when compared hardware-based solution.
                         However, access to distribution channels is a barrier to the company since it needs to
                         secure distribution of its products.
                            Threat of rivalry. Although there are already existing players for streaming
                         TV content over internet, there are very few in the Portland area currently. This being
                         a relatively new market, the products and services are new in the industry. And they
                         belong to entry stage of the product life cycle. Different companies have different
                         product strategies. And these diverse strategies of competitors prevent them from
                         reading each other’s intentions accurately and agreeing on a set of rules of the game
10                                                                            Roadmapping
       Main street
                               9
                                                                                                          the convergence
                                                                                                           of technologies
                               8
      Media savvy
                               7

                               6                                                                                            681
      Techno-geek
                               5

                               4

                               3
        Product focus                     Contents                         Function and mobility
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                                                                                   Potential companies


                                                                                   Sling box
                                                                                   Orb communications
                                                                                   Tivo to go
                                         Threat of rivalry
                                                                                   Sage tv
                                              (low)
                                                                                   Air tv
                                   • No competitor in the market                   Hava
     Threat of entry
       (medium)
  • Economics of scale                                                 Threat of buyer
  • Product differentiation                                                (low)
                                         Digital content
  • Capital requirement                   distribution              • Moving to alternative
                                                in                    suppliers
                                          pacific NW



                         Threat of substitute                 Threat of supplier
                             (medium)                              (high)
                        • Stroge devices                     • Cable tv companies
                        • Limitation on quality and          • Internet service                                          Figure 6.
                          content                                                                               Porter’s five forces
                        • Cost is high, sometimes                                                                          analysis

for the industry. Some are software-based solution only while some are a combination
of hardware and software.
   There are a few competing products and they do not meet the needs of the
customers completely in terms of cost, performance and feature set.
BIJ       Threat of substitute. The threat of substitute in this industry is medium. The alternative
       for consumers is to use data storage devices such as digital video recorder or TiVo for their
18,5   TV programs. Media-savvy users will alternately carry their data around when they are
       traveling. There is limitation on quality of content; the cost too is high at times.
          Threat of supplier. The suppliers, which are content providers and internet service
       providers in this case, have high power in this market because Company X needs to
682    establish tie-ups with each of them. Suppliers form a part of Company X’s ecosystem.
       Product specification and inter-working with other components is very essential to
       provide the consumers with a high-quality solution and reliability.
          There is also a scenario where the content providers host their own content and
       enable streaming through internet.
          Threat of buyer. The threat of buyers is low in this case. The buyers cannot play one
       company over another because products and services are not available yet in the
       Portland metro area market. The switching cost of the solution, once a customer sets it
       up at home, is relatively high. Also, customers might be relatively less sensitive to the
       price since quality of the product in this industry is important for the consumers.
       Product and technology analysis
       Product specification
       Efforts and investments can be made to make Company X hardware not bulky and
       easy to set-up but customers usually avoid having another piece of hardware in their
       living room. Company X must also offer software-only solution for customers having a
       PC and TV tuner card. The advantage of having a hardware system is better security
       and quality streaming (Bar-El, 2002). Software solutions have the advantage of the
       ability to be updated more frequently and can update the customer with additional
       features sooner than a complete hardware solution. Hence a combined hardware and
       software solution is best placed to serve the customers.
           The TV tuner card connects the TV to the PC and the Company X software installed
       on the PC does the compression, encryption and streaming. The software-only solution
       may have limitations compared to hardware-based solutions. An example product
       specification for Company X can be as follows:
          Full product specifications
            General
                Width – 11 inch approx, depth – 4 inch approx.
                Height – 2 inch approx., weight – 1.5 lbs approx.
            TV tuner
                TV tuner quantity – 1, TV tuner reception system – NTSC/PAL.
            Audio system
                Audio: output mode – Stereo.
            Connectors
                Connector type 1 – composite video/audio input RCA phono £ 3 installed
                rear, 1 S-video input 4 pin mini-DIN installed rear, 1 RF input RCA phono £ 3
                installed rear, 1 composite video/audio output 4 pin mini-DIN installed rear,
                1 S-video output RJ-45 installed rear, 1 network RCA phono £ 2 installed rear,
                1 Audio line-in RCA phono £ 2 installed, 1 audio line-out.
Coaxial digital input                                                                                                Roadmapping
         Yes                                                                                                             the convergence
      Accessories                                                                                                         of technologies
         Power adapter, network cable
      Power
                                                                                                                                        683
         External
      Shipping dimensions
         Packaged quantity – 1

Technology assessment
Company X incorporates a number of technical features to provide users with a single
interface on their mobile devices to connect and enjoy the media and content at home as
shown in Figure 7.
    One of the major technologies Company X capitalizes on is wireless technology.
The introduction of Wi-Fi technology and access hotspots is just the beginning of the
application of this technology. These hotspots provide internet connections to users
within a limited range from an access point. Although this technique extends the reach
of the internet, it still limits the movement of the user to within a short distance from a
fixed location. Most users would like to have mobile access to their broadband internet
connection over much greater distances. The demand for this mobility has continued to
force the transformation of the communications industry. The Wi-Fi standard applies to
isolated areas of connectivity, while WiMax and 3G/4G (WiMAX FAQ, 2010) are used
for longer distance wireless connections. WiMax has been used primarily for computing
platforms and 3G/4G works best with mobile devices such as mobile phones. Ultra-wide
band (UWB) has a very short range and is used in the home entertainment environment
(UWB Technology, 2010). Table III lists each of the technologies and its associated
properties.


                 Content
               subscription




                                                                             Internet
         Data in PC                       ABM HW                                                        ABM SW
                                          "streaming                                                 "client/receiver"
                                            server"


                                                       Digital right management
                      Technologies




                                                         Security management
                                     Data encoding                                       Data decoding
                                                            Uncontrollable
                                     Compression                                         Decompression                                Figure 7.
                                                             environment
                                     Web server                                           Jitter removal                 Technology in Company
                                      Multi                  DNS service                Error correction                        X’s usage model
BIJ
                     Technology        IEEE standard        Throughput          Range               Frequency
18,5
                     UWB               802.15.4             110-480 Mbps        Up    to 30 feet    7.5 Ghz
                     Wi-Fi             802.11a              Up to 54 Mbps       Up    to 300 feet   5 Ghz
                                       802.11b              Up to 11 Mbps       Up    to 300 feet   2.4 Ghz
                                       802.11 g             Up to 54 Mbps       Up    to 300 feet   2.4 Ghz
684                  WiMax             802.16d              Up to 75 Mbps       4-6   miles         ,11 Ghz
                                       802.16e              Up to 30 Mbps       1-3   miles         2-6 Ghz
                     WCDMA/UM          3G                   Up to 2 Mbps        1-5   miles         1,800, 1,900,
                                                                                                    2,100 Mhz
                     CDMA2000          3G                   Up to 2.4 Mbps      1-5 miles           400, 800, 900,
Table III.                                                                                          1,700, 1,800,
Wireless standards                                                                                  1,900,
defined                                                                                              2,100 Mhz


                     Wi-Fi is short for wireless fidelity. It was the earliest and is the most common the most
                     common form of high-speed wireless data technology to be applied in the home and
                     office. Wi-Fi has also become the major player in the deployment of “hotspot” wireless
                     connectivity in commercial outlets such as colleges, cafes, hotels, and airports. The range
                     of Wi-Fi is limited, however, and the user must be located within 300 feet of the access
                     point. Wi-Fi equipment is now commonly available and many of the latest platforms can
                     support multiple Wi-Fi standards for compatibility with several wireless networks.
                        WiMAX is the latest technology to emerge that will give users broadband access
                     covering a larger geographic area. The goal is to be able to provide the same access as
                     Wi-Fi does today over a much larger distance. WiMAX can cover anywhere from one
                     to five miles depending on a number of variables such as the area terrain. WiMAX will
                     give users increased mobility for high-speed data networks and has the capability of
                     covering entire campuses and business parks.
                        Table IV lists the different technologies and standards applicable to Company X
                     and their projected time of availability.

                     Technology acquisition options
                     In order to survive a competitive broadband market, companies rely on strategies of
                     technology acquisition, internal technology sources, or a combination of internal and
                     external technology sources. When deciding whether or not to choose a particular
                     strategy, managers or consultants closely study the various types of technology
                     acquisitions from multiple perspectives (Linstone, 1999). Buying technology can be a
                     viable strategy for incumbent market leaders threatened by disruptive technologies.
                     In this section, we will discuss the options in acquiring emerging technology, and the
                     implications of adopting each option are assessed.
                        Acquisition. Emerging technology trends can be treats or opportunities, depending
                     on whether companies are incorporated them successfully with their overall strategic
                     directions. Since patented technology cannot be duplicated, the faster way to acquire
                     the technology needed is to pay a premium. Obviously, managers realize that it is too
                     late to invest heavily to develop their own technology solution. This is a justification to
                     maintain the market share (McGrath, 2001). Cisco and Microsoft are the excellent
                     examples of two companies that applied successfully applied technology acquisition
                     strategy. To accomplish the vision of end-to-end solutions both companies preferred
Roadmapping
Features              Technologies/standards                        Performance measures         Year
                                                                                                        the convergence
Wireless connection   Wi-Fi Standard IEEE802.11a/b/g/n, 3G         1-11 Mbps                     2009    of technologies
                      Super 3G                                     20 Mbps                       2009
                      Wi-MAX (IEEE 802.16)                         75 Mbps                       2009
                      4G                                           Over 100 Mbps                 2010
Wired connection      Ethernet (802.3i, 802.3u)                    100 Mbps                      2009                  685
Multicasting          IP v6 Multicasting                           Compliance to RFC 1458,       2009
                                                                   3550
Stream live video     CEA *-708-B, digital television (DTV) closed Support all types of          2009
                      captioning                                   captioning
                                                                   (roll-up, pop-on, paint-on)
                      ATSC Standard A/53E. Digital television      Sequence header               2009
                      standard                                     constraints *
                                                                   Compression format
                                                                   constraints *
                                                                   Sequence extension
                                                                   constraints *
                                                                   Picture coding
                                                                   constraints *
Compression           MPEG-2, MPEG-4, DivX, XviD, WMV,             Compliance *                  2009
                      WAV
                      MPEG-7                                       Compliance *                  2009
                      MPEG-21                                      Compliance *                  2010
Security              Virtual private network                      128-bit encryption            2009
Video mail service    H263, H261                                   compliance                    2011
Digital rights        WMDRM                                                      –               2009
management
                      IBM’s xCP (for home networks)                             –                2011
                      Sony’s OpenMagicGate (OMG)                                                                   Table IV.
                                                                                                             Technologies and
Note: *Evolving standards. Compliance to the released version of the standard at the specified date         time of availability


acquisition than internal development (Knowledge@Wharton, 2005). An important
consideration of the acquisition strategy in assessing the benefits of acquired
technology is cost. Cost is the critical part of the strategy decision when the potential
value of acquiring a disruptive technology can be accurately estimated. The key issue
is to consider all costs of the technology acquisition: up-front cost, installation,
adoption, and training (McGrath, 2001).
    License agreement. License agreement is the option that reduces the need to acquire
companies with disruptive technologies. Instead of purchasing emerging technologies,
licensing is a better way to access innovation. The main factor of making this decision is
the lack of the capital to acquire the technology. AT&T was the pioneer of offering
license agreements in the telephony market. In 1904, 6,000 companies were Bell licensees
(Austin and Bradley, 2005). When a new technology is on market, organization simply
replaces the obsolete technology with innovative solution. Convenient, inexpensive
licensing cut the cost of acquiring emerging technologies. Another factor of making this
decision is the risk associated to rapidly changing technology and industry standards.
The disruptive technology becomes obsolete in five years or less (Betz, 2003).
What functionality will customers need five years from now? In a high technology
business an incumbent company cannot succeed forever having to sustain for an
BIJ    ever-increasing disadvantage of stagnant, obsolete or less competitive technologies.
18,5   With expensive, state-of-the-art technology, licensing is often the most logical
       acquisition strategy that helps preserve cash flow because the organization does not
       have to spend large sums to acquire the emerging company. On the other hand, licensing
       has a serious disadvantage for the supplier of technology. The problem with licensing
       consists of reverse engineering. Innovation bears the burden of the copyright
686    limitations. Organizations in countries without Intellectual Property laws can produce
       clones of the innovations without having to pay the royalties. Global legal initiatives
       must be taken to address this problem that can show down the acquisition of additional
       new broadband technologies.
           Joint venture. The third option for technology acquisition is to establish joint venture
       with industry research leaders. Establishing an in-house capability for developing
       emerging technologies will require more capital that joint venture. In a joint venture, the
       first milestone of the companies is to consolidate their resources. This option
       requires investment in R&D to develop a new platform targeting a new market. An
       additional advantage of a joint venture consists of the sustaining access to innovations.
       Consequently, the broadband players seek out features and performance to broaden
       their products and technology portfolios to better serve their customers (Betz, 2003).
       However, the strategy of joint venture is generally less successful. A typical example of
       this scenario is the joint venture of Intel & HP in the early 1990s. Intel and HP brought
       Itanium, a 64-bit microprocessor, on the market too late and less performance than
       initially claimed. To shed some light on this failed joint venture, McGrath (2001) offered
       the following reasons:
           .
              difficult for both partners to share a common interest;
           .
              cultural differences;
           .
              different decision making styles;
           .
              different attitudes on investment;
           .
              different working practices and compensation; and
           .
              different product development processes.
       There are three options for acquiring a new technology: acquisition of the emerging
       company, license agreements, and joint venture. The company must identify a list of its
       pros and cons of each option of technology acquisition. The sum of the benefits minus
       costs over the life of the technology will show which option has the best potential for
       sustaining in the competitive broadband market.

       Roadmapping
       Environmental layer
       The business of Company X will be affected by a mix of external agents. This includes
       the policies regarding content protection and digital rights management, government
       policies which affect the pace of broadband deployment and technological or device
       innovation, alliances between Company X and cellular technology providers, local
       content provider’s regulations and the digital content provider’s copyright
       and redistribution policies. Over the span of next five years, some of these issues
       need to be addressed to or modified in order for place-shifting solutions like Company
       X to continue to be in demand and in use (Figure 8).
2010                              2011                          2012                          2013           Roadmapping
                                                                                                    Cable tv alliance
                                                                                     Cellular technology alliance               the convergence
   Environment                                                                           Content redistribution
                                                                                     Content protection                          of technologies
                                                                             Digital rights management
                                                              Broadband access
  Market driver                                          Increased digital content subscription
      General                                                                   Increased mobile device penetration
      Techno geek
                                                                                        Integrated platform
                                                                                         Satellite HD radio                                   687
      media savvy                        FM local radio
      Main street               Remote access to digital data                          Remote access to digital data
                                                      Remote access to digital tv content
                                                                                                                        UV4.0
                                                                                                          UV3.0
                                                                                         UV2.0
     Product
                                                                               UV1.1
                                                                       UV1.0
    Technology                                        Satellite radio signal converter
                                                          Server software               Multicast s/w
      To develop                    Analog-to-digital converter                        DRM handling
      Available                            Sreaming server         Mobile GUI s/w                       IPTV s/w
      Standardized     Encryption     Compression                  WiFi   WiMAX                  Video phone s/w
      Resource
         High
         Medium
         Low
       Acquisition                                                                                                                         Figure 8.
                                           Licensing
         strategy                                                                                                                   Example roadmap
  Licensing                               Joint venture
  Joint venture                                                                                                                        of Company X
  Buying                                  Buying



Market layer
Company X evaluated the different market drivers for the industry during the time
period 2000 through 2010. The increasing broadband access acted as a major driving
force which gave rise to subsequent customer demands and needs.
   We categorized the market drivers into general and market segment specific.
Growing customer need for broadband access is a general driver applicable for all
consumers. The VoD figures along with IP video offering forecast gives an idea of the
increased digital content subscription and thus customer’s wish not to miss any of
these subscribed programs. Increased mobile device usage over time is also considered
a generic market driver for the industry (Iyer and Scherf, 2006).
   Looking at market segment specific drivers, techno-geek and media savvy are more
likely to have a need to remotely access their digital data when away from home. The
major driving factor for the main street for choosing Company X solution would be to
have remote access to digital TV content. However, looking into the future, we see the
main-street segment merging with the techno-geek and media savvy as far as the need
to access digital data remotely is concerned. In a few years time, today’s main street is
probably going to become the media-savvy person. We also visualize a disappearing
market driver of today – the need to support FM local radio. Satellite radio is
advertisement free and few years down the lane, people will prefer that over the FM
radio. All of this data is captured as market drivers against timelines in Figure 9.

Product layer
After identifying the market drivers for Company X’s different customer segments,
we phased out the product development over the next five years. The first release of the
product, UV 1.0, is planned towards the end of the first quarter of 2011. Table V
summarizes the various product releases of Company X and the features associated
BIJ              with each. UV 1.1 is scheduled for release before the holiday season and the subsequent
18,5             releases UV 2.0, 3.0 and 4.0 are planned for back-to-school time releases (Figure 10).

                 Technology layer
                 Figure 11 shows some of the technologies which are essential for the success of
                 Company X products. Some of the technologies are standardized solutions while some
688              need to be either developed in-house or acquired.

                 Linking the roadmap to a business strategy
                 One of the critical benefits of the roadmap is that it can provide deep understanding on
                 various perspectives surrounding their business and help to catch a new opportunity.
                 The roadmap developed here provides an overview of the wireless streaming industry.
                 Figure 11 presents an example of application to business strategy. From the ecosystem,
                 two scenarios had been suggested. Based on each scenario, a company has two
                 business options. One is to develop their own brand and sell them in the market while
                 the other option is to sell their product as a component for a set-up box provided by a
                 cable company. As shown in resource lay, those options require different resources and
                 thereby different set of technology acquisition strategies.

                 Conclusion
                 Roadmapping is shown to be a comprehensive tool providing overall business
                 strategy. Technology and market forecast are critical for creating as accurate a
                 roadmap as possible. Understanding of environment and thereby ecosystem helps
                 draw a better picture of the future. Companies like Company X wishing to build a
                 business based on innovation need to understand the market need and match them
                 with the mix of available technology. Creating and maintaining an accurate technology
                 roadmap will help the company reach its strategic objectives in the long term in
                 contrast with hasty tactical efforts carried out with short-term goals in the broadband
                 market. The success of Company X’s broadband business strategy depends on the
                 understanding of the current regulations and the possible impact of future laws related
                 to digital content.
                    In addition, this paper demonstrated how any company can use the TRM and
                 accomplish both external and internal benchmarking. Specifically, the graphical
                 representations provide managers extreme insight into the competitive forces and let
                 them make decisions easier.

                                       2000                                       2010                                        2012
                                                   Broadband access
                      Market
                      driver                                      Increased digital content subscription
                                                                                          Increased mobile device penetration
                                                                                          Integrated platform
                        General                                                          Satellite HD radio
                                              FM local radio
                       Techno geek
                        Media savvy                Remote access to digital data                Remote access to digital data
                                                                    Remote access to digital tv content
Figure 9.                Main street
Market drivers
for Company X
Roadmapping
                    UV 1.0       UV 1.1       UV 2.0          UV 3.0                    UV 4.0
                                                                                                            the convergence
Planned release     August  December          June 2012       December 2012             June 2013            of technologies
                    2011    2011
Major market        Main    Media             Media         All                         All
segment target      street  savvy             savvy
                            Techno-           Techno-                                                                     689
                            geek              geek
Hardware         UV box at H/w                H/w support None                          None
                 home       support           for satellite
                            for Wi-Fi,        radio
                            WiMax
Software         Client s/w Client            Client s/w      Client s/w                Client s/w
                            s/w,              Server s/w      Server s/w                Server s/w
                            Server
                            s/w
Device supported TV, DVR, PC, TV,             Satellite       Satellite radio, PC, TV, IPTV, video
at home          TiVo,      DVR,              radio, PC,      DVR, TiVo, radio         phone, satellite
                 radio      TiVo,             TV, DVR,                                 radio, PC, TV,
                            radio             TiVo, radio                              DVR, TiVo, radio
Client devices   Laptop,    Laptop,           Cell phone,     iPod, Zune, cell phone, Car TV, iPod,
supported        desktop    desktop           PDA,            PDA, laptop, desktop Zune, cell phone,
                                              laptop,                                  PDA, laptop,
                                              desktop                                  desktop
Distinct features   Stream       Stream       Data            Software-only solution More home
                    TV           all          recording       Multicasting support     devices support
                    content      content      More mobile
                                 Wireless     devices
                                 support      support
Assumptions         Main                                      Majority of people        IP TV penetration
                    street has                                have PC at home.          is at least
                    no PC at                                  (Main street merges       25 percent
                    home                                      with Techno-geek)
                    TV                                        Satellite radio is
                    content                                   popular than FM
                    viewing is                                TV and satellite radio                                   Table V.
                    main                                      tuner card                                      Company X product
                    motive                                                                                       release schedule




                2000                                                             2010               2011
                                            Satellite radio signal converter
 Technology                                        Server software  Multicast s/w
   To develop                    Analog-to-digital converter       DRM handling
  Available                               Streaming server
  Standardize                                                  Mobile GUI            IPTV s/w                         Figure 10.
                                                                                                                 Key technologies
                        Encryption     Compression         WiFi    WiMAX       Video phone s/w                    for Company X
BIJ                                                                          2010                              2011                           2012

18,5                          Ecosystem scenario
                                    Scenario I                                      Provide
                                                                                                   Scenario I : content provider's objection for
                                                                                                   multicasting
                                                                                    own
                                    Scenario II                                     product        Scenario II : content provider's objection
                                  Product                                                                                                       UV4.0
                                                                                                                                 UV3.0
                                                                   Provide as a component                         UV2.0
                                                                   for cable company
690                                 Hardware + s/w
                                                                                                        UV1.1
                                                                                                   UV1.0
                                                                                                                                     UV2.0
                                    s/w only                                                                          UV1.1
                                                                                                       UV1.0
                                                                               Satellite radio signal converter
                               Technology                                        Server software                 Multicast s/w
                                 To develop                     Analog-to-digital converter
                                                                                                             DRM handing s/w
                                  Available                          Streaming server                 Mobile GUI s/w              IPTV s/w
                                  Standardized       Encryption Compression                    WiFi WiMAX                   Video phone s/w
                                 Resource
                                  High
                                  Medium
                                  Low
Figure 11.                    Acquisition strategy                                     Licensing
Linking the roadmap to            Licensing
                                                                                       Joint venture
business strategy                 Joint venture
                                  Buying                                               Buying



                         References
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                         ArsTechnica (2010b), “Will Hollywood sue the SlingBox out of existence?”, available at: http://
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                               Truly Interactive World (Hardcover), Harvard Business School Press Books, Boston, MA,
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                         Bain & Company (2009), Mobile Internet for Growth: Project Report, Prepared by Bain &
                              Company, World Economic Forum Annual Meeting 2009, Davos, January, available at:
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                         Betz, F. (2003), Managing Technological Innovation: Competitive Advantage from Change,
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Chermack, T.J., Lnham, S.S. and Ruona, W.E.A. (2001), “A review of scenario planning                 Roadmapping
       literature”, Futures Research Quarterly, Summer.
                                                                                                   the convergence
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       Provider”, available at: www.comcast.com/default.cspx (accessed 28 November 2010).           of technologies
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       Management Inc. for the Cultural Human Resources Council, January, available at: www.
       culturalhrc.ca/research/CHRC_Digital_Media-Content-Creation-TRM-en.pdf                                 691
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       recorder – DVR to DVD recording”, available at: http://hometheater.about.com/od/dvd/qt/
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Intel Viive Technology (2006), Intelw Viive Technology, Sharing Media, available at: http://
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3.roadmapping the

  • 1. The current issue and full text archive of this journal is available at www.emeraldinsight.com/1463-5771.htm BIJ 18,5 Roadmapping the convergence of technologies for services over broadband 668 A benchmarking effort Tugrul U. Daim Portland State University, Portland, Oregon, USA, and Pranabesh Dash Intel Corporation, Hillsboro, Oregon, USA Abstract Purpose – This paper aims to present an application of the technology roadmapping approach for exploring the implications of technologies converging for a service sector. Design/methodology/approach – The paper uses the fundamental concepts behind creating a technology roadmap. These include market and business analysis, product analysis, technology analysis and resource allocation. Findings – The study demonstrates the use and modification of technology roadmaps for technology driven service business segments. Originality/value – The process of developing a roadmap for services over broadband presented in this paper can be used as a standard process of developing a technology roadmap for any organization in a similar business. Keywords Strategic planning, Services industries, Mix mapping, Digital technology, Broadband networks Paper type Research paper Introduction Technology Roadmapping (TRM) which is getting broad attention in technology industry is a technique that helps organizations to do strategic planning and align technology with business objectives. This paper presents creation of a technology roadmap to deliver services for digital data streaming over broadband. The ever-expanding demand for mobility and digital content has created great market opportunities for cable and telecom companies. Products such as desktop, laptop, PDAs, cell phones, and digital players are part of the main customer drivers in accessing the digital contents. Every digital content owner is eager to access their paid and private information from everywhere. Therefore, there is a real demand for reliable portable solution to enable the mobile users to be more productive and happier. A number of companies around the world already deliver similar products but limited services. This paper explores what it would take to offer the service in the Northwest Benchmarking: An International USA. A benchmarking effort will be conducted among the actual companies with actual Journal products. The market analysis, benchmarking and roadmapping process presented in Vol. 18 No. 5, 2011 pp. 668-693 this study can be used by any company interested in offering similar services in a region. q Emerald Group Publishing Limited 1463-5771 A hypothetical company named Company X, planning to be a player in the market, will DOI 10.1108/14635771111166811 be assumed for which the aforementioned analyses are conducted. The product features
  • 2. will be introduced progressively to either accommodate newer technologies or introduce Roadmapping other changes. The study includes creation of roadmaps of market, product, technology, the convergence research and development (R&D) and environment. These factors are considered very important for organizations that are sensitive to emerging technologies in the maturing of technologies broadband market. The proposed approach at the end will help identify market opportunities. Considering traditional TRM methodologies the effect of environment has been identified as a gap. This paper emphasizes the importance of environment 669 along with the traditional TRM layers. The process of developing a roadmap for services over broadband presented in this paper can be used as a standard process of developing a technology roadmap for any organization in similar business. The availability of broadband and the arrival of WiMax technology in the Portland metro area (WiMAX, 2010) opened a lot of opportunities for new products and services. To exploit the availability of bandwidth and reach of internet, companies can make any legal digital content (Russell, 2008) that one can access on a home or fixed system go mobile (Digital TV Europe, 2010) while keeping security in mind. There are situations when people want to show the software installed on their home computer to a friend at a location away from home, using a mobile laptop. Another situation to consider is where a person has subscribed to certain premier channels on Cable TV but is traveling, and hence missing out on some of the favorite programs. If the user has paid for it, why should there be the constraint that he or she cannot watch it while away from home? Also a situation where a person wants to access his voicemail, fax received at home or state of home security system to be accessible from anywhere. TRM is planning framework widely used in industry for strategic and long-range planning. The traditional TRM presented by Phaal et al. (2004) consists of three layers (technology, products and markets). This paper will emphasize on the importance of future environment conditions (R&D and government policies). The environment condition is presented as an additional layer in the TRM. This study will clearly show how the additional factors can have high influence on the destiny of the technology. The paper is organized as follows. A hypothetical company named Company X, planning to be a player in the marker, is assumed whose profile matches a typical consumer for this study. First, an overview of the company and its product offerings are presented. Followed by the overview, the impact of the environment and policy that affects functioning of Company X in the market is studied. Then a detailed market analysis is conducted by segmenting the market and discussing the customer value drivers (CVDs) for Company X. Next a detailed product technology analysis is presented that subsequently helps in scenario planning and roadmapping presented in the final section. Literature review TRM helps organizations communicate and explore relationships between evolving and developing markets, products and technologies over time (Phaal et al., 2004). TRM can also be used as a tool to integrate corporate strategy with technology strategy for better profitability (Phaal et al., 2005; Kameoka et al., 2003). The TRM process being very flexible there are multiple ways to representing a technology roadmap and are used for different purposes (Phaal et al., 2004; Phaal and Muller, 2009). The flexibility of TRM process was seen as a roadblock for adoption in case of some organizations. There were some proposed approaches to customize the TRM process to achieve a balance between personalization and standardization (Lee and Park, 2005). TRM approach also has been suggested to help
  • 3. BIJ better decision making in long term. The decisions under consideration are new 18,5 technology product development by incorporating factors beyond finance based and return on investment (Petrick and Echols, 2004). Roadmaps provide a compact visual of the high-level view of an organization and the technology under review. The visual nature of the roadmap supports better communication among stakeholders and considered to be the main reason behind the attractiveness of TRM method (Phaal and Muller, 2009). 670 Technology development is part of a complex system of knowledge generation and transfer and has dependencies on factors such as technical barriers, associated change required and organization strategy. Most of the time TRM process assumes a given future and finds possible paths to get there. The future might consists of alternatives and it is important to incorporate it into the TRM process (Lizaso and Reger, 2004). Scenario planning is one of the tools for making strategic decisions in an environment of uncertainty. It helps anticipate changes and identify discontinuities, reduces risk, provides a common framework for discussing and dealing with complex situations (Chermack et al., 2001). Wide deployment of broadband has enabled real-time and rich-media collaboration. This has helped create new markets and strategies for broadband-based technologies. This topic has been dealt in detail in the compilation by Austin and Bradley (2005). Though the work does not create a roadmap for broadband in the traditional sense it clearly demonstrated the importance of policy making and environment on future of broadband. The TRM process presented here tries to incorporate the environment and scenarios during roadmap creation. Client overview A typical consumer of this study is a company that is already in the video streaming, providing limited place-shifting (Sling Media, 2010) or time-shifting (The eMarketer Blog) solutions and content providers such as cable TV service providers. Though new entrants are also targeted but it might take more capital investment to acquire technology and creating relationships with content providers (Digital TV Europe, 2010). After doing a review of various solutions in the domain that exists today, almost all of them include some dedicated hardware that goes along with application software (Sling Media, 2010; Video Streamer; Place-Shifter; Mobile TV, 2010; TV2MEw, 2010; SonyStyle USA, 2010; Orb, 2010). Company X’s proposed solution will focus on software creation for various mobile platforms while trying to minimize the target hardware-related cost. A company having experience in streaming software applications will have an advantage over other companies. Profit margins will vary depending on the investment and decisions to develop technology in-house or, acquire existing technology. Clients considered here are medium to large-sized companies for its business. Companies with revenue over $250M and more than 5,000 employees qualify as large businesses. Medium businesses can have anywhere from a few hundred employees to a couple of thousands. Product overview The digital revolution has reached the home front, primarily with the introduction of the internet and its associated technologies. The internet was originally designed to act as a mechanism to exchange electronic data. This has begun a worldwide demand for access to computing and communications from anyplace at anytime (Internet Trends, Morgan Stanley, 2010).
  • 4. Company X product will be a “place-shifting” solution which enables to user not to Roadmapping be restricted by location for certain content, similar to what “time-shifting” had done the convergence for scheduling. With special interconnecting cables and networking adjustments one can watch TV or TiVo, or DVD player from just about anywhere (ArsTechnica, 2010a) of technologies one can get a network connection – be it at office, in a hotel room, or the other side of the planet. Company X targets to transform any internet connected/enabled laptop, PC, PDA or cell phone to a personal media device. Company X proposes to start out 671 with a stand-alone product – a combination of hardware and software solution, trying to leverage as much as possible from existing solutions (Figure 1). The customers pay a one-time device cost and install the Company X compatible hardware device at home. The Company X hardware at home can connect to any component, storing or streaming media content. The Company X software is a client-installation required for the mobile devices which will act as receivers for the data. The onus is completely on the customers to ensure legal streaming of data. Product introduction The Company X box converts analog signals to digital signal (if needed) (Fcc.gov, 2010a), converts those into IP packets (BroadbandSuitee, 2008) and sends securely over internet to the authorized device. The analog signal can be the analog TV signal or, FM radio signals. The hardware-encoding device does the encryption and compression (Russell, 2008) of the content before sending it over the internet. The compression is done with connection speed consideration to deliver high quality streaming. Industry standard encryption is done to meet minimum security requirements. Company X software gets installed on the mobile device such as a laptop, PDA or cell phone. The user can login to the home network remotely using secure authentication and stream content from TV or other digital storage device. Some of the product features of Company X include: . Remote access to digital (streaming) data on cell phone, laptop, PDA, remote PC, IP TV. . Wireless-enabled Company X hardware. . Multicast feature support (simultaneous remote and local viewing). . Multiple source, multiple user support. . Peer-to-peer sharing. . Pause, rewind, fast forward controls. . Record and burn to DVD. Content subscription Internet Data in PC ABM HW ABM SW Figure 1. "streaming "client/receiver" Company X solution server" overview
  • 5. BIJ Product description 18,5 The following devices can be connected to Company X hardware box at home using a cable for the input signal – TV or IPTV, Home PC, DVR, DVD player, satellite radio receiver. The Company X box can also connect to any wireless enabled device at home such as a laptop, PDA or, cell phone. Company X is introduced with the unicast feature where at any point of time, only a 672 single remote device can be connected to access the content. In the future products, multicasting will be supported where multiple remote devices can connect and access the same content. However, it will be done only with content provider’s consent and with taking care of digital distribution rights. The idea is somewhat similar to that of the pay-per-view service. In case of multicasting, the appropriate content provider will be notified for billing purposes. Peer-to-peer connection support will help sharing of the content between customers owning Company X box as long as the legalities are met (Russell, 2008). Company X solution alternatives are the following. Software-only solution . Supports TV, PC, mobile device (laptop/cell phone/PDA). . Needs a PC at home and a TV tuner card. . Company X server software on PC and client software on mobile devices. Hardware/software solution . Supports TV, mobile device (laptop/cell phone/PDA). . Company X compatible hardware connected to TV and other home media storage devices. . Company X client software on mobile devices. Value proposition Company X proposes a solution for consumers that want to have access to all digital media at home even while they are traveling. The user who might have subscribed to a lot of TV programs but is not able to access while outside of home. Company X makes it possible by providing a secure and unified access to contents stored on a personal computer, digital television and any other digital storage media devices. The attractiveness of the solution is that it envisions a single point of control for all aspects of a consumer’s digital home incorporating advanced wireless technology and provides value to the customer at a very reasonable cost. The competition in this market space is still not clearly defined. However, a host of companies such as Sling Media (2010), Monsoon Multimedia (Video Streamer; Place-Shifter; Mobile TV, 2010), TV2Me (TV2MEw, 2010), etc. are already present in this domain. Large players such as Sony (SonyStyle USA, 2010), Apple (Apple TV, 2010), Microsoft (Windows Media Center, 2010), Intel (Intelw Viive Technology, 2006), etc. are also showing interest in this market space. A gap analysis of the functionalities in the product against those currently present in these competitive products. Figure 2 shows the data in a tabular form. The market is divided into three segments, main street, techno-geek and media savvy, explained in details later in the market segment section.
  • 6. Roadmapping the convergence Sling box Competitive COMPA Vulkano TV2Me Market advantage of technologies NYX Orb TV 2011 Main 673 Radio 2011 All Media, Data sources Computer 2011 tech Media Med, 2011 storage tech Video 2013 Tech phone Internal conn. Wireless 2011 Tech Main, Home 2011 Multi casting med Med, Remote 2013 tech Figure 2. Gap analyses for competitive products High Medium Low Environment and policy Our literature search identified the major factors that influence the success of a product. The factors can be broadly divided into two categories, environment (Digital Media Content Creation Technology Roadmap, 2009; Hwang, 2005) and technology. Figure 3 shows how external environment will be affecting the development of the Company X solution over the years. The section “A” in the figure shows the various external factors that will affect the product releases (product type 1, product type 2, etc.) from Company X over the next few years. Section “B” shows the technologies that Company X depends on for providing the solution. Content providers Owing to the stringent copyright policies for rebroadcast of contents, it is very important to create tie-up with content providers and have streaming rights. The following content providers need to be considered for negotiation of content streaming rights: . TV content broadcasters such as ABC (ABC.com, 2010). . Cable TV provider such as Comcastw (Comcast Official Site, 2010).
  • 7. BIJ E Content provider Scenario I 18,5 n v Competitor Policy/regulation Scenario II i r Ecosystem/infrastructure Market drivers o n 674 m e Product type 4 2013 n Product type 3 2012 t Product type 2 2011 Technologies Product type 1 2011 Compression 2010 Security 2010 Video mail service Figure 3. Wired connection Digital rights Effect of environment Multicasting Management on product development Stream live video Wireless connection . Movie studios such as Disneyw (Disney, 2010). . Internet content providers such as EROS entertainment (Eros Entertainment, 2010). . Satellite radio such as SIRIUSw (SIRIUS Satellite Radio, 2010). . Local FM radio channels. Most of the TV programs get to customers’ home through cable. The cable providers sometimes just act as carriers and do not interfere with the content being distributed. However, the retransmission rights still need to be discussed with the source owners such as broadcast TV channels and movie studies that provide the content for movie channels. Cable TV providers control mostly the advertising and pay per view channel accesses (Fcc.gov, 2010b). Internet content providers allow their content to be viewed at home on PCs or IP-enabled TVs. Many of these content providers have special agreement with the internet service providers to customer’s home. The streaming of such content through the home PC over internet to a mobile device might require consent from the content providers. If a user has subscribed to satellite radio service, he or she needs a signal decoder/receiver to enjoy the content. However, this is not portable enough to be moved around. With Company X, this receiver could be placed at home and remote access of programs can be supported. Company X’s technology will help convert the decoded signals to IP packets and stream it. Again retransmission rights have to be acquired from the satellite radio companies. Competitors Although there are currently no players in the digital data streaming market in the Portland area, few companies are getting into this industry in other parts of the world: Slingbox (Web TV wire, 2010), HAVA/Vulkano (Video Streamer; Place-Shifter; Mobile TV, 2010) and Sony LFX (SonyStyle USA, 2010). Slingbox solution is a combination of hardware and software; however there is no built-in wireless support in it. Vulkano is a comparable product with built-in wireless networking support from Monsoon
  • 8. multimedia and Sony’s location-free TV has added PSP compatibility in addition to Roadmapping wireless networking support. TV2Me (TV2MEw, 2010) provides with exceptional the convergence streaming video quality on PC, large-screen TV, PDA or phone but it is very expensive. Further details are available at Sadoun.com (2010). of technologies Government policy Policies are what drive innovation, widespread adoption of a technology or product 675 and encourage competition. Based on the nature of the local government’s role, four categories of actions can be distinguished (Gillet et al., 2004): (1) government as broadband user; (2) government as neutral rule-maker; (3) government as financier; and (4) government as infrastructure developer. As stated in (Hwang, 2005): Federal and state policymakers are exploring initiatives to promote the deployment and adoption of broadband services, and in recent years, an increasing number of local governments have joined them. While the first generation of narrowband dial-up access was able to piggyback on the near universal availability of the mature telephone network, broadband relies on communications infrastructure that is both more heterogeneous and less evenly distributed. The same paper states regarding a 1999 telecommunications survey conducted by the International City/County Management Association that found 93 percent of local governments had a franchise agreement with a cable company, with a 12.2-year average term length. A specific example of Portland, Oregon is mentioned which attempted to force the cable providers to offer unrestricted access to the cable network by unaffiliated Internet Service Providers (Gillet et al., 2004). With no clarity in the state of legislation in the USA, the world of fair use makes way for a dodgy environment for digital content reuse scenarios. The conflict between Hollywood and software developers over the creation of DVD backups is a good example to emphasize the issues associated with fair use rules (Wired.com, 2010). To add to the complication US Copyright Law makes it illegal to circumvent encryption for any kind of use (ArsTechnica, 2010a). For place-shifting, the situation is even more confusing because the ability to record contents and the basic portability of content are supported by the digital devices by default (HomeTheater.about.com, 2010) and respected by the right holders. Recording and moving content online, however, upsets the content producers (ArsTechnica, 2010a). The license requirement in the scenario of streaming music over the internet, from one system to another, is still murky (IP Communications, 2010) and the situation seems similar in case of video. The digital content owner wants to draw extra/continuous revenue from once legally purchased content by one user and how it is shared or distributed later (Intellectual Property Watch, 2010). It is clear that broadcasters are not doing enough to reach to their customers. The existing gaps are filled by products like Slingbox and when content providers realize that someone else is exploiting the gap, they also want a share of the pie (ArsTechnica, 2010b). It seems time-shifting has come of age as the practice been upheld by the courts,
  • 9. BIJ and TiVo like devices have become widespread. Place-shifting needs a similar 18,5 legislation in place and should help protect consumer rights while not constricting innovation (ArsTechnica, 2010a). Ecosystem The ecosystem involved with the Company X’s product is wide and varied. Figure 1 676 show how the product fits into the complete picture of content delivery. The different players involved are the following: . cable TV content providers; . cellular service providers; . internet service providers; and . government agencies and policy makers. As stated earlier broadcasters want to make money from certain kind of content “place-shifted” by entities like Slingmedia. The independent operation of content providers and “place-shifters” is having is having a negative effect on content providers’ business models (ArsTechnica, 2010b). Company X, on the other hand, suggests creating a new business model where all these stakeholders are involved and play a role. The future of this industry might need collaboration between the content providers, government and the innovating companies. Scenarios Some of the scenarios for Company X to take into consideration are as follows: Scenario 1. Content providers object to Company X’s feature for multicasting. Multicasting would mean multiple users being able to access content. This would in turn result in content providers modifying their policy of one-user per connection. There needs to be a way in which billing for each additional viewer or channel needs to be devised. Scenario 2. Cable TV company provides Company X box’s functionalities in its own setup box. This means Company X will work with cable TV companies to make sure that the ecosystem for Company X solution is standardized and focus completely on its software solution. Market analysis As seen in the research, there is a huge potential in this market that is still untapped. The streaming media market is still in an introductory phase. And there is a growing need for this technology. The streaming media market revenue is projected to hit $6 billion by 2011, up from $915 million in 2005 (Insight Research, 2010). Major media distribution solutions existing today are PC based (upcoming devices like mobile phones are yet to work seamlessly with existing TV and other devices). However, the consumer electronics-based solution, which Company X offers, is expected to enhance the PC media server-based systems in the next few years. Market segment overview The markets for the streaming media are segmented into three classes for simplicity, namely, “main street”, “media savvy” and “techno-geek” as shown in Figure 4.
  • 10. Roadmapping the convergence of technologies 677 Figure 4. Market segment overview These signify the mass market, the sophisticated market, and the experimental market. Although media savvy present the biggest market size and high potential growth rate, the segment attractiveness analysis shows that the preference of main street and techno-geek also matches Company X’s capability, potential and focus. This finding provides a direction for Company X’s future product strategy development and market driver planning. By focusing on techno-geek, Company X can also monitor the evolution of the streaming media industry and better react to the trend shift. Main street. The “main street” group love their TV, movies, and music but are not concerned about where they come from. This consumer group is made of people who are not technology enthusiasts. They are typically more than 35 years old, working men and women, who have low computer literacy. They use electronic equipment such as audio-video systems, computers, electronic security systems, personal organizers, cell phones, etc. – but they have very little understanding of the technology behind these products. Though these consumers are price-sensitive, their buying decision is not completely influenced by price of the product. This group’s need for Company X solution can be attributed to their heavy dependence on the very simple use of complex technologies. They want to access their TV programs while at a friend or neighbor’s place. These people seem to naturally fit in the profile of the “late majority” in the “Technology adoption life cycle” (Moore and McKenna, 2002). They like to buy proven, bundled, pre-assembled packages, which they can start using with minimum setups. Quality and post-sale service and support is a major factor in this group’s buying decisions. This group is very sensitive to past experiences and will not soon forget an unpleasant experience with a particular brand. This will influence future purchase decisions. This segment inherently resists new technology products. Nevertheless, this segment has a huge potential when the proposed product becomes popular in the mainstream market. Media savvy. The “media savvy” group is very knowledgeable about the latest media contents coming to the marketplace and always wants to be at the forefront. This group of people is mostly traveling and would like to not have to carry their data around with them. They would like seamless access to all digital content at home as well as their favorite subscribed TV programs while they are away from home.
  • 11. BIJ This segment is comprised of consumers who share some of the “techno-geek” users’ 18,5 ability to relate to technology, but ultimately they are driven by the strong sense of the practical applications of the product (the ability of that product to achieve a high level of satisfaction) and how they are perceived by their friends (These people do not want to feel “left behind”. The status of having new and proven technology gives them the feeling of a smart consumer who is able to make good choices and get the most out of a purchase). 678 They do have a strong interest in incorporating technology in their lifestyle. They have basic knowledge of technology components and their uses, and they are willing to experiment to a certain degree, but are unwilling to adopt them until they have been validated by the market (i.e. they are not the first movers, but may be willing to adopt earlier than the mainstream market). They are interested in developing their knowledge where it can help them become more efficient. Products that leverage the existing proven technologies (such as wireless, internet, etc) could easily interest this group. Techno-geeks. The “techno-geeks” are fascinated with new technologies and keep updated with new equipment as it becomes available. They love the concept of being able to access their data on a single device and on-the-go. This group naturally fits into the “Innovator” or “Early adopter” segment in the “Technology adoption life cycle”. Their advanced knowledge of technology gadgets tempts them to want only the newest devices, with plenty of options, all the time. They would make an excellent segment for planning the “beachhead” – mainly due to the fact that technology is part of their lifestyle. They can be labeled “do-it-yourself” group, since they generally require minimal installation services or product support. This group’s non-stop pursuit to use the newest devices available in the market leads us to believe that this group will be an ideal segment to start with. This segment looks for other key factors such as “multi-use” capabilities and flexibilities, ability for after-market customization, etc. Another key factor for this group would be the “social implication” – the thrill of owning the latest technology. They are more concerned with how the new device helps them personally rather than how it affects their friends’ perception of them. The small size of this segment is a cause for concern – it may be difficult to sustain growth catering just to this group. Segment attractiveness factor analysis After identifying three candidate segments, the second step of the analysis is to select segment attractiveness factors and use these factors to evaluate the attractiveness of each segment. The requirement for these factors is that they must be connected to the characteristics of the product and relevant to CVDs for media controller (Lazarevski and Dolnicar, 2009). Table I captures this data. Customer value drivers The second type of the attractiveness factor is CVDs. CVD are “decision-related attributes that are perceived by the customer to be the most important” to the product choice process (Harmon and Laird, 1997). The preference of each segment on these factors will influence the level of attractiveness for Company X. The preference of each segment is presented in Table II. Figure 5 shows the plot of the value attractiveness curve for each of the customer segment on a scale of 1-10. Data were collected after identifying customers in each
  • 12. Roadmapping Features Advantages Benefits the convergence Techno-geek Streaming data Watch streaming media Do not have to store and of technologies accessibility through anywhere obtained carry content along while ultra-mobile device using through subscription only on the move high BW wireless accessible at home today connection. Share the latest cool s/ 679 PDA, cell phones, IP w.game installed at home enabled mobile media dev PC Main street Accessibility of subscribed Watch the cable subscribed Do not have to miss a programs away from home live/stored program at a program while visiting (friend/neighbour) friend/neighbors place neighborhood IPTV Mobile savvy Streaming data Seamlessly access digital Do not have to worry about Table I. accessibility through high data on PC and cable TV forgetting to carry some Preference of each BW connection on a device storage data or video content segment on product away from home. stored at home while away feature, analysis, Remote PC, laptop from from benefit factors segment and asking them to rate each CVD factor. Other factors such as product life cycle and segment size will also influence the attractiveness. Market drivers From the data and analysis in the previous sections, Company X derived the major drivers for this emerging market. A rapid growth in laptop and mobile phone penetration over the past few years has brought an increase in the number of mobile internet users (SMART, 2010). With broadband access being available to a greater segment of the population, people are beginning to realize the potential of high bandwidth. Increased connectivity has brought users to a point where they have become used to staying connected anywhere at all times to almost everything. Content on demand has become the theme of the present times. And statistics show that people are willing to pay for the content as well (Bain & Company, 2009). With ever increasing growth of digital subscriptions such as cable TV, satellite TV, etc. people do not want to miss out for their favorite programs only because they are not at home to watch those. For users, it is legal entertainment for which they have paid a price, why get restricted to stay at home to enjoy it? There is a segment of the customers who are driving newer applications such as video services, online gaming, mobile gaming, etc. And with consumers’ desire for a one-stop solution, Company X like solutions should be ready to fill the gap. Competitor analysis Industry structure strongly influences in determining the competitive rule of the game as well as the strategies potentially available to the firm. Companies have unique strength and weakness in dealing with industry structure. Therefore, understanding industry structure should be performed first for the net assessment. Porter (1996) suggested five competitive factors whose forces jointly determine the intensity of industry competition and profitability. The strongest force or forces are governing and becoming crucial from the point of view of strategy formulation. Figure 6 shows the competitor analysis done for players like Company X in the current market.
  • 13. BIJ Main street (40s, own Media savvy (mid 30, Techno-geeks (mid 20, 18,5 Factors small business) mobile professional) college student) Economic Cost of ownership Would not buy products Concern more on product Not a big concern, but which need lots money to performance than cost should have high 680 maintain quality Degree of budget fit Must fit their budget Somewhat important Not a big concern Performance Faster/easier Need products which are Prefer easy to install A plus in comparison installation and easy to install products to competitors maintenance Feature set Less likely to need best Prefer the best feature set Very important to this feature set group Supplier Resource Conservative buyers. They would consider Reputation for credibility, Only buy from familiar reputation more or less innovation is reputation companies important, but willing to take risks Innovative problem They focus more on Need innovation solutions An important solver quality for their mobile system motivation for purchase Motivation Recognition, want Prefer to buy mature They do not care being the Always wants to be to be the first product with quality and first adaptor so much the first adopter adopter to the reliability. Not important product Desire to be viewedThey will like to be Want to buy a product of Not a huge factor in the as a problem solverviewed as a problem the company which can buying decision solver solve various situations Self image – brand Not connect their self Sensitive to the brand Not as important to image image with that image this segment Situation Buyer’s task They do not have much Want to make their mobile This would be requirement task requirement live easier somewhat important Organizational/ Word of mouth may affect They would consider what Affected by their social influences other suggested immediate peer group Table II. Buyer’s experience Experience has no or little Experience with streaming Most have had Customer value drivers with related influence media may affect previous experience for each segment products Threat of entry. The entry barrier of this industry is medium. “Economics of scale” of this industry provide opposition by forcing the entrant. Providing a software solution does not need a huge capital investment when compared hardware-based solution. However, access to distribution channels is a barrier to the company since it needs to secure distribution of its products. Threat of rivalry. Although there are already existing players for streaming TV content over internet, there are very few in the Portland area currently. This being a relatively new market, the products and services are new in the industry. And they belong to entry stage of the product life cycle. Different companies have different product strategies. And these diverse strategies of competitors prevent them from reading each other’s intentions accurately and agreeing on a set of rules of the game
  • 14. 10 Roadmapping Main street 9 the convergence of technologies 8 Media savvy 7 6 681 Techno-geek 5 4 3 Product focus Contents Function and mobility 2 of nce l e w ra d a al lit an ucts d pe r ns ty ty op t er n ne cific nc og be ng ee ts e A er rod late io Ea nten nst ee om ili ili lv ith m tio pt rie pr cri m Fu eds ni ut so ib ob la ai r i p re nc ar m ust ol ds bs ss M m asle em C, le es ee su ce to d c eP bl tiv en ac E of ro se ot va qu ta ty bi st ap m da no ili ni Figure 5. Re y nd In sib eu as g pe in U ire es av Ex am Value attractiveness curve cc H es re A D St Potential companies Sling box Orb communications Tivo to go Threat of rivalry Sage tv (low) Air tv • No competitor in the market Hava Threat of entry (medium) • Economics of scale Threat of buyer • Product differentiation (low) Digital content • Capital requirement distribution • Moving to alternative in suppliers pacific NW Threat of substitute Threat of supplier (medium) (high) • Stroge devices • Cable tv companies • Limitation on quality and • Internet service Figure 6. content Porter’s five forces • Cost is high, sometimes analysis for the industry. Some are software-based solution only while some are a combination of hardware and software. There are a few competing products and they do not meet the needs of the customers completely in terms of cost, performance and feature set.
  • 15. BIJ Threat of substitute. The threat of substitute in this industry is medium. The alternative for consumers is to use data storage devices such as digital video recorder or TiVo for their 18,5 TV programs. Media-savvy users will alternately carry their data around when they are traveling. There is limitation on quality of content; the cost too is high at times. Threat of supplier. The suppliers, which are content providers and internet service providers in this case, have high power in this market because Company X needs to 682 establish tie-ups with each of them. Suppliers form a part of Company X’s ecosystem. Product specification and inter-working with other components is very essential to provide the consumers with a high-quality solution and reliability. There is also a scenario where the content providers host their own content and enable streaming through internet. Threat of buyer. The threat of buyers is low in this case. The buyers cannot play one company over another because products and services are not available yet in the Portland metro area market. The switching cost of the solution, once a customer sets it up at home, is relatively high. Also, customers might be relatively less sensitive to the price since quality of the product in this industry is important for the consumers. Product and technology analysis Product specification Efforts and investments can be made to make Company X hardware not bulky and easy to set-up but customers usually avoid having another piece of hardware in their living room. Company X must also offer software-only solution for customers having a PC and TV tuner card. The advantage of having a hardware system is better security and quality streaming (Bar-El, 2002). Software solutions have the advantage of the ability to be updated more frequently and can update the customer with additional features sooner than a complete hardware solution. Hence a combined hardware and software solution is best placed to serve the customers. The TV tuner card connects the TV to the PC and the Company X software installed on the PC does the compression, encryption and streaming. The software-only solution may have limitations compared to hardware-based solutions. An example product specification for Company X can be as follows: Full product specifications General Width – 11 inch approx, depth – 4 inch approx. Height – 2 inch approx., weight – 1.5 lbs approx. TV tuner TV tuner quantity – 1, TV tuner reception system – NTSC/PAL. Audio system Audio: output mode – Stereo. Connectors Connector type 1 – composite video/audio input RCA phono £ 3 installed rear, 1 S-video input 4 pin mini-DIN installed rear, 1 RF input RCA phono £ 3 installed rear, 1 composite video/audio output 4 pin mini-DIN installed rear, 1 S-video output RJ-45 installed rear, 1 network RCA phono £ 2 installed rear, 1 Audio line-in RCA phono £ 2 installed, 1 audio line-out.
  • 16. Coaxial digital input Roadmapping Yes the convergence Accessories of technologies Power adapter, network cable Power 683 External Shipping dimensions Packaged quantity – 1 Technology assessment Company X incorporates a number of technical features to provide users with a single interface on their mobile devices to connect and enjoy the media and content at home as shown in Figure 7. One of the major technologies Company X capitalizes on is wireless technology. The introduction of Wi-Fi technology and access hotspots is just the beginning of the application of this technology. These hotspots provide internet connections to users within a limited range from an access point. Although this technique extends the reach of the internet, it still limits the movement of the user to within a short distance from a fixed location. Most users would like to have mobile access to their broadband internet connection over much greater distances. The demand for this mobility has continued to force the transformation of the communications industry. The Wi-Fi standard applies to isolated areas of connectivity, while WiMax and 3G/4G (WiMAX FAQ, 2010) are used for longer distance wireless connections. WiMax has been used primarily for computing platforms and 3G/4G works best with mobile devices such as mobile phones. Ultra-wide band (UWB) has a very short range and is used in the home entertainment environment (UWB Technology, 2010). Table III lists each of the technologies and its associated properties. Content subscription Internet Data in PC ABM HW ABM SW "streaming "client/receiver" server" Digital right management Technologies Security management Data encoding Data decoding Uncontrollable Compression Decompression Figure 7. environment Web server Jitter removal Technology in Company Multi DNS service Error correction X’s usage model
  • 17. BIJ Technology IEEE standard Throughput Range Frequency 18,5 UWB 802.15.4 110-480 Mbps Up to 30 feet 7.5 Ghz Wi-Fi 802.11a Up to 54 Mbps Up to 300 feet 5 Ghz 802.11b Up to 11 Mbps Up to 300 feet 2.4 Ghz 802.11 g Up to 54 Mbps Up to 300 feet 2.4 Ghz 684 WiMax 802.16d Up to 75 Mbps 4-6 miles ,11 Ghz 802.16e Up to 30 Mbps 1-3 miles 2-6 Ghz WCDMA/UM 3G Up to 2 Mbps 1-5 miles 1,800, 1,900, 2,100 Mhz CDMA2000 3G Up to 2.4 Mbps 1-5 miles 400, 800, 900, Table III. 1,700, 1,800, Wireless standards 1,900, defined 2,100 Mhz Wi-Fi is short for wireless fidelity. It was the earliest and is the most common the most common form of high-speed wireless data technology to be applied in the home and office. Wi-Fi has also become the major player in the deployment of “hotspot” wireless connectivity in commercial outlets such as colleges, cafes, hotels, and airports. The range of Wi-Fi is limited, however, and the user must be located within 300 feet of the access point. Wi-Fi equipment is now commonly available and many of the latest platforms can support multiple Wi-Fi standards for compatibility with several wireless networks. WiMAX is the latest technology to emerge that will give users broadband access covering a larger geographic area. The goal is to be able to provide the same access as Wi-Fi does today over a much larger distance. WiMAX can cover anywhere from one to five miles depending on a number of variables such as the area terrain. WiMAX will give users increased mobility for high-speed data networks and has the capability of covering entire campuses and business parks. Table IV lists the different technologies and standards applicable to Company X and their projected time of availability. Technology acquisition options In order to survive a competitive broadband market, companies rely on strategies of technology acquisition, internal technology sources, or a combination of internal and external technology sources. When deciding whether or not to choose a particular strategy, managers or consultants closely study the various types of technology acquisitions from multiple perspectives (Linstone, 1999). Buying technology can be a viable strategy for incumbent market leaders threatened by disruptive technologies. In this section, we will discuss the options in acquiring emerging technology, and the implications of adopting each option are assessed. Acquisition. Emerging technology trends can be treats or opportunities, depending on whether companies are incorporated them successfully with their overall strategic directions. Since patented technology cannot be duplicated, the faster way to acquire the technology needed is to pay a premium. Obviously, managers realize that it is too late to invest heavily to develop their own technology solution. This is a justification to maintain the market share (McGrath, 2001). Cisco and Microsoft are the excellent examples of two companies that applied successfully applied technology acquisition strategy. To accomplish the vision of end-to-end solutions both companies preferred
  • 18. Roadmapping Features Technologies/standards Performance measures Year the convergence Wireless connection Wi-Fi Standard IEEE802.11a/b/g/n, 3G 1-11 Mbps 2009 of technologies Super 3G 20 Mbps 2009 Wi-MAX (IEEE 802.16) 75 Mbps 2009 4G Over 100 Mbps 2010 Wired connection Ethernet (802.3i, 802.3u) 100 Mbps 2009 685 Multicasting IP v6 Multicasting Compliance to RFC 1458, 2009 3550 Stream live video CEA *-708-B, digital television (DTV) closed Support all types of 2009 captioning captioning (roll-up, pop-on, paint-on) ATSC Standard A/53E. Digital television Sequence header 2009 standard constraints * Compression format constraints * Sequence extension constraints * Picture coding constraints * Compression MPEG-2, MPEG-4, DivX, XviD, WMV, Compliance * 2009 WAV MPEG-7 Compliance * 2009 MPEG-21 Compliance * 2010 Security Virtual private network 128-bit encryption 2009 Video mail service H263, H261 compliance 2011 Digital rights WMDRM – 2009 management IBM’s xCP (for home networks) – 2011 Sony’s OpenMagicGate (OMG) Table IV. Technologies and Note: *Evolving standards. Compliance to the released version of the standard at the specified date time of availability acquisition than internal development (Knowledge@Wharton, 2005). An important consideration of the acquisition strategy in assessing the benefits of acquired technology is cost. Cost is the critical part of the strategy decision when the potential value of acquiring a disruptive technology can be accurately estimated. The key issue is to consider all costs of the technology acquisition: up-front cost, installation, adoption, and training (McGrath, 2001). License agreement. License agreement is the option that reduces the need to acquire companies with disruptive technologies. Instead of purchasing emerging technologies, licensing is a better way to access innovation. The main factor of making this decision is the lack of the capital to acquire the technology. AT&T was the pioneer of offering license agreements in the telephony market. In 1904, 6,000 companies were Bell licensees (Austin and Bradley, 2005). When a new technology is on market, organization simply replaces the obsolete technology with innovative solution. Convenient, inexpensive licensing cut the cost of acquiring emerging technologies. Another factor of making this decision is the risk associated to rapidly changing technology and industry standards. The disruptive technology becomes obsolete in five years or less (Betz, 2003). What functionality will customers need five years from now? In a high technology business an incumbent company cannot succeed forever having to sustain for an
  • 19. BIJ ever-increasing disadvantage of stagnant, obsolete or less competitive technologies. 18,5 With expensive, state-of-the-art technology, licensing is often the most logical acquisition strategy that helps preserve cash flow because the organization does not have to spend large sums to acquire the emerging company. On the other hand, licensing has a serious disadvantage for the supplier of technology. The problem with licensing consists of reverse engineering. Innovation bears the burden of the copyright 686 limitations. Organizations in countries without Intellectual Property laws can produce clones of the innovations without having to pay the royalties. Global legal initiatives must be taken to address this problem that can show down the acquisition of additional new broadband technologies. Joint venture. The third option for technology acquisition is to establish joint venture with industry research leaders. Establishing an in-house capability for developing emerging technologies will require more capital that joint venture. In a joint venture, the first milestone of the companies is to consolidate their resources. This option requires investment in R&D to develop a new platform targeting a new market. An additional advantage of a joint venture consists of the sustaining access to innovations. Consequently, the broadband players seek out features and performance to broaden their products and technology portfolios to better serve their customers (Betz, 2003). However, the strategy of joint venture is generally less successful. A typical example of this scenario is the joint venture of Intel & HP in the early 1990s. Intel and HP brought Itanium, a 64-bit microprocessor, on the market too late and less performance than initially claimed. To shed some light on this failed joint venture, McGrath (2001) offered the following reasons: . difficult for both partners to share a common interest; . cultural differences; . different decision making styles; . different attitudes on investment; . different working practices and compensation; and . different product development processes. There are three options for acquiring a new technology: acquisition of the emerging company, license agreements, and joint venture. The company must identify a list of its pros and cons of each option of technology acquisition. The sum of the benefits minus costs over the life of the technology will show which option has the best potential for sustaining in the competitive broadband market. Roadmapping Environmental layer The business of Company X will be affected by a mix of external agents. This includes the policies regarding content protection and digital rights management, government policies which affect the pace of broadband deployment and technological or device innovation, alliances between Company X and cellular technology providers, local content provider’s regulations and the digital content provider’s copyright and redistribution policies. Over the span of next five years, some of these issues need to be addressed to or modified in order for place-shifting solutions like Company X to continue to be in demand and in use (Figure 8).
  • 20. 2010 2011 2012 2013 Roadmapping Cable tv alliance Cellular technology alliance the convergence Environment Content redistribution Content protection of technologies Digital rights management Broadband access Market driver Increased digital content subscription General Increased mobile device penetration Techno geek Integrated platform Satellite HD radio 687 media savvy FM local radio Main street Remote access to digital data Remote access to digital data Remote access to digital tv content UV4.0 UV3.0 UV2.0 Product UV1.1 UV1.0 Technology Satellite radio signal converter Server software Multicast s/w To develop Analog-to-digital converter DRM handling Available Sreaming server Mobile GUI s/w IPTV s/w Standardized Encryption Compression WiFi WiMAX Video phone s/w Resource High Medium Low Acquisition Figure 8. Licensing strategy Example roadmap Licensing Joint venture Joint venture of Company X Buying Buying Market layer Company X evaluated the different market drivers for the industry during the time period 2000 through 2010. The increasing broadband access acted as a major driving force which gave rise to subsequent customer demands and needs. We categorized the market drivers into general and market segment specific. Growing customer need for broadband access is a general driver applicable for all consumers. The VoD figures along with IP video offering forecast gives an idea of the increased digital content subscription and thus customer’s wish not to miss any of these subscribed programs. Increased mobile device usage over time is also considered a generic market driver for the industry (Iyer and Scherf, 2006). Looking at market segment specific drivers, techno-geek and media savvy are more likely to have a need to remotely access their digital data when away from home. The major driving factor for the main street for choosing Company X solution would be to have remote access to digital TV content. However, looking into the future, we see the main-street segment merging with the techno-geek and media savvy as far as the need to access digital data remotely is concerned. In a few years time, today’s main street is probably going to become the media-savvy person. We also visualize a disappearing market driver of today – the need to support FM local radio. Satellite radio is advertisement free and few years down the lane, people will prefer that over the FM radio. All of this data is captured as market drivers against timelines in Figure 9. Product layer After identifying the market drivers for Company X’s different customer segments, we phased out the product development over the next five years. The first release of the product, UV 1.0, is planned towards the end of the first quarter of 2011. Table V summarizes the various product releases of Company X and the features associated
  • 21. BIJ with each. UV 1.1 is scheduled for release before the holiday season and the subsequent 18,5 releases UV 2.0, 3.0 and 4.0 are planned for back-to-school time releases (Figure 10). Technology layer Figure 11 shows some of the technologies which are essential for the success of Company X products. Some of the technologies are standardized solutions while some 688 need to be either developed in-house or acquired. Linking the roadmap to a business strategy One of the critical benefits of the roadmap is that it can provide deep understanding on various perspectives surrounding their business and help to catch a new opportunity. The roadmap developed here provides an overview of the wireless streaming industry. Figure 11 presents an example of application to business strategy. From the ecosystem, two scenarios had been suggested. Based on each scenario, a company has two business options. One is to develop their own brand and sell them in the market while the other option is to sell their product as a component for a set-up box provided by a cable company. As shown in resource lay, those options require different resources and thereby different set of technology acquisition strategies. Conclusion Roadmapping is shown to be a comprehensive tool providing overall business strategy. Technology and market forecast are critical for creating as accurate a roadmap as possible. Understanding of environment and thereby ecosystem helps draw a better picture of the future. Companies like Company X wishing to build a business based on innovation need to understand the market need and match them with the mix of available technology. Creating and maintaining an accurate technology roadmap will help the company reach its strategic objectives in the long term in contrast with hasty tactical efforts carried out with short-term goals in the broadband market. The success of Company X’s broadband business strategy depends on the understanding of the current regulations and the possible impact of future laws related to digital content. In addition, this paper demonstrated how any company can use the TRM and accomplish both external and internal benchmarking. Specifically, the graphical representations provide managers extreme insight into the competitive forces and let them make decisions easier. 2000 2010 2012 Broadband access Market driver Increased digital content subscription Increased mobile device penetration Integrated platform General Satellite HD radio FM local radio Techno geek Media savvy Remote access to digital data Remote access to digital data Remote access to digital tv content Figure 9. Main street Market drivers for Company X
  • 22. Roadmapping UV 1.0 UV 1.1 UV 2.0 UV 3.0 UV 4.0 the convergence Planned release August December June 2012 December 2012 June 2013 of technologies 2011 2011 Major market Main Media Media All All segment target street savvy savvy Techno- Techno- 689 geek geek Hardware UV box at H/w H/w support None None home support for satellite for Wi-Fi, radio WiMax Software Client s/w Client Client s/w Client s/w Client s/w s/w, Server s/w Server s/w Server s/w Server s/w Device supported TV, DVR, PC, TV, Satellite Satellite radio, PC, TV, IPTV, video at home TiVo, DVR, radio, PC, DVR, TiVo, radio phone, satellite radio TiVo, TV, DVR, radio, PC, TV, radio TiVo, radio DVR, TiVo, radio Client devices Laptop, Laptop, Cell phone, iPod, Zune, cell phone, Car TV, iPod, supported desktop desktop PDA, PDA, laptop, desktop Zune, cell phone, laptop, PDA, laptop, desktop desktop Distinct features Stream Stream Data Software-only solution More home TV all recording Multicasting support devices support content content More mobile Wireless devices support support Assumptions Main Majority of people IP TV penetration street has have PC at home. is at least no PC at (Main street merges 25 percent home with Techno-geek) TV Satellite radio is content popular than FM viewing is TV and satellite radio Table V. main tuner card Company X product motive release schedule 2000 2010 2011 Satellite radio signal converter Technology Server software Multicast s/w To develop Analog-to-digital converter DRM handling Available Streaming server Standardize Mobile GUI IPTV s/w Figure 10. Key technologies Encryption Compression WiFi WiMAX Video phone s/w for Company X
  • 23. BIJ 2010 2011 2012 18,5 Ecosystem scenario Scenario I Provide Scenario I : content provider's objection for multicasting own Scenario II product Scenario II : content provider's objection Product UV4.0 UV3.0 Provide as a component UV2.0 for cable company 690 Hardware + s/w UV1.1 UV1.0 UV2.0 s/w only UV1.1 UV1.0 Satellite radio signal converter Technology Server software Multicast s/w To develop Analog-to-digital converter DRM handing s/w Available Streaming server Mobile GUI s/w IPTV s/w Standardized Encryption Compression WiFi WiMAX Video phone s/w Resource High Medium Low Figure 11. Acquisition strategy Licensing Linking the roadmap to Licensing Joint venture business strategy Joint venture Buying Buying References ABC.com (2010), “ABC.com – official site of the ABC network”, available at: http://abc.go.com/ (accessed 28 November 2010). Apple TV (2010), “Apple – Apple TV – rent HD movies and TV shows, stream Netflix, and more”, available at: www.apple.com/appletv/#whatis (accessed 22 November 2010). ArsTechnica (2010a), “Place-shifting: challenges present and future paint a rough picture for innovation”, available at: http://arstechnica.com/gadgets/news/2006/07/placeshifting.ars/ (accessed 28 November 2010). ArsTechnica (2010b), “Will Hollywood sue the SlingBox out of existence?”, available at: http:// arstechnica.com/old/content/2006/04/6691.ars (accessed 28 November 2010). Austin, R. and Bradley, S.P. (2005), Broadband Explosion: Leading Thinkers on the Promise of a Truly Interactive World (Hardcover), Harvard Business School Press Books, Boston, MA, July, p. 1. Bain & Company (2009), Mobile Internet for Growth: Project Report, Prepared by Bain & Company, World Economic Forum Annual Meeting 2009, Davos, January, available at: www.bain.com/bainweb/PDFs/cms/Public/WEF_2009_Mobile_internet.pdf Bar-El, H. (2002), “Security implications of hardware vs. software cryptographic modules”, Technical report, Information Security Analyst available at: www.hbarel.com/ publications/Security_Implication_for_Cryptographic_Modules_Hardware_vs_Software. pdf Betz, F. (2003), Managing Technological Innovation: Competitive Advantage from Change, 2nd ed., Wiley, New York, NY. BroadbandSuitee (2008), BroadbandSuitee Solution Series, enabling IPTV Service Delivery, Version: 0.22, November 12, available at: www.broadband-forum.org/marketing/ download/mktgdocs/AN_IPTV_Final.pdf
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