Building a national network dedicated to supporting deterministic workflows as part of a shared infrastructure supporting both the resilient power grid and the Industrial Internet using a blue ocean strategy to lower CAPEX and OPEX.
1. Chuck Speicher- McAfee National Director Major Business Opportunities
Lead , Innovate & Differentiate
March 27, 2010
2. 2
Smart Grid Strategy
Creating a Blue Ocean Market Space
● The Market Strategy is to create an uncontested market space that
makes the competition irrelevant.
● A Blue ocean is about growing demand and breaking away from
competition
● It is about maximizing opportunity and minimizing risk
● By offering our end-to-end security solution as part of the
ecosystem of a Community of Practice, we deliver next gen broad
band as a new value innovation to all the stakeholders of this
shared network infrastructure
● Our ecosystem and best-in-class service providers are the growth
engine and together we deliver the value innovation
3. Case study- Cirque du Soleil
● In less than 20 years Cirque has achieved a level of revenues
that the titans Ringling Bros and B&B of the circus took more
than 100 years to achieve
● Industry in 1984 was in decline and pointed to limited
potential growth
● It appealed to a new group of customers & a new market
space that didn’t exist
● This new market space to adults and corporate clients were
prepared to pay a price several times as great as traditional
circuses for an unprecedented entertainment experience
● Significantly one of the first Cirque productions was titled
“ We Re-Invent the Circus”
3
4. Red vs Blue Ocean
● Compete in existing market space
● Beat the competition
● Exploit existing demand
● Make the value cost trade off
● Align the whole system of Smart Grid
solutions based on the competitive
landscape of point solutions with a high
cost of ownership vs lower which slows
adoption
● Create uncontested market space
● Make the competition irrelevant
● Create and capture new demand
● Break the value cost trade off (Break
the cost value tie)
● Align a high speed secure
communications ecosystem in
pursuit of differentiation and low cost
using an optimized organizational
maturity model that delivers an
integrated adaptive platform for all to
participate…. Industrial Internet &
Agile Fractal Grid
4
5. 5
Formulation Principles
1. Reconstruct Market boundaries
2. Focus on the big picture not the numbers
3. Reach beyond existing demand
4. Get the strategic sequence right
Execution Principles
5. Overcome key organizational hurdles
6. Build execution into strategy
6. 6
Schema
Reduce: Which factors should
be reduced well below the
industry’s standard? Cap ex /
Op ex
Create: Which factors should
be created that the industry
has never offered? National
Access as a hosted service
Raise: Which factors should be
raised well above the industry’s
standard? SecureCommunications
end to end
Eliminate: Which of the
factors that the industry takes
for granted should be
eliminated? dropped calls
and broadband scarcity
New Value Curve
Agile Fractal Grid
Industrial Internet
We Re-Invent the Power Grid to create the Industrial Internet
7. Value Innovation
● Concentrate on creating a leap in value for COOPs to take control
of their local economy thereby opening up new and uncontested
market space….. Industrial Internet app store
● Value innovation occurs only when companies align innovation
with utility, price and cost positions
● Those that seek to create blue oceans pursue differentiation and
low cost simultaneously
● Value Innovation- Realign Broadband (PPP), Create a supply
chain of secure broadband service provider partners on a common
platform ,end-to-end security architecture ,deliver simultaneously
buyer value (COOPs) and the lowest cost of ownership for its
service providers (anchor tenants, Smart Grid etc.)
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9. 9
• Focus to do a few things extremely well
End to End Security-Multi Modal Small Cell -Digital Marketplace
• Divergence secure high speed communications ( Agile Fractal
Grid) pioneering within energy industry/ telecom industry is
ongoing and no first to market entrant has emerged (Timing)
• A strong and authentic compelling tagline that can be a good
test of your effectiveness and strategy strength…. Nova Connect
(Viral Marketing)
10. Contact Information
Charles “Chuck” Speicher
Founder Security Fabric Alliance
Co Founder Agile Fractal Grid Corp.
Co Founder Small Cell LLC
978-500-0956 mobile
charles_speicherjr@securityfabric.org
chuck@smallcellllc.net