Workshop on Future Business Models

Date & Time : 25th May 2011

Venue : London School of Economics, WC2A 2AE New Academic Building (Room NAB LG.03)  location

Given the wide interest and relevance of this activity, VCE is pleased to be cooperating with the ICT KTN on this event, to extend an invitation to industrials who are not members of VCE with an interest in this activity. The day is organised by the Industrial Steering Group of VCE's "User Interactions for Breakthrough Services" programme, chaired by Jason Williams of Orange and coordinated by Eamonn O'Neil of Bath University. Space is limited - early registration is recommended.

Objectives

A problem for all organisations in the telecoms space is that traditional ways of making money are now disappearing. Barriers are breaking down between traditional and well understood domains as digitisation of content and delivery methods means that historical delivery channels and distribution methods are less and less relevant. Organisations which are established in a particular domain are now facing an increasing number of competitors. Disruptive developments such as app stores have also opened new markets and completely removed the competitive advantage some organisations once enjoyed.

The most effective strategies for generating revenue in the future are not clear. What works for one company may not work for another. Both Apple and Nokia have sought to develop platforms to safeguard future revenues - one which has becoming an ecosystem of astounding success, while the other’s is “burning”, to quote that company's own CEO.

So what will it take for companies such as content providers, mobile operators and hardware manufacturers to successfully square the seemingly impossible circle of; maintaining control over core assets, developing new revenue streams, and fuelling innovation. What factors are likely to stay important and which will change as the marketplace evolves? Such answers are not constrained to business analysis but touch every aspect of any organisation – brand, marketing, legal, down to the technical capabilities of their offerings. This workshop will focus on the complex range of issues that need to be considered to create an answer. The discussion will be founded in the understanding of mobile platforms and ecosystems as means to reconfiguring existing arrangements of control and innovation.

Programme   

  Welcome & Introduction to the Day
  
  10.00 Welcome and Introduction
Audio file here
Walter will provide a succinct introduction to the background and objectives of the day. Please see the bottom of the webpage for useful background material available for download
Walter Tuttlebee, Chief Executive, Mobile VCE
  An Introduction to Platforms, Ecosystems & Innovation
  
  10:10 The Opportunity: User Interactions for Breakthrough Services
Audio file here
The MVCE User Interactions project is concerned with how we will interact with new forms of services in the future. Implicit in this subject is also the question of how users will pay for these services, and how the various companies in the value chain will generate revenue. These issues have been the subject of investigation for a number of years within the project which is composed of a group of the UK’s leading universities in the area and a broad spectrum of some of the most influential companies in the mobile telecoms area. Jason Williams, Chair of the Industrial Steering group, will lay out the basic assumptions of the project and highlight some of the most relevant issues with regard to business models.
Jason Williams, Orange
  10:25 Platforms, Ecosystems, Control & Generativity
Audio file here
The Apple iPhone and iPad are clear examples of successful mobile products which have had a highly disruptive influence on the mobile industry, not to mention a range of others which include the music, software, publishing and increasingly the broadcast industry. In this talk Carsten Sorensen, Associate Professor in Information Systems at the London School of Economics will explain the principles behind why platforms such as Apple’s have been so successful and the imperative this creates for organisations operating in these and related areas.
Carsten Sorensen, LSE
  10:50 Guest Speaker: Platform Innovation
Audio file here
(Please note that the presentation slides are not available but the audio recording is available for this presentation).

Annabelle Gawer is Assistant Professor in Strategy & Innovation at Imperial College London, and is one of the world’s leading authorities in business strategy and the management of technological innovation. In this session, Annabelle will take stock of the current situation in the mobile industry and describe some of the new behaviours companies need to adopt to stay ahead. In particular she will address some of the questions such as: How can a company become a leader within a network of interdependent firms? How can companies stimulate yet take advantage of other firms’ innovations?
Annabelle Gawer, Imperial College
  11:20 Break
  Perspectives On The Future
  
  11:35 Network Operator Perspective
(Please note that neither the presentation slides nor the audio recording are not available for this presentation).

For years, mobile operators enjoyed a privileged position with their ability to generate revenue from lucrative call and texting charges. The increasing prevalence of data and IP protocol usage has however meant that this ability is gradually being eroded. Mobile Networks have moved into providing additional value added services – however this shift has meant that the range of competitors has been opened up, some of whom have been able to effectively limit the reach and range of services which network operators can provide. Operators are therefore constantly searching for safe sources of revenue which maximise their existing assets. Daniel Gurrola, VP of Strategy and New Business Development at Orange will provide more detail on the ever-changing landscape from a mobile operator perspective. Orange is one of the world’s largest mobile operators with over 189 million customers worldwide in over 34 countries.
Daniel Gurrola, Orange
  12:00 Content Provider Perspective
Audio file here
Access to content has changed dramatically in the last few years, a trend which is set to continue. Content is no longer only viewed using dedicated devices such as the television, but can be viewed on laptops, smartphones and a range of other devices. Content can also be mixed with other media types (e.g. Adverts, Social Network information) and shared with others, which provides an additional level of complexity. All of this adds up to a range of challenges and opportunities for content providers in terms of revenue generation for the future.

John Denton is Managing Editor TV Platforms and, as such, is responsible for developing the strategy for delivering the BBC’s interactive television services across all broadcast platforms. John will bring some personal perspectives on the possible evolution of the value chain from a content viewpoint.
John Denton, BBC Future Media & Technology
  12:25 Hardware Manufacturer Perspective
Audio file here
We are increasingly seeing a dilution of the importance of hardware specification per se at a consumer level. Instead the eco-system around the hardware is playing an increasingly important role within the mobile sphere in much the same way as the software eco-system played an important role in the success of the PC platform. Nevertheless hardware capabilities are still key in allowing certain functionalities to take place. Looking forward it’s possible to envisage a world where the space in the revenue chain for hardware manufacturers is far more complex. This may range from the standard one sale per device to the ability of users to purchase certain hardware functionalities within an app store like model to name two extremes. In this session Wenbing Yao ,Head of Solution Marketing at Huawei, the largest network and telecoms equipment producer in China, and the second largest in the world, will examine some of the exciting opportunities and challenges that are rapidly opening up.
Nigel Jefferies, Huawei
  12:50 Software & Services Perspective
Audio file here
In recent years a number of developments have meant that the business model landscape for software and service providers has begun to change radically. The app store has revolutionised how people buy software, while the seamlessness of purchase and constant connectivity of apps and software have also opened gateways to new revenue models (e.g. in app subscription, advertising) which have until now been relatively difficult to implement. The further opening up of services via API’s has also meant that vast amounts of potentially highly valuable data and functionalities are universally available to software and service developers whether large or small. In this session, Stephen Wood, Director of Global Product Management at MBlox will explore key issues in this area. MBlox is the world’s largest mobile transaction network, enabling businesses to deliver and bill for mobile services involving over 600 mobile networks in over 180 countries.
Stephen Wood, MBlox
  1:15 Lunch Break & Demonstrations
An opportunity to eat, network and to view demonstrations of new and emerging interaction technologies
  Open Sessions To Explore The Themes of the Day
  
  2:00 My Platform, Your Platform, Our Platform, No Platform?
Audio file here
An open session devoted to the discussion of strategies organisations should take in the face of the increasing importance of platforms & ecosystems

Themes:

* What makes a successful platform?
* What strategy should a company take and why?
* How can a company gain control of their particular revenue generation opportunities?
* Beyond Apps – How can device & Service capabilities take part?
Ben Eaton, LSE
  3:00 Break
  3:15 Enabling The Future: Mobile VCE User Interactions
VCE’s User Interactions project has anticipated a future in which methods of revenue generation are far more complex and varied than those seen today. This session introduces the latest thinking from the project in the light of the discussions which have taken place earlier in the session

Themes:

• Overview of Mobile VCE User Interactions Technical Work
• Creating an architecture which will enable the future
• Developing for open-ended revenue generation
• What “The Platform” means for development
• Lessons Learned
Eamonn O'Neill, University of Bath
  4:15 Concluding Remarks & Next Steps
A brief survey of the emerging themes & lessons from the day and how these will be taken forward
Walter Tuttlebee, Mobile VCE
  4:30 Close of Workshop
  Background material available for download
Useful introductory pre-reading for those new attending who may be new to the VCE User Interactions activity		  
  Background: Future Services: Looking Beyond App Stores & OS Wars
A talk given at the joint VCE and Cambridge Wireless 'Digital Futures' event in January 2011.

‘User Interactions for Breakthrough Services’ and ‘Secure Autonomous Business Collaboration’ (aka Instant Knowledge) comprise respectively the consumer - and enterprise-oriented service programmes within VCE. This talk describes some of advances emerging from these activities and what they could enable.
  Background: User Interactions for Breakthrough Services
One page overview of the scope of the wider activity

 

Revised 6th June 2011 MobileVCE Home Copyright © 2010 Mobile VCE.