Friday, March 23, 2012

Succeeding in the New Mobile World Order

As we have seen in  the three earlier articles, I believe that there are Eight Core Industry Disruptors that are driving key tipping points – The Mobile Seesawthat are ultimately redefining the mobile ecosystem into one of two plausible New Worlds.  The Mobile Segments scenario is much a continuation of the world today – large players dominate each segment of the value chain, focusing on their core strengths and capabilities and cooperating with their fellow segment giants.  Conversely, Mobile Explosion is a world where most things are wireless, interoperable and cloud based, increasing competition and the blurring of the lines between the value chain segments. 
While it is impossible to predict the future, some of the current trends and early indicators suggest that the tipping points, or industry drivers, are pushing the industry in the direction of the world of Mobile Explosion.  Given this trend, players in the mobile value chain are rightly asking themselves what are the solutions to the key challenges and business choices that this new world presents?   And, most importantly what are the key strategies and considerations to ensure success in this new mobile world order?
The following are my thoughts on the top strategic considerations to ensure future success for each of the six key segments of the mobile value chain.

1.  Content Providers (e.g., Sony, Disney, New Corp.)
  • Multi-Platform – ensure all content works on all devices, platforms and networks
  • Multi- Rights Ownership – link content ownership to the person, not device or network
  • Cloud Based Lockers- create protected cloud lockers to store and access owned content
  • Alternative Business Models –e.g., targeted advertising, subsidized devices or connectivity
  • New Distribution Models – e.g., direct to users, through internet service companies
2.  Mobile Service Providers (e.g., AT&T, T-Mobile, Orange, Verizon Wireless)
  • Wi-Fi Integration – embrace Wi-Fi as an integral part of the mobile network architecture
  • Advanced Pricing – using pricing/bundling to optimize network use and increase revenues
  • OTT Collaboration – open up APIs,etc. to benefit from improving  the OTT offering
  • Big Data – use advanced data analytics as a business tool and new source of revenue
  • Network Costs and Performance Optimization – e.g., CDNs, cloud, IP consolidation
  • Mobile Cloud – develop and sell new, innovative cloud offerings
  • Vertical Solutions – incorporating M2M and other capabilities – e.g., healthcare, retail
3.  Equipment Providers (e.g., Ericson, Alcatel-Lucent, Cisco, EMC)
  • Cost Reduction- e.g.,  reducing features, lower overheads, development, manufacturing
  • Network-Data Center Integration – integrated products, operations and management
  • Small Cell – future of radio access : need low price, innovative products
  • Multi-Network Access- integrated network access in single products
  • Lower Price – combat Asian competition and changing business and GTM models
4.   Software (e.g., Microsoft, Adobe, Oracle)
  • Mobile Enablement – easily accessible and usable on all mobile devices/platforms
  • Mobile Cloud – new services combining device capabilities, app and cloud delivery
  • Security – beyond software – network, device, content access
  • Vertical Solutions – solutions created from software plus other components 

 5.  Internet Services (e.g., Google, eBay, Amazon, OTTs)
  • SP Collaboration – partner/pay MNOs to enhance offer through network capabilities
  • Cloud – fundamental delivery model and new customer opportunities
  • Value-Chain Integrators – become the “glue” between networks, content, devices and apps
  • Innovation – new services, business and operating models, routes to customers
6.   Devices (e.g., Samsung, Apple, Nokia, RIM)
  • Innovation – devices, form-factors and beyond – e.g., cloud, business models
  • Beyond Handsets –non-human centric – e.g., M2M, sensors
  • Connected Home – integration of devices, cloud , content and services
  • Cloud Extension – cloud services integral part of device –e.g., services, storage
  • Alternative Networks -  seamless optimization across heterogeneous networks
Future articles will explore these different strategies in more detail.

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