- IN THIS ISSUE:
- * My Wish List to Sell More MI Solutions in the USA
- * Wish #1: Create a Mobile Enterprise Market Message
- * Wish #2: Enhance the Mobile Entertainment Market Message
- * Wish #3: Build an Application Strategy to Support Real Goals
- * Wish #4: Focus on Timing and Customer Service Launches
- * Wish #5: Intensify the Partnering Program
- * Wish #6: Offer Innovative Solutions that Fit the Medium
This newsletter is a brief one, due to my preparations for the CTIA event. I am sure there is a lot more to tell in the next one.
First of all, my previous newsletter raised some emotions on a customer and a partner account. So let me make some clarifications here. First M7 Networks: It was confirmed that Ericsson has sold at least $2 million worth of service network equipment to them. Congratulations to the sales team! Secondly PacketVideo: They indeed seem to be a successful developer partner both on EDZ and MAI. Should we actively promote either of them? Yes, if we have equity stake in them so that there is an upside doing so. But we don’t have it for the moment. I would like to focus on developing Ericsson’s stock price and I don’t always have time for other admittedly good causes.
Best regards
Tapio Anttila
MY WISH LIST TO SELL MORE MI SOLUTIONS IN THE USA
Working in the EUS sales organization, I have come to think of a wish list for things I would like to have in order to better succeed in on the US marketplace. These are just my opinions (as all in this newsletter) and I recently presented them to an EMI course including the EIP management team. So I will share them here with you and would love to hear your comments.
WISH #1: CREATE A MOBILE ENTERPRISE MARKET MESSAGE
We cannot crack the US market without focusing on mobile Internet solutions for the enterprise market - and I mean access to corporate intranets and not our PBX solutions which in themselves are important as well. The Microsoft Mobile Venture is a good start but we need a solution strategy extending beyond Microsoft products and messaging. Access to and ability to act upon all critical enterprise data is of great value to end-users.
This also calls for extended focus on vertical industry solutions for industries such as transportation, security services, health care, etc. In all of the solutions, we should innovate to enable our customer (today the operator) to have a profitable role.
WISH #2: ENHANCE THE MOBILE ENTERTAINMENT MARKET MESSAGE
Most of the early consumer market success in 3G is about creative entertainment services and the youth segment - and not about mobile banking. Taking SMS to the next stage, into animated characters and other multimedia, opens a profitable path for the operators to evolve the consumer market - this is in essence the Nokia strategy.
Transactions and mobile commerce are important but in a later stage. At that point, consumer brands will want to extend their brand and enhance customer loyalty by building Mobile Customer Care Channels. The more you bring revenue to the brand owner, the more you will be offered subsidized communications services. This is why the MVNO business model is important for operators launching 3G services - focus on Time-to-Money! More info: http://mvno.ericsson.se
In mobile entertainment, the US market requires a strong focus on ‘convergence services’: services that can be seamlessly accessed through mobile and broadband media. A country with a high Internet penetration will not adopt mobile services without ‘backwards compatibility’ to web services.
Last but not least, Mobile Storytelling will emerge as an end-user need to be able to effortlessly communicate moments and memories around him/her in a mobile context - using the mobile phone and related Bluetooth accessories. How to automate the creation and delivery of a mobile story? Ericsson has an excellent opportunity to build a platform around this, expanding form the current Multimedia Messaging and iPulse product lines. I believe Mobile Storytelling would be a strong concept to launch and protect. Perhaps we could cooperate with a great storyteller - such as Disney.
WISH #3: BUILD AN APPLICATION STRATEGY TO SUPPORT REAL GOALS
Why does Ericsson sell mobile Internet solutions? To make money with it? Not yet. Our main goal is to make sure the transition to 3G services will be an imode-like success. This means we need to innovate in order to support our customers and use the difficult market situation to gain a strong position as a ‘market development facilitator’. This leads me to state that operators should not be our main focus. What???? Yes, our main focus should be on supporting our customers - which today still have often a ROLE as a pure operator. By truly supporting our customers keeps our focus on innovating for the new roles for the operator!
Our second most important strategic focus for MI solution (MIS) sales should be to support break-ins. How can we build a go-to-market strategy for MI solutions that helps us not only sell a MIS platform but also network infrastructure down the road. A hosted service network offering could be an element in such a strategy.
When 3G hits the road and the moment of truth (service launch) approaches, signing up customers will be key. The difficult business environment will lead into industry consolidation. The acquired losers need to be converted to homogenized service platforms. Comparison: McDonalds will buy out hamburger kiosks and the world will learn to eat BicMacs. Ericsson has the opportunity to facilitate this trend with global service launch BUSINESS SUPPORT PROGRAMS.
WISH #4: FOCUS ON TIMING AND CUSTOMER SERVICE LAUNCHES
Why are Nokia GPRS phones late? A quick discussion with Ericsson Finland strengthens by belief that they are deliberately delaying the launch. It’s all about timing: they need to have the entire Nokia Club service offering ready together with application platforms and content partners to support an operator launch of GPRS services. (While waiting, they can profitably extend the life-cycle of current phones with enhanced margins or ability to squeeze more market share from competitors.)
How much do we have focus on supporting the actual launch of a GPRS service from a business support perspective? I have understood we have been traditionally very good in supporting the operators from the technical network launch perspective. This is a great business opportunity for Ericsson. And also a threat. If we are passive here, Nokia will take that role and expand their strategic maneuvering space by exploiting the delicate situation operators are in (Nokia Club will be accepted by operators).
WISH #5: INTENSIFY THE PARTNERING PROGRAM
Ericsson has accomplished a lot in the partnering and developer support area - and the newly launched Ericsson Mobility World will further enhance this. What is now important is that all of you in the market units start looking for developers and partners that would fit in the solution areas EIP is focusing on. How can companies in your area support the global launch of Ericsson’s mobile entertainment solution? Fortunately there is now a partnering and developer organization receiving all your suggestions.
Once we get all the powerful applications harvested and certified for GPRS/3G, we should offer them as service bundles through global hosted service network channels. M7 Networks is one such channel - and as you know by now, Ericsson/DGS are building another one called IFM (Internet Facility Management). Great stuff! All of this activity needs now more resources and marketing momentum.
WISH #6: OFFER INNOVATIVE SOLUTIONS THAT FIT THE MEDIUM
We are facilitating the development of true mobile applications that make people get off that chair in front of that computer and lead a more active life. A lot of good development is taking place in the area of building new value on mobility, location-awareness and personalization. But still consultancies like Herschel-Shosteck are criticizing us for focusing too much on bandwidth-intensive applications such as video and particularly video conferencing. I think they are right: we need to paint a realistic picture on how to be successful in launching 3G services with maximum added value built in applications. And in the early stages of 3G, that will not be video. The business case is not there yet. And there is so much else you can offer, including even brief video snippets. How about focusing on the multitasking capability of 3G services?
That was it. I think we all have a great future ahead of us at Ericsson and I would like to hear your views. If you have views you would like me to publish, please feel free to send them to me and I will start a little interactive section in this newsletter.
QUICK TAKES
Birdstep is a Norwegian startup specializing in small-footprint databases and mobile IP technologies. They launched a partnership with Ericsson for Bluetooth-based local access point applications. Maybe we have a Bluetooth application strategy, after all? http://www.birdstep.com/
AdaptiveInfo has created a solution for adaptive personalization in a wireless context. No dialog boxes to fill, the server iterates the users into a personalized experience in less than four iteration rounds. Sounds almost too good to be true… Partners include Openwave and Sprint. http://www.adaptiveinfo.com/
And what else? Palm made a more serious entry to the corporate market with the acquisition of Extended Systems
More industry news next week…
- (go to http://webacademy.ericsson.se for links to stories)
- The 3G Portal - http://www.the3gportal.com/
SNS Newsletter by Mark Anderson - http://moneycentral.msn.com/articles/invest/trends/6112.asp - FierceWireless Weekly Newsletter - http://www.fiercewireless.com/
- Mobile Media Japan - http://www.mobilemediajapan.com/ (*NEW)
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NAM 3G Homepage - http://www.exu.ericsson.se/EUS/R/NAM3G/home/html/index.shtml
DIA Homepage (in memoriam) - http://dia.ericsson.se/
EIP Homepage - http://internetapplications.ericsson.se/ - MAI - http://www.mobileapplicationsinitiative.com
- Internal MVNO homepage - http://mvno.ericsson.se
- MI Competitor Intelligence in Outlook Public Folders: \Company Information\EIP\CB/M - Marketing (*NEW)
IOW EVENTS CALENDAR
http://webacademy.ericsson.se/resources/majorevents.htm
IOW LIBRARY - RECOMMENDED READING
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This is a newsletter describing the non-confidential part of my work during the past week and how I see market evolution affecting Ericsson (as interpreted my me in my role working for the Next Generation Mobility unit of EUS, based in New York City and San Francisco). The report will be published twice a month. For subscriptions go to http://webacademy.ericsson.se/elists.
