Innovation in Mobile: Operator Strategies and Successes
Emeka Obiodu
Senior Analyst, Telco Strategy
+44 20 7551 9047
[Link]@[Link]
Agenda
Introduction
Carrier Innovation strategy: what does it mean?
About the scope of innovation
About what is needed for innovation
About the benefits of innovation
About how to go about innovation
Ovums Mobile Services Innovation Radar
US carriers
International carriers
Conclusion
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WHAT DOES INNOVATION
MEAN TO WIRELESS
CARRIERS?
Four insights from Carrier Innovation strategy
Insight 1
The scope of innovation is broad
Insight 2
Innovation should leverage core competence
Insight 3
The benefits of innovation are varied
Insight 4
The supremacy of collaborative innovation
Copyright Ovum. All rights reserved. Ovum is part of the Datamonitor Group.
INSIGHT 1:
THE SCOPE OF
INNOVATION IS BROAD
Innovation as a Broad Spectrum Approach
Innovation in wireless carriers can happen in several places
Products
& Services
Marketing
Business
Models
Organizational
Design
Operations
Networks,
Technology,
Infrastructure
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INSIGHT 2 :
INNOVATION SHOULD
LEVERAGE CORE
COMPETENCE
Views from the sages
vs
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Innovation in Products & Services
Existing
Product
Development
Market
Development
Diversification
Existing
New
Markets
Market
Penetration
New
Its all about core competency. But should a carrier move beyond this?
Products
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INSIGHT 3:
THE BENEFITS OF
INNOVATION ARE VARIED
Benefits of Innovation
11
Create new revenues
Improve margins
Nullify rivals competitive moves
Improve loyalty / Reduce churn
Defend market position
As an alternative to advertising
Improve customer lifetime value
Corporate social responsibility
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Mass Market
Evidence from the Innovation Radar H1 2010
Nigeria: Starcomms
StarTrack location service
Norway: Telenors WiMP music service
Leadership Potential
Growth Potential
India: Reliance to offer cartoon comics
Niche
Malaysia: Maxis
mobile jukebox
Defense Potential
USA: Verizon Wireless
Backup Assistant
Global: Vodafones security
solution from F-Secure
Goodwill Potential
Italy: Telecom Italias
Line@Medica Diabete service
Me too
12
Unique
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What the categories mean
Strategic benefit
Description
Leadership
Services that are unique in their domestic
market, and that have a strong possibility of
becoming mass market products.
66%
Services that are me too in their domestic
market, but that still have the potential to
become mass market services.
15%
Services that are unique in the market. However,
they are only suitable for a niche market
segment.
15%
Services that are me too in their domestic
market, and are aimed at a small, niche market.
4%
Potential
Growth
Potential
Branding
Potential
Defensive
Potential
13
% of H1 2010
service launches
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INSIGHT 4:
THE SUPREMACY OF
COLLABORATIVE
INNOVATION
Collaborative, Open Innovation
Collaborate with every stakeholder within the ecosystem even those
outside Porters 5 forces
Customers
The forces
facing Carriers
Suppliers
Rivals
New
Entrants
Complementers
e.g App
developers
Substitutes
15
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Examples from Ovums
Mobile Services
Innovation Radar
Examples from the Radar AT&T USA
Oct-09
Consumer
Personalisation
AT&T is to launch its UpperClass mobile application for colleges and universities
that extends the college experience to students mobile devices.
Nov-09
Jan-10
Consumer
Consumer
Location based
AT&T is to partner with Rave Mobile Safety, to provide location-based
services
safety services (Rave Guardian) to mobile subscribers at higher education
Mobile
institutions throughout the United States.
Safety
Mobile Voice
AT&T is to introduce noise suppression technology into its custom-specified
handsets from early 2010.
Mar-10
Consumer
Mobile Music
Rave
Audience
AT&T launched a new music service that combines all of the key mobile music
services into one AT&T application.
Mar-10
Jul-10
Enterprise
Enterprise
Application
AT&T has revamped its online Small Business Mobile Application Recommender
Store/Portal
Tool (SMART).
Mobile Money
AT&T has partnered with Apriva to deliver new payment solutions AprivaPayTM
Apriva
and AprivaPay Professional.
Aug-10
Consumer
Mobile TV/Video
AT&T has launched a U-Verse mobile app which gives U-verse subscribers the
Apple
ability to download and watch popular TV content on their iPhone.
Dec-10
Consumer
Mobile Voice
AT&T has launched a video relay service app for iPhone 4 which will enable deaf
Apple
and hard of hearing customers to make VRS calls.
Jan-11
Enterprise
Mobile Security
AT&T has partnered with McAfee to offer the McAfee Enterprise Mobility
McAfee
Management (McAfee EMM) software.
17
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Examples from the Radar Verizon Wireless USA
18
Oct-09
Enterprise
Location based
services
Verizon Wireless announced at the CTIA that it is to offer onCare, an application
that, among other things, enables health managers track field workers.
Oct-09
Consumer
Location based
services
Verizon Wireless is to partner with Smarter Agent to offer an application that
enables customers to search for real estate information on their mobile phones.
Smarter
Agent
Mar-10
Consumer
Mobile Money
Verizon Wireless is to launch Danals BilltoMobile payment service, enabling
customers to charge online purchases of digital goods directly to their monthly
Verizon Wireless bills.
Danal
Mar-10
Enterprise
Mobile
Messaging
Apr-10
Enterprise
Location based
services
Jun-10
Enterprise
Mobile
Advertising
Jun-10
Both
Mobile Voice
Jun-10
Both
Personalisation
Jul-10
Consumer
Mobile Music
Verizon has partnered with mSpot to offer mSpot Radio.
mSpot
Oct-10
Enterprise
Services
Management
Verizon Wireless has unveiled a version of its mobile worker management
application, Field Force Manager app for Android devices.
Google
Nov-10
Enterprise
Services
Management
Verizon has partnered with XATA to offer the XATA Turnpike fleet management and
compliance solution.
XATA
Jan-11
Consumer
Mobile TV/Video
Verizon Wireless has unveiled plans to offer Sling Media's subscription service that
will give customers the ability to watch their home TV on new 4G devices.
Sling
Media
Mar-11
Enterprise
Mobile TV/Video
Verizon Wireless has partnered with Lextech Labs to enable users of Lextech Labs
iRa C3 product to view live and recorded video surveillance feeds on smartphones.
Lextech
Labs
Verizon Wireless has launched an entreprise messaging solution which enables
companies to send 450-character text messages to their workforce or customers.
Verizon is to offer TeleNav's business mobility products which allows organizations
field personnel to exchange data with the back-office using their smartphones.
Verizon Wireless will partner with Zoove to license StarStar codes for US retail
brands.
TeleNav
Zoove
Verizon has launched "Group Communication" that allows customers to assign a
calling list of up to 20 wireless or wireline phone numbers to a unique dialing
number.
Verizon has launched the Backup Assistant(SM), a wireless application that saves
and updates a copy of the phones address book to a secure website.
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Examples from the Radar Other players
19
Sep-10
UAE
Etisalat
Etisalat has launched a service that enables customers to back up and protect their
personal data on their mobile devices.
Sep-10
Indonesia
Indosat
Indosat has launched Evolving Systems' dynamically allocated SIM solution.
Sep-10
Portugal
Vodafone
Sep-10
Global
Orange
Orange has launched HD voice services to UK businesses, becoming the first operator
to do so in the market.
Oct-10
Ghana
MTN
MTN Ghana has launched Comviva's Virtual SIM service, enabling customers without
phones to use other people's phones.
Comviva
Oct-10
Bangladesh
Banglalink
Banglalink has partnered with Comviva to launch an mWallet service.
Comviva
Oct-10
Qater
Vodafone
Vodafone has launched a Facebook reload service for its prepaid subscribers.
Facebook
Oct-10
Bulgaria
Globul
Globul has launched its WAZ'UP portal, offering clients access to e-mail, social
networks, chat and file storage and sharing via their mobile phones.
Oct-10
Palestine
Jawwal
Jawwal has partnered with Info2cell to launch Al Iman Messages, a new MMS
service that will allow subscribers to receive Islamic-themed multimedia messages.
Info2Cell
Oct-10
Fiji
Digicel
Digicel is to partner with the Water Authority to enable its Digicel Mobile Money
customers to pay their water bills via the service.
Water
Authority
Oct-10
United
Kingdom
O2
Oct-10
UAE
Etisalat
Oct-10
Kenya
Oct-10
Oct-10
Evolving
Systems
Vodafone Portugal has launched the Vodafone One Net, bringing together fixed,
mobile phone and internet services.
O2 has launched a a large-scale location-based mobile marketing service, enabling
brands to deliver relevant SMS and MMS to consumers in a more targeted way.
Starbucks &
L'Oreal
Etisalat and Alcatel Lucent have partnered to launch a permission-based mobile
advertising service in the UAE.
Alcatel Lucent
Safaricom
Safaricom has expanded its M-Pesa money transfer scheme to supermarkets
Supermarkets
Europe
Telefnica
Telefnica's Jajah has launched a Facebook app that enables users to make free voice
calls.
Facebook
Dominican
Republic
Claro
Claro Dominicana has launched a mobile email and synchronization service based on
Synchronica's platform.
Synchronica
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Conclusion
Innovation is fundamental to the business of wireless carriers
There are many aspects of the carriers business where innovation
should happen
Carriers core competency is key to innovation
But it is not enough!
20
The benefits of innovation transcend generating new revenues
Carriers can not innovate alone. You either collaborate with others, or
you sink
The Innovation Radar shows that there is a healthy culture of
innovation among Carriers
Copyright Ovum. All rights reserved. Ovum is part of the Datamonitor Group.
Thank you!
Emeka Obiodu
Senior Analyst, Telco Strategy
+44 20 7551 9047
[Link]@[Link]