SlideShare a Scribd company logo
1 of 36
Download to read offline
Economic Models for
Reinventing Telco
Telco Innovation with APIs



 Andreas Constantinou           VisionMobile
 @andreascon                 @visionmobile
                                      Apigee
 Bala Kasiviswanathan
                                    @apigee
 @BalaK
@apigee   @VisionMobile




 @BalaK      @andreascon
groups.google.com/group/api-craft
slideshare.net/apigee
youtube.com/apigee
Agenda

 How should Telcos deal with the challenges of today’s ecosystems-
  driven competition?

     The new basis of competition

     The asymmetric business models

 The price of doing nothing

 The modular telco

 How telcos can leverage ecosystems
A New Playing Field for Telcos
The new rules of the game in mobile


                              telecom                  mobile computing


 share of needs,
attention & wallet
                                4 apps                     750,000+ apps
                     (phone, text, contacts, camera)   (encompassing all user needs)


      service
                                 telco                    mobile platforms
   distribution


    basis of             reliability & scale             choice & flexibility
  competition               of networks                      of services

    business
     models           proven & predictable             new & unpredictable


                                                                  Source: VisionMobile
The domino effect in the telecom industry
                                                          apps challenge telco core services

        hundreds of thousands of apps replace telco VAS
                                                          3
     2

      iOS, Android

1
    broke the walls of
     walled gardens




                                                                          Source: VisionMobile
OTTs compete with telcos for control, not for profits




        Content


                                          Ads                                Ads

      Distribution




      Connectivity
                     Access


                                                     software
                                                     licensing
        Screen
                                Devices


                                                                 retailing
          User

                       denotes company’s core business
OTT competition with telco is asymmetric

        Core product                                  Complement

                                  asymmetry

       A product where a                           A product consumed
       business generates                          with the main product
             profits

        OTT products                                   Complement

                                   asymmetry


      Consumer electronics,                           high-speed mobile
        on-line advertising, e-                         Internet access
             commerce…


 Telcos cannot compete with OTTs – they are in a different business
The developer is the key in the app economy




         App Consumer
                        App Developer   API
 App                                           API
                                              Team   Systems
 User
The 5 ingredients of a successful ecosystem
Traditional financial tools fail predictably in the
    conditions of uncertainty
                                 1. select wrong projects due to
                                  fundamental unpredictability




Source: HBR, “Innovation Killers”
How Financial Tools Destroy Your Capacity to Do New Things
by Clayton M. Christensen, Stephen P. Kaufman, and Willy C. Shih
Traditional financial tools fail predictably in the
    conditions of uncertainty
                                 1. select wrong projects due to
                                  fundamental unpredictability




                                                   2. disregard
                                              cost of doing nothing
Source: HBR, “Innovation Killers”
How Financial Tools Destroy Your Capacity to Do New Things
by Clayton M. Christensen, Stephen P. Kaufman, and Willy C. Shih
Traditional financial tools fail predictably in the
    conditions of uncertainty
                                 1. select wrong projects due to
                                  fundamental unpredictability




                                                                         3. marginal cost
                                                                        analysis is biased
                                                                      against investments
                                                                       in new capabilities




                                                   2. disregard
                                              cost of doing nothing
Source: HBR, “Innovation Killers”
How Financial Tools Destroy Your Capacity to Do New Things
by Clayton M. Christensen, Stephen P. Kaufman, and Willy C. Shih
Now the good news -

mobile is a booming market
… but telcos need to re-invent themselves
Economic Models for Reinventing Telco - Innovation with APIs
Before                  Structure: the singular telco

                                                                               •Optimised for
                                             large scale
                                             99,999% reliability           2   reliable delivery
                                                                               of few
                                                                               connectivity
                                                                               services at large
                                                                               scale
                                   network
  1                                distribution and retail
                                   telephony
                                   messaging
Designed as a                      billing
connectivity                       user identity
business with high                 authentication
CAPEX and OPEX                     consumer intelligence
                                                               3
                                           take-all-or-nothing: services are
                                           tightly coupled to the network
          Source: VisionMobile
After           Structure: the modular telco



                                         Untapped potential
        Distribution business


                                         Disrupted by alternatives with
                                         asymmetric business models
        Services business


                                         Profit pressure due to
                                         “prisoner's dilemma”
        Connectivity business




                                          Source: VisionMobile
Economic Models for Reinventing Telco - Innovation with APIs
Before
           Ecosystems approach: compete



  Legacy telcos compete with platforms head-on
         e.g. LiMo, Vodafone360, RCS-e
After
            Ecosystems approach: leverage
The modern telco leverages ecosystems
 foster innovation
 diversify into new customer base & businesses
 subscriber loyalty
 drive usage
Economic Models for Reinventing Telco - Innovation with APIs
Before
            Innovation focus




Legacy telcos innovate in networks:
EDGE, WCDMA, HSPA, HSPA+, LTE, LTE-Advanced
After
             Innovation focus

Modern telcos add value to ecosystems beyond access
e.g
 local presence
 digital / physical distribution
 consumer insights
 user ID
 billing, voice APIs
Economic Models for Reinventing Telco - Innovation with APIs
Before
Developers

Legacy telcos see developers as a source of revenue


 high barriers to entry
 stringent processes
 lock-in relationships
 risk transfer to developers
After
Developers

        Modern telco:
         Developers are value-added resellers
         Apps are shops
         APIs are contracts
Economic Models for Reinventing Telco - Innovation with APIs
Before      Voice




Legacy telco sees voice as telephony
Based on 19th century assumptions on technology
and user needs
After         Voice

  Modern telco sees voice as API


   feature phones     smartphones     web


    voice = device    voice = app   voice = API
“I think, as a general rule, most of us are in
markets that are booming. They are not in
decline.

Even the newspaper business is in a growth
industry. It’s not in decline. It’s just their way
of thinking about the industry that is in
decline.”

Clayton Christensen
Professor, Harvard Business School
Questions?
THANK YOU

  Download VisionMobile Telco Innovation Toolbox at:

  visionmobile.com/apigeeweb

 Subscribe to API webcasts at:
youtube.com/apigee                                      Apigee
                                                       @apigee

More Related Content

What's hot

Nordic event - Transformation
Nordic event - TransformationNordic event - Transformation
Nordic event - TransformationTech Mahindra
 
Telcos Strategic Positioning in the new world: The revolution will be Digital...
Telcos Strategic Positioning in the new world: The revolution will be Digital...Telcos Strategic Positioning in the new world: The revolution will be Digital...
Telcos Strategic Positioning in the new world: The revolution will be Digital...Rob Van Den Dam
 
ayoba: a case-study of an operator-led OTT initiative, Yusuf Kaka and Eero Ta...
ayoba: a case-study of an operator-led OTT initiative, Yusuf Kaka and Eero Ta...ayoba: a case-study of an operator-led OTT initiative, Yusuf Kaka and Eero Ta...
ayoba: a case-study of an operator-led OTT initiative, Yusuf Kaka and Eero Ta...Alan Quayle
 
Australian Telco Digital Strategy Trends 2014 / 2015 v1
Australian Telco Digital Strategy Trends 2014 / 2015 v1Australian Telco Digital Strategy Trends 2014 / 2015 v1
Australian Telco Digital Strategy Trends 2014 / 2015 v1Neil Aitken
 
Building A Smart City Huawei
Building A Smart City HuaweiBuilding A Smart City Huawei
Building A Smart City HuaweiHande TEK TURAN
 
Using the Cloud to Attract, Engage & Retain Your Customers
Using the Cloud to Attract, Engage & Retain Your CustomersUsing the Cloud to Attract, Engage & Retain Your Customers
Using the Cloud to Attract, Engage & Retain Your CustomersWainhouse Research
 
Telecom Trends on B2B - 2013
Telecom Trends on B2B - 2013Telecom Trends on B2B - 2013
Telecom Trends on B2B - 2013alpercelk
 
Telco 2.0 'two-sided' business model - Intro
Telco 2.0 'two-sided' business model - IntroTelco 2.0 'two-sided' business model - Intro
Telco 2.0 'two-sided' business model - IntroSimon Torrance
 
Real-time Communications Catching the Next Wave
Real-time Communications Catching the Next WaveReal-time Communications Catching the Next Wave
Real-time Communications Catching the Next WaveDialogic Inc.
 
2016 Global Telco Innovation Targets from TC3 Summit 2015
2016 Global Telco Innovation Targets from TC3 Summit 20152016 Global Telco Innovation Targets from TC3 Summit 2015
2016 Global Telco Innovation Targets from TC3 Summit 2015Telecom Council
 
Aricent Overview, as presented at NexGen Telecom, South Africa
Aricent Overview, as presented at NexGen Telecom, South AfricaAricent Overview, as presented at NexGen Telecom, South Africa
Aricent Overview, as presented at NexGen Telecom, South AfricaAricentCSS
 
Wireless Global Congress: 2020 is not that far away
Wireless Global Congress:  2020 is not that far awayWireless Global Congress:  2020 is not that far away
Wireless Global Congress: 2020 is not that far awayRob Van Den Dam
 
Digital Transformation - the UC&C Approach
Digital Transformation - the UC&C ApproachDigital Transformation - the UC&C Approach
Digital Transformation - the UC&C ApproachWainhouse Research
 
Digital transformation for 2020 and beyond
Digital transformation for 2020 and beyondDigital transformation for 2020 and beyond
Digital transformation for 2020 and beyondSarhan, Ahmed
 
Accenture Communications Industry 2021 - Cross-Industry Orchestrator
Accenture Communications Industry 2021 - Cross-Industry OrchestratorAccenture Communications Industry 2021 - Cross-Industry Orchestrator
Accenture Communications Industry 2021 - Cross-Industry Orchestratoraccenture
 
Global telecom trends by 2020
Global telecom trends by 2020Global telecom trends by 2020
Global telecom trends by 2020Ashutosh Pandey
 

What's hot (20)

Nordic event - Transformation
Nordic event - TransformationNordic event - Transformation
Nordic event - Transformation
 
Telcos Strategic Positioning in the new world: The revolution will be Digital...
Telcos Strategic Positioning in the new world: The revolution will be Digital...Telcos Strategic Positioning in the new world: The revolution will be Digital...
Telcos Strategic Positioning in the new world: The revolution will be Digital...
 
ayoba: a case-study of an operator-led OTT initiative, Yusuf Kaka and Eero Ta...
ayoba: a case-study of an operator-led OTT initiative, Yusuf Kaka and Eero Ta...ayoba: a case-study of an operator-led OTT initiative, Yusuf Kaka and Eero Ta...
ayoba: a case-study of an operator-led OTT initiative, Yusuf Kaka and Eero Ta...
 
Australian Telco Digital Strategy Trends 2014 / 2015 v1
Australian Telco Digital Strategy Trends 2014 / 2015 v1Australian Telco Digital Strategy Trends 2014 / 2015 v1
Australian Telco Digital Strategy Trends 2014 / 2015 v1
 
Building A Smart City Huawei
Building A Smart City HuaweiBuilding A Smart City Huawei
Building A Smart City Huawei
 
Unified Communications
Unified CommunicationsUnified Communications
Unified Communications
 
Using the Cloud to Attract, Engage & Retain Your Customers
Using the Cloud to Attract, Engage & Retain Your CustomersUsing the Cloud to Attract, Engage & Retain Your Customers
Using the Cloud to Attract, Engage & Retain Your Customers
 
Telecom Trends on B2B - 2013
Telecom Trends on B2B - 2013Telecom Trends on B2B - 2013
Telecom Trends on B2B - 2013
 
Telco 2.0 'two-sided' business model - Intro
Telco 2.0 'two-sided' business model - IntroTelco 2.0 'two-sided' business model - Intro
Telco 2.0 'two-sided' business model - Intro
 
NextGenTelcoNEW
NextGenTelcoNEWNextGenTelcoNEW
NextGenTelcoNEW
 
Real-time Communications Catching the Next Wave
Real-time Communications Catching the Next WaveReal-time Communications Catching the Next Wave
Real-time Communications Catching the Next Wave
 
2016 Global Telco Innovation Targets from TC3 Summit 2015
2016 Global Telco Innovation Targets from TC3 Summit 20152016 Global Telco Innovation Targets from TC3 Summit 2015
2016 Global Telco Innovation Targets from TC3 Summit 2015
 
Aricent Overview, as presented at NexGen Telecom, South Africa
Aricent Overview, as presented at NexGen Telecom, South AfricaAricent Overview, as presented at NexGen Telecom, South Africa
Aricent Overview, as presented at NexGen Telecom, South Africa
 
Wireless Global Congress: 2020 is not that far away
Wireless Global Congress:  2020 is not that far awayWireless Global Congress:  2020 is not that far away
Wireless Global Congress: 2020 is not that far away
 
COLT Unified Communications
COLT Unified CommunicationsCOLT Unified Communications
COLT Unified Communications
 
Eitc Infrastructure outlook 2021
Eitc Infrastructure outlook 2021Eitc Infrastructure outlook 2021
Eitc Infrastructure outlook 2021
 
Digital Transformation - the UC&C Approach
Digital Transformation - the UC&C ApproachDigital Transformation - the UC&C Approach
Digital Transformation - the UC&C Approach
 
Digital transformation for 2020 and beyond
Digital transformation for 2020 and beyondDigital transformation for 2020 and beyond
Digital transformation for 2020 and beyond
 
Accenture Communications Industry 2021 - Cross-Industry Orchestrator
Accenture Communications Industry 2021 - Cross-Industry OrchestratorAccenture Communications Industry 2021 - Cross-Industry Orchestrator
Accenture Communications Industry 2021 - Cross-Industry Orchestrator
 
Global telecom trends by 2020
Global telecom trends by 2020Global telecom trends by 2020
Global telecom trends by 2020
 

Viewers also liked

Developers Hate Marketing! Driving API Adoption
Developers Hate Marketing! Driving API AdoptionDevelopers Hate Marketing! Driving API Adoption
Developers Hate Marketing! Driving API AdoptionApigee | Google Cloud
 
APIs Inside Enterprise - SOA Displacement?
APIs Inside Enterprise - SOA Displacement?APIs Inside Enterprise - SOA Displacement?
APIs Inside Enterprise - SOA Displacement?Apigee | Google Cloud
 
10 patterns in successful api programs 2
10 patterns in successful api programs 210 patterns in successful api programs 2
10 patterns in successful api programs 2Apigee | Google Cloud
 
API Management for Software Defined Network (SDN)
API Management for Software Defined Network (SDN)API Management for Software Defined Network (SDN)
API Management for Software Defined Network (SDN)Apigee | Google Cloud
 
API Best Practices Webinar: Metrics - What to Measure
API Best Practices Webinar:  Metrics - What to MeasureAPI Best Practices Webinar:  Metrics - What to Measure
API Best Practices Webinar: Metrics - What to MeasureApigee | Google Cloud
 
API Product Management - Driving Success through the Value Chain
API Product Management - Driving Success through the Value ChainAPI Product Management - Driving Success through the Value Chain
API Product Management - Driving Success through the Value ChainApigee | Google Cloud
 
HTML5: The Apps, the Frameworks, the Controversy
HTML5: The Apps, the Frameworks, the Controversy HTML5: The Apps, the Frameworks, the Controversy
HTML5: The Apps, the Frameworks, the Controversy Apigee | Google Cloud
 
Visbility at the Edge - Deep Insights from Your API
 Visbility at the Edge - Deep Insights from Your API Visbility at the Edge - Deep Insights from Your API
Visbility at the Edge - Deep Insights from Your APIApigee | Google Cloud
 
Skeuomorphs, Databases, and Mobile Performance
Skeuomorphs, Databases, and Mobile PerformanceSkeuomorphs, Databases, and Mobile Performance
Skeuomorphs, Databases, and Mobile PerformanceApigee | Google Cloud
 
The Anatomy of Apps - How iPhone, Android & Facebook Apps Consume APIs
The Anatomy of Apps - How iPhone, Android & Facebook Apps Consume APIsThe Anatomy of Apps - How iPhone, Android & Facebook Apps Consume APIs
The Anatomy of Apps - How iPhone, Android & Facebook Apps Consume APIsApigee | Google Cloud
 
The API Facade Pattern: People - Episode 4
The API Facade Pattern: People - Episode 4The API Facade Pattern: People - Episode 4
The API Facade Pattern: People - Episode 4Apigee | Google Cloud
 
Essential API Facade Patterns: One Phase to Two Phase Conversion (Episode 3)
Essential API Facade Patterns: One Phase to Two Phase Conversion (Episode 3)Essential API Facade Patterns: One Phase to Two Phase Conversion (Episode 3)
Essential API Facade Patterns: One Phase to Two Phase Conversion (Episode 3)Apigee | Google Cloud
 
Crafting APIs for Mobile Apps - Everything You Need to Know
Crafting APIs for Mobile Apps - Everything You Need to KnowCrafting APIs for Mobile Apps - Everything You Need to Know
Crafting APIs for Mobile Apps - Everything You Need to KnowApigee | Google Cloud
 
Essential API Facade Patterns: Synchronous to Asynchronous Conversion (Episod...
Essential API Facade Patterns: Synchronous to Asynchronous Conversion (Episod...Essential API Facade Patterns: Synchronous to Asynchronous Conversion (Episod...
Essential API Facade Patterns: Synchronous to Asynchronous Conversion (Episod...Apigee | Google Cloud
 
I Love APIs 2015: Create Design-driven APIs with Node.js and Swagger
I Love APIs 2015: Create Design-driven APIs with Node.js and SwaggerI Love APIs 2015: Create Design-driven APIs with Node.js and Swagger
I Love APIs 2015: Create Design-driven APIs with Node.js and SwaggerApigee | Google Cloud
 
Building your first Native iOs App with an API Backend
Building your first Native iOs App with an API BackendBuilding your first Native iOs App with an API Backend
Building your first Native iOs App with an API BackendApigee | Google Cloud
 
Does your API need to be PCI Compliant?
Does your API need to be PCI Compliant?Does your API need to be PCI Compliant?
Does your API need to be PCI Compliant?Apigee | Google Cloud
 
Driving Digital Success: Three ROI Criteria for Competitive Advantage
Driving Digital Success:  Three ROI Criteria for Competitive Advantage Driving Digital Success:  Three ROI Criteria for Competitive Advantage
Driving Digital Success: Three ROI Criteria for Competitive Advantage Apigee | Google Cloud
 

Viewers also liked (20)

Developers Hate Marketing! Driving API Adoption
Developers Hate Marketing! Driving API AdoptionDevelopers Hate Marketing! Driving API Adoption
Developers Hate Marketing! Driving API Adoption
 
APIs Inside Enterprise - SOA Displacement?
APIs Inside Enterprise - SOA Displacement?APIs Inside Enterprise - SOA Displacement?
APIs Inside Enterprise - SOA Displacement?
 
10 patterns in successful api programs 2
10 patterns in successful api programs 210 patterns in successful api programs 2
10 patterns in successful api programs 2
 
API Management for Software Defined Network (SDN)
API Management for Software Defined Network (SDN)API Management for Software Defined Network (SDN)
API Management for Software Defined Network (SDN)
 
API Design - 3rd Edition
API Design - 3rd EditionAPI Design - 3rd Edition
API Design - 3rd Edition
 
API Best Practices Webinar: Metrics - What to Measure
API Best Practices Webinar:  Metrics - What to MeasureAPI Best Practices Webinar:  Metrics - What to Measure
API Best Practices Webinar: Metrics - What to Measure
 
API Product Management - Driving Success through the Value Chain
API Product Management - Driving Success through the Value ChainAPI Product Management - Driving Success through the Value Chain
API Product Management - Driving Success through the Value Chain
 
HTML5: The Apps, the Frameworks, the Controversy
HTML5: The Apps, the Frameworks, the Controversy HTML5: The Apps, the Frameworks, the Controversy
HTML5: The Apps, the Frameworks, the Controversy
 
Visbility at the Edge - Deep Insights from Your API
 Visbility at the Edge - Deep Insights from Your API Visbility at the Edge - Deep Insights from Your API
Visbility at the Edge - Deep Insights from Your API
 
Skeuomorphs, Databases, and Mobile Performance
Skeuomorphs, Databases, and Mobile PerformanceSkeuomorphs, Databases, and Mobile Performance
Skeuomorphs, Databases, and Mobile Performance
 
The Anatomy of Apps - How iPhone, Android & Facebook Apps Consume APIs
The Anatomy of Apps - How iPhone, Android & Facebook Apps Consume APIsThe Anatomy of Apps - How iPhone, Android & Facebook Apps Consume APIs
The Anatomy of Apps - How iPhone, Android & Facebook Apps Consume APIs
 
The API Facade Pattern: People - Episode 4
The API Facade Pattern: People - Episode 4The API Facade Pattern: People - Episode 4
The API Facade Pattern: People - Episode 4
 
Essential API Facade Patterns: One Phase to Two Phase Conversion (Episode 3)
Essential API Facade Patterns: One Phase to Two Phase Conversion (Episode 3)Essential API Facade Patterns: One Phase to Two Phase Conversion (Episode 3)
Essential API Facade Patterns: One Phase to Two Phase Conversion (Episode 3)
 
Crafting APIs for Mobile Apps - Everything You Need to Know
Crafting APIs for Mobile Apps - Everything You Need to KnowCrafting APIs for Mobile Apps - Everything You Need to Know
Crafting APIs for Mobile Apps - Everything You Need to Know
 
Essential API Facade Patterns: Synchronous to Asynchronous Conversion (Episod...
Essential API Facade Patterns: Synchronous to Asynchronous Conversion (Episod...Essential API Facade Patterns: Synchronous to Asynchronous Conversion (Episod...
Essential API Facade Patterns: Synchronous to Asynchronous Conversion (Episod...
 
Webcast: Apigee Edge Product Demo
Webcast: Apigee Edge Product DemoWebcast: Apigee Edge Product Demo
Webcast: Apigee Edge Product Demo
 
I Love APIs 2015: Create Design-driven APIs with Node.js and Swagger
I Love APIs 2015: Create Design-driven APIs with Node.js and SwaggerI Love APIs 2015: Create Design-driven APIs with Node.js and Swagger
I Love APIs 2015: Create Design-driven APIs with Node.js and Swagger
 
Building your first Native iOs App with an API Backend
Building your first Native iOs App with an API BackendBuilding your first Native iOs App with an API Backend
Building your first Native iOs App with an API Backend
 
Does your API need to be PCI Compliant?
Does your API need to be PCI Compliant?Does your API need to be PCI Compliant?
Does your API need to be PCI Compliant?
 
Driving Digital Success: Three ROI Criteria for Competitive Advantage
Driving Digital Success:  Three ROI Criteria for Competitive Advantage Driving Digital Success:  Three ROI Criteria for Competitive Advantage
Driving Digital Success: Three ROI Criteria for Competitive Advantage
 

Similar to Economic Models for Reinventing Telco - Innovation with APIs

Taga arthur d little
Taga arthur d littleTaga arthur d little
Taga arthur d littlesouthmos
 
How companies are achieving competitive advantage through analytics
How companies are achieving competitive advantage through analyticsHow companies are achieving competitive advantage through analytics
How companies are achieving competitive advantage through analyticsEsri
 
CBS February 2013 Cloud Computing in the context of outsourcing
CBS February 2013 Cloud Computing in the context of outsourcingCBS February 2013 Cloud Computing in the context of outsourcing
CBS February 2013 Cloud Computing in the context of outsourcingHenrik Hasselbalch
 
Evaluating Monetization Strategies in an All IP World
Evaluating Monetization Strategies in an All IP WorldEvaluating Monetization Strategies in an All IP World
Evaluating Monetization Strategies in an All IP WorldGENBANDcorporate
 
Harnessing the Power of the Mobile Cloud
Harnessing the Power of the Mobile CloudHarnessing the Power of the Mobile Cloud
Harnessing the Power of the Mobile CloudAntenna Software
 
Ericsson white paper - Device connectivity unlocks value
Ericsson white paper - Device connectivity unlocks valueEricsson white paper - Device connectivity unlocks value
Ericsson white paper - Device connectivity unlocks valueEricsson France
 
Latest news phoenix
Latest news phoenixLatest news phoenix
Latest news phoenixJeff Pearce
 
La tendencia de Cloud Computing. Nubes públicas, privadas e híbridas
La tendencia de Cloud Computing. Nubes públicas, privadas e híbridasLa tendencia de Cloud Computing. Nubes públicas, privadas e híbridas
La tendencia de Cloud Computing. Nubes públicas, privadas e híbridasMundo Contact
 
IDC España Predictions 2012
IDC España Predictions 2012IDC España Predictions 2012
IDC España Predictions 2012Lluis Altes
 
Converging Enterprise Communications, IT and the Cloud - White Paper - Unifie...
Converging Enterprise Communications, IT and the Cloud - White Paper - Unifie...Converging Enterprise Communications, IT and the Cloud - White Paper - Unifie...
Converging Enterprise Communications, IT and the Cloud - White Paper - Unifie...Unified Communications Online
 
The Cloud: Time for Delivery
The Cloud: Time for DeliveryThe Cloud: Time for Delivery
The Cloud: Time for DeliveryCapgemini
 
Buckle Up for Safety: Telecom Ready for the Passing Lane
Buckle Up for Safety:  Telecom Ready for the Passing LaneBuckle Up for Safety:  Telecom Ready for the Passing Lane
Buckle Up for Safety: Telecom Ready for the Passing LaneMaRS Discovery District
 
The Changing Face Of Communications
The Changing Face Of CommunicationsThe Changing Face Of Communications
The Changing Face Of Communicationsdroddy
 
Cheng bearing point
Cheng bearing pointCheng bearing point
Cheng bearing pointsouthmos
 
The Next Big Thing: Industry Experts Share Pioneering Technical Advancements ...
The Next Big Thing: Industry Experts Share Pioneering Technical Advancements ...The Next Big Thing: Industry Experts Share Pioneering Technical Advancements ...
The Next Big Thing: Industry Experts Share Pioneering Technical Advancements ...Career Communications Group
 
Viewpoints Cloud Computing
Viewpoints Cloud ComputingViewpoints Cloud Computing
Viewpoints Cloud Computinglaurenfortune
 
Economics of Cloud Computing
Economics of Cloud ComputingEconomics of Cloud Computing
Economics of Cloud ComputingPaul Hofmann
 

Similar to Economic Models for Reinventing Telco - Innovation with APIs (20)

Taga arthur d little
Taga arthur d littleTaga arthur d little
Taga arthur d little
 
How companies are achieving competitive advantage through analytics
How companies are achieving competitive advantage through analyticsHow companies are achieving competitive advantage through analytics
How companies are achieving competitive advantage through analytics
 
Merging fraud in a full IP environment
Merging fraud in a full IP environmentMerging fraud in a full IP environment
Merging fraud in a full IP environment
 
CBS February 2013 Cloud Computing in the context of outsourcing
CBS February 2013 Cloud Computing in the context of outsourcingCBS February 2013 Cloud Computing in the context of outsourcing
CBS February 2013 Cloud Computing in the context of outsourcing
 
Evaluating Monetization Strategies in an All IP World
Evaluating Monetization Strategies in an All IP WorldEvaluating Monetization Strategies in an All IP World
Evaluating Monetization Strategies in an All IP World
 
Harnessing the Power of the Mobile Cloud
Harnessing the Power of the Mobile CloudHarnessing the Power of the Mobile Cloud
Harnessing the Power of the Mobile Cloud
 
GENBAND SBC article
GENBAND SBC articleGENBAND SBC article
GENBAND SBC article
 
Ericsson white paper - Device connectivity unlocks value
Ericsson white paper - Device connectivity unlocks valueEricsson white paper - Device connectivity unlocks value
Ericsson white paper - Device connectivity unlocks value
 
Latest news phoenix
Latest news phoenixLatest news phoenix
Latest news phoenix
 
La tendencia de Cloud Computing. Nubes públicas, privadas e híbridas
La tendencia de Cloud Computing. Nubes públicas, privadas e híbridasLa tendencia de Cloud Computing. Nubes públicas, privadas e híbridas
La tendencia de Cloud Computing. Nubes públicas, privadas e híbridas
 
IDC España Predictions 2012
IDC España Predictions 2012IDC España Predictions 2012
IDC España Predictions 2012
 
Converging Enterprise Communications, IT and the Cloud - White Paper - Unifie...
Converging Enterprise Communications, IT and the Cloud - White Paper - Unifie...Converging Enterprise Communications, IT and the Cloud - White Paper - Unifie...
Converging Enterprise Communications, IT and the Cloud - White Paper - Unifie...
 
The Cloud: Time for Delivery
The Cloud: Time for DeliveryThe Cloud: Time for Delivery
The Cloud: Time for Delivery
 
Buckle Up for Safety: Telecom Ready for the Passing Lane
Buckle Up for Safety:  Telecom Ready for the Passing LaneBuckle Up for Safety:  Telecom Ready for the Passing Lane
Buckle Up for Safety: Telecom Ready for the Passing Lane
 
The Changing Face Of Communications
The Changing Face Of CommunicationsThe Changing Face Of Communications
The Changing Face Of Communications
 
Cheng bearing point
Cheng bearing pointCheng bearing point
Cheng bearing point
 
Cloud Computing for Electronics
Cloud Computing for ElectronicsCloud Computing for Electronics
Cloud Computing for Electronics
 
The Next Big Thing: Industry Experts Share Pioneering Technical Advancements ...
The Next Big Thing: Industry Experts Share Pioneering Technical Advancements ...The Next Big Thing: Industry Experts Share Pioneering Technical Advancements ...
The Next Big Thing: Industry Experts Share Pioneering Technical Advancements ...
 
Viewpoints Cloud Computing
Viewpoints Cloud ComputingViewpoints Cloud Computing
Viewpoints Cloud Computing
 
Economics of Cloud Computing
Economics of Cloud ComputingEconomics of Cloud Computing
Economics of Cloud Computing
 

More from Apigee | Google Cloud

Monetization: Unlock More Value from Your APIs
Monetization: Unlock More Value from Your APIs Monetization: Unlock More Value from Your APIs
Monetization: Unlock More Value from Your APIs Apigee | Google Cloud
 
AccuWeather: Recasting API Experiences in a Developer-First World
AccuWeather: Recasting API Experiences in a Developer-First WorldAccuWeather: Recasting API Experiences in a Developer-First World
AccuWeather: Recasting API Experiences in a Developer-First WorldApigee | Google Cloud
 
Which Application Modernization Pattern Is Right For You?
Which Application Modernization Pattern Is Right For You?Which Application Modernization Pattern Is Right For You?
Which Application Modernization Pattern Is Right For You?Apigee | Google Cloud
 
The Four Transformative Forces of the API Management Market
The Four Transformative Forces of the API Management MarketThe Four Transformative Forces of the API Management Market
The Four Transformative Forces of the API Management MarketApigee | Google Cloud
 
Managing the Complexity of Microservices Deployments
Managing the Complexity of Microservices DeploymentsManaging the Complexity of Microservices Deployments
Managing the Complexity of Microservices DeploymentsApigee | Google Cloud
 
Microservices Done Right: Key Ingredients for Microservices Success
Microservices Done Right: Key Ingredients for Microservices SuccessMicroservices Done Right: Key Ingredients for Microservices Success
Microservices Done Right: Key Ingredients for Microservices SuccessApigee | Google Cloud
 
Adapt or Die: Opening Keynote with Chet Kapoor
Adapt or Die: Opening Keynote with Chet KapoorAdapt or Die: Opening Keynote with Chet Kapoor
Adapt or Die: Opening Keynote with Chet KapoorApigee | Google Cloud
 
Adapt or Die: Keynote with Greg Brail
Adapt or Die: Keynote with Greg BrailAdapt or Die: Keynote with Greg Brail
Adapt or Die: Keynote with Greg BrailApigee | Google Cloud
 
Adapt or Die: Keynote with Anant Jhingran
Adapt or Die: Keynote with Anant JhingranAdapt or Die: Keynote with Anant Jhingran
Adapt or Die: Keynote with Anant JhingranApigee | Google Cloud
 
London Adapt or Die: Closing Keynote — Adapt Now!
London Adapt or Die: Closing Keynote — Adapt Now!London Adapt or Die: Closing Keynote — Adapt Now!
London Adapt or Die: Closing Keynote — Adapt Now!Apigee | Google Cloud
 

More from Apigee | Google Cloud (20)

How Secure Are Your APIs?
How Secure Are Your APIs?How Secure Are Your APIs?
How Secure Are Your APIs?
 
Magazine Luiza at a glance (1)
Magazine Luiza at a glance (1)Magazine Luiza at a glance (1)
Magazine Luiza at a glance (1)
 
Monetization: Unlock More Value from Your APIs
Monetization: Unlock More Value from Your APIs Monetization: Unlock More Value from Your APIs
Monetization: Unlock More Value from Your APIs
 
Apigee Demo: API Platform Overview
Apigee Demo: API Platform OverviewApigee Demo: API Platform Overview
Apigee Demo: API Platform Overview
 
Ticketmaster at a glance
Ticketmaster at a glanceTicketmaster at a glance
Ticketmaster at a glance
 
AccuWeather: Recasting API Experiences in a Developer-First World
AccuWeather: Recasting API Experiences in a Developer-First WorldAccuWeather: Recasting API Experiences in a Developer-First World
AccuWeather: Recasting API Experiences in a Developer-First World
 
Which Application Modernization Pattern Is Right For You?
Which Application Modernization Pattern Is Right For You?Which Application Modernization Pattern Is Right For You?
Which Application Modernization Pattern Is Right For You?
 
Apigee Product Roadmap Part 2
Apigee Product Roadmap Part 2Apigee Product Roadmap Part 2
Apigee Product Roadmap Part 2
 
The Four Transformative Forces of the API Management Market
The Four Transformative Forces of the API Management MarketThe Four Transformative Forces of the API Management Market
The Four Transformative Forces of the API Management Market
 
Walgreens at a glance
Walgreens at a glanceWalgreens at a glance
Walgreens at a glance
 
Apigee Edge: Intro to Microgateway
Apigee Edge: Intro to MicrogatewayApigee Edge: Intro to Microgateway
Apigee Edge: Intro to Microgateway
 
Managing the Complexity of Microservices Deployments
Managing the Complexity of Microservices DeploymentsManaging the Complexity of Microservices Deployments
Managing the Complexity of Microservices Deployments
 
Pitney Bowes at a glance
Pitney Bowes at a glancePitney Bowes at a glance
Pitney Bowes at a glance
 
Microservices Done Right: Key Ingredients for Microservices Success
Microservices Done Right: Key Ingredients for Microservices SuccessMicroservices Done Right: Key Ingredients for Microservices Success
Microservices Done Right: Key Ingredients for Microservices Success
 
Adapt or Die: Opening Keynote with Chet Kapoor
Adapt or Die: Opening Keynote with Chet KapoorAdapt or Die: Opening Keynote with Chet Kapoor
Adapt or Die: Opening Keynote with Chet Kapoor
 
Adapt or Die: Keynote with Greg Brail
Adapt or Die: Keynote with Greg BrailAdapt or Die: Keynote with Greg Brail
Adapt or Die: Keynote with Greg Brail
 
Adapt or Die: Keynote with Anant Jhingran
Adapt or Die: Keynote with Anant JhingranAdapt or Die: Keynote with Anant Jhingran
Adapt or Die: Keynote with Anant Jhingran
 
London Adapt or Die: Opening Keynot
London Adapt or Die: Opening KeynotLondon Adapt or Die: Opening Keynot
London Adapt or Die: Opening Keynot
 
London Adapt or Die: Lunch keynote
London Adapt or Die: Lunch keynoteLondon Adapt or Die: Lunch keynote
London Adapt or Die: Lunch keynote
 
London Adapt or Die: Closing Keynote — Adapt Now!
London Adapt or Die: Closing Keynote — Adapt Now!London Adapt or Die: Closing Keynote — Adapt Now!
London Adapt or Die: Closing Keynote — Adapt Now!
 

Recently uploaded

UiPath Studio Web workshop series - Day 7
UiPath Studio Web workshop series - Day 7UiPath Studio Web workshop series - Day 7
UiPath Studio Web workshop series - Day 7DianaGray10
 
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019IES VE
 
9 Steps For Building Winning Founding Team
9 Steps For Building Winning Founding Team9 Steps For Building Winning Founding Team
9 Steps For Building Winning Founding TeamAdam Moalla
 
AI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity WebinarAI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity WebinarPrecisely
 
COMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a WebsiteCOMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a Websitedgelyza
 
Comparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioComparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioChristian Posta
 
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdfIaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdfDaniel Santiago Silva Capera
 
Bird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystemBird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystemAsko Soukka
 
activity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdf
activity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdf
activity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdfJamie (Taka) Wang
 
Linked Data in Production: Moving Beyond Ontologies
Linked Data in Production: Moving Beyond OntologiesLinked Data in Production: Moving Beyond Ontologies
Linked Data in Production: Moving Beyond OntologiesDavid Newbury
 
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAAnypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAshyamraj55
 
OpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability AdventureOpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability AdventureEric D. Schabell
 
20230202 - Introduction to tis-py
20230202 - Introduction to tis-py20230202 - Introduction to tis-py
20230202 - Introduction to tis-pyJamie (Taka) Wang
 
Videogame localization & technology_ how to enhance the power of translation.pdf
Videogame localization & technology_ how to enhance the power of translation.pdfVideogame localization & technology_ how to enhance the power of translation.pdf
Videogame localization & technology_ how to enhance the power of translation.pdfinfogdgmi
 
Secure your environment with UiPath and CyberArk technologies - Session 1
Secure your environment with UiPath and CyberArk technologies - Session 1Secure your environment with UiPath and CyberArk technologies - Session 1
Secure your environment with UiPath and CyberArk technologies - Session 1DianaGray10
 
Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™Adtran
 
UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6DianaGray10
 
Artificial Intelligence & SEO Trends for 2024
Artificial Intelligence & SEO Trends for 2024Artificial Intelligence & SEO Trends for 2024
Artificial Intelligence & SEO Trends for 2024D Cloud Solutions
 

Recently uploaded (20)

UiPath Studio Web workshop series - Day 7
UiPath Studio Web workshop series - Day 7UiPath Studio Web workshop series - Day 7
UiPath Studio Web workshop series - Day 7
 
20230104 - machine vision
20230104 - machine vision20230104 - machine vision
20230104 - machine vision
 
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
 
9 Steps For Building Winning Founding Team
9 Steps For Building Winning Founding Team9 Steps For Building Winning Founding Team
9 Steps For Building Winning Founding Team
 
AI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity WebinarAI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity Webinar
 
COMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a WebsiteCOMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a Website
 
Comparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioComparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and Istio
 
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdfIaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
 
Bird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystemBird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystem
 
activity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdf
activity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdf
activity_diagram_combine_v4_20190827.pdfactivity_diagram_combine_v4_20190827.pdf
 
Linked Data in Production: Moving Beyond Ontologies
Linked Data in Production: Moving Beyond OntologiesLinked Data in Production: Moving Beyond Ontologies
Linked Data in Production: Moving Beyond Ontologies
 
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAAnypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
 
OpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability AdventureOpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability Adventure
 
20230202 - Introduction to tis-py
20230202 - Introduction to tis-py20230202 - Introduction to tis-py
20230202 - Introduction to tis-py
 
201610817 - edge part1
201610817 - edge part1201610817 - edge part1
201610817 - edge part1
 
Videogame localization & technology_ how to enhance the power of translation.pdf
Videogame localization & technology_ how to enhance the power of translation.pdfVideogame localization & technology_ how to enhance the power of translation.pdf
Videogame localization & technology_ how to enhance the power of translation.pdf
 
Secure your environment with UiPath and CyberArk technologies - Session 1
Secure your environment with UiPath and CyberArk technologies - Session 1Secure your environment with UiPath and CyberArk technologies - Session 1
Secure your environment with UiPath and CyberArk technologies - Session 1
 
Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™
 
UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6
 
Artificial Intelligence & SEO Trends for 2024
Artificial Intelligence & SEO Trends for 2024Artificial Intelligence & SEO Trends for 2024
Artificial Intelligence & SEO Trends for 2024
 

Economic Models for Reinventing Telco - Innovation with APIs

  • 1. Economic Models for Reinventing Telco Telco Innovation with APIs Andreas Constantinou VisionMobile @andreascon @visionmobile Apigee Bala Kasiviswanathan @apigee @BalaK
  • 2. @apigee @VisionMobile @BalaK @andreascon
  • 6. Agenda  How should Telcos deal with the challenges of today’s ecosystems- driven competition?  The new basis of competition  The asymmetric business models  The price of doing nothing  The modular telco  How telcos can leverage ecosystems
  • 7. A New Playing Field for Telcos
  • 8. The new rules of the game in mobile telecom mobile computing share of needs, attention & wallet 4 apps 750,000+ apps (phone, text, contacts, camera) (encompassing all user needs) service telco mobile platforms distribution basis of reliability & scale choice & flexibility competition of networks of services business models proven & predictable new & unpredictable Source: VisionMobile
  • 9. The domino effect in the telecom industry apps challenge telco core services hundreds of thousands of apps replace telco VAS 3 2 iOS, Android 1 broke the walls of walled gardens Source: VisionMobile
  • 10. OTTs compete with telcos for control, not for profits Content Ads Ads Distribution Connectivity Access software licensing Screen Devices retailing User denotes company’s core business
  • 11. OTT competition with telco is asymmetric Core product Complement asymmetry A product where a A product consumed business generates with the main product profits OTT products Complement asymmetry Consumer electronics, high-speed mobile on-line advertising, e- Internet access commerce… Telcos cannot compete with OTTs – they are in a different business
  • 12. The developer is the key in the app economy App Consumer App Developer API App API Team Systems User
  • 13. The 5 ingredients of a successful ecosystem
  • 14. Traditional financial tools fail predictably in the conditions of uncertainty 1. select wrong projects due to fundamental unpredictability Source: HBR, “Innovation Killers” How Financial Tools Destroy Your Capacity to Do New Things by Clayton M. Christensen, Stephen P. Kaufman, and Willy C. Shih
  • 15. Traditional financial tools fail predictably in the conditions of uncertainty 1. select wrong projects due to fundamental unpredictability 2. disregard cost of doing nothing Source: HBR, “Innovation Killers” How Financial Tools Destroy Your Capacity to Do New Things by Clayton M. Christensen, Stephen P. Kaufman, and Willy C. Shih
  • 16. Traditional financial tools fail predictably in the conditions of uncertainty 1. select wrong projects due to fundamental unpredictability 3. marginal cost analysis is biased against investments in new capabilities 2. disregard cost of doing nothing Source: HBR, “Innovation Killers” How Financial Tools Destroy Your Capacity to Do New Things by Clayton M. Christensen, Stephen P. Kaufman, and Willy C. Shih
  • 17. Now the good news - mobile is a booming market
  • 18. … but telcos need to re-invent themselves
  • 20. Before Structure: the singular telco •Optimised for large scale 99,999% reliability 2 reliable delivery of few connectivity services at large scale network 1 distribution and retail telephony messaging Designed as a billing connectivity user identity business with high authentication CAPEX and OPEX consumer intelligence 3 take-all-or-nothing: services are tightly coupled to the network Source: VisionMobile
  • 21. After Structure: the modular telco Untapped potential Distribution business Disrupted by alternatives with asymmetric business models Services business Profit pressure due to “prisoner's dilemma” Connectivity business Source: VisionMobile
  • 23. Before Ecosystems approach: compete Legacy telcos compete with platforms head-on e.g. LiMo, Vodafone360, RCS-e
  • 24. After Ecosystems approach: leverage The modern telco leverages ecosystems  foster innovation  diversify into new customer base & businesses  subscriber loyalty  drive usage
  • 26. Before Innovation focus Legacy telcos innovate in networks: EDGE, WCDMA, HSPA, HSPA+, LTE, LTE-Advanced
  • 27. After Innovation focus Modern telcos add value to ecosystems beyond access e.g  local presence  digital / physical distribution  consumer insights  user ID  billing, voice APIs
  • 29. Before Developers Legacy telcos see developers as a source of revenue  high barriers to entry  stringent processes  lock-in relationships  risk transfer to developers
  • 30. After Developers Modern telco:  Developers are value-added resellers  Apps are shops  APIs are contracts
  • 32. Before Voice Legacy telco sees voice as telephony Based on 19th century assumptions on technology and user needs
  • 33. After Voice Modern telco sees voice as API feature phones smartphones web voice = device voice = app voice = API
  • 34. “I think, as a general rule, most of us are in markets that are booming. They are not in decline. Even the newspaper business is in a growth industry. It’s not in decline. It’s just their way of thinking about the industry that is in decline.” Clayton Christensen Professor, Harvard Business School
  • 36. THANK YOU Download VisionMobile Telco Innovation Toolbox at: visionmobile.com/apigeeweb Subscribe to API webcasts at: youtube.com/apigee Apigee @apigee

Editor's Notes

  1. This video and other videos of the webcast series will be available on youtubeAt youtube.com/apigee
  2. 1. Apps are just the tip of the iceberg2. Telecom and computing started out as two disconnected islands. They are now merged.3. The new rules of the game in mobile
  3. There is no way to predict how the market will unfold and how that will affect mobile operators
  4. Telcos are collateral damage to OTT players
  5. The path to ubiquity is along the value chain where the App Developer is key The path to this ubiquity is a value chain where the App Developer is key. For business folks, the app developer represents a brand new channel that enables expanding reach and revenue. There are apps for every type of human endeavor: productivity, entertainment, financial, and health monitoring to name a few.  A critical internal component is the API Team, a cross functional team that manages API availability as the company manages its products. The team represents the investment that the enterprise makes to achieve the goals of their program.  These are the folks that help you innovate at the edge of your business. The great news about the apps that are created is that the people using them overall are absolutely delighted.
  6. To create an ecosystem you need 5 ingredientsThese are necessary to kick start the network effects
  7. In 2009: Telcos were putting their bets on WAC and app stores2012: WhatsApp and Viber reach well over 100M users each.
  8. Basicassumption that current business will perform as it is today – More likely “do nothing” scenario is non-linear decline in the current businessDCF disregards this
  9. New capabilities are needed to compete in new market conditionsMarginal cost analysis makes investments in current capabilities look cheaper than investing in creating new capabilities from scratch.For example RCS-e appears to have a better RoI as it’s based on current capabilities.
  10. Apps have opened telecoms to a whole range of new consumer budgets: entertainment, insurance, housing, transportation, healthcare, education
  11. .. In order to tap into these opportunitiesThere are 5 areas in which change needs to happen
  12. The modern telco is modular.- Each layer is affected differently by the change in market conditions
  13. Networks
  14. Before: subscribers - equipment (landlines etc) - servicesAfter: Developers – Apps - APIs
  15. Telcos comparatively spend very little in digital innovation, compared to network innovation
  16. “You cannot capture value without creating it”
  17. - Needs business models aligned with developer needs
  18. The modern telco frees voice from telephony:- Drives voice into new use cases - unlocking the limitations of telephony(end-points, initiation, termination, time, etiquette)