1. Defining value
in the Future
Internet
Simon Delaere
IBBT-SMIT, Vrije Universiteit Brussel
FinES Workshop, FIA Aalborg, 9 May 2012
2. About us
IBBT – Interdisciplinary Institute for Broadband
Technology – funded by Flemish government, 1000
researchers in # groups across # Flemish universities
IBBT-SMIT: Founded in 1990, based in Brussels, part of
IBBT’s Digital Society Department
Specialising in socio-scientific research on media/ICT
Currently some 60+ researchers
Combination of quantitative and qualitative methods for
User research
Policy analysis
Business modelling
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3. Main messages
Apples are not pears
It’s not only about numbers
It matters for FI and FinES
3
5. Context matters
Technological determinism vs interdisciplinary
approach
Research is about technology, but technology is void
without knowing about
How it is regulated
How it may be used/how it is actually used
How value can actually be created
Value is a hetereogeneous concept
What is invaluable to one is worthless to the next
What is worthless now may be priceless tomorrow
Value creation and capture is a strategic configuration
process
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6. The context of value - The example of CR
Cost/complexity of CR
technology
“POLAR EXPEDITION” “TYCOONS’ Level 1
PARTY”
HIGH Non-commercial pilots
Super-rich telcos’ toy
“DO-IT-YOURSELF “BLOSSOMING
WORLD” GARDENS”
LOW
Localised “hot-spots” Specialist CR providers
NO YES Emergence of viable
CR business case?
A. Medeisis, S. Delaere (2011). High-Level Scenarios for the Future of Cognitive Radio Business. Paper
presented at PIMRC 2011, 11-14 September 2011, Toronto, Canada
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7. The context of value - The example of CR
Level 2
Barrie, Delaere & Ballon. Classification of business scenarios for spectrum sensing.
IEEE 21st International Symposium on Personal Indoor and Mobile Radio Communications (PIMRC) 2010,
Istanbul (T), 26-30 Sept. 2010
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8. The context of value - The example of CR
Niche, exclusive, Groups,
high barriers to entry human-oriented,
management
UA
V
Event management/theme
Field
deployable
network
parks, zoos
Monitoring & drug
Level 3
delivery Security &
First CCTV
Tele-health
responder
Costs
Emergency
broadcast
Education
Mobile
Rural
truck &
broadband
cash in
VoD
transit
Gaming
Travel/planning
VANETs
Utility/grid monitoring
Home analytics
Government, necessity, Potential market growth
social benefit Consumer, high volume,
Quickly evolving
K. Nolan, V. Gonçalves & M. Sandmann (2011). COST TERRA – WG3 Working Paper: Marlets,
Opportunities, Technologies & Regulation.
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9. The context of value - The example of CR
Level 4
Tytgat, L., M. Barrie, V. Gonçalves, O. Yaron, I. Moerman, P. Demeester, S. Pollin, P. Ballon, and S. Delaere,
"Techno-economical Viability of Cognitive Solutions for a Factory Scenario", DySPAN, Aachen, Germany, 05/2011
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16. 2. It’s not only about the numbers
15/05/2012 16
17. Of course numbers are important
Quantitative evaluation is necessary
Cost-efficient research = cost-efficient technologies
Business Case construction is a crucial step
Many FI technologies promise reduction in CAPEX/OPEX, but
what do they deliver?
But it is often too early to ask
Infrastructure, element cost, uptake unknown
Competition/complementarity with legacy tech unclear
Macro, meso and micro economic factors
And it is still research
Does it make sense to ask detailed, confidential exploitation
plans in a STREP?
Cost and revenue are just two strategic considerations
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22. Rising questions
Platform dynamics: multi-sided
markets
Dynamic and complex competition
processes between large number
of platforms or platform wannabes
Importance of technological
configurations, interoperability,
openness, bundling and adding
features
Greater scope for variety of
platform and non-platform
strategies
Abstract and static conceptions of
‘platforms’ need to be replaced by
analysis of changing boundaries of
platforms, various levels of
integration and control, different
types of platform business models
Regulation not equiped for dealing
with platorms
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23. objectives are diluted because of the mediation of
the Infrastructure Owner – who interferes with the
existing operator-customer relationship by
deploying and managing the CONSERN network
Multiple complementary methods
all by himself.
Actor – Actor Interaction (MAA)
On the other hand, the Divergence graph shows that the
BO IO EU DM ASP WNO
Network Operators (BO, WNO) and Infrastructure Owner
(IO) are in clear divergence with each other: firstly, because
BO
ofIOthe Operator-Independent strategy employed by the
Infrastructure Owner and secondly because of the direct
EU
interaction between the Infrastructure Owner and the Device
Manufacturer, which in more Operator-Centric models were
DM
mediated and managed by the Network Operator. Since we
ASP
adopt an Operator-Independent strategy, adopting Operator-
WNO
Centric or 3rd Party-Centric Models can yield entirely
different sets of convergences and divergences amongst the
actors.
Ecosystem Convergence & Divergence
WNO – BO: converge and diverge on all issues
IO – (WNO+BO): diverge because of Operator
Independent Business Model involved.
IO-ASP-DM : Strongly converge and support OI BM
Focal Actor – Convergence & Divergence ASP-(WNO+BM) : ASP diverge and would like
Figure 6: Divergence and Convergence [MAA] to operate independently
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The I O’s role within the network-centric group of
24. Casey, T.R., & Töyli, J. Mobile voice diffusion and service competition: A system dynamic
analysis of regulatory policy. Telecommunications Policy (2011), doi:10.1016/j.telpol.2011.07.002
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27. FI-PPP needs business assessment
Ambitious programmes linking FI underlying
infrastructure to concrete application domains
Both generic enablers and resulting applications
need to be tested for business impact
IBBT’s role
IBBT chairs Exploitation and Business Modelling working
group within FI-PPP (through CONCORD)
Established 22 February 2012
Objectives
provide internal (FI-PPP) and external (FP7-CIP) insights into
Future Internet exploitation plans and business models; and,
support the FI-PPP projects’ individual exploitation and business
modelling efforts.
First F2F meeting at this moment
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29. First EBM WG White Paper in draft
FI-PPP Technical and Business Architecture
FI-PPP Core Platform: Technical and Business Architecture
FI-PPP Use Cases: Technical and Business Architecture
FI-PPP: Unified Business Architecture
Innovative Business Models for FI-PPP Services and
Applications
FI-PPP Use Case Example(s) and Business Models
The Business Challenges and Opportunities
Lessons Learned and Best Practices from External Cases
Innovative Business Models
e.g. X as a Service models; Smart Cities/Region models, SME application stores, etc.
Societal Benefits and Economic Impact of the FI-PPP
FI-PPP Core Platform and Domain Usage Areas Benefits and Impact
FI-PPP Market Opportunities
Generic Benefits of the Future Internet
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30. How about the value of enterprise solutions?
Future Internet may open new roads to value for
enterprises, both competing and collaborating
Value can be created by
Infrastructure
Data
Platforms
IBBT is working on all these topics
PPP concept changes very concept of value
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