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Bringing-Technology-to-Life P.M. Westerhout Delft-University-of-Technology ET4034 2013

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1 / 62 Peter Maarten Westerhout Hong Gie Ong Course: Network Architectures and Business Models ET4034, Prof. Dr. Ir. N.H.G. Baken February 22 nd 2013 How to create value and control risks when introducing new products & services based on upcoming communication technologies; All in order to improve the Quality of Life! Bringing to Life !
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Page 1: Bringing-Technology-to-Life   P.M. Westerhout  Delft-University-of-Technology ET4034 2013

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Peter Maarten Westerhout

Hong Gie Ong

Course: Network Architectures and Business Models

ET4034, Prof. Dr. Ir. N.H.G. Baken

February 22nd 2013

How to create value and control risks

when introducing new products & services

based on upcoming

communication technologies;

All in order to improve the Quality of Life!

Bringing to Life !

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300 AD

2013 AD

the POWER of

Page 3: Bringing-Technology-to-Life   P.M. Westerhout  Delft-University-of-Technology ET4034 2013

is sexy? is sexy !

3 / 62

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Product or Service

• Technology assessment• Prototyping• Engineering• Technological Innovation

5 / 62

the Technical portfolio does not stand alone, but

depends highly on the Commercial and Operational

portfolio for success of the total Portfolio

Commercial Portfolio

TechnicalPortfolio

Operational Portfolio

Portfolio Model:

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• Product Development• Marketing & Sales• Forecasting

Commercial Portfolio

T

C

Product or Service

TechnicalPortfolio

Operational Portfolio

Portfolio Model:

the Technical portfolio does not stand alone, but

depends highly on the Commercial and Operational

portfolio for success of the total Portfolio

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Commercial Portfolio

Operational Portfolio

T

O

C

• Installation, Service & Maintainance

• Network Management• Provisioning, capacity

managementProduct or Service

TechnicalPortfolio

Portfolio Model:

the Technical portfolio does not stand alone, but

depends highly on the Commercial and Operational

portfolio for success of the total Portfolio

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M

Manage the game

Commercial

T

O

C

Product or Service

Technical

Operational

Portfolio Model:

Manage the game: Bringing Portfolio to Life

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Commercial

M

T

O

C

Product or Service

Technical

Operational

Bringing to Life

Manage the game

Bringing Technology

to Life

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Pu

sh

Pu

ll

M

Life … C

Tech … T Technical

Manage

Commercial

Bringing to Life

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Pu

sh

Pu

ll

M

Life … C

Tech … T Technical

Manage

Commercial

Bringing to Life

… Innovation

… Adoption

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… Innovation

… Adoption

Successful Deployment

Economical, Societal, Environmental

Successful Deployment

Economical, Societal, EnvironmentalLife …

+Value

Creation

-Risk

Control

C

M

Product or Service

Upcoming TechnologiesUpcoming TechnologiesTech … T

Bringing to Life

Bri

ng

ing

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LTE

NFC

VoIP

WiFi

CLOUDGPS

… Innovation

… Adoption

IMPACT of on daily life

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1983 2013… Innovation

… Adoption

smaller, integrated , with cool looks

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… Innovation

… Adoption

IMPACT of in a minute

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… Innovation

… Adoption

Successful Deployment

Economical, Societal, Environmental

Successful Deployment

Economical, Societal, EnvironmentalLife …

+Value

Creation

-Risk

Control

C

M

Product or Service

Upcoming TechnologiesUpcoming TechnologiesTech … T Choose UpcomingTechnology

Define New Service

Argue who will Pay for the product or service

2

Predict Value Creation

3

Identify Risks & discuss Controls

4

5

Assignment

1

Bringing to Life

Assignment

B

ring

ing

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… Innovation

… Adoption

Successful Deployment

Economical, Societal, Environmental

Successful Deployment

Economical, Societal, EnvironmentalLife … C

M

Product or Service

Pu

sh

Tech … T Choose UpcomingTechnology

Define New Service

Argue who will Pay for the product or service

2

Predict Value Creation

3

Identify Risks & discuss Controls

4

5

Assignment

1

+Value

Creation

-Risk

Control

Upcoming TechnologiesUpcoming Technologies

Bringing to Life

Page 18: Bringing-Technology-to-Life   P.M. Westerhout  Delft-University-of-Technology ET4034 2013

… Innovation

… Adoption

Successful Deployment

Economical, Societal, Environmental

Successful Deployment

Economical, Societal, EnvironmentalLife … C

M

Product or Service

Pu

sh

Tech … T Choose UpcomingTechnology

Define New Service

Argue who will Pay for the product or service

2

Predict Value Creation

3

Identify Risks & discuss Controls

4

5

Assignment

1

+Value

Creation

-Risk

Control

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Upcoming TechnologiesUpcoming Technologies

Upcoming Technologies Bringing to Life

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i. Developments of ICT Building Blocks and their ‘Iron Laws’

ii. Predicting Technological Maturity (Hype Cycle)

Upcoming Technologies

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The building blocks of ICT Networks

A. Computing power > More MIPS!

B. Storage capacity > More GBytes!

C. Bandwidth > More Mbits/s!

Upcoming Technologies

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In 1965, Intel co-founder Gordon Moore saw the future. His prediction, now popularly known as Moore's Law, states that the number of transistors on a chip doubles about every two years.

http://www.intel.com/technology/mooreslaw/index.htm

Moore's Law Means More Performance. Processing power, measured in millions of instructions per second (MIPS), has steadily risen because of increased transistor counts.

The ‘original’ Moore’s law.

Upcoming Technologies

A. Computing power: More MIPS!

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Upcoming Technologies

A. Computing power: More MIPS!

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B. More Storage Capacity: More GBytes!

Upcoming Technologies

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B. More Storage Capacity: More GBytes!

Upcoming Technologies

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C. More Bandwidth: More Mbits/s!

Development of user trafic in Fixed and Mobile

Upcoming Technologies

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Typically doubling times are under tree years

DT (years)

A. Processingpower

B. Storagecapacity

C. Bandwidth

1 2 2.50

Upcoming Technologies

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Technological developments make products smaller, faster and better

http://www.intel.com/technology/mooreslaw/index.htm

Upcoming Technologies

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Total INTERNET TRAFFIC GROWTH

Traffic growth depends on the increase in the:

Number of users

X

Used bandwidth

x

Time online

Upcoming Technologies

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The steady growth of Internet traffic Amsterdam Internet Exchange

Source: AMS-IX (Amsterdam Internet Exchange)

2004: 40 G2005: 80 G2006: 150 G

2012: 900 Gbps

Upcoming Technologies

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i. Developments of ICT Building Blocks and their ‘Iron Laws’

ii. Predicting Technological Maturity (Hype Cycle)

Upcoming Technologies

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Upcoming Technologies Recycling speed of technology

increases

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Gartner Hype Cycle: Emerging Technologies

How it works, and the year 2002

Upcoming Technologies

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Which Emerging Technology Hypes Now?

[BlackBoard]

Upcoming Technologies

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Which Emerging Technology Hypes 2012? Upcoming

Technologies

http://blogs-images.forbes.com/gartnergroup/files/2012/09/2012Emerging-Technologies-Graphic4.gif

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Successful Deployment

Economical, Societal, Environmental

Successful Deployment

Economical, Societal, Environmental

-Risk

Control

C

M

Product or Service

+Value

Creation

Upcoming TechnologiesUpcoming TechnologiesT

Bringing to Life

Choose UpcomingTechnology

1

Assignment

High Impact on daily Life ICT abides Iron Laws Hype Cycle predicts

technology maturity

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Successful Deployment

Economical, Societal, Environmental

Successful Deployment

Economical, Societal, Environmental

-Risk

Control

C

+Value

Creation

Bringing to Life

Upcoming TechnologiesUpcoming Technologies

M

Product or Service

T Choose UpcomingTechnology

Define New Service2

1

Assignment

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Bringing to Life

+

Product or Service

Upcoming TechnologiesUpcoming Technologies

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Successful Deployment

Economical, Societal, Environmental

Successful Deployment

Economical, Societal, EnvironmentalC

Upcoming TechnologiesUpcoming TechnologiesT

Bringing to Life

Product or Service

-Risk

Control

Choose UpcomingTechnology

Define New Service2

3

1

Assignment

M

+Value

Creation

+Value

Creation

3

Be creative Be practicalPredict Value Creation

3

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A. Bridge one of the 5 digital divides

B. Apply one of the 5 Value Models

C. Use one of the 5 Value Patterns

+Value

Creation Bringing to Life

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Digital Divide: Geographically

Interactive visualisations of traffic flows by Stephen Eick and colleagues.(source: Stephen Eick, Bell Labs / Visual Insights, <http://www.visualinsights.com>)1

Social and Economic Impact+Value

Creation

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Digital Divide: 1) Geographically > 3rd World

Internet Telephony

Social and Economic Impact+Value

Creation

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Digital Divide: 3) Demographically

IPhone-hacker of 13 years reportsAMSTERDAM - The hacking of the 'foreign' iPhone that in the Netherlands seems to be able to use a true sport. Meanwhile sign up a 13-year old boy on the Internet in no time the hip mobile ready for use, log Bright.nl lifestyle.

ANP

Prime Minister and the mystery of the computer mouse AMSTERDAM - The prime minister Wim Kok has no clue how to use a mouse. He is educated by kids from elementary school who explain the whereabouts of computing.

Social and Economic Impact+Value

Creation

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Digital Divide: 4) Economically

Social and Economic Impact+Value

Creation

< 20 €

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Digital Divide: 5) Socially

Business life will have to adopt Employee 2.0

‘Millennials'.‘Golden oldies'.

Nieuwe Werken

Social and Economic Impact+Value

Creation

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A. Bridge one of the 5 digital divides

B. Apply one of the 5 Value Models

C. Use one of the 5 Value Patterns

+Value

Creation

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1927 1956

1968

1989

1983

2008

2004

20??

B1. Not innovation speed, but adoption speed determines future success

+Value

Creation

Page 48: Bringing-Technology-to-Life   P.M. Westerhout  Delft-University-of-Technology ET4034 2013

48 / 62Source: http://www.acuity-mi.com/images/TAL.jpg

+Value

Creation

B1. Focus on Specific target group & define early Adopters

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B1. Cumulative adoption

Adoption Curve

1990 1995 2000 2005 2010 2015

100%

Early Adopters

Innovators

Early Majority

Late Majority

Laggards

+Value

Creation

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B1. Consumption spreads faster today+

Value Creation

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B2. Disruptive vs. Sustaining innovation

Main article: disruptive technology

Hard disks

Flash memory

Optical camera’s

Digicam

+Value

Creation

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B3. Network Value > Network Effect

• http://en.wikipedia.org/wiki/Metcalfe%27s_lawdoc

Metcalfe’s Law:

~ n²

Odlyzko’s revision

+Value

Creation

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B3. Impact Wireless Connected Networking-effect

http://www.intel.com/technology/mooreslaw/index.htm

+Value

Creation

Internet of things

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B4. The Longtail: Technology dependant

Scarcity

Abundance

25 december 2006

DRIVERS:

1. Production2. Distribution3. Filtering

+Value

Creation

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B5. Substitution Value in other Industries due to Digital Developments:

+Value

Creation

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A. Bridge one of the 5 digital divides

B. Apply one of 5 Value Models

C. Follow one of 5 Value Patterns

+Value

Creation

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C1) Look abroad, follow the success+

Value Creation

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C.2 Make use of other Moving trends+

Value Creation

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C.2 Make use of other Moving trends

http://lcolumbus.files.wordpress.com/2011/08/smartphone-forecast.jpg

+Value

Creation

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C.2 Make use of other Moving trends

0

10

20

30

40

50

60

70

80

90

100

110

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

GSM GPRS UMTS HSDPA HSPA HSPA-Evolved LTE

Bandwidth developments in mobile wireless sytems seem exponentieel

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Bandbreedte(Mbps)

fiber wireless

+Value

Creation

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C3. REMIX Technologies CES - Samsung's Smart Window

• http://www.youtube.com/watch?feature=player_detailpage&v=m5rlTrdF5Cs

+Value

Creation

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C4. Use the Interdependencies and similarities of between Sectors

• Eco-Systems & Transsectoral Value

+Value

Creation

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Sci-Fi

Reality

Star Wars ©

Volumetric 3-D Display

C5) Follow the Movies: It will become Reality (1)+

Value Creation

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C5) Follow the Movies: It will become Reality (2)+

Value Creation

Page 65: Bringing-Technology-to-Life   P.M. Westerhout  Delft-University-of-Technology ET4034 2013

M

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Successful Deployment

Economical, Societal, Environmental

Successful Deployment

Economical, Societal, Environmental

-Risk

Control

C

Product or Service

T

+Value

Creation

Upcoming TechnologiesUpcoming Technologies

Bringing to Life

Define New Service2

Predict Value Creation

3

Choose UpcomingTechnology

1

Assignment

Close the Digital divide Make use of Value Models Look around and remix

from Value Patterns

3

Page 66: Bringing-Technology-to-Life   P.M. Westerhout  Delft-University-of-Technology ET4034 2013

Successful Deployment

Economical, Societal, Environmental

Successful Deployment

Economical, Societal, EnvironmentalC

Product or Service

T

+Value

Creation

Upcoming TechnologiesUpcoming Technologies

M

-Risk

Control

Bringing to Life

Define New Service2

Predict Value Creation

3

Choose UpcomingTechnology

1

Assignment

Identify Risks & discuss Controls

4

4

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Identifying & Controlling Potential Risks

Potential risks that need to be controlled for a successful adoption of products or services based on upcoming infocomm technologies

-Risk

Control

-Risk

ControlEnsuring a successful tech adoption

Hong Gie Ong

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Successful Deployment

Economical, Societal, Environmental

Successful Deployment

Economical, Societal, Environmental

Product or Service

+Value

Creation

Upcoming TechnologiesUpcoming Technologies

M

-Risk

Control

Identify Risks from the 5 layered Risk-model

Evaluate and apply suitable Controls

Bringing to Life

4

Assignment

Define New Service2

Predict Value Creation

3

Choose UpcomingTechnology

1

Assignment

Identify Risks & discuss Controls

4

C

T

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Successful Deployment

Economical, Societal, Environmental

Successful Deployment

Economical, Societal, EnvironmentalC

Product or Service

+Value

Creation

Upcoming TechnologiesUpcoming TechnologiesT

-Risk

Control

Bringing to Life

M

Define New Service2

Predict Value Creation

3

Choose UpcomingTechnology

1

Assignment

Argue who will Pay for the product or service

Identify Risks & discuss Controls

4

5 Life …

Tech …

Bri

ngin

g

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score

Describe an idea for a business opportunity based

on a new or upcoming communication technology

Choose UpcomingTechnology

Define New Service

Define who will Pay for the product or service

2

Predict Value Creation3

Discuss Risk Control4

5

1 11

1. Choose a communication technology and describe it shortly2. Discuss where it is in the Gartner Hype Cycle and why ..?

Bringing to Life

Tech-to-Life Assignment

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score

Choose UpcomingTechnology

Define New Service

Define who will Pay for the product or service

2

Predict Value Creation3

Discuss Risk Control4

5

1

4. Who is the specific target group for use of product/service? And can the product and/or service bridge a gap in the Digital Divide ?

5. Discuss how the service adds Value to these Users, relating to at least two Theoretical models (i.e. networking effect, long tail, etc. ..)

6. Discuss Value creation related to other commercial developments, or through remixing with other technologies or sectoral developments

11

1

1

1

1

1

1

1

1

1. Choose a communication technology and describe it shortly2. Discuss where it is in the Gartner Hype Cycle and why ..?

7. Discuss one generic risk and possible control on level 1, 2 or 3

8. Discuss one specific risk and possible control on level 4 or 5

9. Discuss which quality of life pilar (Economy, Society, Environment) is most prone to the risks as identified above

10. Who will pay for the product / service? (i.e. advertiser, subscriber, the distributor, the user, Free or Freemium)

3. Describe a “new” product/service based on this technology

Bringing to Life

Tech-to-Life Assignment

Describe an idea for a business opportunity based

on a new or upcoming communication technology

10

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Tech-to-Life Assignment

72

Assignment process work in couples of max three persons (2 x 5 hours) report size = max 2-3 pages A4 including illustrations Keep it short and clear finalize assignment before March 22nd and email your report to

[email protected] deadline together with other ET4-034 assignments

• feedback on your results via email• evaluated assignments handed over to Prof. Baken

Scores will be based on theoretical insight, originality and clarity of report

Keep it Simple & Good luck !

Bringing to Life

Describe an idea for a business opportunity based

on a new or upcoming communication technology

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Communication Technology has major impact on Life and is Sexy!

It’s about Creating Value, Controling Risk & Life Adoption!

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Peter Maarten Westerhout

Hong Gie Ong

Course: Network Architectures and Business Models

ET4034, Prof. Dr. Ir. N.H.G. Baken

How to create value and control risks

when introducing new products & services

based on upcoming

communication technologies;

All in order to improve the Quality of Life!

Bringing to Life

We are looking forward

to some great

tech-to-life assignments !

We are looking forward

to some great

tech-to-life assignments !


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