k p n presentation profitable m2 m partnerships 180310 j f 01
TRANSCRIPT
17 November 20091
17 November 2009Joost Fleuren
Profitable & long-term partnerships in M2M
Joost Fleuren MSc MBAStrategy & Business DeveloperMarketing Strategy & Innovation departmentKPN Business Market
M2M Exchange, Brussels, 17 November 2009
Break out session: Telecoms Business Strategy
17 November 20093
Content
1. Overview KPN (Royal Dutch Telecom)
2. How M2M differs from traditional MNO services
3. Where M2M has to evolve to
4. How to make money together in the meanwhile
5. KPN product offering and partnerships
17 November 20094
Summary:- Company owned mobile networks in Netherlands, Germany, Belgium- Worldwide connectivity partners (roaming networks)- EU considered as ‘home market’ for M2M- 36.702 FTE staff (2008)- € 14.6 billion revenues (2008)- € 2.6 billion operating profit (2008)
KPN Group
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Acknowledge the difference
From an MNO (Mobile Network Operator) perspective M2M has a different…
• Marketing & Sales reality
• Technical supply chain reality
• A different ‘money making’ reality
17 November 20096
HardwareMNO
(connectivity)Direct sales
Traditional: laptop data card supply chain
customer
sale
s
Uniform offering, as such recognizable for end-customer
One (co-) branded product
Channel conflicts, but manageable
Distribution
partners sale
s
Product
marketing
Product
marketing
Marketing & sales reality
17 November 20097
Hardware ConnectivityConnectivity
mgmnt platform
Integrator
services
M2M: more actors involved directly to end-customer
customer
ASP
sales sales sales salessales
inefficient marketing and sales efforts
Results in problems with operational & technical reality: longer development time and higher development risks higher Operational and Total Cost of Ownership
higher adoption barrier for the end-customer
Marketing & sales reality
17 November 20098
Hardware ConnectivityConnectivity
mgmnt platform
Integrator
services
Explained: separated offerings prevent efficiency
customer
ASP
accountability accountability accountability accountabilityaccountability
Technical and process integration best served with stable (longer term) partnerships
No formal accountability towards each other = no optimalization of technical design & processes
Competing on services that can be delivered by more than one player in the value chain, but not with the same efficiency
No coherent approach on ‘educating the customer’
Technical supply chain reality
17 November 20099
modulegateway or embedded
hardware
device
mgmnt
platform
Connectivity Connectivity mgmntM2M
integration services
ICT
Integration
M2M
Application
EU
US
Asia
Satellite
Network stability
Usage statistics
provisioning
Large quantities
Time To Mrkt
Data optimization
Battery powered
WiFi
Zigbee
WiMax
Helpdesk tools
Secure trans.
Mission critical
Configuration mgmnt
Usage statistics
power usage
size
power usage
size
Explained: not easy to vertically integrate or partner
Technical supply chain reality
harsh environments
Dual GSM
Quatro GSM
WiFi
# I/O ports
data logging
updates
local funct.
Firmware update
harsh environments
Repair by replace
Updat mgmnt
WiMax
Access control
usage alerts
pre- / postpaid
selfservice
Industry spec.
Time To Mrkt
API’s
Security
Multilingual
B2C helpdesk
Each solution requires a different set of capabilities from the value chain partners.
# produced
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Explained: standardization
Technical supply chain reality
Standardization:- Currently no company (-group) is that dominant that it can push a standardization.- A single standard is never optimal for every application.
For now the choice of
A - specializing and vertical partnerships / integration, B - settling for casual relationships in an not-standardized world.
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MNO’s have influence but get a small slice of the pie……especially compared to regular Voice and Data offering.
Money making reality
* Beecham research, “M2M and the
Internet of things”, October 2008
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The answer?
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From this…
Hardware
Connectivity
Connectivity
mgmnt platform
Integrator
services
ASP
Hardware
Connectivity
Connectivity
mgmnt platform
Integrator
services
ASP
Hardware
Connectivity
Connectivity
mgmnt platform
Integrator
services
ASP
Hardware
Connectivity
Connectivity
mgmnt platform
Integrator
services
ASP
customer
customer
customer
customercustomer
17 November 200914
…to this.
Hardware ConnectivityConnectivity
mgmnt platform
Integrator
servicesASP
Hardware ConnectivityConnectivity
mgmnt platform
Integrator
servicesASP
Hardware ConnectivityConnectivity
mgmnt platform
Integrator
servicesASP
Hardware ConnectivityConnectivity
mgmnt platform
Integrator
servicesASP
Customers
Application type 1
Customers
Application type 2
Customers
Application type 3
Customers
Application type 4
M2M solution
M2M solution
M2M solution
M2M solution
marketing
consultiveselling
development
deploymentTogether as
partners:
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Make money in the meanwhile……start with partnering for M2M solutions & integrator services
Required for enduring and profitable solution partnerships:
Know what specific value you add in the chain – be complementary. For example: brand, local sales force, connectivity, core mobile network.
Do make a choice what fits you to focus on. For example: connectivity and VAS based upon that
Be focused on who to target the solution at. For example: OEM, complementary VAS resellers as integrators
EU / Global scope to have critical mass in one solution.
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Practice what you preach…
17 November 200917
KPN SIM
KPN SIM Control Centre
Geographically Redundant Data Centers
Private Circuits
KPN Company and partner Networks(GPRS, EDGE, UMTS, SMS, Voice)
GSM Encrypted
VPN/ Public Data Traffic
KPN SIM
KPN SIM Control Centre
Geographically Redundant Data Centers
Private Circuits
KPN Company and partner Networks(GPRS, EDGE, UMTS, SMS, Voice)
GSM Encrypted
VPN/ Public Data Traffic
KPN SIM
KPN SIM Control Centre
Geographically Redundant Data Centers
Private Circuits
KPN Company and partner Networks(GPRS, EDGE, UMTS, SMS, Voice)
GSM Encrypted
VPN/ Public Data Traffic
KPN’s track record in M2M
Hardware ConnectivityConnectivity
mgmnt platform
Integrator
servicesASP
- 2007
2008
2009
M2M Development partners
2010 initiatives in development
M2M Connectivity partners
KPN SIM
KPN SIM Control Centre
Geographically Redundant Data Centers
Private Circuits
KPN Company and partner Networks(GPRS, EDGE, UMTS, SMS, Voice)
GSM Encrypted
VPN/ Public Data Traffic
KPN SIM
KPN SIM Control Centre
Geographically Redundant Data Centers
Private Circuits
KPN Company and partner Networks(GPRS, EDGE, UMTS, SMS, Voice)
GSM Encrypted
VPN/ Public Data Traffic
KPN SIM
KPN SIM Control Centre
Geographically Redundant Data Centers
Private Circuits
KPN Company and partner Networks(GPRS, EDGE, UMTS, SMS, Voice)
GSM Encrypted
VPN/ Public Data Traffic
To partner with us to provide EU wide connectivity, outside our NL, D, B sales footprint.
Continue to offer best in class connectivity platform.
To ensure that requests for M2M services are being met with the best partners available.
Be the preferred partner for ASP’s who want to become and stay most efficient by offering integrated global communication
Core capability
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KPN’s partnership approach – please contact us
M2M Connectivity partners
- for connectivity resellers, EU wide.
M2M Development partners
- for solution developers / M2M Integrators, EU wide.- benefitting from our state-of-the art SIM Management platform and EU &
WorldWide connectivity offering
- for solution providers / ASP, EU wide.- benefitting from our state-of-the art SIM Management platform
and EU & WorldWide connectivity offering