Mobile Megatrends 2011: How Telecoms Business is Transforming in the Software Era

VisionMobile

Mobile Megatrends 2011
how telecoms business is transforming in the software era. updated 8 March 2011
Copyright VisionMobile 2011

Knowledge. Passion. Innovation.

Andreas Constantinou
Michael Vakulenko
Matos Kapetanakis
(c) VisionMobile 2011

Licensed under Creative Commons Attribution 3.0 Unported License (http://www.creativecommons.org/licenses/by/3.0)
You are free to Share or Remix any part of this work as long as you attribute this work to VisionMobile (www.visionmobile.com).


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Mobile Megatrends 2011

The DELL-ification of mobile Software: new era for telecoms Experience ecosystems
How the mobile handset landscape is and the new rules for innovation how telecoms + internet convergence
becoming much like the PC is leading to the next megabrands

Apps are the new web open + closed Developers, developers
Why apps are the new information use of open + closed strategies to the engine behind telecoms innovation
paradigm for web 3.0 commoditise + protect

Communities: a new currency Stuck in the telecoms age Augmented Economics
Communities will provide the main how carriers are stuck in the telecoms age and making money at the edge of reality
differentiation above price, design and content how to compete

The DELL-ification of mobile
How the mobile handset market is approaching PC-like commoditisation


Internet players agenda drive top-5 OEMs
and OEM market is fragmenting, approaching the PC market

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Market share of top-5 OEMs (source: Gartner)

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Profits are driven by end-to-end players
and away from the old top-5 OEM league

source: Deutsche Bank


OEM strategies: volume vs profit strategies
= strategy expectations
$ profit per unit

data source: Deutsche Bank
2010 market share %

OEMs at different stages of integration
Three roles for handset manufacturers across the double helix

Horizontal player structure Vertical player structure
Leaders: new product experiences
and enviable margins

Assemblers
razon-thin
margins

wannabee
innovators
wannabee
leaders

Innovators: incremental innovation
strong brand, performance, good looks
and services

Lead, innovate or assemble
The new role models for OEMs in the post-Android era

1. Assemblers: Razor-thin margins
10s of assemblers use Android to deliver ready-to-market smartphones with complete service and apps
ecosystem competing head-to-head with major OEMs. iPhone me-too experience at $100 retail.

2. Leaders: unique product experiences
Manufacturers who can masterfully integrate hardware + software + services + industrial design into new
product experiences - from phones and tablets to TVs. Unique product experiences at $500 retail.

3. Innovators: incremental innovation
The old top-5 OEM guard. Differentiation is on strong brand, performance, good looks and services.

4. Mass producers: catering to developing markets ?
Mass producers rely on huge economies of scale to break even at $50, but make up nearly 50% of unit sales
in the mobile handset market.


The innovators are squeezed in

Revenue pyramid

performance
pressure Leaders:
new product experiences

Innovators:
incremental innovation

Assemblers:
price razor-thin margins
pressure

Pyramid squeeze is accelerated by Google’s Experience handsets (fast hardware/software evolution) and Windows Phone


DELLification in 2015
closely modelling the PC business

Profit pyramid Revenue pyramid Present-day example

Leaders
Role model: Apple
$37.5B 5% @ $500

Innovators
Role model: Samsung
$90B 25% @ $250

Assemblers
Role model: Dell

$56B 25% @ $100
s
ce

Mass producers
vi

Role model: Nokia ?
de

$37.5B 45% @ $50
B
1.5

$200B

OEM + Android: winners and losers

The winners: The losers:
low cost assemblers ‘old guard’ OEMs
Cost structure optimised for razor-thin margins Cost structure requires high-margins
Android is a long-term opportunity for global reach Android is a short-term life support

No Name

source: VisionMobile


The new world: Innovate or be replaced
The new rules of the handset industry

1. Software and hardware is commodity
- Software is a loss-leader, monetised by ads (Google), hardware (Apple), content (Amazon), services (RIM)
- Software is provided a la carte and pre-integrated by chipset providers (e.g. Qualcomm, MediaTek)

2. Points of differentiation rapidly disappearing
- Android provides out-of-the-box, complete ecosystems; OEMs compete on equal footing to assemblers

3. The search for innovation is on
OEMs are search for new models of innovation beyond price, brand, performance and marketing:
- communities BlackBerry messaging or facebook deals
- made-to-order handsets; copying DELL’s PC model
- white label services for carriers where OEMs trade service revenues for carrier subsidies
- micro-retailing ‘slotting’ promos across distribution regions and channels

Software: the new era for telecoms
and the new rules for innovation

image source: maschinenraum / Flickr

$$$ and software DNA are key for platforms
20 dead platforms in the last 10 years
Internet

Danger OS
Android Chrome OS

SavaJe OS
PC

Trolltech $30M
A la Mobile
iOS

Nokia GEOS IXI Mobile Palm 5/6 Azingo

Motorola L-J Comneon Apoxi Access ALP
Mobile

e-SIM Intrinsyc OS OpenWave MIDAS

Sasken Aria Mizi Prizm

SKY-MAP MOAP
UIQ TTPCom Ajar OpenMoko

2000 2001 2002 2007 2008 2009 2010
= dead end bubble size = company revenues Copyright VisionMobile 2011

The battle for mass-market smartphone reach

OEM internal licensable
!600+
computers
mobile

!400
device retail price

connected

Nokia Series 40
phones

Samsung SHP
!100 LG Wise

!50
phones
voice

Note: OSes omitted: Myriad, Mediatek OS, Mango (Qualcomm), Koretide Elastos

14 out of 15 platforms are monetised indirectly by complementary products
11 out of 15 platforms have developer ecosystems or industry consortia built around them

The battle for ecosystem completeness

Carriers Nokia RIM Apple Qualcomm Google facebook

Components

Social networks

Cloud services

Developer ecosystem

Network

User interface

Operating system

Hardware IP

Manufacturing

denotes where vendor started

Huge gap between telecoms & software worlds

success as
defined in
2010
success as
defined in
2005


software: turning telecoms upside down
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Huge gap between telecoms & software worlds
Telecoms world Software world

Success factor installed base number of apps
Primary customer consumer developer
Speed of innovation 1 OS version every 2 years 5 OS versions/year
Time to market 1-2 years 1-2 weeks
Type of services comms-centric catering to entire needs portfolio
Risk-taking predictability / de-risking entrepreneurship / uncertainty
Access to innovation 100s of close partners 100,000s of developers
Business model B2B licensing B2C sales/ads/in-app sales
Channel to market voice, text and web smartphones
Discovery On deck / on device App store
First step “we need to sign an NDA” “we need to download the SDK”
Process Waterfall: RFI, RFQ, deliver, QA Agile: add feature, build, test, repeat

Attitude “developers will come to us” “we need to go to developers”

The new rules of innovation
1. Speed of innovation defined by internet companies, not hardware / networks
- Companies from the Internet domain (Apple, Google, Facebook) out-innovate companies from the mobile
industry domain (Nokia, Samsung, Sun) and the networks domain (Vodafone, China Mobile)
- Internet players are at top of the food chain and are becoming increasingly assertive
- Yet network operators still hold most value (insights and retail channels) in the last mile to the consumer

2. Innovation requires new competence and regional presence
- California is the center for software and services innovation. Japan/Korea is the center of CE innovation.

3. If you can’t innovate in software, you will be replaced
- The evolutionary game has just accelerated 10-fold.
- Players who cannot evolve at software speeds will eventually be replaced by alternatives
(oftware has superseded carrier efforts in non-comms user needs, location, billing, discovery, authentication
and mobile termination)

Experience Ecosystems
telecoms + internet convergence is leading to experience ecosystems


telecoms + internet + PC + consumer electronics = ?

our definition of convergence has changed

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Is the future of convergence?

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Innovators

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Convergence is about experience roaming
Convergence is about having an experience that roams consistently across ‘screens’

experience roaming across screens

Social circle
Developer ecosystem

convergence =
User data roaming
Service roaming x
User interaction design
Industrial design
Brand


Apple is the poster child of experience roaming
Apple leads by example, by delivering a consistent experience across divers screens

Experience roaming Across screens

Social circle Ping iPod
Apps ecosystem App Store iPhone
User data roaming MobileMe iPad

Service roaming iTunes, AirPlay Mac

User interaction design iOS Apple TV

Industrial design Apple ?

Brand Apple


The next battle is for Experience Ecosystems
Experience Ecosystems create major exit barriers and drive cross-sales; they are therefore a
sustainable strategy for Innovator OEMs needing to survive margin pressures.

network network
effects effects

the future of convergence is experience roaming
convergence = screens + experience

!""($ !")"$ !")+$

the future of convergence is in a single experience + developer ecosystem
powered by ARM hardware across mobile, PC & embedded


Apps are the new web
Why apps are the new information paradigm for web 3.0


Everyone wants their own app store
but few are above the radar = number of apps when above 10,000

OS vendors

OEMs Carriers Independent

Source: Distimo, March 2011 Copyright VisionMobile 2011

App stores are about control, not $$$
App Stores are a control point for: and an opportunity for:
- discovery of applications
access to app discovery as a control point - as a gateway to affiliate,
matchmaker and curator business models

- distribution of applications
e.g distribution and delivery of apps as a control point - e.g. Android
uses Market to enforce compliance requirements on handsets

- monetisation of applications
an opportunity to extract a commission in the form of revenue share
for paid apps and in-app purchases

- exit barriers for users
app stores create ‘sticky gardens’; if users churn they lose their apps

- consumer insights
an opportunity to optimise device and service targeting


Building an app store is not easy

Mobile Application Stores (end- 2010)
Android BlackBerry
App Store Ovi Store GetJar
Market App World
Fundamentals
Owner Apple Google Nokia RIM Getjar Networks

via App Store on iPhone via Market on Android via download, and pre- via web only
Distribution model and iPod Touch devices (closed source) loaded from 4Q09
?
(direct + white label)
Java, Flash, Android, RIM,
Platforms OSX Android Symbian, S40 BlackBerry
WinMo, Palm, Android

Key figures
Sales base 90M 77M 440M 125M
0 (plans to pre-load icon
since launch (2010 est.) shortcut on phones)
Downloads per month 510M 270M 90M 60M 90M
as of end of 2010 (est.)
Cumulative downloads since
10B 2.5B N/A N/A 1.6B
launch as of end of 2010 (est.)
Applications 300,000 130,000 25,000 18,000 76,000
to end of 2010 (est.)
70% to developer 70% to developer Ad-based apps
Revenue model 70% to developer
30% optional to operator (less w/ carrier billing)
70% to developer
+ paid placement

source: VisionMobile research, Distimo
Note: The sales base represents mobile devices sold and does not include tablets or other connected devices


Why is building an app store so hard?
App stores need 5 genes from 5 species across the value chain

Genes

Species

platform mobile handset platform brands and
companies carriers & OEMs companies retailers
payment
brokers


3 pillars to the app store evolution 2011-13
1. Merchandising: App stores will take retailing where it’s never been before
- app retailing is bottleneck, resulting in price erosion as developers drop prices to bubble up to the top-25.
-This will drive retail sophistication: App Malls (shops-in-shop), bundles, time-limited offers, friend
endorsements, inventory micro-targeting, gift/beg options, second-hand apps, offers tied to carriers, etc

2. Diversity: App Stores will cater to 100s of niche segments;
Genre-centric stores (Games store), lifestyle-centric stores (e.g. sports or clothes brands), specialist content (e.g.
adult or enterprise), region-centric stores (e.g. Seattle apps)

3. Low barriers: App Malls will enable low-cost shops-in-shop setups
SDP vendors will offer the infrastructure, catalogue and recommendations technology allowing wannabe
app retailers to be setup at very low cost, with proven revenue models (setup fee + rent + sales commission)


Apps succeed where the web failed
- 2007: voice, text and web was main channel for services
the old school of mobile services: voice, texting, ringtones, televoting, MMS, Mobile TV,..

- 2011: 500,000+ applications on smartphones
- Apps are the single biggest digital channel since the web
- There are apps springing up everywhere there is a website
for every website, for every brand and for every corporate intranet

- Apps succeeded where cross-platform frameworks failed
Mobile web pages and widgets are poor alternatives to apps
Java and Flash failed to pick up where web left off

- The web is now the lowest common denominator across screens
across devices, the living room, the PC and the car


what is are apps?
apps are a new information paradigm
For.. Mobile apps Web pages

packaging Self-contained Set of pages

personalising access to location, explicitly typed info only
contacts
discovering app store text results or URL

monetising micropayments ads

interacting touch, sensors, keys mouse, keys

measuring downloads economy attention economy

.. information


Web 3.0 will adopt the app paradigm
Web apps will proliferate in mobile handsets driven by
- web benefactors Google, Microsoft, Apple
- technology commoditisation; WebKit and V8;
- consistent technology adoption WebKit on >350M handsets up to June 2010
- content owners with most assets on HTML/web
- platform vendors seeking to modernise their developer platforms
e.g. WebOS vs Palm OS, RIM WebWorks vs BlackBerry OS 6, Nokia WRT. BREW to follow?

- and “buy in” to a developer community and a “hype-ready” platform
building a developer community is extremely expensive. It comes for free with web technologies

- the need to tap into new developer segments from the web domain
1.5 million web developers most of which are new to mobile

- The need to reduce development costs for cross-screen apps
mobile, tablet, PC, TV, consumer electronics, automotive, ..

Google under threat in web 3.0
Google rose due to openness, info chaos and lack of monetisation
- the open (crawlable) web,
- the lack of information semantics (needing Pagerank to create order out of chaos)
- the lack of a micropayments mechanism on the web (increasing demand for ads)

Google is now threatened from web silos, app stores and micropayments
- closed web silos (social networks like Facebook and app stores like Apple store)
- semantic information discovery in app stores (reducing greatly the search complexity)
- pay-per download, virtual goods and proximity payments (reducing the need for ads)

To survive, Google is trying to outrun the market trends
- launching is own walled gardens (Orkut and Buzz), its own app stores (Android Market and Chrome Web
Store) and integrating a payments technology (NFC) within Android handsets


Open + closed: two sides of the same coin
use of open + closed strategies to commoditise + protect


Open is the new closed

- Android, MeeGo, Webkit, Qt, Maemo, Eclipse, Linux all use open source
all projects use an open source license for the public source code

- Open source licenses are standardised and well understood
3 licenses used most often in mobile projects (GPL, LGPL, APL)

- But an open source license is only the tip of the iceberg
a license determines access to the project (e.g. Android public source code)

- Governance is what determines the rules of the game
the governance model determines access and influence into the product (e.g. Android handsets)

- Open licenses are used with closed governance
many projects restrict governance while maintaining an open source license


Closed governance is used to control
clever use of governance models can be used to control products based on OSS
license type

dual license
(commercial + copyleft)
Qt

strong copyleft
(GPL)
Linux kernel

weak copyleft
Foundation (LGPL, MPL, EPL,..)
Foundation
WebKit

permissive
(APL, BSD, MIT, ...)
Android

open community managed community autocratic
community
governance model (simplified)

What are the criteria for ‘openness’ ?
Access
• Is source code available to all without discrimination?
• Are project mailing lists, forums, bug-tracking databases and developer tools available to all?
• Is the project roadmap available publicly?

Development
• Are decision-making mechanisms transparent and accessible?
• Is the code contribution and acceptance process clear and accessible?
• Are the requirements to become a committer clear and equitable?
• Can you identify who the committers to the project are?
• Are the requirements to become a reviewer clear and equitable?
• Can you identify who the reviews to the project are?
• Does the contribution license require copyright assignment (vs. a copyright license)

Derivatives
• Are trademarks used to control compliance and use of the project?
• Are go-to-market channels for Application Derivatives constrained?

Community
• Do different community members have different rights?


Openness to commoditise product complements
beyond open source, openness is used as a business strategy to commoditise
product complements while protecting core assets

Windows
iOS Android BlackBerry Symbian
Phone

Bundled services Closed Open Closed Closed Open

App developers Curated Open Curated Curated Curated

Device vendor Closed Open Open Closed Open

Software platform Closed Closed Closed Closed Curated

Hardware platform Closed Curated Closed Closed Open


Developers, Developers, Developers
the engine behind telecoms innovation


Based on
Mobile Developer Economics 2010

- Analysis of the developer experience from design to monetisation
Free download: www.Developer Economics.com

- Across all 8 major platforms

- Based on a sample of 401 mobile app developers
- With significant experience in mobile development
More than 60% of respondents have 3+ years of experience in app development.
Nearly 30% have won one or more developer awards


The diverse world of software developers
With different business models and incentives

content publishers
Internet service
providers
system
integrators

mobile games
developers

software
houses

independent
developers apps development
software integration agencies
services

Android has biggest mindshare

“
Android is better than other
-Android has biggest mindshare platforms in terms of tools,
- Symbian/Java down from #1/#2 in 2008 platform features, and it’s
easier to stand out as
- Most developers work on multiple platforms developer.”
The average is 2.8 platforms, across sample of 401 developers Android developer

Android 3x easier to learn than Symbian


Developers becoming market savvy

“
technical considerations are
Commercial above technical reasoning irrelevant, the choice of
-Large market penetration (70% of respondents) is platform is ALWAYS
more important than ability to code & prototype quickly (45%) marketing-driven.”
- Revenue potential (55%) is more relevant than Mobile web developer

good documentation (35%)

App Stores reduce time-to-market by 3x

“
App Stores minimised
time-to-shelf from 68 days
to 22 days and halved
time-to-payment


The app developer journey
The many facets of the app developer experience

- platform hype - developer certification - analytics & sales tracking
- addressable market - app signing, certification & approval - user ratings
(devices/regions) - regional testing & sandbox networks - user support
- platform features - beta testing with peers and end users - application updates
- learning curve & coding effort - localisation frameworks - cross-selling
- conferences & competitions - packaging and SKU management tools - privacy compliance

* * *

develop,
application platform market retailing & in-life
debug &
planning selection readiness monetisation application use
support

- audience targeting - IDEs, SDKs and documentation - go-to-market channels
- concept design - UI tools - promotional tools
- feature design - emulator and on-target debugging - co-marketing programs
- prototyping tools - community & official forums/websites - revenue models
- market research - profiling tools - billing & settlement
- focus groups - test frameworks
- porting tools
*: mostly applicable to developers who sell apps - premium technical support

Key developer pain points
based on Developer Economics 2010 research

App submission & certification Application marketing
application certification is expensive, approval takes too lack of effective marketing channels to increase
long, and signing is complicated app exposure and discovery

develop,
application platform market retailing & in-life
debug &
planning selection readiness monetisation application use
support

most vendor effort goes here

Localisation Dubious long-tail economics
lack of localised apps for most regions, lack of average RoI through an app store is much less than
localisation tools for developers the cost of producing the app


Are you a mobile developer?
Want to share your own views on app development?

Join in Developer Economics 2011.
Have your say on the hottest issues in app development and win a $1,500 Amazon voucher.

www.visionmobile.com/dev
open until end March 2011.

created by

sponsored by


Communities: the new currency


Communities are the new frontier
Building a brand, product or technology is science
Building a community is a form of art
Whether it’s a consumer, enterprise or a developer community
New techniques are emerging; game mechanics and religion engineering


you can buy an audience but..
you can’t buy a community
an audience is people who interact with a service.
a community is a network of people who interact amongst them
you can buy an audience (eyeballs or subscribers)
but you can’t buy a community (network interactions)


Communities are the new differentiator
Service brands, OEMs and carriers have tried to create own communities
But found that community creation needs a very different rulebook
And ended up partnering with communities (Facebook, Twitter, etc)
Exclusive deals with communities will be the new differentiator above
price, design and premium content.


Communities are the new currency
Zynga's CityVille grew to 100 million users in just 43 days
Facebook is a platform between 500M+ users and 2.5M+ developers
Facebook is #1 social network across the world except China, Russia, Brazil, Japan
Skype: 8 million paid users and 25% of global international calling traffic


Carriers: stuck in the telecoms age
and how carriers can compete


Carriers in the midst of an identity crisis
Carriers are telecoms-age species in a software age
- Carriers have grown in the telecoms age; this affects their ability to adapt and their speed of innovation

..In an identity crisis
- Carriers are still undecided as to whether they want to be an access company (e.g. LightSquared, KPN), a
supermarket (own services), a shelf (retailer/curator of 3rd party services) or a broker (matchmaker between
developers and consumers). They want to be everything to everyone.

Losing battle after battle for control points
- non-communication needs (apps), location (GPS), billing (app stores), service retailing & discovery (app
stores), authentication (Twitter/facebook), mobile termination (Google C2DM), subscriber activation
(iPhone soft SIM?)

With no innovation in their core business
- voice, texting and SIM cards have seen no innovation in the last decade. Copyright VisionMobile 2011

Taking baby steps in the software age
Carriers don’t know how to use software
- Carriers software efforts are mediocre; see Vodafone VSCL, VFX and widgets
- Using WAC to profit from apps, when Apple/Google are not profiting from apps

Carriers are accelerating the PC-like commoditisation of handsets
- skewing the natural OEM selection process (by ranging handsets on a OS basis) and forcing
Innovator OEMs to struggle while nimble assemblers thrive
- The $100 smartphone means loss of subsidy power for carriers, therefore loss of differentiation

Carriers are funding their antagonists
- most Android projects 2007-2009 were carrier-funded.
- Android and iPhone are playing AT&T and Verizon like puppets on strings; e.g. Verizon now
heavily marketing iPhone, while AT&T heavily pushing Android.


The real value of carriers
The real value of carriers is still untapped

1. Leverage apps to drive core business, not generate revenues
- Deliver voice and messaging apps that build on core network business, at 10x deployment speeds
- quit pushing for higher communications ARPU, but leverage apps to extent revenues across untapped
segments of consumer spending portfolio (transport, health, food, housing, etc)
- expose network APIs that drive lock-in to core business, not APIs that generate revenue
- leverage apps to drive premium customer acquisition, customer retention and increase switching costs

2. Divide and conquer among app stores
- Don’t create new app stores (WAC) but divide and conquer among existing app stores
- Create shop fronts for app retailing and promotions
- Monetise by helping developers target apps to the right demographic in real time
- Offer recommendation services by tapping into users’ social graph

3. Increase power over OEM suppliers
- Shift handset purchasing model to a performance based per-device bonus based on hitting ARPU,
messaging and churn targets; leverage on network analytics.
- Resist a price war on handsets by favouring an oligopoly of traditional suppliers

4. Become the VISA of mobile
- aggressively grow carrier billing usage via in-app payments
- provide micro-billing at VISA-like rates activated via SMS

5. Invest in retail differentiation
- as devices commoditise, retail will become a stronger control point for customer acquisition
- Invest in retail differentiation, for example visual service retailing, bundling services/apps in handsets,
deploying handset PoS configurators and carrying out PoS customer segmentation analysis.


6. Customer experience management
- Identify influencers and improve lifetime value metrics
- Understand customer behaviour and enable behavioural targeting by third parties

7. Drive wholesale business beyond mobile
- Drive wholesale model in CE business (ala Kindle) to de-risk and differentiate bandwidth pricing

8. Handset customisation: focus on merchandising and addressbook
- focus on a single app (active idle screen) to be provisioned on all smartphones + some Java handsets
- idle screen app can encompass service merchandising/promos and addressbook functionality
- leave all other apps to 3rd parties!


a note of caution

is WAC repeating history mistakes?
- WAC is a framework for creating carrier-owned app stores
even if carriers don’t have most of the genes to create their own app store
- and making money from apps
when Apple/Google use apps as a complementary business, not as a revenue generator

- Needs software agility, but moves with telecoms rigidity
12 months since announcement and no distribution channel, no marketplace, no billing
Telecoms rigidity and ‘design by committee’ is the key reason why LiMo failed
- Smartphone focus, but feature phone opportunity
Smartphone focus (Opera, S60, iPhone), where competition is fierce. Opportunity is in feature
phones but challenge is fragmentation of widget runtimes and buying power - why i-mode alliance failed.
- Distribution channel will fail once runtimes fragment
Same reason why a Java app store would fail.
- Distribution will fragment among carriers
Each carrier to have different app requirements and revenue shares
Same reason while the BREW app store (since 2001) failed to reach Apple’s proportions

Augmented economics
Making money at the edge of reality

Augmented economics: the study of the economy created
by superimposing value on top of our physical world


What is augmented economics?
making money by connecting the physical world with virtual worlds

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O(+P$67CQ78:.5 SM155:9$G0.=C1NU

B70<.?19R$'D$<.?19 6:08Q7C$=.0C?9$=W:<W$/.518:91$8W0.QAW$6:08Q7C$A..?9R$6:08Q7C$
6:08Q7C$017C3198781$
<Q0015<N$1L<W75A19$75?$7?9$BN$;WN9:<7C$=.0C?$B075?92$

>D$B0.=9109V$7;;C:<78:.59$017<W$7<0.99$0187:CR$7?9R$ <.551<89$;7;10$8.$ 6:08Q7C$A..?9R$7Q<8:.59$75?$HA.$9106:<19
;0.;108NR$/:C:870NR$1?Q<78:.52 9106:<1$;0.6:?109


Facebook: connecting physical to virtual
7$;C78F.0/$B18=115$8W1$;WN9:<7C$=.0C?$75?$8W1$)R"""9$.F$6:08Q7C$=.0C?9

N.Q0
=.0C?
W101

.FF39:81$7?9
.539:81$7?9
7<1B..@$<01?:89

8W1$/.61$8.$.FF39:81$7?9R$91CF39106:<1$7?9$75?$6:08Q7C$A..?9$:9$1L;1<81?$8.$?.QBC1$>DZ[$F0./$O"2!+$8.$O"2+"$
9.Q0<1V$01?$]:C9.5R$^G2

The money in augmented economics

“The power to capture attractive profits.. is in
these stages that complex, interdependent
integration occurs”
Clayton Christensen et al

In augment economics, the platform that links
the physical with the virtual world stands to
profit the most.

“The next Google might be a physical world
connection company”
S Schaffer


Thanks for listening.
Knowledge. Passion. Innovation.

want more?

hello@visionmobile.com
contact us to schedule an on-site workshop.

Updated: 12 November 2010


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