Mobile Navigation

Andrey Khurrifirst.last@hiit.fi

February 12, 2009

T-109.4300 Network Services Business Models

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Lecture Goals

Overview of Mobile NavigationCornerstones of navigation businessLBS evolution pathEnabling factors

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OutlineIntroductionTechnologies and StandardsEnd-user ServicesLBS Evolution PathKey Players & StrategiesValue NetworkRevenue FlowsSuccess FactorsConclusion

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Definitions“Navigation is the process of reading, and controlling the movement of a craft or vehicle from one place to another… The word navigate is derived from the Latin "navigare", meaning "to sail” (From Wikipedia, the free encyclopedia)

”Personal navigation means determining an individual’s location(positioning), selecting and providing guidance on the required routeand mode of transport to a desired destination in either an outdoor orindoor environment, using geographic or spatial information, and information on location-based phenomena and services” (Rainio 2000 –2002)

Mobile navigation involves use of your mobile handset to identifyand share your location, navigate on the go and receive turn-by-turndirections, utilize versatile location-specific services such as personalized real-time content and different points of interestanywhere at any point of time

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Properties

Mobile navigationOne of the core mobile business categoriesEnables novel business models and entailsinnovative services

Mobile advertising, broadcasting, search, payments

Serves customers of any age, background, occupation, interests and needs

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Problem Areas

User demand & value propositionPrivacy concernsChanges in technologiesEvolution of standards & regulationsBusiness strategies

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Problem Areas

User demand & value propositionPrivacy concernsChanges in technologiesEvolution of standards & regulationsBusiness strategies

Preconditions & success factors?

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”STOF” Model

*Source: Bouwman et al. ”Mobile Service Innovation and Business Models”

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”STOF” & Mobile NavigationService:

Value Proposition

Organization:Key Actors & Strategies

Technology:Technologies & Standards

Finance:Value Network, Revenue Models

*Adapted from Bouwman et al.

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”STOF” & Mobile NavigationService:

Value Proposition

Organization:Key Actors & Strategies

Technology:Technologies & Standards

Finance:Value Network, Revenue Models

*Adapted from Bouwman et al.

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Requirements

HW limitations:Processing Power

UsabilityTiny Spaces

Energy

SW requirements:Extensive Map Data

Voice GuidancePersonalized Content

Robust SoftwareMultiplatform Support

ResourcesKnowledgeInvestments

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Navigation Techniques

Cell-IDCellular base station positioning

Local-range network positioningBluetooth, WLAN, Infrared, RFID, etc.

Satellite-basedGNSS – Global Navigation Satellite Systems

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How Satellite Navigation Works

GNSS:GPSGLONASSGALILEOCOMPASS

*Image source: http://news.bbc.co.uk/1/hi/sci/tech/6634285.stm

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GPS

Global Positioning SystemUS Department of Defense, 1973”NAVSTAR” projectFull operation from 1994Constellation status as of 01.02.09:

31 satellites*

*Source: The Navigation Center of Excellence, http://www.navcen.uscg.gov/navinfo/Gps/ActiveNanu.aspx

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GLONASS

”GLObal’naya NAvigatsionnayaSputnikovaya Sistema”Russian Federation, roots back to SUPresently operating also for civil useConstellation status as of 01.02.09:

20 satellites (18 operational, 1 undermaintenance, 1 in commissioning phase)*

*Source: Information-Analytical Centre of Russian Space Agency, http://www.glonass-ianc.rsa.ru

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Double-Receiver Unit

*Source: http://www.glonass-rus.ru

The first Russian in-carnavigation unitGlospace SGK-70

GLONASS/GPSMedia playerTouch screen 7” TFT CPU 400 MHz, RAM 64 MBWindows CE 5.0

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GALILEO

EU, EC and ESA; operational by 2013Interoperable with GPS and GLONASSConstellation of 30 satellites and a global ground control infrastructureFunding € 3,4 billion for 2007-2013Classification of services

*Source: European Space Agency, http://www.esa.int/esaNA/galileo.html

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COMPASS (Beidou-2)

Second generation of Beidou (Beidou-1, 2000)Cover China and its neighbourhood by 2008Final constellation for global positioning:

5 geostationary orbit (GEO) satellites30 medium Earth orbit (MEO) satellites

Two kinds of serviceAn open service with limited positioning accuracyAuthorized services with higher accuracy

*Source: http://www.insidegnss.com/aboutcompass

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Why Several GNSS?

Independence and confidenceImprove accuracy by multiplying totalamount of satellitesExtend coverage in some areas byplacing satellites to the orbit differentlyfrom GPSNovel business opportunities for companies

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Assisting TechnologiesChallenges with traditional GPS for smartphones

Long values of Time To First Fix (TTFF)Low signal in narrow urban areasCPU usage and power consumption

Satellite are assisted by cellular and Wi-Fi positioning

Purposely designed systems for mobile handsetsA-GPS (Assisted GPS)

Almanac and Ephemeris assistance dataReference network of GPS receivers

eGPS (Enhanced GPS)Information about base station locations

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”STOF” & Mobile Navigation

Service:Value Proposition

OrganizationKey Actors & Strategies

Technology:Technologies & Standards

Finance:Value Network, Revenue Models

*Adapted from Bouwman et al.

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End-User Services

NavigationA BDriving and walkingturn-by-turn directionsLocation on a mapBuilt-in compass3D-mapsExtra info

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End-User Services (cont’d)

Location-Based ServicesLocation sharingLocating emergency callersTraffic, weather, fuel, shopsNearby venuesCommercial offers & adsPersonalized mobile searchMultimedia city guidesReserving a parking space

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LBS Evolution Path

*Source: Bellavista et al., 2008. Location-Based Services: Back to the Future

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LBS: From Failure To Success

*Source: Bellavista et al., 2008; Eylert, 2005

Failure Success

Cell-ID (low accuracy) GPS/GLONASS/GALILEO + assistingtechnologies + 3G, LTE, WiMAX

Lack of user interest Web 2.0 & novel services

Operator-centric User-centric

Reactive Proactive

Single-target Multi-target

Content-oriented Application-oriented

Privacy & SPAM New middleware

Restricted to big players Open participation

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Primary LBS Enablers

*Source: Bellavista et al., 2008. Location-Based Services: Back to the Future

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”STOF” & Mobile NavigationService:

Value Proposition

Organization:Key Actors & Strategies

Technology:Technologies & Standards

Finance:Value Network, Revenue Models

*Adapted from Bouwman et al.

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Key PlayersTechnology players

Device Vendors (e.g., Apple, Nokia, Garmin, TomTom, Navigon)Map makers (e.g., NAVTEQ, TeleAtlas)Software suppliers (e.g., Garmin, Gate5, Navicore, Benefon)

Communication playersGNSS deployers (USA, Russia, EU, China)Network operators (e.g., NTT DoCoMo, T-Mobile, TeliaSonera)Wireless carriers (e.g., Wippies, FON)

Service providersContent creators and owners (e.g., musicians, venues, )Content and service aggregators (e.g., media companies, adv agencies, traffic bureaus)Content distributors (LBS providers, application portals)

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Key Players (cont’d)

Regulation playersGovernmentsAuthorities, commissionsStandardization bodies(3GPP, IETF, W3C, etc.)

ConsumersPrivateCorporate

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StrategiesAdd value

Complementary functionsInnovative apps & servicesQuality, interoperability and distinctivnessDiversifications in platforms and apps

Pool resourcesKnowledge, maps, software, customer baseVia acquisionsVia partnerships, alliancesVia dynamics of value network

Vendors

Operators

LBS

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Strategies (cont’d)Focus on service provisioningBundle services withsubscriptions (S-S) in sales

ContributeAdd contentAdd feedback

Vendors

Carriers

Consumers

LBS

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Making Digital Maps: How?

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Making Digital Maps: How?

Diverse sourcesFrom satellite images and aero photos to traditional local maps and reports

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Making Digital Maps: How?

Diverse sourcesFrom satellite images and aero photos to traditional local maps and reports

”4-wheeled” and ”2-wheeled” :) cartographers

More than 50% of working time

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Making Digital Maps: How?

Diverse sourcesFrom satellite images and aero photos to traditional local maps and reports

”4-wheeled” and ”2-wheeled” :) cartographers

More than 50% of working timeConsumer feedback and updates

Directly from users (TeleAtlas & TomTom)

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Maps: Challenges and Threats

Accurate information is expensiveLower accuracy in less populated areasPotential threats from other giants

Google, Yahoo, Microsoft, Apple

User-generated contentLike ”PhotoMap”

*Sources: 1) http://www.usatoday.com/tech/products/services/2007-07-27-mapmakers-race-chart_N.htm2) http://ifgi.uni-muenster.de/0/photomap/Home.html

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Smartphones, PNDs and Maps

DigitalMaps

TeleAtlas, NAVTEQ, ...

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Smartphones, PNDs and Maps

PND Smartphone

DigitalMaps

TomTomGarmin

MagellanMio

Navigon...

NokiaMotorollaSony EricssonSamsungiPhoneBlackBerryAndroid...

TeleAtlas, NAVTEQ, ...

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Smartphones, PNDs and Maps

PND Smartphone

DigitalMaps

EnhancedPND

NavigationSoftware

Acquisions

NokiaMotorollaSony EricssonSamsungiPhoneBlackBerryAndroid...

TomTomGarmin

MagellanMio

Navigon...

TeleAtlas, NAVTEQ, ...

Alliances

Multi-functionaldevices

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PND vs. Smartphone

*Source: Ordnance Survey

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PND vs. Smartphone

Navigation-focused*Established market*Bigger screen and antennaHigher usability level & accuracyComplementary functions...

*Source: Ordnance Survey

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PND vs. Smartphone

Navigation-focused*Established market*Bigger screen and antennaHigher usability level & accuracyComplementary functions...

All-in-one deviceVersatile connectivityPotential of applications”Always with you”*Increasing sales*...

*Source: Ordnance Survey

LBS

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”STOF” & Mobile Navigation

Service:Value Proposition

OrganizationKey Actors & Strategies

Technology:Technologies & Standards

Finance:Value Network, Revenue Models

*Adapted from Bouwman et al.

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Value Network

PhoneVendors Map

Makers

SoftwareVendors

AdvertisingAgencies

PressAgencies

MediaCompanies

TraphicAgencies

LBSProviders Operators

Consumers

AdvertisersContent Owners

Regulators

Value Flow

Influence

GNSS?

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Revenue Models

VendorsSales of devices, maps and softwareAgreements withoperators and otherplayers

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Revenue Models (cont’d)

OperatorsBundled subscriptionsMaintenance of A-GPS reference networkAgreements with contentand LBS providers, vendors, governments

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Revenue Models (cont’d)

Service ProvidersService subscriptionsAgreements withcontent owners, media companies, advertising agencies

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Success FactorsTechnology Perspective:

GNSS interoperabilityEvolution of mobile networks & platforms

Business PerspectiveBest available resourcesCooperation, partnershipsFocus on customers

Consumer PerspectivePrivacyInnovativenessAffordable price models

Regulation & standardization

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Conclusion

Mobile Mobile NavigationNavigationUniqueUnique mm--businessbusiness categorycategoryComplexComplex valuevalue networknetworkHighHigh potentialpotential of LBSof LBS

FutureFutureLeadingLeading navigationnavigation platformsplatforms??Killer LBS Killer LBS servicesservices??CoCo--existanceexistance of mobile of mobile businessesbusinesses??

Thank You!

* http://www.lasplash.com/uploads/2/hgg_copilotlive7.jpg** http://www5.jouwsites.nl/image/illus_yournav/1062.jpg

* **

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References & LinksBooks & Articles:

Eylert B., 2005. The Mobile Multimedia Business: Requirements and Solutions. John Wiley & Sons, 2005Bouwman et al., 2008. Mobile Service Innovation and Business ModelsBellavista, P., Küpper, A., and Helal, S. 2008. Location-Based Services: Back to the Future. IEEE Pervasive Computing 7, 2 (Apr. 2008), 85-89Bernardos, A.M., Casar, J.R., Tarrio, P., 2007. Building a framework to characterize location-based services. NGMAST '07. Page(s):110 – 118

Links:http://www.youtube.com/watch?v=l1zhyRO9csQhttp://www.pocketgpsworld.com/making-navteq-maps-a1038.phphttp://www.youtube.com/watch?v=kxQEDVSc9p4