Globalisation 2.0 - How digital is crushing industry boundaries

© 2015 VisionMobile

Globalisation 2.0: How Digital is Crushing Industry Boundaries�Andreas Constantinou, Founder & CEO, VisionMobile


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VisionMobile | What we do

Developer Experience Tracking

August 2015 August 2015

Developer Megatrends H1 2015 © 2015 VisionMobile 1

DEVELOPER MEGATRENDS H1 2015�

© 2015 VisionMobile.com May 2015

Access developer trends through 12 reports a year

Slice & dice millions of developer data points

If you could talk to 10,000+ developers what would you ask them?


First. Some questions.

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Why would a smartphone company make shoes?

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Why would a retailer make devices?

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Why would an ad company make phones?

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Why would a hardware company sell music?

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Traditional boundaries between industries are disappearing

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2012

HomeKit Health / Watch CarPlay

Nest Fit / Wear Android Auto

Echo / Alexa

N/A

Kindle Fire Fire TV

Mi Band + … Mi / MIUI Mi note Mi TV / Mi Box

2015

Mac computers iPhone iPad Apple TV

Chrome browser Android Android tablets Google TV

Windows Windows Windows Phone Xbox

PC smartphone tablet smart TV smart home

Cortana Health / Band Windows in the Car

?

Amazon.com Fire Phone

N/A

N/A N/A Mi Smart Home +

…

health / wearables connected car

© 2015 VisionMobile 10

Trend #1. Products as a distribution platform


Flash back to mobile: three business models for mobile devices

11 Source: VisionMobile

emerging model hardware = distribution

traditional model hardware = profits

No Name

take most profits

“demolition derby” break-even or

lose money


Xiaomi: consumer electronics products as a distribution platform�Xiaomi creates a distribution platform for gadgets and home appliances

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10,000+ products sold �on mi.com web site

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“Only for fans”

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Amazon: devices are a new touch-point for the e-commerce business�Amazon sells devices at costs to profit post-sales

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© 2015 VisionMobile https://jawbone.com/marketplace 16

Automatic: an OBD plug as an enabler for distribution platform for insurance and car services�Raised $24M in Q2 2015 from USAA and CDK Global

http://www.reuters.com/article/2015/06/25/ca-automatic-labs-idUSnBw255375a+100+BSW20150625

© 2015 VisionMobile https://jawbone.com/marketplace 17

Beam: connected toothbrush as a distribution platform for dental insurance�Data from the device helps to reduce insurance premiums


Trend #2. Cross-industry business models 18


value creation

value capture

value delivery

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industry A

A new type of business model emerges

value creation

value capture

value delivery

traditional business models

asymmetric business models

industry A

industry B


Asymmetric Business Model

A business model that forces customers and profits to migrate from one industry into another

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Asymmetric business models create unfair competitive advantage software handsets e-commerce advertising

Messenger WhatsApp

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telecoms

Google Play

ad sales

Google Fiber Google Fi

Android handsets

Google Wallet

ad sales

devices

App Store

iDevices


Asymmetric business models create unfair competitive advantage

value capture value creation

software handsets e-commerce telecoms

profit transfer 22

insurance

Amazon app store e-commerce

Kindle Fire

employee benefits plan

free life insurance

as long as you ‘re a subscriber

free HR software


Trend #3. The era of platform-first products

Image credits: Maschinenraum


Developers are conquering… the wrist

Apple Watch

3,500+ apps

Android Wear

2,300+ apps

Pebble

1,400+ apps

Source: Apple, Pebble, Android Wear Center, VisionMobile estimates (Q1 2015) 24


Developers are conquering… the home

There are a lot of things that we’re not going to be able to build. We want to work with developers who bring other great ideas in the mix. […] The iPhone was great - it had 5 apps on it when it shipped. Now it has a million apps on it. The opportunity in the home is going to be pretty close. Tony Fadell

ex-Apple, CEO Nest

https://www.youtube.com/watch?v=377oDvnrk5M&t=20m40s (edited for clarity)

a small selection of Smart Home platforms and APIs

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Developers are conquering… the sky

There are a lot of industrial use cases that DJI can’t build the software for, but developers can come and create software for industrial companies. Developers are already using our SDK to build apps to help control drones for agriculture, construction, and mining. Michael Perry

DJI

http://techcrunch.com/2015/05/06/dji-drone-platform/

“Android for drones”

http://dronekit.io/

Raised $75M to build an industrial UAV developer platform (May 2015)

http://dev.dji.com/

An operating system for commercial drones

http://www.airware.com/developers

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Developers are conquering… the car

Aftermarket solutions for any car, 250+ OBD apps in Google Play,

growing support from big players

API available by invite only 40 new vehicle models in 2015

API publicly available (Nov 2014) Apps can be published on Google Play (Mar 2015)

First models in 2015

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Automatic: From a standalone product to an innovation ecosystem�connecting drivers to the rest of their life – 320 recipes on IFTTT

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social

service

trip logging

location

smart home

wearables

works with any car through

OBD-II plug

offers selection of own services

for smart car experience


And now.. a platform before a product

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a package of 15 sensors for developers to turn into products

not designed for any one use case or industry


Developers extend your business model

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value creation

value capture

value delivery

developers as extenders

to new use cases, and partners into

new alliances

developers as distribution

reaching new users & new markets

developers as customers

Source: VisionMobile

developers as the innovators


Developers are active across home, retail and more


Early platform leaders are already starting to form�top-3 platforms for developer mindshare across verticals


Developer ecosystems are the �

baseline for competition in IoT

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Knowledge. Passion. Innovation. Andreas Constantinou Director & Founder [email protected] @andreascon

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If you could speak to 20,000 developers, what would you ask them?

Michael Vakulenko Strategy Director [email protected] @mvakulenko

Globalisation 2.0 - How digital is crushing industry boundaries

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