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Organising value creation Organising value creation when the Internet is everywherewhen the Internet is everywhere

Pieter GeldenhuysPieter Geldenhuys

Institute of TechnologyInstitute of Technology

Strategy & InnovationStrategy & Innovation

Vodacom

June 2006

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The Relationship Between Strategy and ScenariosThe hypotheses of current strategic analysis are considered in the context of a range of plausible futures created through a facilitated process comprising both internal and external experts.

What is What Should be

What Could be

Internal Analysis &Hypothesis Generation

Scenario ThinkingBusiness Model

Design

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The primary forces

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The primary forcesMoore’s law

Processing power will double every 18 months

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The primary forces

Bandwidth

- will double every 9 months

This revolution will mean very low-cost high-bandwidth communication

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More information can today be sent over a single cable in a second than was sent over the entire Internet in 1999 in a month.

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The primary forces

Storewidth is doubling every 12 months.

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Storewidth

"The consumer will have a 5 or 6-terabyte drive by 2009, and will be able to store

25-50,000 CDs —which is all the music

on all the labels!

That's when we officially reach the point of lunacy!“

- Rob Reid, Founder, Listen.com

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Increased processing power & storewidth

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The primary forces

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Exploiting the abundance

"Bandwidth is doubling every 8-9 months. Storage is doubling every 12 months. Computing power is doubling every 18 months. We're here to talk about exploiting the exploiting the abundanceabundance."

- Niel Robertson, Technologist-in-Residence, Mobius Venture Capital, and former Technology Advisor, Exodus

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The ubiquitous Internet will need

to be redefined if we are to understand its true potential.

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The Internet is accessible everywhere on the planet

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Everything can have an IP address

A world where everything is connected, and everything can have an Internet

address.

Internet addressing

IPv4 (e.g 196.23.45.67) support address space for 4.3 thousand million devices

IPng (for "new generation"), theoretically enables 340,282,366,920,938,463,463,374,607,431,768,211,456

possible addresses; or

665,570,793,348,866,943,898,599 for each square metre of the Earth.

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Terminal capability in 2008 – or sooner

Embedded HDD

2GB <<< 50GB

Memory Card

128MB <<< 16GB

Embedded Flash

6MB <<< 128MB

Mobile Storage Revolution New Ways of Displaying Content

Multiplicity of Local Connectivity

+ +

20 GByte is enough for your entire music collection + your entire photo album + 20hrs of home movies + 8 hours of DVD quality movies + a bevy of games

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One click e-Commerce

Handheld TV units have bi-directional communication

capabilities, which allows for sequential e-Commerce

applications.

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Wearable computer interfaces

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Augmented reality

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RFID & Auto Identification

Source: www.autoid.org

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Payment via Near Field CommunicationEarly market: Hong Kong

Acceptance of Octopus Card for mini and micro-payments

throughout the city. Nokia and Sony are ready to

launch NFC phones in Hong Kong in 3rd Qtr 2006

.

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Electronic paper

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My Avatar and I

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Avatars and their owners

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Ubiquitous Ubiquitous CyberspaceCyberspace

Virtual reality becomes even more real

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Real “virtual” reality across large distances

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The Internet is the platform for all future applications

Internet TechnologyInternet Technology

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The building blocks of the Cybersphere

Physical Physical SpaceSpace

Mental Mental SpaceSpace

TheTheInternetInternet

CyberspaceCyberspace

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The building blocks of the Cybersphere

Physical Physical SpaceSpace

TheTheInternetInternet

Mental Mental SpaceSpace

CyberspaceCyberspace

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The building blocks of the Cybersphere

Ubiquitous InternetUbiquitous Internet

Ubiquitous CyberspaceUbiquitous Cyberspace

is the virtual & physical space where all the electronic

technologies

Internet, payment systems, Internet, payment systems, telephones, computing devices, telephones, computing devices, media, security systems, digital media, security systems, digital personal identities, augmented personal identities, augmented

reality reality

- all converge into a single seamless system.

CyberSphereCyberSphere

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Immediate access to a world of information

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Critical competence

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A new strategic paradigm

Receiver

(market)

Source

Co-producer

Production Relationships Organisationof value creation

Source: Richard Norman & Keith Coates

Prime mover: Prime mover:

* Ford* FordPrime Mover:Prime Mover:

Amazon.comAmazon.com

Prime Mover: Prime Mover:

IKEAIKEA

Invite &

Participate

Listen &

Serve

Make

& Sell

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How do you create value in this environment?

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Sections of the presentation available on

www.itsi.org.za

Training -> Vodacom

Username: vodacom

Password: hsdpa