Mobile Application Development case

TKK / T-109.4300 / Aape Pohjavirta

Mobile Application Development case

• Sendandsee mobiprint™• History• Target Market & Positioning• Product Overview• CASES:

• Kauppalehti Mobiili+• Helsingin Sanomat

• Mobile media consumption development 2006 - 2008• Business models & Success factors• Q&A


History

• Sendandsee was founded in 2003 as the commercialisation of a three-year research and development project that studied visual content and next-generation mobile services consumption in over 50 countries.

• The Company established itself as a distributor of visual content it licensed from rights-owners and distributed through different types of sales channels to mobile end-users.

• Sendandsee made a strategic decision not to focus on the Mobile Music or Mobile Games niches, as those were analysed to be areas that will most likely be controlled by players in existing music and game industries in the foreseeable future.

• Sendandsee exited from the visual content business in 12/05.


History (cont’d)

• The decision to focus on visual content was important for research into the future of Mobile Media, as all mobile users of visual content were potential customers for richer media content.

• In October 2003 Sendandsee decided to develop a “Mobile Publishing” product.

• Sendandsee’s strategy was to launch its own Mobile Magazines and expand their distribution, and then to mobilize ”real-world” Magazines with its technology.

• Sendandsee is focused on and has been successful in executing its strategy as it has been able to license, sell, and deliver systems based on the mobiprint technology to leading publishing companies and global technology companies.


Sendandsee - strategic insights & success

Sendandsee’s soul is built on a few insights:

• ”Act global” – a key building block of the operation

• No globalisation strategy – just tactics and actions

• After first year business relationships in over 30 countries

• Global success does not require local success!


Target Market & Positioning

• Mobile Media is being born, created by a combination of people’s desire to live their lives free from location-based infrastructure, emergence of smarter mobile handsets and faster mobile networks, and better application design environments.

• Previous births of ”new media varieties” [radio, TV, Desktop Publishing, Internet etc.] have created great business opportunities for existing and new industry players.

• The successful companies have as a rule had a position of an enabler of new business from existing processes within the industry.

• Success in the mobilization of media, will come to those who act as enablers of new business to multiple adjoining peer groups: Media companies, Publishers, Telecom Operators, Software companies etc.


Target Market & Positioning (cont’d)

Digitalized production & distribution

TV Industry Publishing Industry

Rights Owners

Licensors

Softwareproducts &technologies

Hardwareproducts &technologies

CLASSIC MEDIA:• Distribution• Advertising• Revenues• Marketing sendandsee

MOBILE MEDIA:• Distribution• Advertising• Revenues• Marketing

enables


CASE: Textbook approach produces disaster

• Target: Mobililizing newspapers & magazines in the USA• First approach:

• Use of a professional consultant with great contacts, let him show the product to established media industry members

• Result:• Everybody praises the solution, wants more features, but

especially direct access to distribution [end-users]

• Second approach:• Establish a partnership with a BIG distribution partner

and add it to the First approach

• Result:• A small technology company is battling to get BIG players

to get their egos sorted, to work together

• End result: No business – just money ”invested into market study”



COMPUTER Industry

PUBLISHING

Industry

TV Industry

SOFTWARE Industry

TIME & MARKET

Growth

Scale

Quality

Cannibalization

”BIG” Computers

PersonalComputers

Mobile appliances

Realpublications

Internet

Mobile publications

TV

Internet TV

Mobile TV

”Production”SW

UI & Transport SW

Mobile SW

”The Mobile Promise””The Mobile Promise”



Voice SMS WAPMMS

J2ME

”Smart Phones”

”Media Phones”

InternetBBS

Client/Server

Java Open Source

GPRS

DTP / DTV

www WAPInternet

TVMobile TV

Mobile Publishi

ng

Person-to-

person messagin

g

B&W graphics

, ringtone

s

1st subscription

services

real visual contentgames

real music

Mobile Publishi

ngMobile TV


mobiprint™ overview

• Sendandsee provides tools for mobilization of digital media and brands - current focus on newspapers & magazines.

• mobiprint™ technology enables publishing of existing digital media to mobile phones and creation of cross-media services.

• Services created with mobiprint create a streamlined end-to-end user experience for media content.


mobiprint™ overview (cont’d)

mobiprint™

authoring systemmobiprint™

authoring system

content management content mobilization content delivery

3rd party content management

systems

3rd party content management

systems

3rd partymedia browsers

3rd partymedia browsers

external content feed(rss / xml )

external content feed(rss / xml )

mobiprint™

publishing servermobiprint™

publishing servermobiprint™

media browsermobiprint™

media browser


mobiprint™ overview (cont’d)

• mobiprint service enables the creation of branded mobile publications to mobile users.

• mobiprint user experience is faster and more enjoyable than online browsing.

• Mobile publications enable additional revenue generation from current media content.

• Service model enables fast implementation

with low investments.


CASE: Kauppalehti

• Finland's leading daily business and financial newspaper, Kauppalehti, implemented its Mobiili+ service using mobiprint. The service brings subscribers daily news as well as access to other mobile services such as real-time stock quotes and external wap-services.

• "Mobiili+ combines our services in one easy-to-use interface for mobile users, supporting the development of services which can be used regardless of time and place. It also enables interactive advertising in the mobile media.”Markku Kiuru, Kauppalehti Vice President

• The advertising capability in mobiprint™ can be tailored case by subscriber case according to interests, location or other criteria, and allows direct response and payment using premium SMS or other suitable methods.

• The advertising content will be integrateable with existing digital advertising management systems during H1/06.

• Solution: Direct integration into the digital production system used within the publishing group. Delivered to end-users as Kauppalehti's own service and through Nokia Media Channels.


CASE: Helsingin Sanomat

• Scandinavia's largest daily newspaper implemented its latest mobile service using mobiprint.

• The service brings subscribers the latest news when they are created in six categories.

• "mobiprint offers a completely new intuitive mobile user experience. Its usability design really takes into consideration the modern day newspaper user, and finally makes it possible for the general public to adopt mobile content services.”Anders Stenbäck, Business Development Manager at Helsingin Sanomat

• Solution: Direct integration into the production system used within the Sanoma Group. Delivered to end-users through Nokia Media Channels.


Mobile media consumption - Driving factors

Mobile terminal lifecycle:- End-user terminal turnaround time 18-24 mths- Driven by subsidized terminals [MNOs]


End-user behaviour:- Usage of new services grows through viral- Usage development follows TAM [Technology Acceptance Model]- New services reach large masses in 18-24 mths- Services drive the development, not technical capabilities


Service footprints:- New service launches reach critical mass in subscriber space in 6-12 mths- Success require adequate marketing

Service footprints:- New service launches reach critical mass in subscriber space in 6-12 mths- Success require adequate marketing

Mobile Media Usage: Critical waypoints

Mobile Media Usage: Critical waypoints

20062006 20072007 20082008

Future terminal compatibility


Service launchesService launches

Service marketingService marketing


Mobile terminal lifecycle



High usage user groups:Innovators Early Adaptors Early MajoritySmart Phones Symbian Symbian [Symbian] Advanced J2ME Advanced J2ME

High usage user groups:Innovators Early Adaptors Early MajoritySmart Phones Symbian Symbian [Symbian] Advanced J2ME Advanced J2ME

2006 2007 2008




Service footprints

High usage user groups:Innovators Early Adaptors Early MajoritySmart Phones Symbian Symbian[Symbian] Advanced J2ME Advanced J2ME

High usage user groups:Innovators Early Adaptors Early MajoritySmart Phones Symbian Symbian[Symbian] Advanced J2ME Advanced J2ME

2006 2007 2008

Service footprints:- New service launches reach critical mass in subscriber space in 6-12 mths- Success requires adequate marketing

Service footprints:- New service launches reach critical mass in subscriber space in 6-12 mths- Success requires adequate marketing



End-user behaviour

High usage user groups:

Innovators Early Adaptors Early MajoritySmart Phones Symbian Symbian[Symbian] Advanced J2ME Advanced J2ME

2006 2007 2008



Service marketingService marketing


Business models & Success factors - “mobile” media

• Mobile customers become mobile media consumers

• In the mobile media market roles will be defined by media:• Critical issues:

• Brand recognition• Marketing• Integrability• Distribution• Accessability

• In the mobile marketspace the media industry is looking for:• Great consumer accessability with high discovery factor• Cost-effective distribution channels• Flexible integration with varying business logics• Easy integration with existing production systems

• Mobile Value Chain -> Distribution Channel Only?


Business Models & Success factors - who helps you?

• Big partners:• Slow in their reactions• ”Desire to own” a part of the mindset• May impact your business greatly• Partnerships very risky for small players

• Small partners:• Fast in their reactions• Love the idea of not having to invest into R&D or

implementation• Impact often fast but not lasting• Partnerships

• Claim: Look for partners who can generate new business from their existing processes and customers with your solution / service – those are the ones who will be your greatest help!


Summary

• There is a 95% probability that you will fail• The 5% who ”Make it” are destined to be acquired by

someone who is:

• Big: slow, hesitant, defensive• Small: chaotic, uncertain future awaits

• Once you ”Make it” there is a 95% probability that someone:

• claims that you are infringing on their IPR / patents• copies your product / service with bigger / better resources

• Nothing is more difficult than boosting, bringing up, and breeding a global success from one product / service – enjoy the ride!

Mobile Application Development case

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