Organising value creation
when the Internet is everywhere
Vodacom
June 2006
Pieter Geldenhuys
Institute of Technology
Strategy & Innovation
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The Relationship Between Strategy and Scenarios
The hypotheses of current strategic analysis are considered in the context of
a range of plausible futures created through a facilitated process comprising
Business Model
Internal
Analysisand
& externalScenario
both internal
experts.Thinking
Design
Hypothesis Generation
What Could
be
What is
What Should be
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The primary forces
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The primary forces
Moore’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
abundance."
- 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.
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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
Mobile Storage Revolution
Multiplicity of Local
Connectivity
New Ways of
Displaying Content
Embedded Flash
6MB <<< 128MB
Embedded HDD
2GB <<< 50GB
+
+
Memory Card
128MB <<< 16GB
 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
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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 Communication
Early market: Hong Kong
Acceptance of Octopus Card for mini and micropayments
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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Virtual reality becomes even more real
Ubiquitous
Cyberspace
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Real “virtual” reality across large distances
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Holographic
Assisted shopping
3D home
shopping
Imbedded
Intelligence
CyberSphere
Payment solutions
Augmented reality
The Internet is the platform for all future
applications
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The building blocks of the Cybersphere
Mental
Space
Cyberspace
Physical
Space
The
Internet
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The building blocks of the Cybersphere
Mental
Space
Cyberspace
Physical
Space
The
Internet
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The building blocks of the Cybersphere
is the virtual & physical space
where all the electronic technologies
Ubiquitous Cyberspace
Internet, payment systems,
telephones,CyberSphere
computing devices, media,
security systems, digital personal
identities,
augmented
Ubiquitous
Internetreality
- all converge into a single seamless
system.
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Immediate access to a world of information
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A new strategic paradigm
View of customer
Co-producer
Prime Mover:
IKEA
Listen &
Serve
Source
Receiver
(market)
Invite &
Participate
Make
& Sell
Production
Prime mover:
Prime Mover:
* Ford
Amazon.com
Relationships
Organisation
of value creation
Critical competence
Source: Richard Norman & Keith Coates
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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
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