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TKK / T-109.4300 / Aape Pohjavirta Mobile Application Development case Sendandsee mobiprint™ History Target Market & Positioning Product Overview CASES:

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Presentation on theme: "TKK / T-109.4300 / Aape Pohjavirta Mobile Application Development case Sendandsee mobiprint™ History Target Market & Positioning Product Overview CASES:"— Presentation transcript:

1 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

2 TKK / T-109.4300 / Aape Pohjavirta 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.

3 TKK / T-109.4300 / Aape Pohjavirta 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.

4 TKK / T-109.4300 / Aape Pohjavirta 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!

5 TKK / T-109.4300 / Aape Pohjavirta 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.

6 TKK / T-109.4300 / Aape Pohjavirta Target Market & Positioning (cont’d) Digitalized production & distribution TV IndustryPublishing Industry Rights Owners Licensors Software products & technologies Hardware products & technologies CLASSIC MEDIA: Distribution Advertising Revenues Marketing sendandsee MOBILE MEDIA: Distribution Advertising Revenues Marketing enables

7 TKK / T-109.4300 / Aape Pohjavirta 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”

8 TKK / T-109.4300 / Aape Pohjavirta Target Market & Positioning (cont’d) COMPUTER Industry PUBLISHING Industry TV Industry SOFTWARE Industry TIME & MARKET Growth Scale Quality Cannibal ization ”BIG” Computers Personal Computers Mobile appliances Real publications Internet Mobile publications TV Internet TV Mobile TV ”Production” SW UI & Transport SW Mobile SW ”The Mobile Promise”

9 TKK / T-109.4300 / Aape Pohjavirta Target Market & Positioning (cont’d) VoiceSMSWAP MMS J2ME ”Smart Phones” ”Media Phones” InternetBBS Client/ Server JavaOpen Source GPRS DTP / DTV wwwWAP Internet TV Mobile TV Mobile Publishing Person-to- person messaging B&W graphics, ringtones 1 st subscription services real visual content games real music Mobile Publishing Mobile TV

10 TKK / T-109.4300 / Aape Pohjavirta 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.

11 TKK / T-109.4300 / Aape Pohjavirta mobiprint™ overview (cont’d) mobiprint ™ authoring system mobiprint ™ authoring system content managementcontent mobilizationcontent delivery 3rd party content management systems 3rd party content management systems 3rd party media browsers 3rd party media browsers external content feed (rss / xml ) external content feed (rss / xml ) mobiprint ™ publishing server mobiprint ™ publishing server mobiprint ™ media browser mobiprint ™ media browser

12 TKK / T-109.4300 / Aape Pohjavirta 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.

13 TKK / T-109.4300 / Aape Pohjavirta 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.

14 TKK / T-109.4300 / Aape Pohjavirta 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.

15 TKK / T-109.4300 / Aape Pohjavirta 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 Mobile Media Usage: Critical waypoints 2006 2007 2008 Future terminal compatibility Service launches Service marketing

16 TKK / T-109.4300 / Aape Pohjavirta Mobile terminal lifecycle Mobile terminal lifecycle: - End-user terminal turnaround time 6-24 mths - Driven by subsidized terminals [MNOs] High usage user groups: InnovatorsEarly AdaptorsEarly Majority Smart PhonesSymbianSymbian [Symbian]Advanced J2MEAdvanced J2ME 2006 20072008 Future terminal compatibility

17 TKK / T-109.4300 / Aape Pohjavirta Service footprints High usage user groups: InnovatorsEarly AdaptorsEarly Majority Smart PhonesSymbianSymbian [Symbian]Advanced J2MEAdvanced J2ME 2006 20072008 Service footprints: - New service launches reach critical mass in subscriber space in 6-12 mths - Success requires adequate marketing Service launches

18 TKK / T-109.4300 / Aape Pohjavirta End-user behaviour High usage user groups: InnovatorsEarly AdaptorsEarly Majority Smart PhonesSymbianSymbian [Symbian]Advanced J2MEAdvanced J2ME 2006 20072008 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 launches Service marketing

19 TKK / T-109.4300 / Aape Pohjavirta 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?

20 TKK / T-109.4300 / Aape Pohjavirta 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!

21 TKK / T-109.4300 / Aape Pohjavirta 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!


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