1. ITSI Copyright@2006 Organising value creation when the Internet is everywhere Pieter Geldenhuys Institute of Technology Strategy & Innovation Vodacom June 2006

2. ITSI Copyright@2006 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 both internal and external experts. What is What Should be What Could be Internal Analysis & Hypothesis Generation Scenario Thinking Business Model Design

3. ITSI Copyright@2006 The primary forces

4. ITSI Copyright@2006 The primary forces Moore’s law Processing power will double every 18 months

5. ITSI Copyright@2006 The primary forces Bandwidth - will double every 9 months This revolution will mean very low-cost high-bandwidth communication

6. ITSI Copyright@2006 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.

7. ITSI Copyright@2006 The primary forces Storewidth is doubling every 12 months.

8. ITSI Copyright@2006 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

9. ITSI Copyright@2006 Increased processing power & storewidth

10. ITSI Copyright@2006 The primary forces

11. ITSI Copyright@2006 Exploiting the abundance 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

12. ITSI Copyright@2006 The ubiquitous Internet will need to be redefined if we are to understand its true potential.

13. ITSI Copyright@2006 The Internet is accessible everywhere on the planet

14. ITSI Copyright@2006 Everything can have an IP address A world where everything is connected, and everything can have an Internet address.

15. 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.

16. ITSI Copyright@2006

17. ITSI Copyright@2006 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

18. ITSI Copyright@2006 One click e-Commerce Handheld TV units have bi-directional communication capabilities, which allows for sequential e-Commerce applications.

19. ITSI Copyright@2006 Wearable computer interfaces

20. ITSI Copyright@2006 Augmented reality

21. ITSI Copyright@2006 RFID & Auto Identification Source: www.autoid.org

22. ITSI Copyright@2006 Payment via Near Field Communication Early 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 3 rd Qtr 2006.

23. ITSI Copyright@2006 Electronic paper

24. ITSI Copyright@2006 My Avatar and I

25. ITSI Copyright@2006 Avatars and their owners

26. ITSI Copyright@2006 Ubiquitous Cyberspace Virtual reality becomes even more real

27. ITSI Copyright@2006 Real “virtual” reality across large distances

28. ITSI Copyright@2006 The Internet is the platform for all future applications Internet Technology Augmented reality CyberSphere Payment solutions ImbeddedIntelligence 3D home shopping Holographic Assisted shopping

29. ITSI Copyright@2006 The building blocks of the Cybersphere PhysicalSpace MentalSpace TheInternet Cyberspace

30. ITSI Copyright@2006 The building blocks of the Cybersphere PhysicalSpaceTheInternet MentalSpaceCyberspace

31. ITSI Copyright@2006 The building blocks of the Cybersphere Ubiquitous Internet Ubiquitous Cyberspace is the virtual & physical space where all the electronic technologies Internet, payment systems, telephones, computing devices, media, security systems, digital personal identities, augmented reality - all converge into a single seamless system. CyberSphere

32. ITSI Copyright@2006

33. ITSI Copyright@2006 Immediate access to a world of information

34. ITSI Copyright@2006

35. ITSI Copyright@2006 Critical competence View of customer A new strategic paradigm Receiver (market) Source Co-producer Production Relationships Organisation of value creation Source: Richard Norman & Keith Coates Prime mover: * Ford Prime Mover: Amazon.com IKEA Invite & Participate Listen & Serve Make & Sell

36. ITSI Copyright@2006 How do you create value in this environment?

37. ITSI Copyright@2006 Sections of the presentation available on www.itsi.org.za Training -> Vodacom Username: vodacom Password: hsdpa