Ericsson Santiago

Architecting the Networked Society

“Communication is a basic human need”-Lars Magnus Ericsson

Ericsson Santiago

Proposal Summary

Energy: Implement an energy savings model that begins at the household level and benefits communities, appliance manufacturers, utility companies, operators and EricssonHealthcare: Establish an interconnected network that links devices, databases, developers, patients, healthcare providers, insurance companies and governments into a single interoperable platform

Ericsson Santiago

ENERGY

Ericsson Santiago

Energy management: current trends

Resilient grids and smart meters to increase energy efficiency.Such vision advocates a top-down approach: a centralized Network Operation Center that controls the power stations all the way down to micro-managing appliances at home.

Vision Business Model Competition Partners Roadmap

Ericsson Santiago

Energy management: Ericsson’s take

Bottom-up approach – Home users: Key players as they generate energy

savings– Network-enabled appliances: Become the tool to

generate savings – Operators: Gateway to monitor and control

appliances– Utilities: Set the pace of energy consumption– Energy Management Platform: Determines the

best response to Utilities’ requirements

Vision Business Model Competition Partners Roadmap

Ericsson Santiago

Operational Flow

Vision Business Model Competition Partners Roadmap

Ericsson Santiago

Value Flow

Vision Business Model Competition Partners Roadmap

Ericsson Santiago

External players and threats

• EnerNOC is not alone: Comverge, ESCO, and Itron could follow suit.

Direct competitors

• Siemens and Honeywell also see an opportunity to build demand response technologies.

HVAC Heavyweights entrants

• Home energy management and utillity companies integration (Tendril and Lockheed)

Industry consolidation

Vision Business Model Competition Partners Roadmap

Ericsson Santiago

Why EnerNOC?

Industry-proved energy management solutions and current market leader in demand response (4.5 GW).Leverage existing contracts with more than 100 utility companies across the US, UK, and Canada.State-of-the-art NOC facilities operating 24/7.2009 Smart Grid Product of the Year.

Vision Business Model Competition Partners Roadmap

Ericsson Santiago

How big is the opportunity?

About 20B is recoverable via energy savings yearly… on top of chip sales

Total capacity

Average demand

250B Worldwideinvestment

Source: EnerNOC annual report 2009

Capacity used 1% of the time

Vision Business Model Competition Partners Roadmap

Ericsson Santiago

Implementation: Goals and Timeline

2012• NOC alliance• OEM

partnerships

2013• Cloud-based

platform development

• Closed beta

2014• FMA• Appliance

availability in all existing markets

2015• National launch• Preliminary talks

with international carriers

Vision Business Model Competition Partners Roadmap

Ericsson Santiago

Shareholder’s value

• Additional revenue growth source unmatched by any other NIC provider

Grow faster than market

• Significant boost to ST-EricssonImprove earnings in JVs

• Forging new relationships with OEMs and community improvements for end users

Customer intimacy

• New ways of saving energy and managing peak demandContinuous process improvement

• Nature of market is global and in every householdScale in delivery and technical solutions

Vision Business Model Competition Partners Roadmap

Ericsson Santiago

HEALTHCARE

Ericsson Santiago

The market today

In the U.S., of the 85% of people who use a cell phone, 17% use their cell phone to look up medical informationThere is no interoperability. Market is fragmented10% of GDP of most developed countriesHealth care is one of the world's largest and fastest-growing industries

Vision Business Model Competition Partners Roadmap

Ericsson Santiago

Current Situation

Vision Business Model Competition Partners Roadmap

Ericsson Santiago

Our vision for the future

Ecosystem of interconnected devices and databases that provide real time information to patients, health care providers, governments and insurance companies Scalable model that is available to developed and marginalized communities alike

Vision Business Model Competition Partners Roadmap

Ericsson Santiago

Our vision for 2015

Vision Business Model Competition Partners Roadmap

Ericsson Santiago

App Development

Vision Business Model Competition Partners Roadmap

Ericsson Santiago

Our vision for 2015

Vision Business Model Competition Partners Roadmap

Ericsson Santiago

Quality Control

Operator• Network Robustness• Dependability

Database• Interoperability• Security• HL7 Compliance

Apps• Quality Assurance• FDA & Government

Compliance• Interoperability

Mobile Device• Patient Safety• App tested• interoperability

Vision Business Model Competition Partners Roadmap

Ericsson Santiago

Competitive Landscape

• Cisco, Oracle

Solution providers

Vision Business Model Competition Partners Roadmap

Ericsson Santiago

Partners

HL7 - non profit organization involved in the development of international healthcare informatics interoperability standardsmHealth - advances mHealth through policy research, advocacy, and support for the development of interoperable solutions and sustainable deployment models National I – Leading producer of virtual instrumentation

Vision Business Model Competition Partners Roadmap

Ericsson Santiago

Execution Roadmap

Vision Business Model Competition Partners Roadmap

2011• mHealth

Alliance • HL7

2012• Begin SDK

Development• Talk to device

manufacturers• Begin building

demo DB

2013• Continue

building SDK and pilot environment

2014• Launch first

version of SDK for developers

2015• Engagement

with developers

Ericsson Santiago

Conclusion

New revenue streamsMake Ericsson a game changer in the evolution of these two sectorsCommunication is a basic human need

Ericsson Santiago

Q&A