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Connected Services
ServicesConvergence &Digital EcosystemsDr.-Ing. Eueung Mulyanahttps://eueung.github.io/ET3010ET-3010 | Attribution-ShareAlike CC BY-SA
Outline
Services Convergence
Impacts of Services Convergence
Digital Ecosystem
Examples of Digital Ecosystem
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Digital Ecosystem
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Elements of the Simpli�ed CS Model
Simple CSModelUser - Device - System
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Abstract DeviceModel
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Abstract Device Model
DeviceHardware
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DeviceHardware
OEMs (HW Vendors) Accessories Manufacturers
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Abstract Device Model
DevicePlatform & Operating System
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DevicePlatform & Operating System
Platform / OS Vendors
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Abstract Device Model
DeviceApplication Framework
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DeviceApplication Framework
Framework Owners
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Abstract Device Model
DeviceApplication
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DeviceApplication
Market Owners Developers
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DigitalEcosystemsAbstract Device Model
1. OEMs (HW Vendors)2. Accessories Manufacturers3. Platform/OS Vendors4. Framework Owners5. Market Owners6. Developers
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Other Elements in the CS Model
CS ModelUser Operator Advertiser Other Partner
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DigitalEcosystems
Connected Services Model
1. Users2. OEMs (HW Vendors)3. Accessories Manufacturers4. Platform/OS Vendors5. Framework Owners6. Market Owners7. Developers8. Operators9. Advertisers
10. Other Partners
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Mobile is Huge!Considering the Numbers ...
Devices18 / 48
Devices19 / 48
Devices20 / 48
Apps21 / 48
Examples of DigitalEcosystem
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Introducing GAFA
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Case Apple
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AppleO�cial Products
1. Apple Watch, iPad, iPhone & iOS2. Mac3. Software4. Apple Music, Apple TV, iPod & iTunes5. iCloud & Apple Pay6. Retail Stores
Apple Revenue2004-2015 (Statista) 29 / 48
Apple Revenue2011-2013 (Dan Frommer, Splatf ) 30 / 48
SW/Services vs. iPhone
2011 2012 2013 2014 2015
Services 7.9 9.0 9.4 9.9 8.6
iPhone 42 47 56 54 63
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]
SW + Services
(inc. Media/Content)32 / 48
2012: USD 8.5 B, larger than TheNew York Times + Warner-Bross +
Time Inc + Simon & Schuster
2012: Apple CFO, Peter Oppenheimer - We run the AppStore just a little over breakeven
2016: ... the public had spent USD 1.1 B at the AppStore in a two-week period covering Christmas andNew Year's (Ref: Appleinsider)
2016: Jan. 1 was reportedly thebiggest single day in the App Store'shistory, with over USD 144 M intra�c
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AppleEcosystem Strategy
GP Morgan via Appleinsider
While the App Store is a relatively minorsource of income for Apple, strong app salesare essential to the company's health. Itdepends on apps as a reason for people tobuy iOS devices.
People who buy iOS apps are also more likely to be "locked"into the Apple ecosystem, since they would suddenly lose thatcontent after switching to Android or Windows.
Apple Ecosystem Design
HW/Device Business34 / 48
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Apple Ecosystem
User, Operator,Partner, AccessoryManufacturer (AM)cf. VisionMobile
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Apple Ecosystem
UserValue Capture - Main Business
Apple to User : Premium ProductExperienceUser to Apple : Premium Money
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Apple Ecosystem
OperatorRelationship
Apple to Operator : Users + DataPlansOperator to Apple : Subsidies
Telcos reduce friction for the iPhone business(VisionMobile)
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Apple Ecosystem
AccessoryManufacturerRelationship
Apple to AM : Access to MarketAM to Apple : Complements,Revenue Share
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Apple Ecosystem
PartnerRelationship
Apple to Partner : ContributesAppStore to O�er Dollars and UserEngagementPartner to Apple : Content, Apps,Services
Developers, SW Publishers, Content Retailers, ContentOwners, Internet Players, Brands
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EcosystemBusiness
ModelsThe Formula
1. Rede�ne Market (Explore/Extend)2. Identify Complements3. Boost Demand for Complements (but
Ensure Supply)4. Bundle Product (to Satisfy Demands)
Apple Ecosystem Recipe
Recipe Market
Rede�nitionCommunicate, Play, Work & Relax on the Go (Computing on
the Go)
Complements Apps & Content
Boost Demand Ease User E�ort to Discover & Obtain Apps
Bundle withDemand
Apple Devices
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Refs
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References1. FABERNOVEL, GAFAnomics, October 20142. VisionMobile - Business Models of Mobile Ecosystems3. Appleinsider - App Store reached estimated $6.4 billion ...4. Apple iPhone Revenue by Quarter 2007-2016 | Statistic5. ITU - ICT Facts and Figures 2015
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ENDDr.-Ing. Eueung Mulyanahttps://eueung.github.io/ET3010ET-3010 | Attribution-ShareAlike CC BY-SA
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