The role of innovation and research for the European ICT industry

1. The role of innovation and research for the European ICT industry

2. DISCONTÍNUOUS INNOVATION- TECHNOLOGY DISRUPTION InnovationOpportunity • In all markets, players compete through the introduction of innovations that trigger purchase attitudes. This process is known as continuous innovation. • In high tech markets innovation is based on the creation of a complete different offer . This process is known as “Discontinuous Innovation”. Mobility has been this since the beginning of the last decade. In the 2000 decade wireless and home entertainment are taking the next wave.. Technology disruption triggers: • Atipical growth for the player, independent of size, that has the technology. • Value chain convergence modifying its structure. • Natural evolution of processes and customer behavior habits. • This process has been studied since early fifties, with reference models that help to understand them. • In the last 50 years the US through its leading industry corporations has been taking advantage of this process US traditional high tech leadership

3. INDUSTRY CONVERGENCE. WIRELESS AND HOME ENTERTAINMENT • Consumer electronics (TV, Music Players, DVD, Photography and video) • Telecommunication Operators (wireless and wireline) • Media (Producers, Broadcasting, New Aggregators) • Mobile terminal manufacturers • IT Hardware manufacturers (retail and enterprise) • IT Software manufacturers (operating systems and applications) • Companies with large customer installed bases or brands (Banks, utilities, transportation…) Sectors in convergence Europe has to push hard its strategic sectors in this new market

4. TECHNOLOGY EVOLUTION • Consumer electronics and IT : New devices focused on leisure (MM mobile, MP3, Portable DVD, TVman, Portable media players…) • Home networks: several accesses for devices. Evolution to 4G concept. • Standardization: Interoperability challenge. Content formats, exchange protocols, File formats. • (MP3, WM9, WMA, Real, ACC(Apple), ATRAC3(Sony), ... Digital Right Management: Microsoft, Real Networks, FairPlay (Apple), Nemo (InterTrust, Philips, Sony)… • Access agnostic devices: Multiple access and ease of use The technology disruption is the result of many simultaneous advances in single technologies

5. This new category allows download, store, play multimedia services Key characteristics: Portable/small size. Flat screens: 2’2”, 5’1”… wifi and UMTS connectivity Operating Systems: Microsoft, Mac, Symbian, MV Java y proprietary Manufacturers: Philips, Samsung, Fujitsu, Siemens, HP, Nokia, Motorola, Sony/Ericsson Options: Hard drive. Giga size Voice Peer2Peer communication and service sharing protocols. Video/photo “megapixel” camera. There is already a first generation in the market. TECHNOLOGY DISRUPTION: MULTIMEDIA PORTABLE/HOME DEVICES A new category of personal multimedia devices Creative Sony Apple Thomson Samsung Fujitsu Archos

6. NEW MULTIMEDIA SERVICE. • The concept is based in two elements: • Multimedia portable Device (MPD): Portable equipment that allow downloading, store, play multimedia services. PDA signature and wireless communications • Personal Multimedia Services (PMS): TV, music, video, games… that are tailored to each individual that could be accessed from MPD • MPD-PMS= new value for the customer: • Personalization: • Privacy • Mobility inside and outside home • New tracing capabilities The service could only be developed through the convergence of sectors WIFI UMTS

7. New value on top to content and access and transport Business model change from massive return to individual return Audiences quantitative information . New marketing services Interactivity: Personalization, Participation linked with other media. Portability. Adaptation to different formats and different network functionalities New formats for media producers and advertising companies. New margins for massive potential audiences Mobile blog content sources A NEW SOURCE FOR VALUE Europe has to push the development of its industry to get the new value Content Transport 1 2 3 4 5 6 7 Traditional value New value

8. TELECOMMUNICATIONS OPERATORS. EUROPE KEY ASSET To be a multimedia audiovisual service distributor, multiplatform, and multi device personalized and promoting on demand usage. Multimedia services New category in the value chain Customer Subsidy Service management capability Distributor. Multiaccess Multiplatform and multidevice Network services. Mobility functionalities Individuals inside home and nomadic Europe has a leading mobile market with advanced customers and behaviors. Telecommunication operators are key for pushing Europe to the new value market

9. LEADER IN INNOVATION Soluciones Auna Empresas fijo-movil Descarga Vídeo Streaming JJOO Atenas 2004 Lanzamiento Comercial “Amena siempre al día” Ticketing Oferta fijo-móvil Amena - Auna Tlc Dúo Aviso de llamada Descarga de fotos (SMS & WAP) Pago de cheques por móvil Servicios de “La Liga de Fútbol Profesional Amena Superdistribución Chat MMS Alertas servicios deportes Bancomóvil 2001 2002 2003 2004 Acceso Directo Datos Servicios MMS Pago PPV de TV por móvil Replica Datos Chat Servicios de localización Telefonía Adaptadapara mayores “¿Dónde?” MMS (localización) Posiciona Cazacanciones Servicios GPRS Correo Móvil Juegos Multijugador en tiempo real Chat de voz Multiusuario Mensajería Instantánea Movilización de correoelectrónico Lanzamiento 3G THE PRAGMATIC INTRODUCTION OF INNOVATION IN THE MARKET Amena is the leader in introducing added value services in the last years, introducing in the spanish market introducing before its competitors 36 services from the more than 80 that has its catalogue. The services are independent of the technology and the contents. The successful introduction in the market of new services is the key European Asset in innovation