Presentation Transcript

1. Residential Connectivity Group Consumer Strategy 3Com’s Digital Home Today
2. Where are we going? How does what I do relate to where we are going? Where are we going? How does what I do relate to where we are going? Why We Are Here
3. Agenda Our Mission The 3Com Digital Home Where We Are Today Where We Are Going How We Will Win How What I Do Relates To Where We Are Going
4. 3Com’s Mission
5. RCG’s Mission
6. What Is the Digital Home? 3Com’s Digital Home Provides: Anytime/anywhere access to my information Personalized data and services Connections to my friends and family Safe and secure internet experiences Entertainment and games
7. At Work On the Go Car Where Is the Digital Home? Digital Home
8. Where We Are Today Single User Internet Access ISP ISP = Internet Service Provider
9. Where We Are Today Shared Internet Access (wired home network) ISP
10. Where We Are Today Shared Internet Access (wireless home network) ISP
11. Hardware products Modems Adapters Video Rapid commoditization Low margins Limited sourcesof revenue Two main channels: service providersand distribution 3Com is largely invisible to the customer Very little branded interaction Our Business Model Today
12. The Digital Home Relies on 3 Key Enabling Technologies Deliver customer experiences Hardware, softwareand services solutions The “plumbing” is home networking Providing the digital home “infrastructure” The foundation is broadband Driving “shared” connectivity and new experiences
13. Broadband Transformsthe Digital Home Radio 20% % Duplicated minutes per day spent withten measuredmedia amongbroadbandhouseholdsin leadingmarketssample VCR/DVD8.6% Television22.5% CD/Tape11.5% Internet20% Net Media10.4% Households with broadband see Internetusage comparable to TV and radio
14. Where We Are GoingExample 1: Distributed Media at Home Music Distribution in the Home KTS ISP KTS = Kerbango Tuning Service
15. Where We Are GoingExample 2: Family Calendaring Family Calendaring ISP On the Go At Work
16. Where We Are GoingExample 3: User Site – My3Com.com ISP My3Com.com is a Web site that will allow us to talk with our customersin a one-to-one manner, as well as provide andsell new products, solutions and services.
17. 1. Create relationships with our broadband customers 3. Offer valuable solutions that allow us to maintain these relationships/seats 2. Use compelling applications to strengthen our relationship with our customers 4. Leverage loyal seats to maximize and capture additional high-margin revenue opportunities Where We Are GoingAcquiring Customers for Life
18. Hardware products Modems Adapters Video Rapid commoditization Low margins Limited sources of revenue Two main channels: service providers and distribution 3Com is largely invisible to the customer Very little branded interaction Our Business Model Today
19. Broader portfolio Networking hardware Home Web server products Internet appliances Application software Services Solutions orientation “Better” product synergy Improved margins Strong branded presence Pull for 3Com products Multiple channels/Web bias Customer loyalty User interaction via My3Com.com Creates enhanced valuefor our customers and alternation revenue opportunities for us Our Business Model Going Forward
20. RCG Values We meet our commitments Manage for results We create unique solutionsand experiences for our customers Innovate with purpose We are playing to win Complete to win
21. 7 Guiding Principles to Deliver the 3Com Digital Home 1. Intent to connect everything profitably 2. Best to market 3. Know every customer 4. “Idea lead” and “customer focused” 5. Passion for wireless 6. Real architecture 7. Style matters
22. What Is a Breakthrough Experience? Enabling people to do something useful and/or enjoyable, that was not possible before. Allowing actions that were once impossible or impractical to become routine and/or part of our everyday life.
23. Examples of a Breakthrough Experience Airplanes Fax machines Scuba gear E-mail Cellular phones Microwaves By themselves these examplesare now breakthroughs but simply new discoveries or new technology. By itself a microwave oven is nota breakthrough experience. But once thousands of foods were designed around it, once vending machines and restaurant cooking system incorporated it, it became more integral and important to the culture as a whole. Such ripple effects are unknownat the outset.
24. How We Will WinInitial Steps Create long term relationships with our customers Customer relationship management Register every customer – “capture the seats” Leverage customer relationships to deliver new solutions and services 3Com stuff works together seamlessly Architecture-based design Identify and drive critical standards Discovery: 3Com products must know each other Wireless: make everything wireless enabled Integrate into every product and solution
25. How We Will WinInitial Steps – Continued People prefer 3Com products Consumer-based marketing Create brand awareness in the digital home space The 3Com experience delivers the 3Com brand promise Deliver a personalized experience to each customer Our products are available where people expect them to be Channel development and alternative revenue opportunities Establish key partners and services Partners and services enable value-added services
26. How We Will WinSummary Customer relationships Unified architecture Brand preference Value-added services Product availability … and continued focus on ... Creating unique, compelling solutions Delivering radically simple customer experiences Meeting our commitments …and a world class team culture
27. Cable Modems External modularity How will new modems stack or attach to other 3Com and 3Com partner products? Internal modularity How will we integrate modular technology into new products to enable users to easily configure the ideal device (connectors, upgrades)? Cable modem technology is key to the digital home experience. In fact, it is more important than ever, but we need to consider the following 6 elements in future designs:
28. Cable ModemsDesign Elements – Continued Power How will we leverage this modularity to eliminate multiple power supplies? Self-discovery capability How do we design our modems to know what features they have, and be able to be communicate their specifications and configuration to other devices? DOCSIS 1.1 upgrade How can we leverage this to ensure customer registrations? Cost effective solutions How can we drive out cost through innovation?
29. Where are we going? How does what I do relate to where we are going? Where are we going? How does what I do relate to where we are going? Why We Are Here
30. Your comments
31. 3Com Confidential -- Internal Use Only
32. For more information, please visit www.3com.com/