Ericsson Internal | 2012-09-05 | Page 1

Networked FUTURE

Patrik Regårdh

Head of Strategic Marketing

Ericsson

Ericsson Internal | 2012-09-05 | Page 2

The starting point

2+ B Internet

users

6+ B Mobile

subscriptions

85% Population

coverage

10 years of Daily

upload

200.000 SMS Each second

E-Books surpassing Print sales

Mikael Eriksson Björling | © Ericsson AB 2012 | June 2012 | Page 2

Ericsson Internal | 2012-09-05 | Page 3

Summary of broadband benefits

+1000 BB users

=>

+ 80 Jobs

+10 % points

=>

+ 1 % GDP

+2x BB Speed => +0,3 % GDP

Ericsson Internal | 2012-09-05 | Page 4

CITY Development

Ericsson Internal | 2012-09-05 | Page 5

CHANGING BEHAVIOR

DIGITAL NATIVES

SHARIN

G

COLLABORATIVE

CONNECTED 24/7

TIME & SPACE INDEPENDENT

DIGITAL APPEARANCE ACTIVE

INCREASED OPENNESS

EMPOWERED INDIVIDUALS

Ericsson Internal | 2012-09-05 | Page 6

EMPOWERED

INDIVIDUALS

ENABLING

TECHNOLOGY

+

EXTENDING

BUSINESS

+

New mindset

Ericsson Internal | 2012-09-05 | Page 7

Innovation Mechanisms

Innovation limited to R&D

division of the organisation

Closed innovation system

With dedicated R&D Labs and

limited to R&D staff for ideas

generation

Collaborative Models Internal

cross functional collaboration

Idea Generation Contests

Internal Innovation Program

Free working culture

Employees’ Projects.

R&D Alliances

Strategic Partnerships

360O Innovation Model

Mass collaboration within and

outside the organization

Combines all the innovation

channels Hackathons/Contests

Crowd sourcing, Developer

Platform Code fests and

competitive events

Op

en

C

lo

se

d

Incre

asin

g c

olla

bora

ting a

cto

rs

INSIDE OUTSIDE Opening to outside innovation processes

Closed

Innovation

Model

Collaborative

Innovation Model

360 Innovation

Model

Ericsson Internal | 2012-09-05 | Page 8

Ericsson Internal | 2012-09-05 | Page 9

Sweden 2011: digital surpasses physical

0

50 000

100 000

150 000

200 000

250 000

Digital KSEK 7 468 14 921 18 662 21 849 56 063 104 057 134 971

Physical KSEK 192279 194937 188960 178648 171740 156574 111739

Digital share 4% 7% 9% 11% 25% 40% 55%

2005 2006 2007 2008 2009 20102011

plan

Ericsson Internal | 2012-09-05 | Page 10

Spotify case

Ericsson Internal | 2012-09-05 | Page 11

Total profit = $1.9B

Total profit = $3.7B

Profit pool disruption photography example

Operating profit 1995

Film retail

Camera retail

Camera manufacturing

Film manufacturing

Photofinishing retail

Photofinishing wholesale

Agx paper and chemicals

Photofinishing equipment

Enhanced services

2005

Segments that did not exist in 1995

Film camera

mfg

D-compact mfg

Memory mfg

Digital camera retail

Rolled & single use film mfg

Film camera retail

Rolled film retail Retail photofinishing

Photofinishing equipment

Paper & Chemicals

Enhanced services

D-SLR mfg

Memory retail

Digital imaging software

Online photofinishing

Photo printers, retail

Photo printers, mfg

Source: Analyst reports, company reports, Bain analysis

20

10

0

30

40

50%

Ericsson Internal | 2012-09-05 | Page 12

Electric car charging

Stimulate introduction of electric vehicles by

making them easier to own and use

› Using existing mobile networks and the grid

› Allows control of charging, either immediately or schedule

› A flexible to support for a variety of novel business models

› Project driven by the four eco system partners

Ericsson Internal | 2012-09-05 | Page 13

BANDWIDTH COMPARISON

GPRS

1998

WCDMA

2002

HSPA

2005

HSPA +

2009

LTE

2010

LTE-A

2014

PEAK RATE

40 Kbps 384 Kbps

300 Mbps

42 Mbps 14 Mbps

>1 Gbps

The extremely high throughput of LTE

enables new possibilities for M2M

applications.

2G 3G 4G

Ericsson Internal | 2012-09-05 | Page 14

LATENCY COMPARISON

GPRS

Rel´97

EDGE

Rel´99

EDGE

Rel´4

WCDMA

Rel’99

Evolved

EDGE

HSDPA HSPA LTE

700

Late

ncy (

ms)

10 ms

RAN RTT

600

500

400

300

100

200

The extremely low latency of LTE

enables new possibilities for M2M

applications.

Ericsson Internal | 2012-09-05 | Page 15

TOWARDS BILLIONS OF CONNECTED THINGS Nr of

connected

devices

Vehicles, Cargo

Containers,

Tankers, Trains,

Off-Highway,

Supply Chain

Assets…

Medical device,

Industrial

machinery....

Embedded

Controllers,

Accelerometers,

Temp/

Pressure/Flow,

Sensors

Meters…

Mixed Signal

Platforms,

Micro Processors /

Controllers…

Consumer

Electronics

Ericsson Internal | 2012-09-05 | Page 16

Launching m-wallet, online shopping,

internet auction services to add another

revenue stream not tied to data traffic,

thereby driving M-Commerce growth

Tapping opportunities in the digital media

world by partnering with content providers and

acquiring stakes in digital companies

Introducing innovative services in music,

Mobile TV, apps and gaming areas

ICT driven innovation

Developing integrated e-health platform to

connect health professionals & patients

together and offerings solutions for remote

consultation, medical care and disease

management

Collaborating with leading auto

manufacturers to extend connectivity to

the car. Working to create intelligent vehicle

by integrating mobile broadband service into

cars

Working towards provision of total

educational environment using ICT

Started several initiatives such as network-

based schools, Online Parent Schools, N-

Academy and Virtual English Conversation

Lessons

Making efforts to move toward a low-carbon

society by offering Smart Grid Technology

Transforming cities into intelligent metropolitan

areas using M2M technology. Smart City

Initiatives such as Smart Santander and

Wireless City

*Sector/Operator maturity level is based on the areas

covered in the study and is not exhaustive

Media Commerce Health

Transport Education Utilities

Ericsson Internal | 2012-09-05 | Page 17

Networked Society

Interaction

Infrastructure

Medi

a

Commerce

Security

&

Safety

Governmen

t

Educatio

n

Transport &

Logistics

Healthcar

e

Utilitie

s

Collaboration

Innovatio

n

Integrity

Competence

Trust

Socializing

Learning

Interacting