How Changing Mobile Technology Is Changing The Way We Create Economy

2014 NTT DOCOMO, INC. All rights reserved.

Mick Etoh (@mickbean)March 12th, 2014

How Changing Mobile Technology Is Changing

The Way We Creates Economy

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Wednesday, March 12, 2014


Who am I? Mick Etoh, SVP, NTT DOCOMO Role: R&D Strategy Planning Expertise:

Pattern Recognition & Machine Learning, Signal Processing & Multimedia, Mobile Networks

Fun:

Bike Riding, Fly Fishing, and Wine Tasting2



Unbundling the corporationby John Hagel III and Marc Singer (1999)

Customer Relationship ManagementBattle for Scope: Identify, attract, and build relationships with customers

Infra Structure ManagementBattle for Scale: Build and manage facilities for high-volume, repetitive operation tasks

Product InnovationBattle for talent: conceive of attractive new products and services and commercialize them

http://hbr.org/1999/03/unbundling-the-corporation/ar/1

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http://hbr.org/search/John%20Hagel%20III/0/authorhttp://hbr.org/search/John%20Hagel%20III/0/authorhttp://hbr.org/search/Marc%20Singer/0/authorhttp://hbr.org/search/Marc%20Singer/0/authorhttp://hbr.org/1999/03/unbundling-the-corporation/ar/1http://hbr.org/1999/03/unbundling-the-corporation/ar/1


DOCOMO asWireless Carrier, Network Vendor,

and Service Provider

Experiencing a Big Challenge

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What is Innovation?

Invention

MonetizationNew Design

Smash Hit Product?5



Joseph Schumpeters neuer Kombinationen (Theorie der wirtschaftlichen Entwicklung)

What is Innovation?

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All technologies are combinations of technologies that already exist.

! Combinatorial Explosion! Creates Economy

W. Brian Arthur

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Innovation Example

2.5G Internet connectivity, DOCOMO

1998

Micro Browser, Access Co.

1995

i-mode, DOCOMO

1999Serendipity

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Wireless Technologies as Game ChangersPersonal StorageSNS/Comm. Tools

3.9G LTE:75Mbps2010+Big data synchronization

Smartphone Platformas Application Market

3.5G: 14Mbps 2006+Flat Rate + Cloud

Mobile Multimedia

3G: 64-384Kbps 2001+CODEC

i-mode

2G:9.6KbpsX3 1998 +micro browser

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Very Simplified Formula for Mobile Innovations

Wireless Broadband

Innovation X?

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LTE-Advanced Network

Macro Cell Base Station

Small Cell Base Station

Centeraized Radio AccessNetwork

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Lets imagine, you are always connected at WiFi speed wherever you are...

What youll see depends on technologies...

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Personal Assistant Agent (i.e., very thin client) with a killer new functionality

Copyright: Microsoft's "Cortana" Personal Assistant App 13Wednesday, March 12, 2014


Battle for the place where people visit in the cyber space

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Next One Billion

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Next Tens of Billions

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Internet of X



Very Fat & Robust Pipe toward massive M2M Comm.

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Those who have gone.18



The Next Game Changer

Personal StorageSNS/Comm. Tools

3.9G LTE:75Mbps2010+Big data synchronization

Smartphone Platformas Application Market

3.5G: 14Mbps 2006+Flat Rate + Cloud

Mobile Multimedia

3G: 64-384Kbps 2001+CODEC

4G

+Large Scale Data Synchronization

Personal Agent new B2B BizM2M/eSIM

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New Formula in 4G+ Era

Machine-ConnectedLarge ScaleWireless Network

Innovation X?

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Asset-Focused and API-Centric Innovation

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API as Alternative


Application Programing Interface (API)

PA

I

pps

artners

ncome

Adam DuVander,22



APIs mean a lot of exposure for web giants

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

2005 2006 2007 2009 2010 2011 2012

API is a key success driver for these businesses Annual growth in number of APIs: 100%

13B Calls / Day (2011.05)

5B Calls / Day (2010.04)

5B Calls / Day (2009.10)

1.4B Calls / Day (2012.05)

1.1B Calls / Day (2011.04)

1B Calls / Day (2012.05)

1B Calls / Day (2012.03)

1B Calls / Day (2010.01)

API Billionaires Club (Programmable Web) API Growth Rate (Programmable Web)

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Why API matters

DisadvantagesLimited user reachLimited brand awareness

Traditional Web business model APIs help you grow your business

AdvantagesUnlock distribution channelsExpand user reach through the

V.S.

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APIs enable business to create Revenue Ecosystem

Amazon.comMobile Apps

Affiliate Sites

Supplemental Services Internal Developers

+ API

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Change of API Offering Models

Consumer Product

End Users

API API API

Developers

Consumer oriented API Offering

(e.g.)

Cloud APIs provide Utilities that can be used to build consumer products

Cloud API

Developers

End Users

(e.g.)

Cloud oriented API Offering

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Rise of Cloud API Startups

Location Billing AnalyticsCommunication

Authentication

Banking Shipment Print Healthcare Translation

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Yet Another New Formula

Your Asset Innovation X?APIDesign

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Throughout history, the engine of human progress has been the meeting and mating of ideas to make new ideas. The human race will prosper mightily in the years ahead, because ideas are having sex with each other as never before.!

! Urbanization! Interdisciplinary Disruption! Globalization

Matt Ridley

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