ipopped, post blood in the boardroom, by richard d. smith, ceo, smith-trg
DESCRIPTION
SMITH-TRG led September 2010 Digital-Media CXO meeting, post event collateral presentation provided attendees - excluding proprietary information.TRANSCRIPT
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SMITH-TRG
iPoppedPOST ‘Blood in the Boardroom’ UPDATE
DIGITAL-MEDIA CXO Meeting led by Richard D. Smith, CEO
September 2010
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SMITH-TRG
September 2010
introduction
BOARDROOM HIGHLIGHTS
PLAYERS UPDATE
YOUR FUTURE
agenda
Attendee collateral presentation for reading, not presenting. Excludes proprietary information.
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Richard D. Smith is President & CEO at SMITH-TRG a
business performance and value creation advisory firm.
He is a frequent speaker and publisher of presentations
on visioning, innovation, enterprise transformation,
iPopped/Apple Centric age, future-world markets, and
value creation.
Richard, as ‘Trusted Business Advisor’, assists CEO’s
to create business value; CXO Stakeholders to solve
business performance problems; Innovators to develop
more successful ‘customer centric’ propositions; and
Business Developers to maximize return on their
investments.
His global consulting, IT/telecom & digital-media roots
uniquely enable him to work with media industry line-of
business CXO’s to develop and execute business value
creation strategies.Richard D. Smith, CEO
SMITH-TRG
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introduction
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SMITH-TRG
September 2010
iPoppedthe Paradigm Shift – led/driven by Steve Jobs
as change agent with iPhone (smartphones) and iPad
(tablets) as catalysts for digital-media transformation.
BOARDROOM HIGHLIGHTS
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IMPACT . . .
September 2010
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September 2010
Acceleratedmedia sector fragmentation -
up & down the value-chain
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September 2010
Impacted?anyone, small to large, U.S. or foreign, in and/or
around digital-media eco-system markets!
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Next Steps
September 2010
Stop the Hemorrhaging SURVIVAL
Regain Market RELEVANCE
Position to Drive VALUE CREATION
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September 2010
SURVIVALof the smartest & quickest
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September 2010
RELEVANCEno playing field advantage without market relevance
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September 2010
VALUEno future without sustainable value creation
Skeptics – 16% of
total populationLate Majority
34%
Early
Majority
34%
Early
Adopter
13.5%
Visionaries
& Leaders
2.5%
Th
e
‘Ch
asm’
SMITH-TRG
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Response Delay Impacts –Survival, Relevance & Value!
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Time to go ahead make the
T O U G H
DECISIONS
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September 2010
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September 2010
PLAYERS UPDATE
Media’sI N T E R D E P E N D E N C Y P U Z Z L E
players adjust across the digital-media value chain
SMITH-TRG
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Apple
RELEVANCEKeeps gaining iPopped playing field advantage . . .
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(Apple officially a computer
hardware & software company)
Apple: Strategically morphing
itself into a broader media company
September 2010
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People have downloaded –11.7billion songs from iTunes.
Over 450million TV episodes.
100million movies & 35million
books.
September 2010
Number one online media store in the world.
iPod family
275 million Sold
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Apple . . .iOS apps -- Over 6.5billion apps downloaded.
Over 200 every second...
September 2010
Apple . . .Retail store chain…80,000 1on1 customer technical sessions weekly
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September 2010
Apple . . .The Store and In-Store experience…customer relationship driven.
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September 2010
London Paris
SMITH-TRG
September 2010
EquipmentHardware & Software(delivering media to the mind)
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“There is at least one point in the history of any company when you have to change
dramatically to rise to the next level of performance. Miss that moment - and
you start to decline.”– Andy Grove, former Intel Chairman
September 2010
SMITH-TRG
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. DellIn Transformation
September 2010
From PC maker to technology
solutions.
Dell lost bidding war for 3PAR
Inc. to H-P @$33.
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Dell's consumer-PC business lost $4 million over past six months
Dell launched tablet, ‘Streak’, & 3.5-inch touch-screen phone, ‘Aero’,
which runs on Google Android operating system
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. MotorolaSplitting in Two
September 2010
Exiting wireless-networking
business with a $1.2 billion
sale of much of its equipment
division to Nokia Siemens
Networks.
The proceeds will increase
Motorola's cash pile as it plans
to spin off its cellphone and
cable set-top box divisions.
The cellphone division is trying
to turn itself around with a set of popular smartphones.
SMITH-TRG
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. IntelStrategic Acquisitions
September 2010
The Germany-based
company makes chips
for Apple's iPhone and
other smartphones.
To buy Infineon Technologies’
Wireless Solutions business.
Enables Intel to offer a portfolio
of products that covers the full
range of wireless options from
Wi-Fi and 3G to WiMax and LTE.
Before the critical holiday shopping season . . .
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Here come
T H E
TABLETS
SMITH-TRG
September 2010
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SamsungIntroduces its iPad called Galaxy Tab
September 2010
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Toshiba
The Folio 100, Android based, is not Toshiba's first tablet.
JournE Touch, touch-screen tablet running on Microsoft
Windows, unveiled September 2009 before Apple started
selling the iPad in April.
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Building Eee Pad tablet running
Microsoft Windows due Q1/11
AsustekComputer Inc. (Taiwan)
Eee netbook demand declining
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Amazon
Third-generation Kindle, digital book reader, that's lighter,
smaller and faster than the current model
Sharper display, longer battery life, twice the storage,
and Wi-Fi reception to download e-books.
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Barnes & NobleNOOK e-book reader. Brick-and-mortar
declined faster than expected.
Posted net loss of $62.5 million for first quarter compared to
$12.3 million profit a year earlier.
SMITH-TRG
Smartphones Global annual sales doubling
to 506 million units
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SMITH-TRG
September 2010
Wireless
CarriersU.S. State of Play
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Verizon vs. AT&T
September 2010
Subscribers: 92.1 million
Users Smartphones: 18.5%
4G: Due in 25-30 cities 2010
Subscribers: 90.1 million
Smartphones: 33.7%
4G: Plans to roll out 2011
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Sprint/Nextel vs. T-Mobile
September 2010
Subscribers: 48.2 million
Smartphones: 29%
4G: Available 49 cities(via Clearwire network)
Subscribers: 33.6 million
Smartphones: 27.9%
4G: NONE
September 2010
Wall Street
ISSUES . . .
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September 2010
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September 2010
ClearwireNeeds billions to finish 4G!
Sprint currently owns 54%!
Sprint could sell percentage
of ownership to competitor
T-Mobile?
September 2010
Sprint’s/Virgin Mobile offers
unlimited broadband prepaid
packages for $40 a month.
Stability of new AT&T/Verizon
metered pricing model starting
to fall apart.
Pricing
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BATTLEFor control of Living Room TV
(entertainment platform)
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AppleIntroduces Updated
Apple TV
September 2010
SMITH-TRG
Connects to a high-definition television - can show rented movies and TV shows from Apple's own service, plus content from Netflix, photos on Flickr, YouTube clips and more.
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Apple . . . Refining plans to annex the living room into its entertainment empire.
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GoogleLaunched
Google TV
September 2010
SMITH-TRG
Angles to become a bigger player in the living room with a
technology called Google TV, based on its Android software
for cellphones, that will let viewers search for Web video and
run Internet apps alongside TV programs.
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AmazonSubscription Push
Challenges Rivals
September 2010
SMITH-TRG
Working on a new subscription service that would deliver TV shows and movies over the Internet.
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Logitech
September 2010
SMITH-TRG
Partnering with Google… set-top box to bring the Web to the
TV-viewing experience.
At Logitech, revenue declined from $2.3 billion in 2007 to $1.9 billion in 2009.
Seeks Living Room
Dominance
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Sony
September 2010
SMITH-TRG
Millions of PlayStation3 and PlayStation Portables already connected to the internet, allows them to download movies.
90 percent of Sony products would be able to connect to
each other and the Internet by 2011
Using PlayStation
Consoles
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is all about . . .
September 2010
YOUR FUTURE
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Disruptive Innovation
September 2010
Potential
Value-Chain
IMPACT
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Where do you want
to be on the curve
September 2010
Skeptics – 16% of
total populationLate Majority
34%
Early
Majority
34%
Early
Adopter
13.5%
Visionaries
& Leaders
2.5%
Th
e
‘Ch
asm’
1 2 3 4 5
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Response Delay Impacts –
Survival, Relevance & Value!
September 2010
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September 2010
Control . . .gaining and maintaining
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September 2010
Vision
Mission
Purpose
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Embracing being different!
September 2010
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What Now
September 2010
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September 2010
What Decisions Do
You Plan to Make?
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For value creation assistance, [email protected]
SMITH-TRG
September 2010