1. - Considerations in Smart Ecosystem, Symbiosis, and Co-evolution - Yasushi Okamura Director, Global Client Advisor Oracle Corporation

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3. Example of Symbiosis

4. Clownfish( ) and Anemones( ) Clownfish needs territory Clownfish protects from anemone-eating fish Anemones stinging tentacles protect the clownfish from its predators Mucus on the clownfish protects it from the stinging tentacles They help each other and live together in perfect harmony Can Carriers and Users be Symbiosis? From Wikipedia, the free encyclopedia 4

5. More known Symbiosis Symbiotic Marketing (Commensal Marketing) Marketing activities in free market economy whose priority is in building trust rather than profit for company & company, company & consumers, nation & nation, human & nature Especially this trend is visible in drug and food industry where losing trust may potentially damage the company and put it out of business This is considered to be Social Responsibilities as well as Social Cost For Symbiotic Marketing, focus is on 4C (Commodity, Cost, Channel, and Communication) - See 7Cs COMPASS MODEL Since 60s, marketing focused on 4P (Product, Price, Place, and Promotion) In Symbiotic Marketing, companies and people should be able to live together (be symbiotic) in the free market economy even in the time of hard economy or the worst case some natural disaster 5

6. Other Symbiosis Symbiotic care services and salons for the elderly as social infrastructure Symbiotic facilities that minimize the damage to the nature and environment including housing complex, shopping malls, or resorts and… Symbiotic network society where person & person, people & people, parents & children & grandchildren can be connected through the means of Social Media and M2M 6

7. Example of co-evolution

8. Hummingbird( ) and Ornithophilous( ) Hummingbird (bird) and Ornithophilous (flower) have co-evolved Flower has nectar suited to birds diet (needs high energy) Birds high energy requirements, which are the most important determinants of their flower choice Flowers color suits the birds vision Flowers tubular shape fits that of the birds bills Tubular flowers force a bird to orient its bill in a particular way when probing the flower and this also allows the plant to place pollen on a certain part of the bird's body Blooming time of the flower coincide with birds breeding season They had a mutual benefit to evolve together Will Carriers and Users co-evolve? From Wikipedia, the free encyclopedia 8

9. Internet and us…

10. We have became symbiosis and have co-evolved Since the inception of ARPANET in 1960 and the changes made from ARPANET to TCP/IP in 1983… We have become symbiosis with internet as we live together with the internet and cannot imagine the world without it I am pretty sure internet (if it had its own mind) cannot imagine having no users We have also evolved to adapt internet into our working and personal lives very deeply Even my parents who are very very analog by nature use emails for some of their communications Mankind is symbiosis to internet and has evolved in this past 29 years and so did internet 10

11. How do you consider telecommunication carrier within your life?

12. Carrier to us Phone line? Maybe to my parents… Utility? Probably not as critical as water, electricity, or gas, but it is close to become important social infrastructure… Highway? We do feel frustrated when the traffic is heavy and responses are slow… Broadcast or Media? To my kids, Yes… My daughter (20 years old – lives alone) does not own a TV, but have desktop and note PCs, and mobile phone; and she tells me these are good enough source of information… Library? When I forget something or want to research, I dont look up dictionaries or go to library any more… When my wife cooks something new, she gets the recipe from her mobile phone… 12

13. What is going on?

14. Sold 55 Million in less than 2 years It took 5 years to sell that many… …and 22 years to sell that many - Tim Cook, February 14 th, 2012 at Goldman Sachs Technology and Internet Conference in San Francisco, CA. Apple 14

15. Innovative Products? Absolutely… How about a tightly integrated very smart ecosystem? Of course… … with a customer experience that delights and drives strong loyalty What is driving Apples explosive growth? 15

16. Why Apple so successful? Apple knows Who you are… Where you are… What you do… When you do things… Why you do things… How you do things… How much… and has very sophisticated recommendation engine… Other companies who may be in the similar situation and successful… and potentially 16 Cloud Services

17. Apple vs. Google vs. Microsoft Hardware (devices) Handsets (iPhone) Tablet PCs (iPad) PCs (Mac) STBs (Apple TV) Other (iPod) Handsets Tablet PCs STBs (Google TV) Handsets PCs (including Booklet 3G) Other (Zune, Xbox) Software Handsets (iOS) Tablet PCs (iOS) PCs (Mac OS and various other applications) STBs (iOS) Handsets (Android) Tablet PCs (Android) PCs (Android, Google Chrome OS, Google Docs) STBs (Android and Google Chrome for Google TV, Dreampark IPTV middleware) Handsets (Symbian, Windows Phone 7) Tablet PCs (Windows 7) PCs (Windows are various other applications) STBs (Microsoft Mediaroom) Content aggregation and distribution Music, video (iTunes) Music (Google Music Beta), video (YouTube) Music, video, games (Ovi Store, Zune, Xbox LIVE) Applications App Store Android Market Ovi Store, Windows Marketplace for Mobile Key assets of the major integrated communications and media solution providers [Source: Analysis Mason, 2011] 17

18. Assessment of selected integrated solution providers [Source: Analysis Mason, 2011] Integrated Solution Apple Closed, proprietary ecosystem across devices (PC, TV, mobile, and tablet) Google Open source software and open ecosystem Microsoft In between Apple and Google 18

19. Softbank and NTT DoCoMo Softbank Recorded 6.6 % increase in revenue and 65.4% increase in profit Will spend close to 600B JPY (16% increase) in capital investment for in FY12 NTT DoCoMo Announced its Smart Phone service d-Market VIDEO Store now has over 1 million paying users d-Market VIDEO Store started just 6 months ago (November, 2011) 525 JPY / month – all you can view on more than 5,000 movies, anime, and dramas - Mainichi Newspaper, April 27, 2012 - Mainichi Newspaper, April 26, 2012 19

20. Ecosystem in Entertainment…

21. Humans Gone Digital So we are symbiosis and have co-evolved with carriers 21

22. Convergence of TV, Internet and Mobile Communications Video Services Social NetworkingNews and General Information Communications Photo Services Other Internet Services TV WIDGETS Call notification Voicemail Messaging New ways to connect and Ecosystem 22

23. Content / Service Providers Carriers, Providers, Cable OperatorsInternet WIDGETS Application Server (AS) Fixed Payment Mobile more... TV Viewer Supported for:To be available on: Collab Converged Triple play TV Widget Solution 23

24. Consumer Entertainment Smart Ecosystem Comprehensive Entertainment and Technology Music Contents Game Contents Video Services Social Networking News and Information Communications Photo Services Other Internet Services Call notification Messaging Vocemail 24

25. Digital Lifestyle Once again we are symbiosis and have co-evolved 25

26. Connected Digital Lifestyle 26

27. Carriers Subscribers Content Providers Advertisers Contents Deliver Advertisement Marketing & Advertising Use or View 27

28. Layering Real-time info onto the Real World Whats around me? Who else is here? Adds context to the real-world Augmenting Reality 28

29. Seeing Opportunities Ahead 29

30. Who can help?

31. The Business Challenge Presented Business Challenges 31

32. Business Architecture Dimensions 32

33. Per Application User Per Transaction Per Program / Activity Per Hour Per Input / Output Per Message Per Item Per Group Per Discount / Incentive Multi-channel Distribution INTERNETINTERNET SaaS Web Call Center The combined network and cloud offering can become a big differentiator Service offerings Platform offerings Physical goods offerings Partner offerings Per Bundle Flat Rate / Subscription Per Trial offer period Partner Ecosystem Business Management 33

34. Understand core needs and facilitate Filling Needs Sociological Approach 34

35. Service Delivery Challenges Multiple silo-ed architectures Inconsistent customer touch points Disparate data centers, no virtualization Poor visibility to customers and orders Weak analytics Cloud services 35

36. Content Partners Digital Content Store Store CommercePromotionDiscovery Warehouse Device MgmtContent MgmtPartner Mgmt Consumers Marketing & Advertising Campaigns Billing Digital Rights Mgmt Channel Mgmt Support Self Service Call Center Knowledge Mgmt Collaboration email calendar chat Social Int. Identity Mgmt Components required for Smart Ecosystem 36

37. Platform Reference Architecture Business Services Layer User Interaction Layer High Availability Infrastructure Layer Information & Content Layer Enterprise Management Enterprise Service Repository Top Down Automated ManagementEnd-to-End Continuous Monitoring Information Lifecycle Management Modelling & Design Tools Development Tools Enterprise Development Aggregations & Summaries Unstructured Data Master & Reference Data Operational Data MediaImages Storage DW Servers Distributed Caching User Interaction Experience and Advanced Personalization Collaboration and Community Management Data Integration Process Management Event management Enterprise Service Bus Business Rules Identity & Access Management Data Security Security Service Delivery Platform Multi-Device Management Virtualization Customer Contact Management Digital Rights Management Registration & Activation Advertising Management Service Creation E-Commerce Services Product Data Management Enterprise Business Services Portfolio Recommendation & Search Partner / Channel Integration Developer Enablement Orchestration Pricing & Promotion Management Corporate Administration Payments & Subscriptions Application Services Layer Application Servers Databases / GridOLTP Servers Fault Tolerance / DR Customer Loyalty Services 37

38. Different Worlds Merging… Signaling System No.7 – MTP, SCCP, ISUP 99.9% or 99.99% 38

39. You need lots of smiling faces… You need to know your customers and treat them just like your family Music Contents Game Contents Video Services Social Networking News and Information Communications Photo Services Other Internet Services Call notification Messaging Vocemail In order to create Smart Ecosystem… 39 Could services are the key to the success in creating new Smart Ecosystem

40. Cloud Computing 40

41. Enable an integrated Smart Ecosystem Improved your customers experience Increase customer loyalty Music Contents Game Contents Video Services Social Networking News and Information Communications Photo Services Other Internet Services Call notification Messaging Vocemail Services Billing Catalogue Update Online Offer Promotion Management Daily Revenue Reconciliation & Recognition Management Service Usage & Charging Service Authorization Subscriber Service Purchase & Wallet Top-up Subscriber Campaign Planning Subscriber Billing & Dispute Resolution Billing Reporting & Account-level Analytics Online Services Design Subscriber Account Management Oracle can deliver a solution to… 41

42. What should we keep in mind?

43. Earthquakes, Aftershocks, and Tsunami What happened on 2011-3-11 and after… What happened on 2011-3-11 and after… Providers Internet was not connectable for the households who had no electricity Providers Internet was not connectable for the households who had no electricity Carriers telephone lines were out of service due to the damage and no electricity Carriers telephone lines were out of service due to the damage and no electricity TVs were not viewable for the households who had no electricity TVs were not viewable for the households who had no electricity Emergency phone services were provided by carriers which was helpful where you can leave a voicemail for the rest of the family and relatives to hear Emergency phone services were provided by carriers which was helpful where you can leave a voicemail for the rest of the family and relatives to hearBut… Twitter was the best way to communicate through mobile phones Twitter was the best way to communicate through mobile phones YouTube was the best way to learn what is going on YouTube was the best way to learn what is going on This was the WIN for carriers This was the WIN for carriers In the world of new Smart Ecosystem, ones who pay premium for better and faster services with much bandwidth should enjoy the benefits In the world of new Smart Ecosystem, ones who pay premium for better and faster services with much bandwidth should enjoy the benefits …but I believe carriers have social responsibility to be biased towards emergency …but I believe carriers have social responsibility to be biased towards emergency 43