1. Dec 7, 2007ROADiBROM, Beijing1, Aubusson Trace Consulting,, Motorola John C. Chiang, Ph.D. ( ) Dr. Chiang has been a Visiting Professor of Department of Management of Technology, Peking University, School of Software and Microelectronics, since Feb of 2006. He is also a Partner of DragonBridge Capital, a US based merchant bank with China as the prime serving market. With offices in Beijing and Shanghai, DragonBridge Capital works with rapid growing and ambitious Chinese companies to compete successfully in the global market. Dr. Chiang was born in Beijing, raised in Taiwan, received his Ph.D. from The Johns Hopkins University in USA, in 1975. He received his EMBA from Georgia State University in USA, in 1989. After his academic career at universities in the US and Taiwan, Dr. Chiang joined Bell Laboratories in 1979, and later had held progressive technical and managerial positions at Racal-Milgo, Hayes, and GTE, all in the US. Dr. Chiang was Senior Vice President of Operations at KG Telecom and led the launch of the first private mobile services in Taiwan, during 1997-2000. Dr. Chiang joined Motorola China in 2000 in the infrastructure business unit, spearheaded the post-WTO strategy, and led its Applied Research Center receiving CMM 5 certification, the first in China. He, then, moving to Motorola China HQ, served as Vice President - Motorola Asia Pacific, Inc., and Senior Director of Strategy and Business Development. Since 2003, he assumed the role of Director of Motorola China R&D Institute, the largest R&D presence among multinationals in China, and in 2004, he assumed the role of the founding president of Motorola (China) Technologies, Limited. Dr. Chiang has decades of experience in management in high tech industries in US and in Greater China. He had led several corporate wide efforts in international technical standards, regulatory and trade policies, since 1994. Dr. Chiang is a frequent speaker on technology management, venture investment, international business management, high performance enterprises, effective leaderships at universities and industry forums. He serves as Vice Chair of China Association of Standards and is on the China Advisory Board of Institute of Electrical and Electronics Engineers. He also serves as board member of several other organizations and enterprises.

2. Dec 7, 2007ROADiBROM, Beijing2 Critical Challenges for Value Chains of Mobile Digital Convergence ROADiBROM, Beijing Dec 7, 2007 John C. Chiang Peking University - School of Software & Microelectronics (Partially based on master degree thesis of Ms. Fiona Zhao/ )

3. Dec 7, 2007ROADiBROM, Beijing3 Value Chain for Mobile Digital Conversion The Traditional Mobile Value Chain Mainly in consumer/ender user applications Mobile carrier based business practice is the key

4. Dec 7, 2007ROADiBROM, Beijing4 Value Chain Trend 1 Operators SIsPlatform Providers Terminal Producers Enterprises Mobile operators with expanded roles to meet market demand Advantages Weaknesses Rich potential clients and channel: China Mobile has 1 million enterprise customers High bargain power Monopoly Learning curve for totally understand customer needs Coordination capability System integration and software development

5. Dec 7, 2007ROADiBROM, Beijing5 Note China Mobile Applications on Enterprise Mobility ADC Application Data Center MAS Mobile Agent Server EnterpriseSMEMajor clients FoundationsFor those who has not OA, ERP, MIS, mailing system For those who equipped with OA, ERP, MIS, mailing system Solutions Mobile mailbox Wireless network Mobile sales/logistics; Mobile OA Mobile mailbox Mobile finance Mobile Customer Service Mobile OA; Mobile ERP Application Platform provider Microsoft Partners, examples Jobems mobile sales/logistics Aspire-tech full network key applications, Blackberry Umpay bank application solutions Leadtonemobile mailbox Source: www.chinamobile.com.cnwww.chinamobile.com.cn

6. Dec 7, 2007ROADiBROM, Beijing6 Value Chain Trend 2 Operat ors SPSI Integrat ors The 3rd Party SW developer s Enterpr ises Increased complexity in value chain Emerging new integrated service providers New integrated service provider: set a platform integrate & several parts to a whole solution package. Make the SP, SI, terminal providers all enclosed in this package. From single linear chain to circle value chain Possible earning sources: software royalty fee; revenue sharing fee

7. Dec 7, 2007ROADiBROM, Beijing7 Challenges for This Trend Weaknesses Weaknesses Grow slowly, need a long time to develop New business models. Too many revenue sharing parties. Partnership model. Difficult to set operational procedures. Potential high risk, if failure Optimistic Win-win between operators and integrators Win-win between integrators and other providers Pessimistic Status quo Broken partnership Burned customers and failed business Advantages Advantages Branding effect Better total customer need Integrate related products Better operations support: working with operators, & other stakeholders.

8. Dec 7, 2007ROADiBROM, Beijing8 Compatibility Enterprise solutions will have to consider multinational enterprises Enterprise solutions, with local adaptations, with global coordination Service provisions, not too different from the landline experiences Key Players Global perspectives with local capabilities International Considerations Who may be better candidates for this role? Government Policy for foreign players? Brand and capability at international level

9. Dec 7, 2007ROADiBROM, Beijing9 Knowing customer needs Technical savvy Operational excellence to ensure delivering the promised services Resources leveraging, reducing low value development investment Not too different from the hardware world Managing Value Chain - Fundamentals

10. Dec 7, 2007ROADiBROM, Beijing10 International Considerations International recognition/brand? Time limit for delivering? Division of labors & project management in multinational settings? Operational logistics in multinational environment? Most important: Success stories and lessons learned in other parts of the world

11. Dec 7, 2007ROADiBROM, Beijing11 Thanks