Extending the Value Chain into the Customer’s Home Connections 2004 May 7, 2004.

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Presentation transcript:

Extending the Value Chain into the Customer’s Home Connections 2004 May 7, 2004

Alliance Members

Paradigm Shift Networked Lifestyle Networked Home Broadband Home Point-to-Point Integrated Distributed Enabled 2000 Personal Computer Technology has a predictable impact on the environment around it – it reshapes the value chain. Consumers Technology

Traditional View Consumers Home Network & Devices Content Providers Service Providers Sales, Installation & Support Network Providers Broadband providers Telco (Dial-up) 3G Cellular providers Wireless service providers Appliances Audio/Video devices Digital cameras Game consoles HVAC Mobile devices MP3 players PVRs PCs Security Systems Set-top boxes Routers & wireless access points Broadcast content Music Movies News Magazine content Retailers Home Integrators Builders/ Developers Technology Support/ Service Entertainment Subscriptions Firewall / Virus Protection Photo Processing Services Satellite Radio Security Telematics Video on Demand

Current Approach Consumers Network Providers Home Network & Devices Content Providers Service Providers Sales, Installation & Support Sales, Installation & Support Sales, Installation & Support Sales, Installation & Support Examples: DSL, Cable Broadband, Cellular, Wireless Routers, Wireless access points, digital music receivers, PVR’s Music download & jukebox, Movie downloads, Streaming content, News Anti-virus, firewall software, Voice over IP

Transition to Solutions Consumers Network Providers Home Network & Devices Content Providers Service Providers Sales, Installation & Support Examples: Digital entertainment server Home information and control Home office in a box Mobile entertainment package Web-enhanced security systems Connected health & wellness monitors Real-time vehicle navigation

Consumers Solution Provider Network Providers Home Network & Devices Content Providers Service Providers Examples: Home office service Digital entertainment service Home systems management Health management service Connected pantry grocery service Installation Support Sales

Home Office Service Consumer Needs Personal Computer support Software maintenance Wireless networking Firewall and virus protection Virtual Private Networking Voice over IP Cellular services Print servers/network printers Backup storage (onsite and off) Video conferencing Business services (travel, teleconferencing, shipping, etc.) Example - Deliver complete, productive home office in with corporate partnerships and entire value chain.

Key Challenges Network Providers Home Network & Devices Content Providers Service Providers Sales, Installation & Support Commit to complex relationship – become trusted advisor Developing the required knowledge and skill level Invest in on-going support requirements Expand current customer relationship deeper into home Create cost effective, consumer compelling services Partner with customer interface partners to educate consumers Enable new content experiences that create consumer demand Protect digital content without penalizing or complicating Embrace new business models before being forced Integrate cost effective components into solutions Navigate high cost of rapidly evolving technology landscape Deliver plug and play home networking – reduce home IT skills Difficult shift from customer retention emphasis – triple play Get the horse back in barn - deliver value beyond pipe Partner with downstream players to deliver higher service