Ecosystem ONE™

Mobile Operator, Network manufacturer and Media house to build Ecosystem ONE

Today’s profitable mobile media ecosystems have mainly two structures, the Apple way and the Google way. Apple owns the whole value chain from operating system and applications through devices up to content and media delivery. Apple makes money from devices like iPhone and iPad, but also from music and Web content delivery as well as transferring third party applications. Apple is more a media company through iTunes and AppStore than a gadget manufacturer despite the enormous sales of iPhone and iPad.

Google governs the mobile media industry with its Android operating system and a full palette of Web services. Google makes money from advertisements so that journalism has globally lost its paycheck. Because of Google’s advertisement control it is hard for any other company to make money through Web presence, pubilicity, visibility, news and ads. This is the main reason for a modus operandi paradigm shift called ONE, the Operator and Network Ecosystem.

Both Apple and Google are applying TAIC-SIMO business model in their ecosystems. Also Microsoft and Amazon try to build their own ecosystems, but unfortunately with meagre and incomplete TAIC-SIMO models. Microsoft’s problem is to cling to B and C class solutions and products like Windows Phone, Nokia Lumia, Yammer, Bing and Xbox Music. Skype is a ticking time bomb in Microsoft’s portfolio. Skype is a clever solution for end users but a disastrous competitor for mobile operators. Microsoft’s mobile product leadership culture is inherited from Nokia which means that Microsoft is offside the mobile industry until large Get-Rid-Of programs are internally run.

Microsoft ecosystem: Nokia-Yahoo-Skype-Bing-Xbox-Office, spermatozoon + zygote structure + red line. Juhani Risku Ivalo architect architecture   11_3_juhani_risku_microsoftnokiaskype_to_taic-simo-model   11_1_juhani_risku_amazonkindleandroid_to_taic-simo-model

Graphs “Ecosystem Approaches, cases Microsoft and Amazon”. Microsoft has built a C class portfolio to compete with Apple’s A class model. Amazon has very limited opportunities to compete as a TAIC-SIMO actor. Amazon’s wholesale of books is the only concrete possibility to stay alive.

Network manufacturers’ and mobile operators’ dilemma

Network manufacturers and mobile operators have been the innovators of mobile communication during the early years 1993-2002. Now those two cornerstones of communication have stagnated to category Utilities sector as called on the stock markets.

This page describes a pecking order change in repatriation of profits: how to replace Apple and Google with a consortium of one network manufacturer and selected bunch of mobile operators. Network manufacturers have lost their power when offering only digital plumbing operations. Three network companies, Ericsson, Huawei and Nokia, cover 80 % of the digital pipeline business.

Mobile operators manage well only in monopolistic position, a.k.a. in totalitarian societies. Competition kills mobile operators and causes violent fusions in the near future. The operators’ dilemma becomes worse and worse.

     12_TAIC_SIMO_Technology-Access-Interest-Channel_Screen-Internet-Media-Operator_Businesses_tetra-structure-iPad-Sim-Web-Old-media-newspaper_Juhani_Risku_201

Graphs ”Technology–Access–Interest–Channel” show in two pictures all four main actors in the modern media-technology business. Two first ones, technology and Web access companies succeed. The two losers are the media and bitstream companies.

The biggest losers in communication industry are the media houses and the old print media as their spearhead. They are too late to digitalize their content and to monetize it anymore. Media companies can be considered here as bystanders and sleeping partners only to be helped and utilized later. We are going to see 80 % of present media companies to disappear in six years (2014-2020). The largest media corporations lose both absolutely and relatively most. We are going to see even the wealthiest media houses stagnating for three reasons: print media death, mediocrity of entertainment offering and evaporating Web presence. If all the three factors hit a media corporation, it is dead in five years. On the contrary, it is easiest to restructure the wealthy ones: they have enough money for planning and execution, and they are under duress to make radical resolutions in the crisis.

Now any of the network manufacturers and mobile operators can get rid of the historic dilemma, and help 10-15 % of the media companies to survive. We are going to see an abstraction shift where old ecosystems stagnate and new ones bloom.

Which ones are the survivals of the fittest among the media companies? Of course the first ones to join the consortium. If they are not e.g. Yomiuri Shimbun or The Wall Street Journal, they are the next on the list to succeed. Annual turnover of the global media industry is apprx. 500-800 billion US$ which is now under re-allotment.

ERP-CRM-BI companies’ dilemma

The word systemic is a key to understand next generation ERP (Enterprise Resource Planning): more than business management software the new ERP organizes technology ecosystem thinking from different interests. Basically Apple has built an ERP+ model from its own perspective controlling all necessary actions, nodes, joints, patterns and governance. Of course Apple’s business model is more than ERP+ or ERP as we know it today.

ERP centric companies can be hosts in reorganizing the value chain radically. When building an ecosystem based on ERP + CRM + BI added to NET + MOP (see below) we have sorted all factors in a new order. But there is one reason that this is not possible.

The dilemma comes from the raison d’être of ERP-CRM-BI expertise. Those companies act as second movers and janitors in media, technology and Internet businesses. Those companies are engineered by and for engineers. The question is: How to reorganize e.g. Oracle or SAP, or even Salesforce.com and Workday? How to do it especially now when those companies are mislead to concentrate on cloud and IoT only? SaaS, PaaS, and IaaS are magic words to miss the point.

ERP-CRM-BI companies need a radical abstraction shift team (AST) to build a visionary model to combine trend evolution in communication, media, technology and the Internet to their ERP-CRM-BI offering. Unfortunately those companies do not have teams for this abstraction shift nor do they understand the need for it. Luckily, there is room only for one (ONE) ERP-CRM-BI company to succeed. Only the first one has a running start.

Beside the ERP dilemma there are self-customized dilemmas like Microsoft’s we-already-build-our-ecosystem and Apple’s we-stay-big-doing-nothing-special misbeliefs. Those give time for the challengers to reorganize ecosystem thinking.

Bottom-up access to the Internet – network manufacturer’s and mobile operator’s strategy

The next winners in TAIC-SIMO ecosystems are the network manufacturers and mobile operators, or to be more exact, one network manufacturer (of the three) and one mobile operator (consortium) on each continet. The Verizon-Vodafone deal is a first step to reorganize mobile operator environment. The AT&T and DirecTV deal is a brutal sign to reorganize the network operator’s business with media content delivery and advertisement incomes. When Nokia dumped itself it became a medium size actor in network manufacturing after Ericsson and Huawei. Nearly all technology and digital media and Internet companies need new business models.The next TAIC-SIMO mathematical formula is:

Formula-of-Ecosystem-ONE-Operator-Network-InterestMachine-TAIC-SIMO-Risku

Formula ONE: Formula of Ecosystem ONE, the Operator and Network Ecosystem. InterestMachine™ and TAIC-SIMO and Risku 2014. When we combine the sleeping potential of the network manufacturers and mobile operators, and later add the media and device companies as partners, we get a new angle to reorganize the mobile communication business models and for the repatriation of profits. In the formula there are six multiplier effects: Vision, Execution, Td1, Td2, i and dis. Vision and execution are realized through i and dis. The linear time factor Td1 stands for realtively slow progress in operator and network technologies and offering portfolios. This is an advantage for NET and MOP. The logarithmic time factor Td2 stands for the hectic innovation cycle and time-to-profit cycle of the Web and device industry. But as a divisor, Td2 is an inertia factor for the Media+Device in the formula.

How to read the Formula of Ecosystem ONE? Apple, Google and former Nokia built their ecosystems with Media × Device pattern by distraining the NET × MOP parties. Today the hectic competition causes time delay factor Td2 to grow logarithmically which means that many actors stall and die (e.g. Blackberry, Motorola, Nokia). Only NET × MOP can create growth especially Td1 as a small divisor. Low Td1 causes leverage in the industry and NET × MOP creates paradigm shift because network and operator companies have more substance and technological solutions for the future. NET × MOP is also closer to help the suffering Media-Web-Journalism industry. Its annual 500-800 billion US$ business has more trustworthy partner in NET × MOP than in Google, Yahoo, Facebook and others who are taking all advertisement money and killing journalism, news and basically all meaningful communication.

Verizon

Network manufacturers and mobile operators have to join their forces. Slides below show a pattern to restructure the order to repatriate profits in mobile media. Roughly speaking, five supranational companies join together and invest 50 million euros each for two years. As an example, when Ericsson, Sony, Der Spiegel, SAP and T-Mobile establish a consortium of 250 million euros (5 x 50 M€, 1.3 x 250 M€ = 325 M$) they can build an Internet Access company with UI, OS, Network and OSS** for a new paradigm of digital communication ecosystem (differing from 3G, 4G and 5G visions but running on them).

The built solution is a combination of Cloud computing, Virtual Reality, Augmented Reality, Artificial Intelligence, Layered User Interface, Contextual Data and Sensors. Cloud in its present forms does not give sustainable business for traditional software houses (like e.g. SAP, IBM, Oracle, HP, Fujitsu…). Cloud needs substance around the SW services and here the two parties, network manufacturers and mobile operators, differ from the SW-only companies.

As an example of Ecosystem ONE consortium could be e.g. Ericsson, Verizon, SAP ja News Co. They all are big actors in the business. But the scalability of Ecosystem ONE makes it even more obvious that consortiums like Alcatel-Iliad-Eucalyptus-Amaury are the next ecosystem builders. Medium size billion dollar companies are more flexible to study, understand and start to change the game.

Systemic access – network and bitstream to invite the media and End Users

First, one network manufacturer and two mobile operators join their forces within one consortium, and later invite one viable SW house and media house to establish a challenger for present mobile ecosystems.

Slide set below describes the synopsis to build an Apple-and-Google-and-Microsoft-free ecosystem by a selected number of network manufacturers and mobile operators.

0-Cover-TAIC-SIMO-Network+Operator-ecosystem-InterestMachine-Technology-Access-Interest-Channel-JRi  0-Content-TAIC-SIMO-Network+Operator-ecosystem-InterestMachine-Technology-Access-Interest-Channel-JRi  0-Definition-Ts-TAIC-SIMO-Network+Operator-ecosystem-InterestMachine-Technology-Access-Interest-Channel-JRi  1-TAIC-SIMO-Abstract-Network+Operator-ecosystem-InterestMachine-Technology-Access-Interest-Channel-JRi  2-TAIC-SIMO-Systemic-Network+Operator-ecosystem-InterestMachine-Technology-Access-Interest-Channel-JRi  3-TAIC-SIMO-Access-Network+Operator-ecosystem-InterestMachine-Technology-Access-Interest-Channel-JRi  4-TAIC-SIMO-Roles-Network+Operator-ecosystem-InterestMachine-Technology-Access-Interest-Channel-JRi  5-TAIC-SIMO-UI-OS-OSS-Network+Operator-ecosystem-InterestMachine-Technology-Access-Interest-Channel-JRi  6-TAIC-SIMO-Input-Output-Network+Operator-ecosystem-InterestMachine-Technology-Access-Interest-Channel-JRi  

Simultaneously, several new devices are both concepted (concepualized) and realized based on InterestMachine™, MIST UI and its BlinkUI. As an example, Sony would be an ideal participant in the consortium. The company is adrift with its consumer product quality and pallid future scenarios. Certainly Sony is one of the main challengers to Apple and Samsung, but only with radical targeting.

Why Ecosystem ONE is better business than IoT (Internet of Things)?

Internet of Things IoT is the next big trend which combines traditional technology to digital and mobile technologies through sensors, software, algorithms, cloud computing and VR, AI ad AR.

It is estimated that IoT is a 4 to 10 trillion $US business year 2020. Today year 2016 IoT is about 2 trillion $US business. IoT is becoming a competed business are with high profits and enormous losses. Every company from startups to corporations try to get a footprint on IoT.

Media industry is today (2016) apprx. 1,200 trillion US$ annual business today to be reorganized and nobody has any radical insights and solutions to colonize it. Except InterestMachine™ and its Ecosystem ONE. Up to year 2020 the media industry is cumulatively a 3-5 trillion US$ business where the reorganization has no competition.

When IoT is a business of high risks with visions and action dotted around the digital space, Media Industry Reorganization MIR has all components in place. There are heavyweight network manufacturers challenging each other, stagnated mobile operators with need for a come-back, and finally the media and print industry with no ideas, visions and external help to survive.

Media Industry Reorganization through Ecosystem ONE has one additional advantage against rivals: Nobody listens, nobody understands, nobody believes and nobody cares. Therefore Ecosystem ONE has several years head start because ramp up of the consortium takes only two weeks.

Compared to IoT, Media Industry Reorganization MIR is profitable from the first day, it has low risk because of partnerships and synergetic technologies. The first consortium applies “winner takes it all” pattern because there is not room for a second winner.

____________________________________________.____________________________________________

Ecosystem ONE and restructure the media – a real world solution

The NTNU (Norwegian University of Science and Technology) and In Action startup published a scientific paper on how to restructure the media by the Trio. The Trio is a joint consortium between network manufacturers and operators and media houses. When the Trio join three great forces, it can update journalism and make all three stagnating industries great again. Further research, development and discussion about media’s and journalism’s positioning is needed, especially combining other industries in cooperation. The discussion should consist of ethical, societal and philosophical subjects because the development of the Internet solutions are based on “technology first” actions.

Read the paper and presentation, and download the poster, from ICE Conference 2016 in Trondheim Norway 13th June 2016:

16_ICE-Conference-2016-SW-startuppers-took-medias-paycheck-pict-Journalism-Juhani-Risku-Outi-Alapekkala-NTNU-In-Action   16_ICE-Conference-2016-SW-startuppers-took-medias-paycheck-present-Journalism-Juhani-Risku-Outi-Alapekkala-NTNU-In-Action   16_ICE-Conference-2016-Trondheim-icon-Media-journalism-Poster-A0-Software-startuppers-took-medias-paycheck-fightback-journalism-Juhani-Risku-Outi-Alapekkala-NTNU-In-Action

Background for the Trio

16_Timeline-Evolution-of-power-and-profits-of-media-Journalism-Media-Network-operator-manufacturer-positioning-Startup-culture-disruption-Juhani-Risku-Outi-Alapekkala-NTNU-In-Action-2

The collapse of old print media and journalism happened when the Internet, its solutions, services and communities became mature and mobile devices reached the market. The reader abandoned printed dailies for free and mobile access to information. The business of core industries of the early Internet and mobile communication, the mobile network manufacturers and operators are also in stagnation and decline. Therefore these industries may have similar interests to improve or even restructure their own businesses as well as to establish totally new business models by going into media and journalism.

The 800 – 1000 billion $US annual global business of media is in confusion and unstructured. Actions like “Apple to buy Time Warner” or “Microsoft buys Linkedin” are just sings of desperate trials to survive by any means. The Trio does it differently and in a solid way.

Structuring media industry’s actions against invaders – Three models

16_TAIC-SIMO-applied-Journalism-Media-Network-operator-manufacturer-positioning-Startup-culture-disruption-Juhani-Risku-Outi-Alapekkala-NTNU-In-Action  16_Cynefin-Journalism-Media-Network-operator-manufacturer-positioning-Startup-culture-disruption-Juhani-Risku-Outi-Alapekkala-NTNU-In-Action  16_From-2D-journalism-to-4D+-journalism-Media-Network-operator-manufacturer-positioning-Startup-culture-disruption-Juhani-Risku-Outi-Alapekkala-NTNU-In-Action

Figures 1*, 2** and 3*** expalined below the text.

From uncertainty…  

Startup culture and disruptive thinking to rescue the media!

The circumstances of media and journalism are more uncertain and unpredictable. There are more questions, opinions and claims than innovation, radical actions and academic or engineered solutions for gaining back media’s and journalism’s grandeur. Software startuppers and their technological developments are driving tremendous change in media and journalism, which both have major societal roles.

… to disruptive Trio

The Trio is a creative base for the future of media and journalism!

Operator-manufacturer-media house Trio finds easily strategic partners from areas where they don’t have harsh competitors. The idea is that the Trio as an Internet veteran and trusted content creator takes the customer,  user and  creator as a partner,  pays properly  for the content, promotes the creative reporter community and acts like a peer startupper.

When The Trio starts to work, magic happens

16_The-Trio-TAIC-SIMO-applied-Journalism-Media-Network-operator-manufacturer-positioning-Startup-culture-disruption-Juhani-Risku-Outi-Alapekkala-NTNU-In-Action

The Trio, the joint consortium between network manufacturers and network operators and media houses, has extreme possibilities to disrupt the value chains in a new way. Here a short list of new practical items:

  • Radical changes internal startups and software solutions
  • Radical focus areas in content creation, news and interaction
  • Radical actions in forms of active reporters, communities and citizens
  • Radical leadership bypassing media mogul thinking
  • Radical products scaling from writing to acting locally and globally
  • Radical services created by network operators and realised by manufacturers
  • New solutions: systemic thinking rather than pixel tuning
  • Patents: thousands of patents to guard, share or free IPRs
  • New formats: Web, TV, video, radio and apps get thousands of new formats
  • Processes: smart processes come to media (replacing the mogul syndrome)
  • New people: 85 % of old school journalists are replaced with fresh thinking
  • New businesses: The Trio triples business opportunities and models
  • New enthusiasm: phlegmatic and tedious journalists replaced by citizens and startuppers

16_Banner-Media-Network-operator-manufacturer-positioning-Startup-culture-disruption-Juhani-Risku-Outi-Alapekkala-NTNU-In-Action

______________________________________________________

* TAIC-SIMO tetra model applied to network–operator/manufacturer–media-business’ (the Trio’s) positions. In the Trio’s fightback they join their forces and build a new format and access to the Internet, and they override today’s advertisement money hijackers. This requires abstraction shifts, startup culture, new leadership and rapid actions from the Trio. The tetra shows direct connections between edges (e.g. O–M collaboration), the tetra face (triangle) show a combined business area (e.g. M–O–J). The missing part of the tetra can be established on a new abstraction level (e.g. M–O–J Internet Access). This MOJ Access is a spin-off of a network–operator/manufacturer–media house consortium. The idea to establish an own Internet Access spin-off instead of acquiring an existing one is about creating a new actor in this business environment. This actor can disrupt the present business models and offer the users and consumers a combination of more interesting and fair services.

** Cynefin applied to network–operator/manufacturer–media-business positions 2016. Cynefin [ˈkʌnᵻvɪn] [23] is framework with five domains: simple, complicated, complex, chaotic and disorder (in the intersection). Simple and complicated represent ordered world, complex and chaotic represent disordered world. When a business is in the simple section it is stable and predictable until disruptive changes happen. Companies with too high comfort zone face problems and may fall to chaotic section. The route clockwise from simple through chaos to complex and complicated is long and painstaking. Balancing in sections complex-complicated-simple allows creation, innovation and possibilities to develop stable simple businesses in a constant flow. Journalism fell from simple to chaotic, operators have stagnated more to simple, manufacturers are on the way to complex with 5G. They all need immediate actions to survive: journalism through complex to complicated, operators upwards between complicated and complex, manufacturers more to complex. Complex offers innovation and experiments, complicated offers stable business. The best place is the Ribbon-Bowtie, where good leadership guarantees innovation and successful business. The Ribbon-Bowtie positioning as a strategic endeavour requires balancing between creative and stable mindsets and giving more authority for creative and disruptive forces and talents. When M, O and J join their forces, it is a combination of creativity, making business from chaos, functioning experiments, and running solid and stable business. M, O and J have some overlap to understand each other, and they have extreme strengths to be integrated. The chaotic journey of journalism appers to be the disruptive strength of the Trio, because in its agony the industry is forced to find viable and competitive yet revolutionary solutions to survive. Now it seems that journalism has been separated from the successful media industry and it tries to survive alone.

*** Media’s fixed structure becomes dynamic: Rising form mere closed square, media enters an open and dynamic tetra space. One-size format becomes personalised content and one-way communication becomes multifold between the source and the readers as well as between the readers. Freedom of speech currently restricted by political correctness reaches its true meaning, and simple words gain in power having the potential to generate action amongst the multiple reader platforms. Transition from 2D to 4D+ allowed by the Trio: In order to move from the current square to the future tetra model, a totally new form of cooperation between the media outlet and its journalists, network manufacturers and network operators is required. Only those three together can disable the current lockdown inflicted on media and journalism and their financing by the worldwide dominance of Google and its ramifications. The Trio provides for the new access, via their combined power in technology, channel and interest. Startup culture opens up room for action: A politically correct journalist following advertising money becomes an unrestrained citizen-journalist communicating on the topics of her deep knowledge, understanding and passion in an open media world where she has the potential of generating not only accurate information but also concrete action on any unfairness or injustice that she observes.

16_TAIC-SIMO-applied-Journalism-Media-Network-operator-manufacturer-positioning-Startup-culture-disruption-Juhani-Risku-Outi-Alapekkala-NTNU-In-Action

_________._________

Risku Consortium offers a professional team of 20-30 specialists to envision, plan and organize Ecosystem ONE. We have a special leadership model to exploit a flying start and unify the strengths of alliances. The Ecosystem ONE strategic team is up and running in a week after contact.

_______________________________________________________________________________________________________

** UI, OS, Network and OSS are User Interface, Operating System, Network infrastructure and Operations Support System.

Advertisements