Consideration of Market Forces

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(No Transcript)
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Consideration ofMarket Forces

• Van Baker
• Gartner

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What I Will Not Talk About

• The technology
• The products
• The forecasts
• I will discuss some things that will impact all
  of you as developers

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Connectivity Market Dynamics

• Agenda
• Marketing is Evolving
• Focus on technology must change
• Offer / Experience displaces technology
• Confused Standards
• Impact on the Consumer
• Workstyle issues
• The Changing Business Environment
• Lifestyle issues
• Mobility
• Blenders
• Content Portability
• Turf Wars

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Marketing is Evolving
Offer/Experience
Value
Price
Product
4Ps
Promotion
Place
Pervasive
Personalization
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Marketing is Evolving

• Viewpoint
• The focus of the value proposition must focus on
  real benefits
• The customer will still consider technology
• Dynamics
• Technology in itself has little value for the
  consumer
• Marketing of products and solutions must focus
  on benefits for the consumer
• Speeds and feeds are not benefits they are
  specifications
• Prediction
• Products need to be positioned based on value to
  todays busy consumer but technology tradeoffs
  will not be acceptable

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Marketing is Evolving

• Viewpoint
• The value of a product will be determined by the
  experience of buying and using that product
• The mass market no longer exists
• Dynamics
• The purchase experience has significant
  influence over the purchase decision
• The value of a product will be determined by
  usage rather than features
• Post sale experience significantly enhances /
  detracts from a products value
• Prediction
• The experience of buying and using a product
  together with post sale experiences will be
  inseparable from the product

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Confusing Standards

• Viewpoint
• The conflicting standards in the market will
  result in consumers that are unwilling to make
  purchases
• De facto standards are beginning to emerge
• Dynamics
• The confusion between Bluetooth, WiFi, HomeRF,
  HomePNA and HomePlug has significantly delayed
  adoption of home networks
• Confusion between USB 2.0 and 1394 has the
  potential to delay adoption in a similar manner
• Confusion among market participants exacerbates
  the problem
• Prediction
• Competing standards will delay widespread
  adoption of high speed communication technologies

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Workstyle Issues

• Viewpoint
• The faster pace of business combined with
  globalization has expanded the professionals
  workday
• The value associated with personal time has
  increased
• Dynamics
• There is significant confusion as to how to
  respond to these changes
• Solutions that help to alleviate the increased
  pressures of the business environment will have
  high perceived value
• Prediction
• Products that facilitate the rapid transfer of
  information between platforms will dominate the
  business professional market

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Lifestyle Issues

• Viewpoint
• The personal time of contemporary households is
  fragmented and distributed across several
  locations
• This demands highly mobile but simple
  information flow
• Dynamics
• All family members have increasingly mobile
  lifestyles
• Value associated with diminished personal time
  is enhanced
• Lifestyle mobility places high value on product
  design and power requirements
• Prediction
• Products designed with mobility and long battery
  life in mind will have high value in the consumer
  market

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Lifestyle Issues

• Viewpoint
• The blender lifestyle is emerging as the
  dominant lifestyle among business professionals
• Business and personal applications need to be
  addressed
• Dynamics
• Business professionals will increasingly move
  between personal and professional activities
  during the day
• Buying decisions will be based on simplicity and
  functionality
• Prediction
• Products designed with a logical combination of
  business and personal applications will command a
  premium

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Lifestyle Issues

• Viewpoint
• The rapid pace and mobility of personal and
  professional lifestyles will result in
  consumption patterns driven by time and place
  utility
• Content flexibility is not the prevailing
  pattern today
• Dynamics
• Information gains value with ease of access
• With todays lifestyle ease of access is
  difficult to achieve
• Content providers need to improve content
  flexibility
• Prediction
• Products designed with content portability as a
  primary design goal will be well received by
  professional people

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Turf Wars

• Viewpoint
• Intellectual property concerns will impact the
  ability to have mobile content
• Pressure from the regulatory bodies and
  consumers will accelerate resolution of this
  issue
• Dynamics
• Content owners do not like mobile content
• Consumer lifestyles demand mobile content
• New channels that give access to consumers are
  emerging
• Prediction
• Legal actions regarding intellectual property
  will diminish / delay consumer acceptance of
  mobile devices

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Netting It Out

• Recommendations
• When designing new products
• Consider the blender lifestyle
• Focus on the experience not the technology
• Be aware of the threat from 1394
• Help reduce consumer confusion
• Position USB 2.0 relative to wireless
  technologies
• Consider the big P product rather than the
  smallP product

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USB vs. 1394
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Questions
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