iPoppedT H E P A R A D I G M S H I F T

DRIVING BUSINESS MODEL INNOVATION

SMITH-TRG

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Paradigm Shift - a revolution, a transformation, a sort of metamorphosis.

SMITH-TRG

The Paradigm Shift – Driving Business Model Innovation

contents

introduction

CATALYST & CHANGE AGENT

BUSINESS MODEL INNOVATION NEED

WHY NOW . . .?

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The Paradigm Shift – Driving Business Model Innovation

SMITH-TRG

A value creation consulting and digital-media

venture development firm.

Launched second venture as technology sector

imploded, drastically changing the playing field.

Many packed it in. Others didn‟t have the vision,

passion or „Attention Economy‟ experience.

We did. And, we embraced it.

Our consulting, IT/telecom & digital-media roots

uniquely enable us to assist company and media

industry/sector/segment CXO‟s develop and

execute business value creation strategies.

As you can tell, our past has a great deal to do

with our present.

As well as our - your future.

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WHO WE ARE begins with WHO WE WERE.

Richard D. Smith, CEORDSmith@SMITH-TRG.com

SMITH-TRG

OUR value view. . .

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"Achieving consistently superior value growth is

the single accomplishment that most clearly

distinguishes great companies from all others. It

is the hallmark of exceptional leaders. In our

experience, a focus on value is our key to helping

clients‟ achieve superior performance, and it

therefore forms the basis of everything we do.”

- Richard D. Smith, SMITH-TRG

The Paradigm Shift – Driving Business Model Innovation

SMITH-TRG

WHAT we believe. . .

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“To create greater business value – One

does not have to be first to create, just

first to innovatively perfect what has

been created.”

The Paradigm Shift – Driving Business Model Innovation

WHAT we have done. . .

Advised 4 global consumer electronics innovation leaders on –

strategy

product portfolio(s) & pipeline

high-impact & high-value B2B deals

M&A

retail store transformation & expansion

emerging smartphone & multi-touch screenmarkets

new wireless application platforms & related services

Developed X-Otica a digital-media enabled retail store of the future – basis for world‟s most successful (revenue per square foot) retail chain

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examples . . .

SMITH-TRG

The Paradigm Shift – Driving Business Model Innovation

plus . . .

Advised 4 global consumer electronics innovation leaders on –

strategy

product portfolio(s) & pipeline

high-impact & high-value B2B deals

M&A

retail store transformation & expansion

emerging smartphone & multi-touch screenmarkets

new wireless application platforms & related services

Developed X-Otica a digital-media enabled retail store of the future – basis for world’s most successful (revenue per square foot) retail chain

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Advised wireless carrier, IT, consumer product, media

& entertainment, hospitality, automotive, advertising,

and marketing companies on digital-media

Assisted mall operators and retail chains ROI optimize

place based „Digital Out-of-Home‟ networks

Authored book, AD-MIRED, „Media‟s Power to Create

Business Value‟, 2006

Advised Seoul Korea on „Digital-Media City‟ (DMC),

multi-billion dollar city of the future

Founded Audient Media (AIM2) a audience interactive

mobile-marketing, „Advertainment‟ content, and

wireless advertising venture

Founded Saint CRISPIN a global video-messaging,

(precursor to „video-mail‟) venture, sold to F-500

SMITH-TRG

The Paradigm Shift – Driving Business Model Innovation

Enterprise leaders across industries and lines-of-business (regardless

of size) are known for being many things. Patient is not one of them.

SMITH-TRG

Consequently, they want someone who understands creating strategic

business value, they desire „trusted-business advice‟ and cost effective

iPad/iPhone/Apps competitive advantage solutions, and they want and

desire them today!

Fortunately, with over two decades of performance improvement and

value creation consulting, global IT/telecommunications, wireless, and

digital-media industry experience, SMITH-TRG excels, not just at

developing executable strategies specifically for the client, but

developing them quickly.

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OUR value-creation PRACTICE

The Paradigm Shift – Driving Business Model Innovation

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Paradigm Shift Catalyst - impacts

both personal and business environments.

Change Agent - drives paradigm shift.

The Paradigm Shift – Driving Business Model Innovation

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iPad/Tablets & iPhone/SmartphonesCatalyst

The Paradigm Shift – Driving Business Model Innovation

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Change

Agent

Steve Jobs

The Paradigm Shift – Driving Business Model Innovation

SMITH-TRG

A P P L E - F A N A T I C I S M

“I think fanaticism is underrated.

I‟m a fanatic about the engineering

groups. Steve (Jobs) is a fanatic

about the user experience and

the design.”- Bill Gates, Microsoft

Advice for entrepreneurs, enterprise game changers

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The Paradigm Shift – Driving Business Model Innovation

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Apple Products & Servicesenabling

Individual & Enterprise

performance

The Paradigm Shift – Driving Business Model Innovation

3 million iPad‟s

Sold in 1st 90 days

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The Paradigm Shift – Driving Business Model Innovation

Apple Value 6/18/10 Shares: $274 Market Cap: $249.4B

AppleSystematically tilts wireless

playing field to their advantage.

Apple designed iPad chip, dubbed

A4, marks strategy shift first

signaled by 2008 purchase

of start-up P. A. Semi.

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“Apple extracts more and

more of the value, while

carriers get more and

more of the costs.”- Craig Moffett, Senior Analyst

Berstein Research

Value Strategy

The Paradigm Shift – Driving Business Model Innovation

Apple‟s

IMPACTAccelerated media sector

fragmentation - up & down

the value-chain . . .

From media content creation

to distribution to end-user

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Content creators

Media companies

Aggregators (network)

Aggregators (broadcast)

Back-office Apps

Network service providers

Carriers (domestic/global)

Infrastructure (IT/services)

Portals (music/video/books)

Devices (hardware)

Devices (software)

Apps providers

End-user (media consumer)

End-user (business)

The Paradigm Shift – Driving Business Model Innovation

Value Chain

Players . . .

Anyone, small to large, in

and/or around digital- media

eco-system markets

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The Paradigm Shift – Driving Business Model Innovation

Samsung

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The Paradigm Shift – Driving Business Model Innovation

Samsung Electronics plans

Tablet PC in response to iPad

Samsung, world’s second

largest cellphone maker by

shipments after Nokia.

Handset market is nearly

saturated – unlikely to see

double digit growth from

now on.

Amazon,

Barnes & Noble

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The Paradigm Shift – Driving Business Model Innovation

Price war puts Kindle from

$259 to $189, Nook from

$259 to $199.

Kindle was $399 when

launched in 2007.

Borders bookstore recently

began online sales of its

Kobo e-reader for $150.

Motorola

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The Paradigm Shift – Driving Business Model Innovation

Motorola planning to funnel

billions ($3B to $4B) into

spin-off cellphone business.

Cellphone unit has lost $5B

over last 3 years, amid

slumping sales, devices

eclipsed by Apple, others.

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BlackBerryApple advances

with BlackBerry‟s

Corporate Clients

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The Paradigm Shift – Driving Business Model Innovation

Dell

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The Paradigm Shift – Driving Business Model Innovation

Dell considers going private.

Stock has fallen 42% since

1/30/07 while H-P’s up 11% and

IBM’s up 31%. Acer tops H-P

and is now world’s #1

notebook PC supplier. Source: Gartner, Inc.

Going private “really doesn’t

change anything because the

fundamental disadvantages

don’t go away. The

competitors are still there.”- Analyst, Shaw Wu

Sprint

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The Paradigm Shift – Driving Business Model Innovation

Sprint’s new EVO smartphone

is first to run over 4G based on

WiMax technology.

Sprint 4G deployed to 33

markets. Verizon & AT&T are

working on 4G using rival

standard – LTE (Long Term

Evolution).

If WiMax suffers against the

competition, Sprint customers

will, too.

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. AOL acquired StudioNow

a Nashville based video

production firm. Paid

$36.5M cash & stock.

Unloading Bebo social networking site for $10M

a fraction of $850M AOL paid 2 years ago.

AOL

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The Paradigm Shift – Driving Business Model Innovation

Apple Spawns New Enterprises

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Over 100,000 Apps

Smartphone/Tablet

Developers

Worldwide

The Paradigm Shift – Driving Business Model Innovation

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The Paradigm Shift – Driving Business Model Innovation

Business Model

Innovation Need . . .

It’s All About Competitive Advantage

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The Paradigm Shift – Driving Business Model Innovation

strategic iPopped positioning & tactical execution

Opportunity to Gain & Retain Share

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The Paradigm Shift – Driving Business Model Innovation

regardless of enterprise size, industry, sector or line-of-business

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d. Opportunity to Optimize Operations

The Paradigm Shift – Driving Business Model Innovation

while further reducing associated operating costs 35% to 50%

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d. Opportunity to Monetize Intellectual Property

The Paradigm Shift – Driving Business Model Innovation

from content creation to Apps to technology to industry unique solutions

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d. Opportunity to Spin-off Ventures

The Paradigm Shift – Driving Business Model Innovation

created and/or enabled by iPopped solutions

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d. Opportunity to Create Sustainable Value

The Paradigm Shift – Driving Business Model Innovation

by capitalizing on iPopped at enterprise or strategic business unit levels

Why NOW . . .

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The Paradigm Shift – Driving Business Model Innovation

Skeptics – 16% of

total populationLate Majority

34%

Early

Majority

34%

Early

Adopter

13.5%

Visionaries

& Leaders

2.5% T

he

‘Ch

asm’

1 2 3 4 5

SMITH-TRG

The Paradigm Shift – Driving Business Model Innovation

www.SMITH-TRG.com

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. Opportunity to Accelerate Value Creation

Visionaries & Leaders have

made their move.

Early Adopters who make

the next move will have the

greatest immediate opportunity

to strengthen their prospects for

strategic gain and value creation.

If You Haven’t Already

iPopped Assessed Your Enterprise

You Should.

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The Paradigm Shift – Driving Business Model Innovation

Skeptics – 16% of

total populationLate Majority

34%

Early

Majority

34%

Early

Adopter

13.5%

Visionaries

& Leaders

2.5%

Th

e

‘Ch

asm’

1 2 3 4 5

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d. Adoption Delay Diminishes

Enterprise Competitive Upside

The Paradigm Shift – Driving Business Model Innovation

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“The greatest value creation opportunity

will fall to those who give the end-user

consumer what they want…really, really

want. And that is: an integrated, easy to

use, video media experience, anytime,

anywhere, and on any platform.”

- Richard D. Smith, SMITH-TRGAuthor, AD-MIRED, 2006 book

OUR digital-media VISION

The Paradigm Shift – Driving Business Model Innovation

Need Assistance Assessing

Your Opportunities – We Should Talk!www.SMITH-TRG.com

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The Paradigm Shift – Driving Business Model Innovation

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BUSINESS ADVISORS.

MEDIA THOUGHT LEADERS.

VALUE CREATORS.

We assist. . .

CEO‟s to create business

value

CXO Stakeholders to solve

business performance

problems

Innovators to develop more

successful „customer-centric‟

propositions

Business Developers to

maximize return on their investments

Thank you!

www.SMITH-TRG.com

SMITH-TRG