Mobile Application Development case

1. Mobile Application Development case • Sendandsee mobiprint™ • History • Target Market & Positioning • Product Overview • CASES: • Kauppalehti Mobiili+ • Helsingin Sanomat • Mobile media consumption development 2006 - 2008 • Business models & Success factors • Q&A

2. History • Sendandsee was founded in 2003 as the commercialisation of a three-year research and development project that studied visual content and next-generation mobile services consumption in over 50 countries. • The Company established itself as a distributor of visual content it licensed from rights-owners and distributed through different types of sales channels to mobile end-users. • Sendandsee made a strategic decision not to focus on the Mobile Music or Mobile Games niches, as those were analysed to be areas that will most likely be controlled by players in existing music and game industries in the foreseeable future. • Sendandsee exited from the visual content business in 12/05.

3. History (cont’d) • The decision to focus on visual content was important for research into the future of Mobile Media, as all mobile users of visual content were potential customers for richer media content. • In October 2003 Sendandsee decided to develop a “Mobile Publishing” product. • Sendandsee’s strategy was to launch its own Mobile Magazines and expandtheir distribution, and then to mobilize ”real-world” Magazines with its technology. • Sendandsee is focused on and has been successful in executing its strategy as it has been able to license, sell, and deliver systems based on the mobiprint technology to leading publishing companies and global technology companies.

4. Sendandsee - strategic insights & success Sendandsee’s soul is built on a few insights: • ”Act global”– a key building block of the operation • No globalisation strategy – just tactics and actions • After first year business relationships in over 30 countries • Global success does not require local success!

5. Target Market & Positioning • Mobile Media is being born, created by a combination of people’s desire to live their lives free from location-based infrastructure, emergence of smarter mobile handsets and faster mobile networks, and better application design environments. • Previous births of ”new media varieties” [radio, TV, Desktop Publishing, Internet etc.] have created great business opportunities for existing and new industry players. • The successful companies have as a rule had a position of an enabler of new business from existing processes within the industry. • Success in the mobilization of media, will come to those who act as enablers of new business to multiple adjoining peer groups: Media companies, Publishers, Telecom Operators, Software companies etc.

6. Target Market & Positioning (cont’d) • MOBILE MEDIA: • Distribution • Advertising • Revenues • Marketing • CLASSIC MEDIA: • Distribution • Advertising • Revenues • Marketing sendandsee enables Digitalized production & distribution Softwareproducts &technologies Hardwareproducts &technologies Licensors Rights Owners TV Industry Publishing Industry

7. CASE: Textbook approach produces disaster • Target: Mobililizing newspapers & magazines in the USA • First approach: • Use of a professional consultant with great contacts, let him show the product to established media industry members • Result: • Everybody praises the solution, wants more features, but especially direct access to distribution [end-users] • Second approach: • Establish a partnership with a BIG distribution partner and add it to the First approach • Result: • A small technology company is battling to get BIG players to get their egos sorted, to work together • End result: No business – just money ”invested into market study”

8. Target Market & Positioning (cont’d) ”The Mobile Promise” Mobile appliances Mobile publications Mobile TV Mobile SW Cannibalization PersonalComputers Internet Internet TV UI & Transport SW Quality ”BIG” Computers Realpublications TV ”Production”SW Scale Growth COMPUTER Industry PUBLISHING Industry TV Industry SOFTWARE Industry TIME & MARKET

9. Target Market & Positioning (cont’d) real visual content Mobile Publishing Person-to-person messaging B&W graphics, ringtones 1st subscription services games real music Mobile TV ”Smart Phones” GPRS Voice SMS WAP MMS ”Media Phones” J2ME Internet TV Mobile TV DTP / DTV www WAP Mobile Publishing Client/Server Java Open Source BBS Internet

10. mobiprint™ overview • Sendandsee provides tools for mobilization of digital media and brands - current focus on newspapers & magazines. • mobiprint™ technology enables publishing of existing digital media to mobile phones and creation of cross-media services. • Services created with mobiprint create a streamlined end-to-end user experience for media content.

11. content management content mobilization content delivery mobiprint™ publishing server mobiprint™ media browser 3rd party content management systems 3rd party media browsers external content feed (rss / xml ) mobiprint™ overview (cont’d) mobiprint™ authoring system

12. mobiprint™ overview (cont’d) • mobiprint service enables the creation of branded mobile publications to mobile users. • mobiprint user experience is faster and more enjoyable than online browsing. • Mobile publications enable additional revenue generation from current media content. • Service model enables fast implementation with low investments.

13. CASE: Kauppalehti • Finland's leading daily business and financial newspaper, Kauppalehti, implemented its Mobiili+ service using mobiprint. The service brings subscribers daily news as well as access to other mobile services such as real-time stock quotes and external wap-services. • "Mobiili+ combines our services in one easy-to-use interface for mobile users, supporting the development of services which can be used regardless of time and place. It also enables interactive advertising in the mobile media.”Markku Kiuru, Kauppalehti Vice President • The advertising capability in mobiprint™ can be tailored case by subscriber case according to interests, location or other criteria, and allows direct response and payment using premium SMS or other suitable methods. • The advertising content will be integrateable with existing digital advertising management systems during H1/06. • Solution: Direct integration into the digital production system used within the publishing group. Delivered to end-users as Kauppalehti's own service and through Nokia Media Channels.

14. CASE: Helsingin Sanomat • Scandinavia's largest daily newspaper implemented its latest mobile service using mobiprint. • The service brings subscribers the latest news when they are created in six categories. • "mobiprint offers a completely new intuitive mobile user experience. Its usability design really takes into consideration the modern day newspaper user, and finally makes it possible for the general public to adopt mobile content services.”Anders Stenbäck, Business Development Manager at Helsingin Sanomat • Solution: Direct integration into the production system used within the Sanoma Group. Delivered to end-users through Nokia Media Channels.

15. Mobile media consumption - Driving factors End-user behaviour:- Usage of new services grows through viral- Usage development follows TAM [Technology Acceptance Model]- New services reach large masses in 18-24 mths- Services drive the development, not technical capabilities Mobile Media Usage:Critical waypoints Service footprints:- New service launches reach critical mass in subscriber space in 6-12 mths- Success require adequate marketing Mobile terminal lifecycle:- End-user terminal turnaround time 18-24 mths- Driven by subsidized terminals [MNOs] Future terminal compatibility Service launches Service marketing 2006 2007 2008

16. Mobile terminal lifecycle High usage user groups:Innovators Early Adaptors Early MajoritySmart Phones Symbian Symbian [Symbian] Advanced J2ME Advanced J2ME Mobile terminal lifecycle:- End-user terminal turnaround time 6-24 mths- Driven by subsidized terminals [MNOs] Future terminal compatibility 2006 2007 2008

17. Service footprints High usage user groups:Innovators Early Adaptors Early MajoritySmart Phones Symbian Symbian[Symbian] Advanced J2ME Advanced J2ME Service footprints:- New service launches reach critical mass in subscriber space in 6-12 mths- Success requires adequate marketing Service launches 2006 2007 2008

18. End-user behaviour High usage user groups:Innovators Early Adaptors Early MajoritySmart Phones Symbian Symbian[Symbian] Advanced J2ME Advanced J2ME End-user behaviour:- Usage of new services grows through viral- Usage development follows TAM [Technology Acceptance Model]- New services reach large masses in 18-24 mths- Services drive the development, not technical capabilities Service launches Service marketing 2006 2007 2008

19. Business models & Success factors - “mobile” media • Mobile customers become mobile media consumers • In the mobile media market roles will be defined by media: • Critical issues: • Brand recognition • Marketing • Integrability • Distribution • Accessability • In the mobile marketspace the media industry is looking for: • Great consumer accessability with high discovery factor • Cost-effective distribution channels • Flexible integration with varying business logics • Easy integration with existing production systems • Mobile Value Chain -> Distribution Channel Only?

20. Business Models & Success factors - who helps you? • Big partners: • Slow in their reactions • ”Desire to own” a part of the mindset • May impact your business greatly • Partnerships very risky for small players • Small partners: • Fast in their reactions • Love the idea of not having to invest into R&D or implementation • Impact often fast but not lasting • Partnerships • Claim: Look for partners who can generate new business from their existing processes and customers with your solution / service – those are the ones who will be your greatest help!

21. Summary • There is a 95% probability that you will fail • The 5% who ”Make it” are destined to be acquired by someone who is: • Big: slow, hesitant, defensive • Small: chaotic, uncertain future awaits • Once you ”Make it” there is a 95% probability that someone: • claims that you are infringing on their IPR / patents • copies your product / service with bigger / better resources • Nothing is more difficult than boosting, bringing up, and breeding a global success from one product / service – enjoy the ride!