Argument for Acceleration

1
Argument for Acceleration

• Of the Global Overview for the SP1N Development
  Effort
• (by approximately 6-8 weeks)

2
Key Assumptions

• Both Fiori and Spinoza are dedicated to the
  fruitful development of the SP1N system
• Both companies wish to reduce risk as far as is
  practical in this effort
• The two main (and opposing) risks to this effort
  are
• Developing a system that does not meet the users
  needs
• Developing a system too late to meet a market
  window.

3
Addressing Risk 1

• Spinoza recognizes that Fioris phased approach
  to the SP1N systems development and the time
  intervals specified for the completion of each
  phase will adequately mitigate the risk of
  developing a poor system.Therefore, Spinoza
  accepts both these phases and time intervals.

4
Addressing Risk 2

• Spinoza recognizes that the convergence
  technology space is rapidly being filled, and
  that reducing time to market is therefore
  critical to the success of the SP1N system.
• Spinoza further recognizes that eliminating or
  abbreviating either the phases or time intervals
  specified by Fiori is unacceptable.

5
Addressing Risk 2, Cont.

• Spinoza believes that it has largely generated
  the deliverables specified by Fiori as those
  which are produced during Phase 0 and Phase 1
  activities. Therefore, since the time intervals
  for these phases total approximately 6-8 weeks,
  Spinoza believes that our joint timeline can be
  reduced by this amount.

6
To prove its case, Spinoza must

• Come to agreement with Fiori about which
  deliverables are generated by Phases 0 1
• Understand the particular information Fiori
  expects each deliverable to contain
• Furnish that information to Fiori
• Where necessary, document how this information
  was generated.

7
Timeline and Deliverables
8
Project Definition and Research
Prior research, Vision, Technical
Background Identify Key Gaps, Assumptions, and
potential trouble areas Understand current value
proposition
9
Continued Detail Research
Usage Models, applications, environments, user
needs and benefits Define User Segments vs
Demographic Profiles Competitors, Secondary User
Competition (Portable Media Devices) Develop
Product Line Strategies and Foundations Technology
Trends, Product Culture, OEM Strategies
10
Conceptualization
Form Factor Exploration Ergonomics User Interface
Conceptualization
11
Prior Research

• The commissioning of two white papers which dealt
  with wireless transmission of HTML and multimedia
  information.
• a brainstorming session with a class of MBA
  students to create and market a SP1N-like device.
• a cooperative program with several Seattle
  University students to explore the wireless
  capability of portable devices.
• The development of (provisionally patented) IP
  which increases wireless RF bandwidth.

12
Vision
Spinoza Technology envisions a world of instant,
intuitive, universal access to the information
you need or want.   Our mission is to design and
develop private labeled convergence
technologies for individual and enterprise
applications, distributed through multiple
channels including OEMs, service organizations
and direct retailers.   Spinoza defines
convergence as the bringing together of
technologies that have traditionally been
considered discrete, by incorporating them into
one system.
13
Technical Background

• The vision for Spinoza was fostered by
• the emergence of portable computing devices such
  as the Cassiopeia, Jornada, Ipaq, and Palm VII
• the continued development of IP-based telephony
  solutions
• the proliferation of portable devices used for
  communication and entertainment purposes
• the dearth of all-in-one solutions, due to form
  factor and revenue stream constraints by existing
  OEMs.

14
Key Gaps

• Technical Expertise in convergence space, well
  stand up to anyone out there
• Hardware/Software aside from a few short delays,
  we have gained access to the latest
• Market Research an informed omission (Research
  Express for selected work)
• Large Scale Project Management Design and
  Integration Manufacturing Content Provision
  TBD, soon.

15
Assumptions

• Working prototype window 1st quarter 2001
• Must hit stores Christmas 2001should be able to
  make Fall 2001
• We represent the market
• Stable IP telephony will be available for
  wireline (B3) access within six months, wireless
  within 1 ½ years.

16
Potential Trouble Spots

• Potential partners wanting to revisit earlier
  decisions
• Tasks not worked in parallel
• Partners adopting either/or rather than both/and
  attitude
• Inability for project to establish SP1N-centered
  paradigm within convergence space.

17
Current Value Propositions

• Spinoza Technology has identified three revenue
  models to actively cultivate
• Subscribers
• OEMs
• Private Labelers

18
Subscribers
Characterized by

• Ubiquity
• Large geographic/demographic area
• Can reach every part of market
• Monthly billing cycle in place
• Back-office procedures already set up
• User acceptance of billing model
• Examples utilities, financial services, ISPs,
  ASPs

19
Subscribers

• Advantages of Partnering

• For Subscriber
• Enables co-branding
• Faster time to market
• Turn-key solution
• For Spinoza
• Large customer base
• Recurring revenue streams
• Offsets development costs while accelerating
  market penetration

20
OEMs
Characterized by

• Existing device or PC manufacturers
• New market entrants
• Established form factor/price point constraints
• Established manufacturing/distribution supply
  chain
• Examples JVC, Dell, Gateway

21
OEMs

• Advantages of Partnering

• For Them
• Quicker time to market
• Customizable and flexible
• Can retain control over form factor
• For Spinoza
• Excellent market research already in place
• Established sales and support infrastructure

22
Private Labelers
Characterized by

• Devoted customer base
• Strong brand identity
• Mass distribution
• Examples Sharper Image, Brookstone

23
Private Labelers

• Advantages of Partnering

• For Private Labeler
• Brand enhancement opportunity
• Turn-key solution
• Private labeled point of purchase interface
• For Spinoza
• Access to sophisticated distribution channels
• Relationship with expert marketers
• Revenue stream from customization (NRE) (Eddie
  Bauer version or REI version)

24
Usage Models
Using the SP1N System a day in the life of an
end user
25
Applications

• Media video and sound player, sound recorder
• Telephony phone, voice mail, rolodex
• Web full browser, Java console/games, email and
  messaging
• PDA functions notepad, draw, calculator,
  calendar, to-do list
• Desktop apps Web-based apps, pocket version for
  offline work, full version for online work with
  B3 and SP1Npherals.

26
Environments

• Office and HomeSP1N device plus B3 and
  wireline/wireless peripherals
• Remote (on the road)SP1N device plus accessories
  and SP1Npherals (Bluetooth-enabled peripherals)

27
User Needs/Benefits

• Two end users are identified
• Early Adopters
• Pragmatists

28
Message to Early Adopter End Users

• For mobile communicators and information
  consumers who are dissatisfied with carrying
  multiple devices,
• The SP1N is a broadband Internet Swiss Army
  Knife that offers wireless Internet access,
  multimedia capabilities, communications, and
  applications.
• Unlike the many separate devices that provide
  parts of this offering,
• The SP1N is a Personal Area Network/Wide Area
  Network-enabled single solution convergence
  technology that will give easier control,
  replacing many electronic devices and giving
  easier mobility inside and outside of the home
  and office.

29
Message to Pragmatist End Users

• If you own a cell phone, pager, PDA, notebook,
  day planner, or remote control,
• and desire a simpler life with fewer devices
  while not giving up any capabilities,
• the SP1N is a broadband Swiss Army Knife that
  allows you to control wireless Internet access,
  multimedia capabilities, communications, and
  applications.
• Unlike the many separate devices that currently
  weigh down and clutter, the SP1N is a single
  device that will give you easier mobility for
  your work and lifestyle.

30
User Segments vs Demographic Profiles

• ?

31
Competitors

• PDA manufacturers
• Computer manufacturers
• Cellular manufacturers

32
PDA manufacturers

• Palm, Casio, HP, Compaq
• Adding more functions all the time
• Constrained by existing form factors, price
  points, and/or revenue streams
• Realistic TTM 1-2 years

33
Computer manufacturers

• Dell, Gateway, IBM (HP, Compaq)
• Have the resources and customer base
• Constrained by customer expectations of computing
  power
• Realistic TTM2 years

34
Cellular manufacturers

• Nokia, Ericson, Motorola
• Quickly adding functions accepted subscriber
  revenue model allows for faster market
  penetration
• Constrained by size wars, severely scaled-down
  processors, cellular rates
• Realistic TTM2-3 years

35
Secondary Competition

• Portable multimedia player manufacturers
• Pager/instant messaging device manufacturers
• Game console manufacturers

36
Portable multimedia player manufacturers

• Rio, MP3Man, MovieMan
• Popular, impressive-looking, fun
• Constrained by processor specialization and price
  wars little interest in convergence
• Realistic TTM2-3 years if ever

37
Pager/instant messaging device manufacturers

• Blackberry, Nokia etc.
• Convenient, inexpensive
• Constrained by size and price wars too weak to
  accommodate new functions
• Realistic TTM--never

38
Game console manufacturers

• Nintendo, Sega, Sony
• High buzz factor, strong processors, good
  graphics experience
• Constrained by specialized processors, price
  point
• Realistic TTMdark horse somewhere between
  tomorrow and never

39
Product Line Strategies

• Platform Roulette
• Research Philosophy
• Current Feature/Platform Progress

40
Playing Platform Roulette

• The future of convergence technology is unknown.
  Todays dominant platform may be gone tomorrow
• Therefore, Spinoza Technology is working to
  identify and develop solutions for all major
  platforms.

41
Our Research Philosophy Simulate, Specify,
Prototype
Platforms
F e a t u r e s
Simulate
Research
42
Current Platform Features
3rd Party Available within 3 months
available
43
Technology Trends

• Much of Spinozas work has pushed the cutting
  edge of convergence technology. Therefore, the
  SP1N system largely constitutes a trend in and of
  itself.
• Wireless broadband
• PushHTML
• Connection management

44
Product Culture

• ?

45
OEM Strategies

• See value propositions for customer strategies

46
Form Factor Exploration

• Randy has purchased the latest and greatest in
  the portable device world in order to grow
  in-house form factor experts
• Each member of Team Spinoza has moved into at
  least two PDAs
• Gable Design retained for initial form factor
  work.

47
B3
48
SP1N
49
SP1N w/full keyboard
50
SP1N w/flip keypad
51
Ergonomics
52
User Interface Conceptualization
53
Robert enjoys Full-Featured Web Browsing,
Streaming E-Commerce from his SP1N on his way
to work.
54
He gets a head start on his day by catching up on
office E-Mail reviewing documents for an early
morning meeting.
55
Robert hears a song on the radio and uses SP1N to
find and purchase it.
56
At the office, he uses the SP1N System to access
a web-based Application Server.
57
He notices some discrepancies in a spreadsheet
and uses the SP1N Systems Telephony to discuss
the numbers.
58
Later that day, Robert uses the SP1N Systems
Video Conferencing to talk with a client.
59
Going home, Robert uses the SP1Ns MP3 player to
relax. He gets an instant message from his wife.
60
At home, Robert uses the SP1N Systems Web
Browsing Interactive Game Play to keep the kids
entertained.
61
After dinner, Robert and his wife use the SP1N
System to stream a webcast of one of their
favorite bands.