WebRTC: It's NOT About The Minutes

Not that long ago, telephone companies could make serious money by charging 10 cents a minute for long distance or 5 cents for each text message. For voice minutes, the ultra-low barrier to entry caused the market to very quickly saturate, and prices fell to the basement. The stranglehold that carriers had over SMS meant that it stayed profitable for longer, but now OTT players like iMessage, Skype, WhatsApp and Voxer are luring more and more users away. The old business models are crumbling and the current models for mass-market appeal are fiercely competitive. As an entrepreneur in the RTC space you have a difficult question in front of you: Why should any customer choose you? If you answered "price", you're going to lose. This presentation is all about solving that problem: how to create differentiated real-time communication services that allow you to charge your customers for the value you create, rather than for the minutes they use.

Presented at the Illinois Institute of Technology's Real Time Conference - October 16, 2013

Transcript

1. WebRTC: It’s NOT About the Minutes Wednesday, October 16, 13
2. CAN YOU SPEAK MAGIC? 2 Wednesday, October 16, 13
3. CAN YOU SPEAK MAGIC? 2 Ben Klang Wednesday, October 16, 13
4. CAN YOU SPEAK MAGIC? 2 Ben Klang Wednesday, October 16, 13
5. CAN YOU SPEAK MAGIC? 2 Ben Klang Wednesday, October 16, 13
6. CAN YOU SPEAK MAGIC? 3 Making a buck Charging by the Minute is Hard Wednesday, October 16, 13
7. CAN YOU SPEAK MAGIC? 3 Making a buck Charging by the Minute is Hard ...and Getting Harder Wednesday, October 16, 13
8. CAN YOU SPEAK MAGIC? THE PROBLEMS 4 Wednesday, October 16, 13
9. CAN YOU SPEAK MAGIC? THE PROBLEMS Price Minimization 4 Wednesday, October 16, 13
10. CAN YOU SPEAK MAGIC? THE PROBLEMS Price Minimization Service Homogenization 4 Wednesday, October 16, 13
11. CAN YOU SPEAK MAGIC? THE PROBLEMS Price Minimization Service Homogenization Sexiness Boringization 4 Wednesday, October 16, 13
12. CAN YOU SPEAK MAGIC? 5 PRICE MINIMIZATION Wednesday, October 16, 13
13. CAN YOU SPEAK MAGIC? 1995 PRICE-PER-MINUTE 6 Wednesday, October 16, 13
14. CAN YOU SPEAK MAGIC? 2005 PRICE-PER-MINUTE 7 Wednesday, October 16, 13
15. CAN YOU SPEAK MAGIC? 2005 PRICE-PER-MINUTE 7 Wednesday, October 16, 13
16. CAN YOU SPEAK MAGIC? 2015 PRICE-PER-MINUTE 8 0 Wednesday, October 16, 13
17. CAN YOU SPEAK MAGIC? 2015 PRICE-PER-MINUTE 8 0* Wednesday, October 16, 13
18. CAN YOU SPEAK MAGIC? TODAY’S PRICE-PER-MINUTE 9 Wednesday, October 16, 13
19. CAN YOU SPEAK MAGIC? TODAY’S PRICE-PER-MINUTE 9 Wednesday, October 16, 13
20. CAN YOU SPEAK MAGIC? 10 Wednesday, October 16, 13
21. CAN YOU SPEAK MAGIC? SERVICE HOMOGENIZATION 11 Wednesday, October 16, 13
22. CAN YOU SPEAK MAGIC? 12 Wednesday, October 16, 13
23. CAN YOU SPEAK MAGIC? 13 Wednesday, October 16, 13
24. CAN YOU SPEAK MAGIC? WHO’S WHO OF DEAD VOIP 14 Wednesday, October 16, 13
25. CAN YOU SPEAK MAGIC? WHO’S WHO OF DEAD VOIP •78 Companies Checked 14 Wednesday, October 16, 13
26. CAN YOU SPEAK MAGIC? WHO’S WHO OF DEAD VOIP •78 Companies Checked •21 Websites Down/Gone 14 Wednesday, October 16, 13
27. CAN YOU SPEAK MAGIC? WHO’S WHO OF DEAD VOIP •78 Companies Checked •21 Websites Down/Gone •How many more silently failed? 14 Wednesday, October 16, 13
28. CAN YOU SPEAK MAGIC? SEXINESS BORINGIZATION 15 Wednesday, October 16, 13
29. CAN YOU SPEAK MAGIC? SERVICE COMMODITIZATION 16 http://mspmentor.net/acquisitions/hosted-voip-acquisition-warwick-valley-telephone-buys-alteva Wednesday, October 16, 13
30. CAN YOU SPEAK MAGIC? SERVICE COMMODITIZATION 17 http://www.zacks.com/stock/news/97333/jcom-on-acquisition-spree “Last year, the company made six acquisitions related to cloud-based services.” “The company executed three more buyouts early this year. The aggressive buyout strategy of the company will consolidate its global leading position in the virtual PBX market.” Wednesday, October 16, 13
31. CAN YOU SPEAK MAGIC? GIVING UP 18 Wednesday, October 16, 13
32. CAN YOU SPEAK MAGIC? THREE OUTCOMES 19 Wednesday, October 16, 13
33. CAN YOU SPEAK MAGIC? THREE OUTCOMES Buy or Be Bought 19 Wednesday, October 16, 13
34. CAN YOU SPEAK MAGIC? THREE OUTCOMES Buy or Be Bought Tread Water 19 Wednesday, October 16, 13
35. CAN YOU SPEAK MAGIC? THREE OUTCOMES Buy or Be Bought Tread Water Give Up 19 Wednesday, October 16, 13
36. CAN YOU SPEAK MAGIC? FOURTH OPTION: 20 Wednesday, October 16, 13
37. CAN YOU SPEAK MAGIC? FOURTH OPTION: 20 INNOVATE Wednesday, October 16, 13
38. CAN YOU SPEAK MAGIC? INNOVATION 21 Wednesday, October 16, 13
39. CAN YOU SPEAK MAGIC? INNOVATION •Change Business Model 21 Wednesday, October 16, 13
40. CAN YOU SPEAK MAGIC? INNOVATION •Change Business Model •Switch from selling minutes to seats 21 Wednesday, October 16, 13
41. CAN YOU SPEAK MAGIC? INNOVATION •Change Business Model •Switch from selling minutes to seats •Switch from selling seats to phones 21 Wednesday, October 16, 13
42. CAN YOU SPEAK MAGIC? INNOVATION •Change Business Model •Switch from selling minutes to seats •Switch from selling seats to phones •Focus on Being Different 21 Wednesday, October 16, 13
43. CAN YOU SPEAK MAGIC? INNOVATION •Change Business Model •Switch from selling minutes to seats •Switch from selling seats to phones •Focus on Being Different •“The Customer Service Leader” 21 Wednesday, October 16, 13
44. CAN YOU SPEAK MAGIC? INNOVATION •Change Business Model •Switch from selling minutes to seats •Switch from selling seats to phones •Focus on Being Different •“The Customer Service Leader” •“Fastest Deployment Time Period” 21 Wednesday, October 16, 13
45. CAN YOU SPEAK MAGIC? INNOVATION •Change Business Model •Switch from selling minutes to seats •Switch from selling seats to phones •Focus on Being Different •“The Customer Service Leader” •“Fastest Deployment Time Period” •Specialization 21 Wednesday, October 16, 13
46. CAN YOU SPEAK MAGIC? INNOVATION •Change Business Model •Switch from selling minutes to seats •Switch from selling seats to phones •Focus on Being Different •“The Customer Service Leader” •“Fastest Deployment Time Period” •Specialization •Highly targeted products and services 21 Wednesday, October 16, 13
47. CAN YOU SPEAK MAGIC? INNOVATION •Change Business Model •Switch from selling minutes to seats •Switch from selling seats to phones •Focus on Being Different •“The Customer Service Leader” •“Fastest Deployment Time Period” •Specialization •Highly targeted products and services •Vertical Integration 21 Wednesday, October 16, 13
48. CAN YOU SPEAK MAGIC? INNOVATION •Change Business Model •Switch from selling minutes to seats •Switch from selling seats to phones •Focus on Being Different •“The Customer Service Leader” •“Fastest Deployment Time Period” •Specialization •Highly targeted products and services •Vertical Integration •Deliver things that others can’t 21 Wednesday, October 16, 13
49. CAN YOU SPEAK MAGIC? Case Study 22 Wednesday, October 16, 13
50. CAN YOU SPEAK MAGIC? CASE STUDY 23 Wednesday, October 16, 13
51. CAN YOU SPEAK MAGIC? CASE STUDY •Commoditized Market: Home Remodeling 23 Wednesday, October 16, 13
52. CAN YOU SPEAK MAGIC? CASE STUDY •Commoditized Market: Home Remodeling •No players in market with more than a single-digit share 23 Wednesday, October 16, 13
53. CAN YOU SPEAK MAGIC? CASE STUDY •Commoditized Market: Home Remodeling •No players in market with more than a single-digit share •Industry reputation for low quality, poor service, unhappy customers 23 Wednesday, October 16, 13
54. CAN YOU SPEAK MAGIC? CASE STUDY 24 Wednesday, October 16, 13
55. CAN YOU SPEAK MAGIC? CASE STUDY •Built 100% custom ERP package 24 Wednesday, October 16, 13
56. CAN YOU SPEAK MAGIC? CASE STUDY •Built 100% custom ERP package •Automated processes for sales, financing, product installation, ongoing customer service 24 Wednesday, October 16, 13
57. CAN YOU SPEAK MAGIC? CASE STUDY •Built 100% custom ERP package •Automated processes for sales, financing, product installation, ongoing customer service •Call center automation 24 Wednesday, October 16, 13
58. CAN YOU SPEAK MAGIC? CASE STUDY •Built 100% custom ERP package •Automated processes for sales, financing, product installation, ongoing customer service •Call center automation •Confirm appointments with consumer 24 Wednesday, October 16, 13
59. CAN YOU SPEAK MAGIC? CASE STUDY •Built 100% custom ERP package •Automated processes for sales, financing, product installation, ongoing customer service •Call center automation •Confirm appointments with consumer •Match qualified reps with leads 24 Wednesday, October 16, 13
60. CAN YOU SPEAK MAGIC? CASE STUDY •Built 100% custom ERP package •Automated processes for sales, financing, product installation, ongoing customer service •Call center automation •Confirm appointments with consumer •Match qualified reps with leads •Click-to-call for agents 24 Wednesday, October 16, 13
61. CAN YOU SPEAK MAGIC? CASE STUDY 25 Wednesday, October 16, 13
62. CAN YOU SPEAK MAGIC? CASE STUDY •$75MM in 2011 25 Wednesday, October 16, 13
63. CAN YOU SPEAK MAGIC? CASE STUDY •$75MM in 2011 •$172MM in 2012 25 Wednesday, October 16, 13
64. CAN YOU SPEAK MAGIC? CASE STUDY •$75MM in 2011 •$172MM in 2012 •130% three-year growth 25 Wednesday, October 16, 13
65. CAN YOU SPEAK MAGIC? CASE STUDY •$75MM in 2011 •$172MM in 2012 •130% three-year growth 25 Wednesday, October 16, 13
66. CAN YOU SPEAK MAGIC? CASE STUDY •$75MM in 2011 •$172MM in 2012 •130% three-year growth 25 Wednesday, October 16, 13
67. CAN YOU SPEAK MAGIC? LET’S TALK ABOUT US 26 Wednesday, October 16, 13
68. CAN YOU SPEAK MAGIC? WE HAVE THE TOOLS 27 Wednesday, October 16, 13
69. CAN YOU SPEAK MAGIC? WE HAVE THE TOOLS 27 Wednesday, October 16, 13
70. CAN YOU SPEAK MAGIC? WE HAVE THE TOOLS 27 Wednesday, October 16, 13
71. CAN YOU SPEAK MAGIC? WE HAVE THE TOOLS 27 Wednesday, October 16, 13
72. CAN YOU SPEAK MAGIC? WE HAVE THE TOOLS 27 Wednesday, October 16, 13
73. CAN YOU SPEAK MAGIC? WE HAVE THE TOOLS 27 Wednesday, October 16, 13
74. CAN YOU SPEAK MAGIC? WE HAVE THE TOOLS 27 Wednesday, October 16, 13
75. CAN YOU SPEAK MAGIC? WE HAVE THE TOOLS 27 Wednesday, October 16, 13
76. CAN YOU SPEAK MAGIC? ...BUT WE SELL THIS 28 Wednesday, October 16, 13
77. CAN YOU SPEAK MAGIC? ...BUT WE SELL THIS 29 Wednesday, October 16, 13
78. CAN YOU SPEAK MAGIC? ...BUT WE SELL THIS 29 Wednesday, October 16, 13
79. CAN YOU SPEAK MAGIC? ...BUT WE SELL THIS 29 Wednesday, October 16, 13
80. CAN YOU SPEAK MAGIC? ...BUT WE SELL THIS 29 Wednesday, October 16, 13
81. CAN YOU SPEAK MAGIC? WHAT SHOULD WE BUILD? 30 Wednesday, October 16, 13
82. CAN YOU SPEAK MAGIC? “Communicating isn’t going to be what you’re doing - it’s what you’ll be doing while you’re doing something else” - Geoff Hollingworth Ericsson Head of AT&T Foundry 31 Wednesday, October 16, 13
83. CAN YOU SPEAK MAGIC? Example RTC Apps 32 Wednesday, October 16, 13
84. CAN YOU SPEAK MAGIC? Example RTC Apps 32 3 Examples Wednesday, October 16, 13
85. CAN YOU SPEAK MAGIC? 1. Incident Response 33 Wednesday, October 16, 13
86. CAN YOU SPEAK MAGIC? 34 Wednesday, October 16, 13
87. CAN YOU SPEAK MAGIC? INCIDENT RESPONSE 35 Wednesday, October 16, 13
88. CAN YOU SPEAK MAGIC? INCIDENT RESPONSE •Timely, Contextual Information 35 Wednesday, October 16, 13
89. CAN YOU SPEAK MAGIC? INCIDENT RESPONSE •Timely, Contextual Information •Adapt for mobile vs. desktop users 35 Wednesday, October 16, 13
90. CAN YOU SPEAK MAGIC? INCIDENT RESPONSE •Timely, Contextual Information •Adapt for mobile vs. desktop users •Group-based communication 35 Wednesday, October 16, 13
91. CAN YOU SPEAK MAGIC? INCIDENT RESPONSE •Timely, Contextual Information •Adapt for mobile vs. desktop users •Group-based communication •Inherit from existing organizational groups 35 Wednesday, October 16, 13
92. CAN YOU SPEAK MAGIC? INCIDENT RESPONSE •Timely, Contextual Information •Adapt for mobile vs. desktop users •Group-based communication •Inherit from existing organizational groups •Allow ad-hoc participants (“guest” parties) 35 Wednesday, October 16, 13
93. CAN YOU SPEAK MAGIC? INCIDENT RESPONSE •Timely, Contextual Information •Adapt for mobile vs. desktop users •Group-based communication •Inherit from existing organizational groups •Allow ad-hoc participants (“guest” parties) •Federate with external services 35 Wednesday, October 16, 13
94. CAN YOU SPEAK MAGIC? INCIDENT RESPONSE •Timely, Contextual Information •Adapt for mobile vs. desktop users •Group-based communication •Inherit from existing organizational groups •Allow ad-hoc participants (“guest” parties) •Federate with external services •Incident recording/logging 35 Wednesday, October 16, 13
95. CAN YOU SPEAK MAGIC? INCIDENT RESPONSE •Timely, Contextual Information •Adapt for mobile vs. desktop users •Group-based communication •Inherit from existing organizational groups •Allow ad-hoc participants (“guest” parties) •Federate with external services •Incident recording/logging •“Lessons learned” and process improvement 35 Wednesday, October 16, 13
96. CAN YOU SPEAK MAGIC? INCIDENT RESPONSE •Timely, Contextual Information •Adapt for mobile vs. desktop users •Group-based communication •Inherit from existing organizational groups •Allow ad-hoc participants (“guest” parties) •Federate with external services •Incident recording/logging •“Lessons learned” and process improvement •Links from/to issue tracking systems 35 Wednesday, October 16, 13
97. CAN YOU SPEAK MAGIC? 2. Medical Records Management 36 Wednesday, October 16, 13
98. CAN YOU SPEAK MAGIC? 37 Wednesday, October 16, 13
99. CAN YOU SPEAK MAGIC? MEDICAL RECORDS MGMT 38 Wednesday, October 16, 13
100. CAN YOU SPEAK MAGIC? MEDICAL RECORDS MGMT •Automate Medical Claims 38 Wednesday, October 16, 13
101. CAN YOU SPEAK MAGIC? MEDICAL RECORDS MGMT •Automate Medical Claims •Secure Caller Authentication 38 Wednesday, October 16, 13
102. CAN YOU SPEAK MAGIC? MEDICAL RECORDS MGMT •Automate Medical Claims •Secure Caller Authentication •Reuse primary auth via website 38 Wednesday, October 16, 13
103. CAN YOU SPEAK MAGIC? MEDICAL RECORDS MGMT •Automate Medical Claims •Secure Caller Authentication •Reuse primary auth via website •Verify with voice biometrics 38 Wednesday, October 16, 13
104. CAN YOU SPEAK MAGIC? MEDICAL RECORDS MGMT •Automate Medical Claims •Secure Caller Authentication •Reuse primary auth via website •Verify with voice biometrics •Cross-check against caller location 38 Wednesday, October 16, 13
105. CAN YOU SPEAK MAGIC? MEDICAL RECORDS MGMT •Automate Medical Claims •Secure Caller Authentication •Reuse primary auth via website •Verify with voice biometrics •Cross-check against caller location •Call recording/transcription 38 Wednesday, October 16, 13
106. CAN YOU SPEAK MAGIC? MEDICAL RECORDS MGMT •Automate Medical Claims •Secure Caller Authentication •Reuse primary auth via website •Verify with voice biometrics •Cross-check against caller location •Call recording/transcription •Medical advice given to patient automatically added to patient file 38 Wednesday, October 16, 13
107. CAN YOU SPEAK MAGIC? MEDICAL RECORDS MGMT •Automate Medical Claims •Secure Caller Authentication •Reuse primary auth via website •Verify with voice biometrics •Cross-check against caller location •Call recording/transcription •Medical advice given to patient automatically added to patient file •Auditing/Service Quality Assurance 38 Wednesday, October 16, 13
108. CAN YOU SPEAK MAGIC? 3. Live, Anonymous Matchmaking 39 Wednesday, October 16, 13
109. CAN YOU SPEAK MAGIC? 40 http://funnydate.com/have-a-chat FunnyDate FunnyDate SHErlock 22 Female Male Oakdale Books, Moustaches, Puzzles Captain Beard 23 Male Female Springfield Books, Moustaches, Puzzles USERNAME AGE GENDER SEEKING CITY MATCHING INTERESTS Wednesday, October 16, 13
110. CAN YOU SPEAK MAGIC? LIVE, ANONYMOUS DATING 41 FunnyDate Wednesday, October 16, 13
111. CAN YOU SPEAK MAGIC? LIVE, ANONYMOUS DATING •Safe Introductions 41 FunnyDate Wednesday, October 16, 13
112. CAN YOU SPEAK MAGIC? LIVE, ANONYMOUS DATING •Safe Introductions •Strict anonymity 41 FunnyDate Wednesday, October 16, 13
113. CAN YOU SPEAK MAGIC? LIVE, ANONYMOUS DATING •Safe Introductions •Strict anonymity •No need to exchange phone numbers 41 FunnyDate Wednesday, October 16, 13
114. CAN YOU SPEAK MAGIC? LIVE, ANONYMOUS DATING •Safe Introductions •Strict anonymity •No need to exchange phone numbers •Low friction interface enables users to connect in real-time 41 FunnyDate Wednesday, October 16, 13
115. CAN YOU SPEAK MAGIC? LIVE, ANONYMOUS DATING •Safe Introductions •Strict anonymity •No need to exchange phone numbers •Low friction interface enables users to connect in real-time •Silly video tricks used to break the ice 41 FunnyDate Wednesday, October 16, 13
116. CAN YOU SPEAK MAGIC? LIVE, ANONYMOUS DATING •Safe Introductions •Strict anonymity •No need to exchange phone numbers •Low friction interface enables users to connect in real-time •Silly video tricks used to break the ice •...or even add more anonymity 41 FunnyDate Wednesday, October 16, 13
117. CAN YOU SPEAK MAGIC? LIVE, ANONYMOUS DATING •Safe Introductions •Strict anonymity •No need to exchange phone numbers •Low friction interface enables users to connect in real-time •Silly video tricks used to break the ice •...or even add more anonymity •Negligible operating costs relative to traditional telephony 41 FunnyDate Wednesday, October 16, 13
118. CAN YOU SPEAK MAGIC? Find your niche 42 Wednesday, October 16, 13
119. CAN YOU SPEAK MAGIC? Deliver what people want rather than billing for what they don’t 43 Wednesday, October 16, 13
120. CAN YOU SPEAK MAGIC? WE HAVE THE TOOLS 44 Wednesday, October 16, 13
121. CAN YOU SPEAK MAGIC? STOP BUILDING THIS 45 Wednesday, October 16, 13
122. CAN YOU SPEAK MAGIC? 46 BUILD THIS Wednesday, October 16, 13
123. CAN YOU SPEAK MAGIC? 47 adhearsionconf.com Wednesday, October 16, 13
124. CAN YOU SPEAK MAGIC? 48 http://mojolingo.com @MojoLingo @bklang bklang@mojolingo.com Wednesday, October 16, 13
125. CAN YOU SPEAK MAGIC? 48 http://mojolingo.com @MojoLingo @bklang bklang@mojolingo.com Wednesday, October 16, 13