X Internet Q2 2002

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The X Internet: Leveling the playing field for businesses in developing nations: 

The X Internet: Leveling the playing field for businesses in developing nations Navi Radjou Senior Analyst Eroica Howard Research Assistant to the CEO

Waves of Internet innovation: 

Waves of Internet innovation Internet users

Theme: 

Theme The X Internet will let businesses in developing nations do more with what they have

Agenda: 

What’s behind the X Internet? What is the X Internet? Early adopters of the X Internet in developing nations When will these changes take hold? Agenda

What’s behind the X Internet?: 

What’s behind the X Internet?

Bandwidth lags other technology improvements: 

Bandwidth lags other technology improvements Computing Storage Bandwidth * Though most PCs and servers ship with 100 Mbps networking interfaces, actual Internet throughput remains limited by corporate Internet connections 50% 62% 27% CAGR

Bandwidth continues to lag processing and storage technologies: 

Bandwidth continues to lag processing and storage technologies

Today’s “last-mile” bottlenecks: 

Today’s “last-mile” bottlenecks

X Internet moves beyond bandwidth’s limits: 

X Internet moves beyond bandwidth’s limits

What is the X Internet?: 

What is the X Internet?

The X Internet refers to two “Xs”: 

The X Internet refers to two “Xs” An executable Internet that supplants today’s Web An extended Internet that connects to the real world

Executable Internet builds conversations: 

Executable Internet builds conversations Server

The Web only provides answers: 

The Web only provides answers The Web How much is in my account?

The executable Net creates a conversation : 

The executable Internet The executable Net creates a conversation Two-way conversation about my account

Isn’t this just Java?: 

Isn’t this just Java? Java is a piece of some solutions But there are other alternatives

Extended Internet -- an Internet of things: 

Extended Internet -- an Internet of things

The X Internet connects digital to physical: 

The X Internet connects digital to physical

WhereNet devices simplify supply logistics: 

Temp: 52° F Fuel: 1/2 tank Door: Closed Tag is integrated with door, fuel, and temperature sensors Sensor data is transmitted every few minutes WhereNet devices simplify supply logistics

WhereNet devices simplify supply logistics: 

WhereNet devices simplify supply logistics Yard inventory is conveyed to users through maps and reports Colors indicate trailer status and alert conditions

Early adopters of X Internet in developing nations: 

Early adopters of X Internet in developing nations

X Internet pioneers in developing nations: 

X Internet pioneers in developing nations Hanssem Kitchen Ware (China) EAN International (www.autoidcenter.org) CK Tang Department Store (Malaysia) UNCTAD/Savi Technology partnership

Case study: CEMEX (Mexico): 

Case study: CEMEX (Mexico) GPS-enabled truck fleet 20-minute delivery window Savings: $100 million

When will these changes take hold?: 

When will these changes take hold?

The three waves of X Internet adoption: 

The three waves of X Internet adoption Product fit Bits-to-atoms ratio in end products Intangibility of supply chain assets Industry readiness Value chain simplicity Propensity to adopt cross-firm apps High Low 1 2 3 4 5

X Internet devices and spending: 

X Internet devices and spending

Summary: 

Summary The executable Net will supplant the Web The extended Net will connect digital to physical The X Internet will let businesses in developing nations do more with what they have

Thank you: 

Thank you Navi Radjou Eroica Howard nradjou@forrester.com ehoward@forrester.com +1 617/613-6119 +1 617/613-6295 www.forrester.com