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Day 4 - IFA International

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Visionary Interview Sony

Visionary Interview Sony Focuses on Convergence In the framework of "One Sony" strategy, Sony Mobile's headquarters move to Tokyo Kunimasa Suzuki President of Sony Mobile Communications Newly-appointed president of Sony Mobile Communications, Kunimasa Suzuki, is tasked with delivering the company’s One Sony strategy, which centres around the convergence of different Sony products. He explained the strategy to IFA International editor in chief Richard Barnes [ Interview by Richard Barnes ] What key changes have taken place since your company was renamed Sony Mobile Comunications? We have made a number of structural and organisational changes that will help drive our business forward. First and foremost the focus has been on deeper integration with the wider Sony group to deliver our One Sony strategy. Sony Mobile and the mobile business is a cornerstone of Sony’s convergence strategy and to reflect this we will move our management headquarters to Tokyo from October 1. This will allow us to be more 16 closely aligned with other Sony business groups as well as enhance our capability to execute our strategy with more speed and force. We will also alter the global operational structure of our development sites in Tokyo, Lund and Beijing. I have also appointed Dennis Van Schie as Head of Sales and Marketing and he will be instrumental in optimising our business from a product, market and customer perspective. All of these changes will strengthen our business and place us on the path of growth where we can excite consumers with market-leading products and experiences. How do you plan to drive Sony Mobile forward? Sony has identified digital imaging, gaming and mobile as the three core pillars of our electronics business, and smartphones are a cornerstone of this strategy. Another area of focus is with our user experience (UX) and this is something we are paying particular attention to by seamlessly linking a wide range of consumer electronics products, network services and applications together. And we have announced a global headcount reduction with the intention of increasing operational efficiency, reducing costs and driving profitable growth. What strategy is emerging around UX? The convergence of different Sony products, network services and content in seamless ways, is a key step in providing value to our customers moving forward. Sony wants to be a constant presence in people’s daily lives by not only creating and distributing the films, TV shows and games they love through our entertainment businesses, but also in the way they access, experience and consume this content through our Smartphones and tablets. This is our point of differentiation and something we can offer that our competitors cannot. How is mobile convergence going to influence the future of Sony Mobile? Xperia smartphones are at the heart of Sony’s convergence strategy. We are working to deliver outstanding hardware and iconic design and a compelling ecosystem of content and services that offers unrivalled connected entertainment experiences to consumers across multiple devices. What are the biggest challenges facing Sony Mobile? As Sony Mobile, and as a part of the wider Sony family, we are in a strong position but there is still much to achieve. We must of course deliver growth, but there is a clear opportunity in front of us. We are accelerating integration and convergence with the wider Sony group and will continue to create a more focused and efficient operational structure that will reduce costs and enhance time to market. We have a compelling smartphone and tablet portfolio, and with our new inter-connected user experience, we are in a great position to be able to deliver innovative and compelling experiences that strike a chord with consumers. Hall 4.2 Stand 101 Kunimasa Suzuki announces new products at ifa “As well as showcasing our new range of Smartphones: Xperia T, Xperia V and Xperia J and our new Xperia Tablet, we are also demonstrating how consumers can connect, share and move content from device to device simply by touching them together. We call this One-Touch connectivity. It’s made possible by Near-Field Communication (NFC) technology. For example if you tap Xperia T to the new NFC-enabled Sony speaker, the music instantly continues to play delivering a 360-degree sound field. And if you tap Xperia T to Sony’s new NFC-enabled headphones you can continue the experience and enjoy the music in solitude. And with the new Xperiabranded tablet we offer a common user experience across devices, enabling consumers to enjoy a common interface and applications across Xperia smartphones and PCs and tablets.” “Xperia smartphones are at the heart of Sony’s convergence strategy”

Visionary Interview Harold Goddijn Harold Goddijn is a Dutch national. Having studied Economics at Amsterdam University, Goddijn tarted his career with a venture capital firm. He then founded Psion Netherlands BV in 1989 as a joint venture with Psion Plc, and in 1991 co-founded TomTom. He continued to lead Psion Netherlands BV, developing it into a key European distributor for Psion. In 1998 he was appointed Managing Director of Psion Computers and served on the Board of Psion Plc from 1998 to 1999. Harold was appointed Chief Executive Officer of TomTom in 2001. Beating the Drum TomTom’s CEO shares his thoughts on the company’s transformation Harold Goddijn TomTom CEO TomTom Fact In 2012, it was announced TomTom would be the main map data provider for Apple's revamped iOS 6 maps app. TomTom Fact #2 Founded in 1991, until 1996 Tom Tom developed b2b applications such as bar-code readers. Subsequently the company moved its focus to PDA software for the consumer market. Early mapping software included EnRoute and Citymaps. New Opportunities A new generation of revenue growth for the in-car navigation market will create fresh opportunities according to a report published by ABI research in August 2012. While pure navigation is unlikely to reach the highs of 2008 again, the overall market is reaching a revenue plateau, says the report, creating a solid platform on which connected incar services can thrive. The market is forecast to reach a low of billion this year, before fluctuating around the - billion mark, as a new period of growth for factory-fitted solutions, coupled with smartphone solutions, will take incar navigation towards saturation point in many regions by 2017. The report concludes that factory-fitted solutions will bring new revenue opportunities, especially for PND manufacturers. As market leader of one of the fastest growing electronics segments ever, TomTom’s rise to fame was both rapid and dramatic, transforming the in-car lives of millions. TomTom CEO Harold Goddijn told IFA International why he believes the company has a bright future... [ Interview by Richard Barnes ] We were the first to market with accessible and affordable navigation devices that liberated millions and millions of drivers who otherwise would not have had access to such technology. In the excitement of the moment we didn’t really see it like that, but with the benefit of hindsight it was a major development. Then, as time went on and navigation devices became more commonplace, the excitement about such technologies evaporated somewhat. But what we’re doing is relevant, even though there is more competition, we are selling millions of devices, as well as dashboardbased technologies to car manufacturers, and these devices still have a big impact of drivers. What have been the key highlights of your year to date (more particularly in Europe)? It has been a challenging year and it’s clear that we need to develop new revenue streams, because our core business is declining, plus there are more ways to have in-car navigation these days, and more competition generally than ever. So we have had to adapt our organisation to these new realities, while at the same time, just like every company, we are having to cope with the current economic situation in Europe and North America. But thanks to the measures that we took in 2011 we are now in much better shape, we are starting to be more agile generally, and faster at innovation, plus productivity is going up, and we are entering new markets such as the fitness sector. Provided we can maintain that momentum in developing new revenue streams, we will look good in the next few years, and it won’t be long before we start to grow again. Tom Tom's recent initiative to offer free map upgrades has been a big surprise to many. What brought about this change? We looked at the value proposition to the customers and we found that only quite a small percentage were upgrading their maps, and we don’t like that, because we want them to have the latest and the best information, but in as simple a way as possible. So by including the price of a lifetime map offering in the purchase price, we believe that we are lowering the barrier to the latest and greatest technology. So it’s a transition from maps being an after-sale service to a point-of-sale product. We have also introduced three daily upgrades on Map Share because we know the world is constantly changing and therefore maps can never be 100% perfect, so we ask our customers to help us. When someone changes their own map, there is a program that allows them to share that information, and then we validate it through a second source, and if it’s correct we make it part of the standard map. Hall 9 Stand 210 “What we’re doing is relevant, even though there is more competition, we are selling millions of devices” www.ifa-international.org IFA International • Monday 3 rd September 2012 17

IFA International