Ericsson: Connected Traffic Cloud

The case describes how telecom giant Ericsson’s Intelligent Transport Systems (ITS) team developed the Connected Traffic Cloud (CTC) due be launched at the prestigious Mobile World Congress. The CTC solution had already created a huge buzz internally. Competition was tough to be selected for launch at this annual conference, witness to the solution’s huge potential for Ericsson’s expansion into new arenas. All the customers the team hoped to reach were present at the conference. The timing was also good as the six year project in Germany where Ericsson had partnered with a consortia on ITS had reached its final stages with positive results in the domain. For the CTC solution to be successful building an ecosystem would be essential be it with road authorities, auto manufacturers, service providers or IT companies the possibilities were endless. The case discusses the challenges Ericsson faced constructing this ecosystem and options for monetizing the innovative solution. It was a new and complex landscape for Ericsson to navigate but with 140 years in the telecom space the company had global scale and local presence required for the ITS domain. Auto manufacturers were looking to redefine their value chains with cars becoming connected and automated, and were therefore investing in communication and cloud solutions.

Students should gain an understanding of what makes an ecosystem - what partnerships, what service / product offerings, and what business model. They should be able to answer the following questions: • What are the biggest risks of Ericsson’s current approach to Connected Traffic Cloud? • How are competitors likely to respond or enter this space when it matures? • What are the key modifications that Ericsson must make to create and capture value in this space?