TELEGRAM Case Study BUSINESS MODELS INNOVATION 2019 FALL

TELEGRAM Case Study BUSINESS MODELS INNOVATION 2019 FALL Tor Vergata University of Rome Master of Business Administration FLAMINIA CHECCHI; LIDIA FERNÁNDEZ; MICHELA PERRINO; INES SÁNCHEZ; YOUXIA ZHOU

What is Telegram? Telegram is a cloud-based mobile and desktop messaging app with a focus on security and speed, that allows users to send multimedia messages and make voice and video calls. Telegram is launched in 2013 by the brothers Nikolai and Pavel Durov in Russia. Cloud storage Secret chat Telegram will not be sold Bots channels and Open API and protocol free for everyone Self-destruct messages 2 2

“Since the day we launched in August 2013, we haven’t disclosed a single byte of our users’ private data to third parties. Telegram is an idea; it is the idea that everyone on this planet has a right to be free. ” “From Russia With Crypto: A Political History of Telegram” - Nathalie Maréchal, University of Southern California 3

Telegram Roadmap Launch of Telegram Messenger and the Telegram API 2014 Launch of the Payments Platform; Launch of Bot API and Platform; Supergroups（ for 1, 000 members) 2013 2016 Start of the development of TON. 2015 Send documents and files Voice Messages, Delete Messages for both sides in Secret Chats, Language Settings on Android Multiple photo upload and more Creation of TONbased economy in Telegram; 2017 Introducing Inline Bots; GIF Revolution; Supergroups (for 5000 members) 2018 Launch of TON Services, TON Storage, and TON Proxy 2019 Launch of Telegram External Secure ID; Launch of the Minimal Viable Test Network of TON; Testing and security audits of TON; Deployment of the stable version of TON; Launch of Telegram Wallet. 4

Competitors Whats. App Viber A company developing freeware and crossplatform instant messaging service for smartphones. Viber is a calling and messaging app that connects people with a free and secure connection QQ Mobile QQ is an instant messaging (IM) platform for PC and mobile and has become the one of the favorite social platforms for young Chinese users with its diversified functions and services. Discord All-in-one voice and text chat for gamers that's free, secure, and works on both your desktop and phone. Facebook Messenger Commonly known as Messenger, it is a messaging app and platform. Facebook has released new apps on a variety of different operating systems and separated the messaging functionality from the main Facebook app. We. Chat Is a Chinese multi-purpose messaging, social media and mobile payment app developed by Tencent. We. Chat has been described as China‘s “app for everything” and a “super app” because of its wide range of functions. it's largest standalone mobile apps with over 1 billion monthly active users. 4

Telegram in Numbers Number of monthly active users in millions Monthly active users in millions Telegram 200 Discord 250 200 Viber 180 260 150 QQ Mobile 823 We. Chat 100 1112 Messanger 1300 Whatsapp 50 1600 0 @Statista 2019 200 400 600 800 1000 1200 1400 1600 50 60 35 0 1800 mar-14 dec-14 sep-15 feb-16 dec-17 mar-18 6

Value Proposition What value does the customer perceive in the market? Private and speed communication What needs are met? Fast and reliable messaging and calls What are the advantages? Security – Channels – Cross-platform availability What other needs could be met? Connect people worldwide What would make the customer real happy? To know all they can get and how to do it 7

SWOT Analysis • • • Completely free High privacy Multi devices Higly reliable New customers (students, teachers) • Internet penetration in developing countries: • Smartphone users: • New technology • No agreement with universities S W O T • No video calls • Use from criminals (and terrorists) • High competition • Possible ban from governments 8

Service/Market Matrix SERVICE / MARKET MATRIX CITIZENS CRYPTO IT COMPANIE CURRENCY CRIMINALS DEVELOPE S USERS RS GROUPS SECRET CHAT «REGULAR» CHAT CHANNELS BOT CLOUD STORAGE TON 9

Five Forces Telegram 01 HIGH 02 03 Bargaining power of buyers HIGH They decide if use it or not. 04 Bargaining power of suppliers MEDIUM Threat substitutes Competitive rivalry HIGH It depends on services. 05 There are other established companies that offers the same services and same ways to communicate. Whats. App, Messenger, Viber, We chat, QQ Mobile, Discord. Barriers to entry LOW/HIGH At the beginning it’s low because you have to create a new App but then it’s high because it’s difficult to remain inside of the market. 10

INVESTMEN TS TARGET MKT VALUE DELIVERY MARKETING 24 HRS PRIVACY EXTRA VALUE CUSTOMIZE EVENTS POSTERS FREE PERIOD REVENUES/VALUE CUSTOMER NEEDS BLOCKCHAIN “TON” HUMAN RESOURCES NEW SERVICES PARTNERSHIP UNIVERSITY FEE USERS IMAGE GRAM FAMILIES STUDENTS PROFESSORS E-CAMPUS PAYMENT TUTORING CLOUDING E-LECTURE PROCUMENT SHARING INSTANT COMMUNICATION ADVICES CHAT M MP BOT 11

Service/Market Matrix (E-campus) SERVICE/ MARKET MATRIX CITIZENS CRYPTO CURRENCY USERS CRIMINALS SCHOOLS IT AND DEVELOPE COMPANIES UNIVERSITI RS ES GROUPS SECRET CHAT «REGULAR» CHAT CHANNELS - BOT CLOUD STORAGE TON E-CAMPUS 12

ive Forces Telegram (E-campus) 01 HIGH 02 03 Bargaining power of buyers LOW They decide if use it or not. 04 Bargaining power of suppliers MEDIUM Threat substitutes Competitive rivalry HIGH It depends on services. 05 Barriers to entry LOW/HIGH There are not other established instant messaging companies that offer this same service or the same way to communicate Virtual classroom of schools/universities, Mail, Whats. App, Messenger, Viber, We chat, QQ Mobile, Discord. At the beginning it’s low because you are providing a new service but once stablished it’s high because it’s difficult to remain inside of the market. 13

Telegram Business Model (E-CAMPUS) FREE AND Canvas VALUE KEY SECURE PARTNERS FOUNDERS HARDWARE PROVIDERS THIRD PARTY INTEGRATER S UNIVERSITIE S SCHOOLS ACTIVITIES UPDATES COMMUNICATIO N DOCUMENT SHARING E-LECTURES KEY RESOURCES IT DEVELOPER DESIGNERS INFRASTRUCTURE SERVERS TO SUPPORT PLATFORM APK DEVELOPER IT KNOWLEDGE PROPOSITIONS COMMUNICATIO N PRIVATE COMMUNICATIO N CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS COMMUNITIES CITIZENS STUDENTS CARD BLOCKCHAIN USERS COMPANIES FAST MESSAGING CONNECT PEOPLE WORLDWIDE CLOUD CONSTANT STORAGE INFORMATION COST STRUCTURE INFRASTRUCTURE AND SERVICE MANTAINANCE MANAGEMENT MARKETING COSTS TO SECURITY UNIVERSITY DEVELOPERS REVENUE STREAMS DONATIONS TON FREE FOR USERS STUDENTS CHANNELS APP WEBSITE ECAMPUS BOTs TEACHERS PROFESSOR S FAMILIES CLOUD UNIVERSITY FEE 14

Strategy Map – E-CAMPUS Research and innovation project Infrastructure and Service Maintenance Financial European University Association Universities & Schools Customer Partners Internal Partners & & Learning & Growth Funding Opportunities Students Professors Families Service platform support Develop channels IT developers Designers New code for the product New look for new market to the New platform supporter Employ new Resources Technical Development Marketing and Technical Materials and storage for New product Testing the new App Do the testing in target school 15

E-Campus: Launch Pre-Launch • • • University Training Social Media Plan Surveys Community Involvement Brand assets for launch (advertising on Bot, video) Launch Post-Launch • Demos • Launch Events in Universities: workshops and conferences • Performance Evaluation • Interviews and Feedbacks • Success Stories • Continuous involvement 16

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