© logica 2008. all rights reserved the death of divide and conquer the roles of integration and...
TRANSCRIPT
© Logica 2008. All rights reserved
The death of divide and conquerThe roles of integration and convergence in telecoms and media
Thomas Breuer
Group Director Telecoms
Agenda
• New facts of live – the power of the consumer
• Business models and ownership
• Learning's from the retail sector
• A paradigm-shift in delivering services
• Conclusion
New facts of life
• Internet & Broadband are mainstream and cheap
– Old business models are disrupted
◦ Competition moves from “connectivity” to “customer” based
– Industry consolidation
– Short service lifecycle
• Value chain fragmentation
◦ Operators become fixed/mobile convergent bit-pipes
◦ GAMEYS (Google etc) dominate services
◦ Selling done by Brands
• Service boundaries blur:
– Telcos offer TV, cable companies offer IP and phones
– Convergence of everything
Convergence of everything !
Me
dia
Ac
ce
ss
/Ba
nd
-w
idth
/In
tern
et
P2
P
Fixed Hot Spots Mobile
Application convergence“Triple Play”
Network convergence“FMC / FMS”A
pp
lica
tio
n
Environment
Level
of conv.
Business
process &
system
s
convergence
Express yourself !
User Generated Content
Personalized Consumption
Based on fundamental human drivers
•vanity
•ego
•need for self-expression
Pull replaces Push
?
???
?
Predict demand Package content
Difficult
Inflexible
Push content
Costly
Consume content
Unfulfillin
g
UnbundlingPull content(on demand)
Pull – because distribution is cheaptomorrow...
Today …Push – because distribution is costly
Everything becomes ”Feeds”
Past: The traditional web...
Web
site
Web
site
GetGet
ContentContent
Future: Pull – the next level Web
site
Web
site
Web
site
Web
site
Aggr
site
Aggr
site
RSS
RSS
FeedsRemix
Consume
User/App
Unbundling of media … and everything
• Unbundling creates an abundance of content
• Consumer’s attention is the scarce factor!
• The birth of the “Attention Economy”
CD’sCD’sCD’s iTunes
TV
Ads
TV
DVR’s
News
mediaRSSRSSRSS
Telephony VOIP
Unbundling of TV from advertising
Unbundling of songs from CD’s
Unbundling of news from papers
Unbundling of voice from access
Agenda
• New facts of live – the power of the consumer
• Business models and ownership
• Learning's from the retail sector
• A paradigm-shift in delivering services
• Conclusion
From Operator Club...
Narrow pipeService
Interconnect
Business model: Create interoperable services and compete on price
…to Internet Club
What if
•real competition is about mobile subscribers?
•great services are access independent?
•running a community is much different from just having subscribers?
•...?
Business model: Differentiate and reduce churn
Interconnect
Interco
nn
ect
Moving from vertical integration to core competency ecosystems
• Design (Spec)• Implement, Test,
Deploy• Manage lifecycle• Integrate Partners
• Config. Systems
• Fulfillment• Partner
Set-Up
• Sell in– Shop – Call centre– Web– Partners
• Execute Campaigns
• Operate networks• Operate
Applications• Trouble shooting,
E2e monitoring
Service & process
engineering
Production Set-Up
Service SalesService Delivery
CareInvoicingAccess Core Appl.
• Provide customer helpdesk
• Cust. Data changes• Billing (Rating)• Invoicing• Factoring/Clearing
Main
Tasks
NO = Network Operator
Fixed NO
Mobile NO
BB/ISP
3rd party content
External SI
Acto
rs
Virtual Operator
Agenda
• New facts of live – the power of the consumer
• Business models and ownership
• Learning's from the retail sector
• A paradigm-shift in delivering services
• Conclusion
How does Zara do it?
• Focus on reactive speed, don’t predict the market– Order fabric based on forecasts– Supercharged product development
◦ Identify 10,000s of style ideas (60 styles per designer and year)
◦ Create and approve designs rapidly
• Sales force uploads data onto customised devices– What sells– Customer queries on style, fabric, colour– What customers wear
• Creates small volumes– Spread risks– Create artificial scarcity -> buy now
• Keeps image fresh– Delivery to shops twice a week– New styles every week
Time to reconsider: What we can learn from it
• No detailed roadmap
– Short response times to provide “hot” services
• Emphasize governance & business process
– Technology is not the focus
• Agile environment and process
– Minimum pre-integration
• Launch many new services per month
– create an innovative image
– spread the risk
– reduce cost per service
– increase ROI
Agenda
• New facts of live – the power of the consumer
• Business models and ownership
• Learning's from the retail sector
• A paradigm-shift in delivering services
• Conclusion
Traditional Service Launch cycle is too long …
12 to 18 Months
Service Launch
Costs
Market Opportunity
IdeaImpact
Analysis
Feasibility
Study
Business
Case
Service
Development
Service
Testing
Service
Integration
Lots of integrationRequired
Lack of opennessInhibits Creativity
Lengthy approval processDue to high costs and risks
Missed the MarketWindow
… and must be drastically shortened
2 to 6 Months
Service Launch
Costs
Market Opportunity
IdeaProto-
type
Concept
Approval
Pilot Service
Development
Service
Testing
Little integrationrequired=> less risk
Ecosystem provides many Ideas
Right Time- to-Market
Sandbox
Service Factory Processes
Approved
Concepts
IdeasMarketplace
De-
liveryMass Market
Service Factory approach shortens TTM
Innovation Deployment Production Sales
Classic Telco Processes
Managed •Innovation •Business Transformation•Partner concepts
Managed •Innovation •Business Transformation•Partner concepts
Rapid Service Creation• Managed concept
pipeline • Concept
Implementation
Rapid Service Creation• Managed concept
pipeline • Concept
Implementation
Service Delivery• Hosting• Off-the-shelf
services• Business Process
Outsourcing
Service Delivery• Hosting• Off-the-shelf
services• Business Process
Outsourcing
Go-to-Market• Running a
marketplace
Go-to-Market• Running a
marketplace
Live Beta
Improvements/
Perpetual Beta
Improvements/
Perpetual Beta
MashupsMashups
Operate in open Eco-Systems
No. 2118 April 2023 Title of Presentation
Customers
Partners
ISV’s
Developers
Eco-System
Applications
Application
Portfolio
Application
Portfolio
Selection and Sign-upSelection and Sign-up
CompetitiveHosting
CompetitiveHosting
SaaSIncubation/ ISV Ecosystem
SaaSIncubation/ ISV Ecosystem
Network ServicesNetwork Services
OSS/BSS ServicesOSS/BSS Services
StrategicPartnerships
StrategicPartnerships
Consumers
SMB/SOHO
Enterprises
Integrator
Converged products require other functionalities and processes
Trend Effect on Products Effect on Systems
Convergence • Abolish pre/ post-paid divide• “n”-Play service bundles
• All rating is on-line• Complex bundling
Pull replaces push
Products purchased/ used “on demand”
• Complex and asynchronous order fulfilment needed
Unbundling Flat-rates (n videos per week) • Rating at purchase time, not at usage time
-> less need for performance
Attention economy
Advertisement financed products – pay the consumer
• Complex community structures• “reverse” charging
Long tail Huge number of items with low usage per item
• Central product catalogues with advanced life-cycle management
Agenda
• New facts of live – the power of the consumer
• Business models and ownership
• Learning's from the retail sector
• A paradigm-shift in delivering services
• Conclusion
Conclusion
• Current trends offer a multitude of potential business models – Not possible to predict the results!
• Openness to all possible business models needed for– Business ecosystems– Business processes– IT systems
• Paradigm must shift
– from „in-house creation“ …– … to „fast and smart trend tracking & following“
• Driver to achieve superior time to market – is not technology …– … but IT governance and processes!
