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Status of Phase 1

Elizabeth A. Teracino

Agenda Progress Status

Agenda

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› Phase 1 in the Activity plan (0-6 months)

• Briefly, a reminder of the goal of Phase 1

• Progress with first paper and deliverables

• Status / Scheduled deadlines for the future

“Can we predict the future? A framework for (analyzing) the convergence between the software and service providing industries”

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Introduction

Literature Review

Framework development

…Framework used to analyze the:

Past, Present, Future

Discussion / Conclusion

Introduction › Define convergence: mainly three perspectives of convergence are discussed on aggregate in the literature; those summed up by Chon (2003):

1. Industry convergence via alliances and mergers 2. a combination of technology and network platforms

converging into one (“one pipe”) 3. the integration of services and markets • … focus is on the 2nd definition, while it provokes the other two

› Why this paper is important › Which framework will be adapted/created › Findings summary and discussion

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Literature Review

• Technological Evolution

• Regulation

• Standards / Standardization

• Coopetition

• Organizational changes (firm level)

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Environmental

Environmental / Organizational mix

Organizational

e.g. Telecom and Computer vs. SaaS (Software, Accountancy, Banking, Notary)

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Framework – Can we map it?

› Before Convergence • Regulation different for each industry (telecom, broadcast, computer) / vertical

• Content and access regulated

• Standards via de jure / negotiation (telco, broadcast); de facto / competition (computer)

• Incumbents with power, monopolistic / oligopolistic competition (unfair competition)

• Technology advancing towards all the same type of data/file/transfer/pipe

› Convergence • Regulation behind trajectory of technology advances (still moving forward rapidly), being

reevaluated, was relooked at and some walls came down in the 90s / early 00s (US, EU)

• Content and access less regulated

• Standards moving towards a hybrid mix of de jure and de facto (collaborative competition)

• Still some oligopolistic competition, however rebuilding phases / collaboration high

› Post Convergence • Technology + Standards advancing in same direction (more and more to enter the pipe)

• Regulation?

• Hybrid mix of competitive collaboration regarding standards and alliances/mergers/acquisitions

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SaaS

Telco

Where are

you?

Applying the framework into SaaS

› Telco -> pipe as commodity?

› Who is the most likely to become a pipe as commodity in SaaS? • SaaS vendor

› What precautions can a SaaS vendor take then to avoid becoming a pipe as commodity? • Focus on being the service provider, AND, have added value chain of content ->

increase ‘stickiness’ / lockinability

• Reinforcing double value network (content and pipe as commodity)

• Build up both sides: access to all types of software / services, but with content specific to your pipe, else you will be replicated

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Thank you for your attention

Questions??