life cycle and portfolio management
TRANSCRIPT
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2006 SWITCH
Life Cycle and Portfolio Management
Why should NRENs bother at all?
TERENA General Assembly, Catania, 18 May 2006
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2006 SWITCH 2
Terminology
Life Cycle and Portfolio Management
Product Life Cycle Management
Product Portfolio Management
Lifecycle management steers the process in which aconcept evolves into a new service, including the ensuingproduction phase and the phase in which a service isclosed down
Portfolio management is steering the process that shouldresult in a well-balanced and well-aligned set of services,offered to the connected institutions
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2006 SWITCH 3
The Life of Sir Viss at an NREN
The cool open source tool Sir Viss is announced
A NREN staff member untars the piece and gets Sir Viss running
He shows Sir Viss to some colleagues at University IT departments
He convinces his boss, that Sir Viss is cheap to operate and that
Universities are interested in Sir Viss
So Sir Viss becomes the official status as an NREN Sir Viss
And Sir Viss lifes forever
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2006 SWITCH 4
Technology Push versus Demand Pull
User
Your logo here
NREN
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2006 SWITCH 5
Technology Push versus Demand Pull
User
Technology PushDemand Pull
things we want to push
things we feel necessary
things we got funded to do
more features
higher availability
new services
generally enough resourcesnot enough resources
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2006 SWITCH 6
Another view at new services
EU/nationalfundingbodies
User
fundnew
projects
offerinnovativeservices
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2006 SWITCH 7
Another view at new services
EU/nationalfundingbodies
Userdemanding
need
Funding
request
fundnew
projects
offerinnovativeservices
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2006 SWITCH 8
Another view at new services
EU/nationalfundingbodies
Userdemanding
need
Funding
request
fundnew
projects
offerinnovativeservices
Pros:
Works for 2-3 years
Cons:
High cost
Small customer base
Stochastic portfolio
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2006 SWITCH 9
(Theodore Levitt 1965)
Service Sales
Introduction Growth Maturity Decline
Time
Producer Consumer
Product Customer Value
Pricing Costs
Place Convenience
Promotion Communication
The classical model
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2006 SWITCH 10
Services Sales
Introduction Growth Maturity Decline
Time
Building service awarenessand develop market for the
product:
Product: branding and quality
level established,
Pricing: low penetrationpricing orhigh skim pricing
Distribution: selective until the
product is accepted
Promotion: aimed at
innovators and early adopters building awareness and
learning
Introduction stage
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2006 SWITCH 11
Services Sales
Introduction Growth Maturity Decline
Time
Building the brandpreference and increasing
the market share:
Product: maintaining the
quality, additional features
and services may be addedPricing: maintaining the
initial strategy
Distribution: new channels
are added, demand is
increasingPromotion: aimed at broader
audience
Growth Stage
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2006 SWITCH 12
Services Sales
Introduction Growth Maturity Decline
Time
Defending the market share
while maximizing profit:
Product: feature may be
enhanced to differentiate the
product from that of
competitors
Pricing: lower because of the
competition
Distribution: more intensive,
some incenitves offered
Promotion: emphasizes the
product differentiation
Maturity Stage
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2006 SWITCH 13
Services Sales
Introduction Growth Maturity Decline
Time
Sale is declining so there are
several options:
Maintain the product,
possibly rejuvenating it by
adding new features and
finding new uses
Reduce costs and continue
the offer
Discontinue the product
Decline Stage
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2006 SWITCH 14
Life cycle of a service
Researchstudy
Service-development
plan
Startof
service
Servicediscontinuance
plan
Turn-offservice
Service-development
Service-production
Service-shut-down
Technology
Scouting--------------
Scoping ofCustomer
Requirements
1 2 3 4 5
Technology-development
Customerrequirements
Life-Cycle
ImpactAnalysis
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2006 SWITCH 15
Areas of potential synergies
Service-development
Service-production
Service-shut-down
Technology
Scouting--------------
Scoping ofCustomer
Requirements
Life-Cycle
ImpactAnalysis
Joint Development?
Joint Operation?
Synchronisation?What is promising?
Requirements?
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2005 SWITCH 17