mis: communication trends and perspectivedavidjf.free.fr/wutbs/mis-telecom-final-2005.pdf · 1 mis:...

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MIS:

Communication trends and perspective

Marek ŚredniawaInstitute of TelecommunicationsWarsaw University of Technology

Średniawa Consulting

WUT Business School, Warsaw, June 2005

© Marek Średniawa2

Introduction

Objectives:Answer to a question

„how telecom can help businesses” ?

Give insight into basics of telecommunicationsfrom the business perspectiveEmphasize development trends of telecom andtheir impact on business

2

© Marek Średniawa

Moore’s First Law

xxx doubles every 18 months or 60% increase peryear

Micro Processor speedsChip densityMagnetic disk density

Exponential Growth:The past does not matter

PC costs decline faster than any other platformVolume & learning curvesPCs will be the building bricks of all future systems

© Marek Średniawa

Metcalf’s LawNetwork Utility = Users2

How many connections a user can make? 1 user: no utility 1K users: a few contacts 1M users: many on net 1B users: everyone on net

That is why the Internet is so “hot”Exponential benefit

3


Gilder’s Telecosm Law:3x bandwidth/year for 25 more years

Today: DWDM technology10 Gbps per channel4 channels per fiber: 40 Gbps32 fibers/bundle = 1.2 Tbps/bundle

In lab 3 Tbps/fiber (400 x WDM)In theory 25 Tbps per fiber1 Tbps = USA 1996 WAN bisection bandwidth

1 fiber = 25 Tbps


Bandwidth and Service Growth

FTTHMultiple POTS100M always-onCable TVVoD

video filesharing

Voice-bandModemPOTS56k dial-up

ISDNDerived POTS128k dial-up

HDSL,SDSLn x POTSISDNADSLsingle line POTS1M always-onLimited Video

fiber + VDSLPOTS8M data plus2xVoDvideo file sharing

EnhancedCopper

Hybrid Fiber-Copper

Pure fiber

1

5

100

1000

??

AnalogueCopper

DigitalCopper

4


Telecommunications

… The exchange of information in any form (voice, data,text, images, audio, video … )

Benefits:Enables organizations to link computer systems into effectivenetworksOpens access channel for clients, partners and cooperatingfirmsImproves business in three main ways:

Better communicationHigher efficiencyBetter distribution of data


OSI model and semantic Connectivity

Future pervasive IP-based networksToday, applications implement the network and transport functions needed tofacilitate the seamless mobility of users in the application layerIn the future, the internet protocol stack will be augmented (layer X) to provide thesemantics and application layer information required for intelligent routing

Layer 6:Presentation

Layer 5: Session

Layer 4: Transport

Layer 3: Network

Layer 2: MediaAccess

Layer 1: PhysicalAccess

Layer 7: ApplicationDiscovery,Addressing,RoutingLayer 6:

Presentation

Layer 5: Session

Layer 4: Transport

Layer 3: Network



Layer 7: Application

Routing,FixedAddresses

Traditional Current

Layer 6:Presentation

Layer 5: Session

Layer 4: Transport

Layer 3: Network



Layer 7: Application

Layer X: Discovery, Addressing

Future

5


Role of telecom in business

Provide effective and efficient electronic movement of all formsof information between various combinations of people andbusiness applications and devices

Provide support for business strategies and accommodategrowth and changes in the business environment

Constitute a „glue” for geographically distributed businessprocesses of the company


Telecommunications Strategic Capabilities

Overcome Geographic Barriers:

Capture information about business transactions from remote locations.

Overcome Time Barriers:

Provide information to remote locations immediately after it is requested.

Overcome Cost Barriers:

Reduce the cost of more traditional means of communications.

Overcome Structural Barriers:

Support linkages for competitive advantage.

6


Overcome Business Barriers

Overcome Geographical BarriersBusiness value:

Better customer serviceBusiness examples:

Global presence – company portalCustomer care services – single „800” contact number

Overcome Time BarriersBusiness value:

Synchronous/Asynchronous communicationsBusiness examples:

Project team collaborationIVR based information service after hoursWeb site available 24x7


Overcome Business Barriers

Overcome Cost BarriersBusiness value:

Larger market reachTransport and travel cost reduction

Business example:E-commerce website

Overcome Structural BarriersBusiness value:

Interorganization communicationBusiness example:

Extranet for communication with clients, suppliers andbusiness partners

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Types of Telecommunication Networks

Traditional classification of networks:Private branch exchanges (PBX)Private voice networksPublic telephone network

Public Switched Telephone network – (PSTN)Integrated services digital network (ISDN)

Wide area networks (WAN)Metropolitan area networks (MAN)Value-added networks (VAN)

VPNs for voice and dataIntelligent Network


Traditional telecommunicationsapplications and services

Voice servicesSimple

FixedMobile

AdvancedISDN – CLIP, MSN, ....Supplementary servicesIntelligent network based – FPH, VPN

TeleconferencingVideoconferencingFaxVoice MailElectronic Data Interchange (EDI)

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Intelligent Network services

Technical concept of centralized implementation offlexible and customized telecom services:

FPH, SPL, UAN, PRM – number translation services„800” – freephone (FPH)„801” – split charging (SPL)„804” – universal access number (UAN)„701” – premium rate (PRM)„707” - televoting (VOT)

PN – personal numberVPN – virtual private networkLNP / SNP (many variants of number portability)

IN used for deployment of services both in fixed andmobile networks (CAMEL)


IN services: business impact

Improvement of contact with clientsBuilding positive image of the company

“golden” and “silver” numbers„80x” service as single contact number for clients to callcentre/customer careExample - Volvo Poland: 0-801 1 VOLVO

Removing the contact barrier - freephone

Possibility of using IN services for marketing,advertising and PR

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Network access options

NarrowbandPSTN (modem – dialled up)ISDNGSM 2 i 2.5 G (GPRS, HCSD)PLC (Power Line Communication)

BroadbandADSL and VDSLCable modemsFixed wireless (WLAN, WLL, LMDS)Fiber - FTTx (e.g. FTTB – fiber to the building)


xDSL

service/speed

xDSL technologies

ADSL

1Mbps 6Mbps 10Mbps 52Mbps2Mbps

VDSL

Fast Internet access

Telework,Teleeducation

Multimedia office/homeBroadcast TV

Fast VPN

Media streamingvideoconference

VPN

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WLANs - ease of use and interworking

Office Home Airports andhotels Coffee shops ...

Evolution

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Evolution of services

Ubiqutous, integrated, wireless, mobilecommunication using any media,anywhere, anytime

VoiceVideo/audioTextData

New paradigm of communication andmodel of network intelligence

Context aware services:PresenceAvailability statusLocationUser preferencesTerminal capabilities

Bringing philosophy of internetcommunicators to telephonyVoice and telecom services as acomponent of IT applications


Horizontal NGN/3G model multiservice converged network

Traditional vertical modelSeparate networks

Mob

ile n

etw

ork

Service

CAT

V

Service

PSTN

/ISD

N

Service

Dat

a/IP

Service

Application servers and applications

APIOpen

serviceplatforms

BackboneTransport

(Internet/IP)

API

Access networks

API

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Services

Networks

Terminals

Telephony Data Broadcasting

phone PC

Notebook, PDA

TV set

VCR

Internet IP

GSM / UMTS PSTN / ISDN / IN WLAN WMAN Broadcasting

Sattelite network


Business Priorities Drive VoIP Adoption

• Improved Cost ofOwnership

• Operational Efficiencies

• Productivity Enablers

Separate Networks Common, Global IP Network

• Enhanced End User / ClientExperience

• Local to Global Consistency

• Business Continuity /Migration Assistance

NetworkConvergence

13


Business companies are increasing installing IP equipmentwith IP enablement but uncertainties remain on VoIP usage

At the start of 2004 largest companies were using VoIP25% to 30% of American companies

23% of Japanese companies15% to 20% in Europe where the UK then northern Europe are leadingthe way

Drivers and inhibitors to VoIP’s deployment

Increased productivity and mobility

Cost reductions when moving offices,extending services and changing sites

Reconfiguration of the internal networkSavings on human resources

Difficulty of calculating ROI and TCO Traffic sharing on a single network

Security Removal of a portion of phone access

Investments Reduced on-net traffic charges

Obstacles Drivers


Value of the next generation telecommunication services

Mapping of existingServices in IP domain

Using Internet to add valueto traditional services

(hybrid services)

Novel services and servicefeatures not available in

legacy networks

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Enterprise Adoption of IP Applications

Source: Forrester, Giga Research

IP Contact Centres

IP Telephony

Unified Communications

Unified Conferencing

0%

10%

20%

30%

40%

50%

60%

70%

80%

2003 2004 2005 2006 2007


Convergence – services

Ubiqutous availability of services independent of theaccess techniqueIntegration of IT applications, media and telecomservicesIP VPN for voice and dataInstant messaging and presence built into servicesIntegration of voice services with applications

Instant messaging & presenceE-mail – active contact listsClick-to-call

15


Status of service convergence

IP VPNconverged business communication

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Business Uses of VPNs

Extend corporate network to new sitesSupplement existing services (FR, ATM, leased line)

Link partners to corporate resources in extranetSupport for telecommuters

LAN extension as well as IP telephony

Road warrior access to corporate resourcesSite-to-site multimedia

IP telephonyVideo conferencingStreaming multimedia on demand


Forecast: Europe’s Managed NetworkServices Market, 2003 To 2008

Sou

rce.

For

rest

er R

esea

rch,

200

3

17


Needs for higherbandwidth incompanies throughthe increasing useof ERPs (SAP,Siebel, Citrix etc.)

Band

widt

h Re

quire

men

ts

High

LowLow High

Web-basedApps

Voice

Medical Telemetry

VideoConferencing

Latency Sensitivity

AGILE

SMTPMail

HTTP Web

MicrosoftExchange

IP Services – IP VPN based on MPLSCustomer applications


Two VPN Paradigms

shared backbone

shared backbone

A VPN is a private network service built on a service providersshared infrastructure

Virtual : appears to be separate physical network, but is notPrivate : each VPN maintains routing and addressing separation

Different VPN models can be usedOverlay model / Network Based VPN : Frame Relay, ATM, MPLSPeer model / Premises Based VPN : IPSec

Network Based VPN Edge Based VPN

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BT Communicator


Example: Active Phone Book –One Simple Interface

video

email

IM

Collaboration

Tom User 657 555-1234Search

Mail and Messages MissedCalls

PrefsPABLogsCallsContacts

Buddy

Source: Lucent Technologies

voice

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Outside office and home

Home

Office area

Access pointHot Spot

Mobile networkGSM/GPRS & 3G

Wireleless accessWiFi

Residential broadbandADSL i CATV

Private networksLAN i WLAN

PSTN

BT 21CN

SIP/IMSService

infrastructurefor:

VoIP, video, messagingAnd broadband services

ConvergentIM/SMS/MMS

Interfaces to Vodafone

network

Interfaces toPSTN

ConvergentVoice mail

BT 21 CN – network vision

Instant Messaging & Presence

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Presence: The Best Thing that CouldHappen to Voice

Two ReasonsCall completionInnovative Services

Call Completion ProblemA small fraction of calls result in useful conversations

BusyNo AnswerVoicemailAssistants“Call me back later”

Result is user frustration and no provider revenue


Presence: The Best Thing that CouldHappen to Voice

SolutionOnly call if I know where the called party is available, whenthey are available, and how they are availablePresence conveys exactly this informationIncrease of successful call completion rates

ServicesPresence is one of the key enablersExamples...

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Presence and availability status

MVNO:

a new business model

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What is an MVNO?

An MVNO does not own spectrum, it leases it from anetwork operator with whom it has a relationship. AnMVNO has everything its own, except for networkinfrastructure (the spectrum, base stations, and basestation controllers)

An MVNO supplies the SIM card and has full controlover its subscribers and handles its own billing


Business case - Virgin Mobile

Customer care

Billing

Application/Contentcontrol

Switching/routing

Transport

Spectrum Ownership

MVNO MNOThird parties

One2One handlesswitching/routingand transportfunctions

Virgin outsourcesbilling platform(post-pay andpre-pay rater)

Virgin is the solecustomer interfacefor customer care,billing andapplications/content

Manages all interactions with the customer, while outsourcing most operations functions to One2One or third parties

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Business case - Virgin Mobile

Virgin one of most recognized brands in UK in youthsegment“Youth appeal”“People’s champion”

Brand

3,450 retail distribution points• 330 Megastores and Our Price• 3,120 retail partners

Distribution

Virgin Extras include access to all of Virgin’scontent

• music• travel• entertainment

Content

Virgin brand more powerful toconsumers than incumbentcarriers

More retail distribution pointsthan any carrier

Content which represents fun(entertainment) and utility(travel)

Summary

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Microelectronics and Software remain themost important technology drivers.

All-Optical networks to fulfill the bandwidthdemands.

New spectrum-efficient radio interfaces willenable mobile high speed data exchange.

Seamless interoperability acrossheterogeneous networks.

Universal access to all media from anydevice over any network at any place at anytime.

Computing and Communication become partof our environment (Ambient Intelligence).

I&C Technologies trends - summary


The Semantic Web will find and structurecontent and help to combine facts fromdifferent sources.

Agents take over routine work.

Automation of electronic business processes.

Human Computer Interaction is turning intoHuman Computer Cooperation.

Security is a prerequisite for the acceptanceof services, applications and devices.

Decentralization and self-organization willlead to flexibility of infrastructure and services.

E: y2 = x3 + ax + b mod p with

a = 2

b = 98041560852373919804497702945164778239981033357

p = 1461501637330902700854603783655214859383685196123

consists of

10 * 146150163733090270085460620150685408864185482153 points

I&C Technologies trends - summary

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Trends in telecom technology

InternetMobile Computing and M-CommerceWireless networksPervasive ComputingSmart DevicesInstant messaging and presence basedcommunication – „always-on” paradigm


Trends in telecom technology

The Network ComputerOptical NetworksStorage Area Networks - SANIntranets & ExtranetsThe InternetWeb services

The Networked Enterprise

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The Web Based IT Architectures

The InternetIntranetsExtranetsCorporate PortalsE-commerce Systems

Web-based systemsApplications or services that are resident on a server that isaccessible via a client-side Web browser.

Electronic StorefrontsElectronic MarketsElectronic ExchangesM-CommerceEnterprise Web


General trends of IT/telecom evolution

Four main domains:Being:

digitalnetworkedmobilewireless

More terminals are getting “MORE” connected„Always on-line” paradigm

Internet becomes an utility enabling “distance-free”lifeNetworks are getting “mobile & wireless “Network becomes “seamless and ubiquitous”Convergence of telecom, IT and media

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MIS:

Communication use

Marek ŚredniawaInstitute of TelecommunicationsWarsaw University of Technology

Średniawa Consulting

WUT Business School, Warsaw, June 2005


New Strategic Systems

Electronic commerce (EC)Handling of business transactions viatelecommunications networks

Internet/Intranet

Innovative and strategic advantages of EC:Increased market shareBetter ability to negotiate with suppliersBetter ability to prevent competitors from entering intotheir territory

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B2B E-Commerce

Inter-corporate communicationExchange business information between tradingpartners

Supply chain focusImprove efficiency of transactionsBetween different business entities


B2B E-Marketplaces

Similar to enterprise portalCategories

Commodity e-marketplaceBusiness services e-marketplace

Financial services and process supportIntegration services e-marketplace

Facilitates process-to-process integration

Vertical and horizontal e-marketplaces

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e-Business, e-Commerce and e-Marketing

e-BusinessInvolves the Use of Intranets, Extranets & theInternet to Conduct a Company’s Business

e-Commerce InvolvesBuying & Selling Processes Supported by

Electronic Means

E-Marketing“e-selling” side of

e-commerce


Source: IDC

0

200

400

600

800

1000

1200

1400

1999 2000 2001 2002 2003

billion dollar

80% of all e-commerce is business-to-businesstwo thirds of e-commerce is in the USA

Total

B2B

B2C

4

Worldwide e-commerce

30


AttractLook and FeelPerformance andServiceInform

Relevant Information

CustomizeCustomerConfiguration

TransactBuying &Selling Models

PersonalizeBuying behaviorIncentives

PayElectronic PaymentSystems Security

InteractCustomer ServiceSocialization

DeliverOrder Fulfillment

Key Processesand

Resources

E-Commerce Transaction Cycle


Benefits to …

BuyersConvenientBuying is Easy andPrivateGreater Product Accessand SelectionAccess to ComparativeInformationBuying is Interactive andImmediate

SellersCustomer RelationshipBuildingReducing Costs &Increasing Speed andEfficiencyOffers Greater FlexibilityTruly Global Medium

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E-Commerce business models

Initiated bybusiness

Initiated byconsumer

Targeted toconsumers

Targeted tobusinesses

B2Cbusiness to consumer

B2Bbusiness to business

C2Cconsumer to consumer

C2Bconsumer to business


B2C (Business to Consumer)

Business ModelsPortal

Google, onet, wpE-tailer

Amazon, merlinContent provider

WSJ.com, CNN.comTransaction broker

TravelplanetService provider

xDrive.comCommunity provider

Epinions.com,about.com

Sales - increase from $34billion in 2001 to $130 billionby 2006.

Provides e-marketers withaccess to consumers in allage groups.

More customer-initiated andcustomer-controlled.

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B2B (Business to Business)

Estimates are that B2Be-commerce will reach$3.6 trillion in 2003.

By 2005, more than500,000 enterprises willparticipate as buyers,sellers, or both.

Much e-commerce takesplace in open tradingnetworks:

http://www.plasticsnet.com/

Some companies arealso setting up privatetrading networks (PTNs)


C2C (Consumer to Consumer) Market Creator

Uses Internet technology to createmarkets that bring buyers andsellers together

Typically uses a transaction fee revenuemodel

EBay’s C2C - more than $5 billion intrades last yearAllegro

Interchange of informationthrough:

ForumsNewsgroups

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C2B (Consumer to Business)

Consumers can contact and communicate withcompaniesConsumers can

search out sellers on the Web,learn about their offers,initiate purchases.Example: Using http://www.priceline.com/, consumers canbid for airline tickets, hotel rooms, etc.Then, sellers decide whether to accept their offers.


Source: Business Week European edition 17 January 2000 5

Industry Estimated savings from B2B e-commerce Aerospace machining Chemicals Coal Communications Computing Electronic components Food ingredients Forest products Freight transport Health care Life Sciences Machining (metals) Media and advertising Oil and gas Paper Steel

11%10%

2%5-15%

11-20%29-39%

3-5%15-25%15-20%

5%12-19%

22%10-15%5-15%

10%11%

Impact of e-commerce

34


Business case: TP S.A. and Market Planet

Problem:TP S.A. is a leading telecom operator and one of the largestcompanies in PolandNeed for cutting operational costs

Solution:TP S.A. established an Web-based e-procurement and e-auction (reverse auction) solution to improve itsprocurement and supply chain processes

Reverse auction – example of a new „Digital „Economy business” model

Results:TP S.A. achieved over 110 million PLN in annual savingsfrom e-procurement of only some goods and services

Source: Market Planet


Marketplanet - basic info

IT partners

Shareholders

Established in 2001 with 35 mln PLN equity


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Marketplanet - business idea

Client B

Client A

Supplier C

Supplier A

Supplier B

Client C

Market Planet as a neutral middleman in exchange of goods and servicesoffers competitive edge over traditional approach

Electronic marketReverse auction



Procurement vs e-procurement

Submission

of offers

Call

For bidsAnalysis of

offers

Selection of

Best offersNegotiations Signing of

anagreement

Marketplanet

process

Call

For bids

Signing ofan

agreement

Traditional procurement process

E-procurement

Time


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Savings due to e-procurement

15 (7%)

15(32%)

7(47%)

8(27%)

4(58%)

4(50%)

6(8%)

6(30%)

45(32%)

35(44%)

150(40%)

3(7%)

300(37%)

1 2 3 4 5 6 7 8 9 10 11 12

• Office materials• Security services – single region• Cleaning services – single region• Paper for copiers• Copying machines• Furniture• Envelopes• Paper• Security services – total• Cleaning services – total• pipes for ducts• car fleet

Total volumemln PLN(savings %)



Results 1/2

Benefits for clients:

buyers savings (20-50%) due to migration to the centralized e-procurement/e-auction platform

full control of purchasing of goods and services – planning andmonitoring

Faster buying process, shorter negotiation time

Easy comparison of prices and straightforward submitting of bids

Integration with the financial support system


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Results 2/2

Benefits for suppliers:

Cutting costs and time to handle orders

Avoiding errors

Increased sales revenue

Access to other major customers using the Marketplanetplatform and building solid relationship with them

Low cost of acquiring a client

Free user-friendly software



M-Commerce Business Models

Takes traditional e-commerce business models andleverages emerging new wireless technologies

Key technologies are telephone-based 3G, Wi-Fi, andBluetooth

Main focus – SFA (Sales force automation)Seamless mobile access to ERP/MRP, CRM, SCM systems

However, technology platform continues to evolve

38


Example of a mobile applicationBMS - Billboard Management System

Vertical implementation of an Enterprise Portal involvingmobile applications

on-line management of business processes for outdooradvertising company

Software offered for Stroer client

Client follows on-line progress of the campain uisngwww.stroer.pl.


BMS

Ströer WWW

Client

Manager of the installation company

DispatcherInstallation team

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BMS technology

Matrix code – a special type of bar codeIdentification of the billboard (located on theframe)After fixing of the add matrix code is entered tothe system using mobile phone. Full control of the process

mis: communication trends and perspectivedavidjf.free.fr/wutbs/mis-telecom-final-2005.pdf · 1 mis:...

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