Mobile Opportunity Outsourcing In The Mobile Communication

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Mobile Opportunity Outsourcing In The Mobile Communication

  1. 1. Mobile is still the &quot;IT&quot; sector in the telecom landscape.<br />Mobile Opportunity: Outsourcing in the Mobile Communication.<br />Presented by –<br />Deepak Pareek<br />
  2. 2. xDSL<br />RFID<br />(V)XML<br />Nanotech<br />HSDPA<br />WiMAX<br />FTTx<br />UDDI<br />GRID<br />IPv6<br />The future<br />Human beings are nomadic or mobile by essence<br />
  3. 3. Two to tango..<br />COMPUTING<br />TELECOM<br />Applications<br />Applications<br />CPU<br />Memory<br />/Storage<br />Access<br />Core<br />The ability for Telecommunications and Computing are reshaping business in a way never seen before. Anywhere/anytime access to Web and company or personal data facilitates a present day knowledge worker that doesn&apos;t have to wait for answers. <br />
  4. 4. The Digital Networked Economy<br />Where connectivity has no more boundaries<br /> Connections, any time, any place, any device<br />
  5. 5. Mobility Overview<br />Expansive market for wireless networks:<br />Government, Commercial, Enterprise, Military, Healthcare, and Academic markets.<br />Mobility has become integral in supporting business functions and has fallen under most IT domains with 802.11, WLANs, and 3G Systems: <br />Mobile Executives<br />Field Sales<br />Field Services<br />Mobile devices used by the Enterprise user have changed over time:<br />Present<br />PagersBlackberriesCell PhonesHandhelds (PIM)Laptops/Tablet PCs<br />Future<br />Converged Devices such as Video conferencing/PIM/Phone Devices<br />Higher resolution screens for conveying graphical data more efficiently<br />Computing devices will evolve to smaller, and faster while Wireless integrated devices will become more prevalent<br />
  6. 6. Mobility Overview<br />Future mobility will be provided with higher data rates and Ubiquitous access<br />This implies the need for seamless wide area and office coverage<br />Future remote access techniques will mirror existing to protect current investments<br />Higher data rates and better coverage will be realized using disparate types of Wireless Technologies<br />Mobility across disparate networks is a significant change to the paradigm of current mobile networks. <br />Mobility is attributed to L2 and L1 abstraction through use of IP (Mobile IP).<br />Data Rates and Ranges of Wireless Technologies<br />SOURCE: ITU<br />Mobility will increase IT departments responsibilities as remote access and devices increase.<br />
  7. 7. Which applications will become popular and when<br />M – Commerce<br /> Applications<br />WASP<br />Games<br />Job Dispatch<br />Music<br />CRM<br />Advertising<br />Video<br />Supply chain<br />Integration<br />Auctions<br />Telemetry<br />Telematics<br />Healthcare<br />Shopping<br />Info Provisioning<br />Broking<br />M-payment<br />Reservations<br />Ticketing<br />E-salary<br />E-bill<br />Banking<br />Info Management<br />Security<br />SMS<br />SMS Toolkit<br />WAP<br />GPRS<br />EDGE<br />UMTS<br />1998<br />2000<br />2001<br />2002<br />2003<br />2004<br />1999<br />SMS<br />IM<br />Chat<br />E - mail<br />PIM<br />UIM<br />Customer care<br />M – Commerce<br />Enabling Applications<br />
  8. 8. Individual Solutions<br />Enterprise Solutions<br />Business Process- Enhancing Solutions<br /><ul><li>Mobile Field Force
  9. 9. Mobile Field Sales
  10. 10. Mobile Asset/Plant Management
  11. 11. Wireless Warehouse Management
  12. 12. Clinical Drug Trials
  13. 13. Insurance Claims
  14. 14. Mobile e-Learning
  15. 15. Fleet Management
  16. 16. Remote Monitoring & Diagnostics
  17. 17. Alerts
  18. 18. Messaging (SMS, MMS)
  19. 19. Instant Messaging
  20. 20. Personal Information Management (PIM) - E-mail and Calendaring
  21. 21. Directory Access
  22. 22. Unified Messaging
  23. 23. Chat
  24. 24. Internet Access
  25. 25. Location - where is my nearest? How do I get from A to
  26. 26. Examples include:
  27. 27. Mobile Field Force
  28. 28. Mobile Field Sales
  29. 29. Mobile Asset/Plant Management/Tracking
  30. 30. Clinical Drug Trials
  31. 31. Mobile Claims Tracking
  32. 32. Mobile e-Learning
  33. 33. Fleet Management</li></ul>Communications-enabling solutions<br />Wireless Solutions <br />Enterprise want high quality office solutions…..but seek to complement these with business-focused solutions which have a clear ROI<br />
  34. 34. <ul><li>Smart Phones/Laptops</li></ul>What is driving Mobile Data Services<br />Work Patterns, Social Acceptance, Business Flexibility<br />
  35. 35. Providing value to the end user<br />Applications<br />Session Mobility<br />Voice<br />Service Network<br />Intelligence<br />Interactive<br />Multimedia<br />Identity<br />Location<br />Service <br />Edge<br />Service <br />Edge<br />Service <br />Edge<br />Service <br />Edge<br />Converged<br />Networks<br />Private<br />Internet<br />Cellular<br />PSTN<br />
  36. 36. Service Convergence <br />PSTN<br />PLMN<br />ISDN features<br />GSM<br />Fax<br />#7 features<br />#7 inter-working<br />ADSL-<br />connections<br />Broadband connections<br />Document transfer<br />Mobilenet-work<br />IPtelephony<br />Converged<br />network<br />CompressionEncryption<br />Internet features<br />Data trafficMobile IP<br />IP appli-cations<br />E-mail<br />IP traffic<br />t<br />INTER<br />NET<br />An increasing number of both voice & non-voice technologies are influencing products and services<br />
  37. 37. Network & Service<br />Provider<br />ClassicalValue Chain<br />Customer<br />Customer<br />New Value Chain<br />NetworkProvider<br />Service Provider<br />Provider Split & Hardware-Services Decoupling<br />Content Provider<br />Applications<br />Supplier<br />Content<br />Supplier<br />OAM<br />Supplier<br />Access <br />Equipment<br />Supplier<br />Retailer<br />Changing Business Model<br />Divergence in the Provider Value Chain<br />
  38. 38. Mobile<br />network<br />Internet<br />PSTN<br />CATV<br />CATV<br />IP<br />IWU<br />Changing Business Model<br />Today<br />Vertically integrated businesses<br />Layered businesses<br />Tomorrow<br />Service layer<br />Open interface<br />Network layer<br />Mobile<br />PSTN<br />IWU<br />IWU<br />The Architecture - The increasing demand for value added services leads to a separation in network and service provisioning. <br />
  39. 39. Wireless Marketplace <br />Application<br />Developers<br />Content<br />Providers<br />End-User<br />Consumer<br />Network <br />Operators<br />Retail VAR<br />Exchanges Between Links <br />Infrastructure<br />Provider<br />Device <br />Manufacturers<br />Information Partnership<br />Cash-flow Exchange<br />Value of Exchanges Between Supply Chain Links<br />
  40. 40. Applications provide efficient access to content<br />Application<br />Developers<br />Content<br />Providers<br />Content sites must develop brand and drive greater accessibility<br />Content must meet target customer segments needs<br />Network Operators need applications to enhance services<br />Infrastructure supports applications<br />End-User<br />Consumer<br />Network <br />Operators<br />Consumer agrees on service contract<br />VARs sell devices as middleman<br />VARs sell service contracts as middleman<br />Retail VAR<br />Infrastructure facilitates network management<br />Device must gain network access<br />Users must be able to operate device <br />Infrastructure<br />Provider<br />Device <br />Manufacturers<br />Air interface compatibility<br />Wireless Marketplace <br />Links Are Consummated on Exchanges <br />
  41. 41. Wireless Market Place<br />Market Entry<br /><ul><li>Proprietary learning curve
  42. 42. Economies of scale
  43. 43. Capital requirements
  44. 44. Brand identity
  45. 45. Switching costs
  46. 46. Expected retaliation
  47. 47. Proprietary products </li></ul>Supplier Power<br /><ul><li>Supplier concentration
  48. 48. Importance of volume to supplier
  49. 49. Differentiation of inputs
  50. 50. Switching costs of firms
  51. 51. Threat of forward integration</li></ul>Firm Rivalry<br /><ul><li>Industry concentration ratio
  52. 52. Fixed costs/Value added
  53. 53. Industry growth
  54. 54. Intermittent overcapacity
  55. 55. Product differences
  56. 56. Switching costs
  57. 57. Brand identity </li></ul>Buyer Power<br /><ul><li>Bargaining leverage
  58. 58. Buyer volume
  59. 59. Buyer information
  60. 60. Brand identity
  61. 61. Price sensitivity
  62. 62. Product differentiation
  63. 63. Substitutes available </li></ul>Substitutes<br /><ul><li>Switching costs of adopters
  64. 64. Buyer propensity to substitute
  65. 65. Relative price performance of substitutes </li></ul>Wireless Industry Structure: 5 Forces <br />
  66. 66. Wireless Market Place<br />Device Manufacturer<br />Network Operator<br />Many<br />Content Enabler<br />Infrastructure Provider<br />Application Provider<br />Few<br />Content Provider<br />Attractive<br />Unattractive<br />Industry Structure: 5 Force Analysis <br />
  67. 67. VAR Sellers<br />Non-Circuit <br />Component<br />Manufacturers<br />Circuit Board<br />Component<br />Manufacturers<br />Application<br />Developers<br />OS & AP<br />Device <br />Manufacturers<br />Voice and/or<br />Data <br />Customers<br />Network <br />Operators<br />EXAMPLES<br /><ul><li>Personal use
  68. 68. Enterprise use
  69. 69. Public services
  70. 70. Microphone
  71. 71. Speaker
  72. 72. Battery
  73. 73. Dial Pad
  74. 74. Case
  75. 75. DSP
  76. 76. Microprocessor
  77. 77. ROM Chips
  78. 78. Flash Memory
  79. 79. RF Transceiver
  80. 80. Operator System
  81. 81. WAP
  82. 82. iMODE
  83. 83. SMS
  84. 84. Cell Phones
  85. 85. PDAs
  86. 86. Smart Phones
  87. 87. SIM Pads
  88. 88. Controls
  89. 89. LANs
  90. 90. Radio Shack
  91. 91. Circuit City
  92. 92. Best Buy
  93. 93. Sprint Store
  94. 94. Verizon Store</li></ul>COMPANIES<br /><ul><li>Sharp
  95. 95. Phillips
  96. 96. NEC
  97. 97. Fujitsu
  98. 98. Panasonic
  99. 99. TI
  100. 100. ADI
  101. 101. Intel
  102. 102. Motorola
  103. 103. National S.
  104. 104. Aether Systems
  105. 105. Microsoft
  106. 106. Phone.com
  107. 107. Sun
  108. 108. Nokia
  109. 109. Motorola
  110. 110. Ericsson
  111. 111. Siemens
  112. 112. Samsung
  113. 113. BT, FT, DT
  114. 114. Radio Shack
  115. 115. Sprint
  116. 116. Cingular
  117. 117. NTT Do Co </li></ul>N/A<br />Wireless Market Place <br />Upstream<br />Downstream<br />Wireless Device Supply Chain (Horizontal/Modular?)<br />
  118. 118. Customer Value<br />The handheld device<br />together with its operating system.<br />Reduced Costs<br />Mobile Device and <br />Device O/S<br />Product & Service Diff<br />The end user solution, ERP, CRM, Sales, and Field Force Automation.<br />Enterprise Applications & Services<br />Wireless Enabled Enterprise<br />Business and Systems Integration<br />New Business<br />& Models<br />Platform for the delivery<br />of business functionality<br />to the handheld device<br />Service Delivery<br />Platform<br />Provide the connectivity<br />and, depending upon the <br />operator, various levels of functionality.<br />Mobile/Wireless Network Infrastructure<br />Pervasive Solution<br />Integrate all the different components to deliver value to the enterprise<br />
  119. 119. Enterprise<br />Home AAA Server<br />WLAN<br />Gateway,<br /> HA, FA<br />Corporate LAN<br />Ethernet<br />VPN<br />Firewall<br />802.11 Access Points<br />IP Backbone/<br />Internet<br />GSM/UMTSWSP<br />CDMA WSP<br />PDSN/FA/HA/Firewall<br />WLAN<br />Gateway<br />& FA<br />GGSN/FA/HA/<br />Firewall<br />Public<br />WLAN<br />SGSN<br />PCF<br />Ethernet<br />MSC/RNC<br />BSC<br />BS<br />CGF<br />BS<br />BS<br />BS<br />802.11 Access Points<br />Multi-mode terminal <br />w/MobileIP client<br />& IPSec Client<br />Future of Mobility<br /> Mobile devices can connect to office networks anytime from anywhere….<br />Architecture of Seamless Enterprise Connectivity<br />
  120. 120. Today’s Circuit Switched Networks<br /><ul><li>Very high reliability (99,999%)
  121. 121. Dumb terminals
  122. 122. Limited bandwidth (nx64kb/s)</li></ul>The Next Generation Networks<br /><ul><li>Converged, individualized services
  123. 123. Anywhere, anytime, any media communication
  124. 124. Guaranteed service quality
  125. 125. High reliability
  126. 126. Bandwidth is unlimited
  127. 127. Distance independent tariffs</li></ul>Today’s Data Networks <br /><ul><li>Internet is best effort
  128. 128. Separate infrastructures for different services
  129. 129. Client/Server Architecture
  130. 130. Insufficient bandwidth</li></ul>Network Evolution<br />The Evolutionary Path allows for a smooth migration including investment protection, service flexibility and network scalability<br />
  131. 131. Communities<br />of Interest<br />Remote<br />Workers<br />Global<br />Locations<br />Outsourced<br />Applications<br />Partners<br />Customers<br />Suppliers<br />The New Business Imperatives<br />Enterprise boundaries blurring<br />Business cycles accelerating<br />Expectations rising<br />Complexity increasing<br />
  132. 132. Enterprises WantOne-Stop Shopping<br />Single point of responsibility<br />Time-to-market considerations<br />Implications<br />The new service model will be based on infrastructure-oriented solutions<br />“INFRASTRUCTURE” must be defined in a broader context than networkinggear and services<br />New Service Providers Emerge<br />Traditional<br />Telcos<br />Systems<br />Integrators<br />IT Suppliers<br />ISPs<br />Outsourcers<br />New Players<br /><ul><li> Viant, Scient
  133. 133. Corio, USI
  134. 134. Exodus, Digex</li></ul>NewServices<br />Enterprises are beginning to purchase solutions(based on SLAs), not simply commodity network transport.<br />Fundamental Market Dynamic<br />
  135. 135. End-to-end Solutions<br />Service enablers<br />Networks<br />Devices<br />Operator<br />Content<br />Consumer<br />Mobile systems integration<br />Win - Win Business Models for All<br />
  136. 136. Wireless: To Be or Not To Be<br />Outsourcing is the ideal solution for reducing investment and risk in a technology that will be refined after it&apos;s adopted, for it shifts those problems onto the supplier&apos;s shoulder. <br />Total Communications Management model not only squeezes costs out but also optimizes the business environment. Like a plant, an enterprise communications environment has tendrils twisting around into three business process areas: <br /><ul><li>Expense management (controlling costs of procuring the infrastructure, assessing accuracy of invoices, assessing best practices/policies, etc.)
  137. 137. Infrastructure management (system administration of the switches, operating the help/trouble desk, handling moves/adds/changes, etc.)
  138. 138. Usage management (call accounting including tracking proper usage, allocation of call expenses back to proper departments, etc.) </li></ul>Outsourcing Enables a Dynamic New Management Model<br />
  139. 139. Why Outsource?<br />Flexibility and Agility<br />Asset Reduction<br />Single Point of Contact<br />Total Cost Reductions<br />Visibility<br />Systems Capabilities<br />Improved Service<br />Process Change<br />Collaboration<br />Delayed Capital Expense<br />
  140. 140. Carrier Management Services<br /><ul><li>Contract negotiation
  141. 141. Mediation
  142. 142. Arbitration
  143. 143. Operate
  144. 144. Manage relationships
  145. 145. Financial accountability
  146. 146. Operational accountability</li></ul>Delivery Management Services<br /><ul><li>Service activation
  147. 147. Network monitoring
  148. 148. Utilization management
  149. 149. Performance management
  150. 150. Configuration management
  151. 151. Trouble management
  152. 152. Security management
  153. 153. Capacity planning
  154. 154. Asset management</li></ul>Wireless/Mobility<br />Network Managed Services<br />Converged Services<br /><ul><li>IP Telephony
  155. 155. Unified Messaging
  156. 156. Video over IP
  157. 157. EDS Host Link
  158. 158. Premise Data Services
  159. 159. Professional Services
  160. 160. Extended Connected Office
  161. 161. Telematics
  162. 162. Wireless LAN Services
  163. 163. EDS Trans-mission Service
  164. 164. Router management
  165. 165. RAS/VPN
  166. 166. Firewall
  167. 167. Public Internet
  168. 168. PBX management
  169. 169. Voicemail
  170. 170. Long distance and toll-free
  171. 171. Calling cards
  172. 172. Audio conferencing
  173. 173. Professional Services </li></ul>What can be outsourced<br />Business Support Services<br /><ul><li>SLA management
  174. 174. Reporting
  175. 175. Billing and chargebacks
  176. 176. Invoice reconciliation
  177. 177. Service order management
  178. 178. Impact analysis</li></li></ul><li>Organisational agility<br />More for less<br />The drivers of outsourcing<br />Consolidation& Restructuring<br />Hostile environment & increased competition<br />Customer centricity<br />
  179. 179. Outsourcing : The biggest opportunity <br />Outsourcing, is not just a good idea, it&apos;s an inevitable process as the mobile industry matures and becomes more competitive.<br />Outsourcing represents the biggest opportunity. The mobile sector, is an industry that no longer wants to run and control everything itself.<br />Some of the most ambitious outsourcing efforts are:<br />Infrastructure: Network operations and maintenance (NOM) and Mobile virtual network operator (MVNO) concept <br />Traffic Management: Clearinghouse concept <br />Measure and Compare: Business Benchmarking & QoS concept <br />Design - Original design manufacturing (ODM) concept <br />Value Services - Premium Number concept <br />Synchronisation - Mobile Personal Information Management (mPIM) concept<br />
  180. 180. Adopt it - Mobile virtual network operator (MVNO)<br />A Mobile Virtual Network Operator (MVNO) is a mobile operator that does not own its own spectrum and usually does not have its own network infrastructure. Instead, MVNO&apos;s have business arrangements with traditional mobile operators to buy minutes of use (MOU) for sale to their own customers.<br />To date, MVNO&apos;s are mostly a European, GSM phenomenon. With many simple resellers in the United States gaining popularity, it is likely that the concept will catch on in the US and other parts of the world as well for the Mobile Virtual Network Operator (MVNO). <br />Many are familiar with simple resellers of telecom services such as long distance, local exchange, and mobile network services. In contrast, MVNO&apos;s typically add value such as brand appeal, distribution channels, and other affinities to the resale of mobile services. <br />
  181. 181. Clear it - Traffic Management: Clearinghouse concept<br />Originally mobile operators--often incumbent-owned--designed their networks and business models with the old fixed line network in mind: traffic which must pass between mobile networks is therefore carefully counted and exchanged with an accompanying settlement payment, just like in the fixed network world. <br />To get to that point, though, mobile operators have to negotiate dozens of bilateral deals with other networks to agree on terms and conditions. This was just about workable when there were just a few dozen mobile networks but as the number of players world-wide has exploded, arranging and managing all the bilaterals has become a costly exercise, especially for a small mobile network operator.<br />Clearinghouse is set up to manage all or some of the commercial agreements between as many players as it can. It then aggregates all the payments in and out into settlements. <br />One such is United Clearing, which has offices in Hong Kong Florida and London and handles roaming, voice, data and m-commerce services.<br />
  182. 182. Measure it - Business Benchmarking & QoS concept<br />First generation mobile services, if they competed at all, competed on coverage and network quality. Things have moved on, but quality is an important hygiene factor. <br />Some companies are setting out to build a business benchmarking QoS on mobile networks, thus enabling customers to make informed purchase and usage decisions. In-house quality measures, it says, are not trusted by customers.<br />These company’s say they will test services on a representative sample of routes and locations. These include motorway and train journeys as well as city-center and ad hoc tests. <br />The resulting data enable comparison of the main networks in terms of voice quality, network availability and reliability, billing accuracy and data transmission performance for GPRS services<br />
  183. 183. Design it - Traffic Management: Clearinghouse concept<br />Outsourcing product assembly has a long and well-understood history in the IT industry. What hasn&apos;t shown up so clearly on the radar so far in the mobile handset market, is the increasing practice of outsourcing the input side--the actual technology development.<br />The growth of ODM (original design manufacturing) is rocketing, from around 7% of the handset market in 2002 to at least 40% of the market by 2005.<br />Popular handsets like Motorola&apos;s T191 or C300 were actually developed and produced by Taiwan-based BenQ, while Sony Ericsson&apos;s T200 and R600 were developed by another Taiwan specialist, GVC.<br />Big handset brands are able to offer a full product range without extending risk, stretching R&D budgets or falling behind in the race to market.<br />The rise of ODM may also mean that the handset market will fundamentally change. Now you don&apos;t actually need to be a traditional mobile player to produce your own handsets. Microsoft, for instance, is already using ODMs to introduce customers to Microsoft-powered handsets and it will no doubt be joined by others.<br />
  184. 184. Steal it - Value Services - Premium Number concept<br />Today mobile phones are increasingly being used as fixed line replacements, which means that many users want to make regular international calls from them seeing they have no other service to use.<br />Their ability to do so at a reasonable price, however, is dependent upon the regulations governing mobile operators in their jurisdiction and even in more liberal environments, the right to preselect your international carrier of choice is not yet usually available on mobile networks, but prefix code dialing options sometimes are. As in the fixed market, the problem here is that access codes are messy and introduce another supplier and yet another bill to pay for the customer.<br />One cunning trick gets rid of the billing problem for both supplier and customer by marrying non-geographical service number ranges to international calling. <br />Such services are alive and kicking in the UK, although it&apos;s uncertain how much market share they&apos;re taking. The mobile user dials a specific premium service access number designated to the country he or she wants to call. The per-minute cost of that service is individually assigned and adjusted according to the rate the service provider is getting to the country destination. <br />Once connected to the service, the user punches in the specific number to connect the call, paying for a per-minute premium service at lower than the international rates available from the mobile network operator. <br />The big advantage for the user is that there is no direct relationship with the service provider and no messy billing to be dealt with--calls will just show up on the conventional mobile bill as premium service calls.<br />
  185. 185. Synchronize it - Mobile Personal Information Management (mPIM) concept<br />Synchronization is a service or capability to allow busy people to be highly organized. But we&apos;re not and we need help in our multi-gadget world.<br />Synchro services are supposed to be the answer, marrying our fixed and mobile information repositories (i.e. PCs mobiles, laptops and PDAs), and keeping them all up-to-date. This is a contested market with all sorts of slightly differently flavored approaches vying for attention.<br />The idea is to have a standard way of exchanging information so that the calendar and contact database on your mobile phone or PDA is easily synchronized with fixed network &apos;master&apos; repositories, such as Microsoft Exchange.<br />But mobile network operators aren&apos;t that keen on seeing the synchronization market develop separately from the network. For a start, synchronization is something that can be charged for, and if anyone&apos;s going to do any significant charging, network operators think it should be them. Secondly, there are obvious long-term threats for network operators from successful underlying synchronization architecture.<br />Hardly surprising that rival synchronization approaches are seeking to build the same functionality (using the same standards) in such a way as to benefit the network operator. The idea is that users will be able to access a central and highly secure repository of their data without having to support their own central server infrastructure--this will be attractive to small-to-medium enterprises.<br />
  186. 186. Thank Youdeepak@deepakpareek.com+91 9898269489<br />

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