The Digital Enterprise <ul><li>Introduction to e-Business </li></ul><ul><li>Discussion of Digital Media and e-Business </l...
Supply Chain Essentials – Key Players
Supply Chain Essentials - Processes
Supply Chain Essentials - The Value Chain
Supply Chain Management (SCM) <ul><li>SCM is management of product life from buying, making, moving, and warehousing to se...
Business Before ERP (Enterprise Resource Planning) Customers Customer Demographic Files Sales Dept. Vendor Orders Parts Ac...
Business With ERP Database Customers Sales Dept. Purchasing Warehouse Accounting Vendor Inventory Data If no parts, order ...
Procter & Gamble Supply Chain SOURCE:  SANJAY CHOPRA Customer wants detergent, goes  to Giant Eagle Giant Eagle Supermarke...
Loan Application Workflow
e-Business Defined <ul><li>According to one consulting firm: </li></ul><ul><ul><li>“e-Business refers to all business proc...
e-Business Examples <ul><li>e-Business is any commercial activity conducted over networks linking electronic devices (typi...
Potential Marketplace for e-commerce….. The Internet - Catching on at Net Speed for 50 million users Years 0 10 20 30 40 R...
Growth of the Internet
Potential Marketplace <ul><li>World penetration of broadband/100 people Q2 2005  </li></ul>
Consumption of digital media is growing Video Streams Served, Year Ending  (millions) 12 billion video streams served/view...
Why is Consumption Growing? <ul><li>Infrastructure </li></ul><ul><li>Consumer Applications </li></ul><ul><li>Revenue </li>...
1. Infrastructure 194.5m mobile subscribers 47m broadband subscribers Converging wired and wireless networks for IP delive...
2. Consumer Applications <ul><li>Surge in the deployment of streaming technology in applications that provide access to li...
3. Revenue Digital Media  Digital Media  Generates Revenue Generates Revenue • Streaming audio and video  advertising valu...
4. Business Applications Business are Extending Usage Enterprises are implementing streaming media along with their other ...
Digital Media Value Chain <ul><li>Simple example: </li></ul><ul><li>Exercise: come up with another example </li></ul>CREAT...
The Current Landscape -  Coexistence of Competing Cooperative Heterogeneous  Infrastructures
Future Scenario -  Co-operative interoperable devices
Some Challenges <ul><li>Digital Rights Management </li></ul><ul><ul><li>New Functional and Architectural Framework  </li><...
Challenges -  NAB 2006 Multimedia World Keynote Session <ul><li>Consumers .. are increasingly more comfortable with new wa...
Potential Benefits -  NAB 2006 Multimedia World Keynote Session <ul><li>The benefits available are compelling and will for...
Where companies are putting their bets <ul><li>Commercial content </li></ul><ul><li>- Movies, television, games, music </l...
ERP-style applications to support the new Media market <ul><li>A new “digital media exchange” for secure, published conten...
IBM -  MediaHub Solution Framework Business Systems Content Systems Production & Distribution Transformation Transforming ...
Requirements -  MediaHub   Media companies need to know where content is and how manage it through the production and dist...
Built on Existing Applications The MediaHub Solution Framework is built on the IBM portfolio of software and media industr...
HP Digital Media Platform <ul><li>The HP Digital Media Platform includes storage, processing, management and distribution ...
HP digital media services. <ul><li>HP digital media offerings include HP Digital Vault Services and HP Video Merchant Serv...
Discussion <ul><li>How would this technology be applied to the Supply Chains discussed earlier? </li></ul>
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The Digital Enterprise

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The Digital Enterprise

  1. 1. The Digital Enterprise <ul><li>Introduction to e-Business </li></ul><ul><li>Discussion of Digital Media and e-Business </li></ul>
  2. 2. Supply Chain Essentials – Key Players
  3. 3. Supply Chain Essentials - Processes
  4. 4. Supply Chain Essentials - The Value Chain
  5. 5. Supply Chain Management (SCM) <ul><li>SCM is management of product life from buying, making, moving, and warehousing to selling </li></ul>SOURCE: i2 Buying What is SCM? Selling Making Moving Ware housing
  6. 6. Business Before ERP (Enterprise Resource Planning) Customers Customer Demographic Files Sales Dept. Vendor Orders Parts Accounting Accounting Files Purchasing Purchasing Files Order is placed with Vendor Invoices accounting Inventory Files Warehouse Checks for Parts Calls back “Not in stock” “ We ordered the parts” “ We Need parts #XX” “ We ordered the parts” Sends report Sends report Sends report Ships parts
  7. 7. Business With ERP Database Customers Sales Dept. Purchasing Warehouse Accounting Vendor Inventory Data If no parts, order is placed through DB Orders Parts Order is submitted to Purchasing. Purchasing record order in DB Order is placed with Vendor And invoices accounting Financial Data exchange; Books invoice against PO Books inventory against PO Ships parts
  8. 8. Procter & Gamble Supply Chain SOURCE: SANJAY CHOPRA Customer wants detergent, goes to Giant Eagle Giant Eagle Supermarket Giant Eagle or Third Party Distributor P&G or Other Manufacturer Plastic Producer Chemical Manufacturer (e.g. Oil Company) Tenneco Packaging Paper Manufacturer Timber Industry Chemical Manufacturer (e.g. Processed Minerals) Mining Industry
  9. 9. Loan Application Workflow
  10. 10. e-Business Defined <ul><li>According to one consulting firm: </li></ul><ul><ul><li>“e-Business refers to all business processes that take place across electronic networks. This includes everything from buying and selling of goods and services through the World Wide Web, to interactive television and a whole host of other emerging technologies. E-Business integrates [Information Technologies] with traditional business processes, introducing efficiencies that cut costs and increase profits.” </li></ul></ul>
  11. 11. e-Business Examples <ul><li>e-Business is any commercial activity conducted over networks linking electronic devices (typically computers). Often includes: </li></ul><ul><ul><li>Commercial transactions over the Internet, telephone, or fax; </li></ul></ul><ul><ul><li>Electronic banking and payment systems; </li></ul></ul><ul><ul><li>Trade in digitized goods or services ; </li></ul></ul><ul><ul><li>Servicing customers and collaborating with business partners; and </li></ul></ul><ul><ul><li>Procurement and inventory control. </li></ul></ul>
  12. 12. Potential Marketplace for e-commerce….. The Internet - Catching on at Net Speed for 50 million users Years 0 10 20 30 40 Radio 38 Years PC 16 Years Television 13 Years Internet 4 Years Users 50 million users
  13. 13. Growth of the Internet
  14. 14. Potential Marketplace <ul><li>World penetration of broadband/100 people Q2 2005 </li></ul>
  15. 15. Consumption of digital media is growing Video Streams Served, Year Ending (millions) 12 billion video streams served/viewed in 2005 Source: Accustream iMedia Research 0 2000 4000 6000 8000 10000 12000 14000 1999 2000 2001 2002 2003 2004 2005 2006 Millions
  16. 16. Why is Consumption Growing? <ul><li>Infrastructure </li></ul><ul><li>Consumer Applications </li></ul><ul><li>Revenue </li></ul><ul><li>Business Applications </li></ul>Source:
  17. 17. 1. Infrastructure 194.5m mobile subscribers 47m broadband subscribers Converging wired and wireless networks for IP delivery of media Ubiquitous High Bandwidth IP Networks Source: CTIA.org, Computer Industry Almanac, Nov 2005
  18. 18. 2. Consumer Applications <ul><li>Surge in the deployment of streaming technology in applications that provide access to libraries of digital shows, movies, and other media </li></ul><ul><li>Streaming to mobile devices is driving usage </li></ul><ul><ul><li>Consumer demand for multi-media experiences is prompting huge increase in demand for streaming platforms to portable wireless devices </li></ul></ul>New Consumer Applications Source: Frost and Sullivan 2004
  19. 19. 3. Revenue Digital Media Digital Media Generates Revenue Generates Revenue • Streaming audio and video advertising valued at $343 million in 2005, up 78% over $193 million dollars billed in 2004 • Streaming subscription revenue is forecast to rise by 35% in 2006 to $821 million dollars (excluding download revenue) Source: Accustream iMedia Research 1 2003 2008 BILLIONS Online Advertising 2 3 4 5 6 7 1 1 2003 2008 BILLIONS Online Advertising 2 2 3 3 4 4 5 5 6 6 7 7 Online Advertising Online Advertising Streaming Portion Streaming Portion Online Advertising Online Advertising Streaming Portion Streaming Portion
  20. 20. 4. Business Applications Business are Extending Usage Enterprises are implementing streaming media along with their other core technologies, treating it as a real business communication tool in every vertical imaginable. Source: Aberdeen Group/Streaming Media Inc Source: Gartner 50% 70% New Applications Investment % of 2005 Spend or Rich Media Based E-business Transformation New IT Infra Investment
  21. 21. Digital Media Value Chain <ul><li>Simple example: </li></ul><ul><li>Exercise: come up with another example </li></ul>CREATE DELIVER PLAYBACK
  22. 22. The Current Landscape - Coexistence of Competing Cooperative Heterogeneous Infrastructures
  23. 23. Future Scenario - Co-operative interoperable devices
  24. 24. Some Challenges <ul><li>Digital Rights Management </li></ul><ul><ul><li>New Functional and Architectural Framework </li></ul></ul><ul><ul><li>Security and privacy </li></ul></ul><ul><li>Media Format </li></ul><ul><ul><li>Media technologies </li></ul></ul><ul><ul><li>Media players </li></ul></ul><ul><li>Middleware </li></ul><ul><ul><li>New APIs, support new Business Model </li></ul></ul><ul><ul><li>Platform (hardware & Software + Resources) </li></ul></ul><ul><li>Network Aspects (Local/Ad Hoc and Wide Area networks) </li></ul><ul><ul><li>QOS (Quality Of Service) </li></ul></ul><ul><ul><li>Security </li></ul></ul><ul><ul><li>Transportation </li></ul></ul><ul><li>Communications </li></ul><ul><ul><li>Full range of Wired & Wireless Technologies </li></ul></ul>
  25. 25. Challenges - NAB 2006 Multimedia World Keynote Session <ul><li>Consumers .. are increasingly more comfortable with new ways of obtaining and enjoying content. “Appointment TV” no longer fully meets the expectations of a new generation of consumer. </li></ul><ul><li>The traditional distribution channels are being replaced by increasingly on-demand ways of obtaining entertainment content. </li></ul><ul><li>Media & entertainment companies have to decide what strategies they will pursue to capitalize on the disruption that is beginning to occur as a result of digital technologies and the internet. </li></ul><ul><li>The winners will be those who anticipate and respond to shifting consumer desires and expectations, by embracing IT to deliver better consumer experiences and more flexible and efficient supply chains that: </li></ul><ul><ul><li>are scalable and adaptable, enabling broad, rather than point solution capabilities and are effectively “future-proof”, and; </li></ul></ul><ul><ul><li>leverage digital content delivery, content metadata, customer profile and behavior data to deliver breakthrough, highly targeted content sell-through services that extend to the delivery of highly targeted promotional and ad content. </li></ul></ul>
  26. 26. Potential Benefits - NAB 2006 Multimedia World Keynote Session <ul><li>The benefits available are compelling and will form the basis of competition in the coming decades </li></ul><ul><ul><li>Speed : shortening the time-to-market and time-to-profit for newly released titles </li></ul></ul><ul><ul><li>Responsiveness : making content available quickly for an increasing variety of distribution models and consumer formats and devices </li></ul></ul><ul><ul><li>Visibility : having immediate, real-time access to all of your assets – knowing exactly where and in what formats they reside </li></ul></ul><ul><ul><li>Cost efficiency : driving lower cost structures through more automated workflows, less repetitive work and reduction of physical inventory </li></ul></ul><ul><ul><li>Global scalability : easily enable growth and extension of the business, both via increasing global reach and increasing volume </li></ul></ul><ul><ul><li>And ultimately, better consumer choice and experience that should translate in higher revenues and higher profits </li></ul></ul>
  27. 27. Where companies are putting their bets <ul><li>Commercial content </li></ul><ul><li>- Movies, television, games, music </li></ul><ul><li>- Formats </li></ul><ul><li>- DVDs, hi-def DVDs, electronic files, broadcast signals </li></ul><ul><li>- Delivery channels </li></ul><ul><li>• Satellite, terrestrial broadcast, cable </li></ul><ul><li>• Physical store, mail, </li></ul><ul><li>• Download, streaming, webcast, cell phone </li></ul><ul><li>- Business models </li></ul><ul><li>• Purchase, rental, subscription, advertising-supported </li></ul><ul><li>- Playback experience </li></ul><ul><li>• TV, DVD player </li></ul><ul><li>• PC, portable video player, mobile devices </li></ul>
  28. 28. ERP-style applications to support the new Media market <ul><li>A new “digital media exchange” for secure, published content will emerge where </li></ul><ul><li>• eMasters and eSKU are produced; </li></ul><ul><li>• orders are placed and fulfilled; </li></ul><ul><li>• license and royalty transactions are executed; </li></ul><ul><li>• titles are distributed and sold; </li></ul><ul><li>• and targeted, relevant advertising is added; </li></ul><ul><li>• all in near real-time, and all without a tape, a courier, a phone call, a fax, or a printed invoice </li></ul><ul><li>Big Players – e.g. IBM, HP </li></ul>
  29. 29. IBM - MediaHub Solution Framework Business Systems Content Systems Production & Distribution Transformation Transforming the Back Office and Supply Chain Analog to Digital Transformation Customer Sales & Service Transformation CRM Customer Analytics Call Center Consolidation Intellectual Property Management Ad Sales Transformation Digital Media Framework Optimize business customer offerings Drive direct - to - consumer relationships Prepare for integrated media Consolidate overhead Integrate operations
  30. 30. Requirements - MediaHub Media companies need to know where content is and how manage it through the production and distribution process New requirements… Understand different workflow dependencies , perform intelligence forecasting and execute actions across the organization Handle content as digital objects , and remove analog dependencies Reduce the time and cost to create, manage and distribute media assets Dynamically change business processes and launch new business models using existing/legacy assets Today’s chaotic environment Home Entertainment Music Filmed Entertainment (Film & TV) Newspaper/Magazines Books Pay TV Networks (Cable) Online Service Providers Broadcast Networks Business & Content Systems Business & Content Systems
  31. 31. Built on Existing Applications The MediaHub Solution Framework is built on the IBM portfolio of software and media industry Business Partners Solution Components Media Hub Solution Framework Management Business System & Content System Connectors Business Process Status, Dashboards… Assembly & Deployment Business Modeling Media-tuned Professional Services WebSphere Business Monitor Connector Framework Rich Content Infrastructure WebSphere Portal / Wiki WebSphere Studio Application, WebSphere Information Integrator Content Edition, WebSphere Business Integration Server Foundation WebSphere Business Modeler Media & Entertainment Business Consulting Services Media Industry Applications Apple, Ardendo, Avid, Documentum, Telestream, Pinnacle, Sintec, Xytex….and others
  32. 32. HP Digital Media Platform <ul><li>The HP Digital Media Platform includes storage, processing, management and distribution capabilities. It serves as a technology foundation to enable a wide range of applications, solutions and services that are built on top of the platform. </li></ul>
  33. 33. HP digital media services. <ul><li>HP digital media offerings include HP Digital Vault Services and HP Video Merchant Services. </li></ul>
  34. 34. Discussion <ul><li>How would this technology be applied to the Supply Chains discussed earlier? </li></ul>

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