Mobile Money Technology Solutions<br />Nicola D’Elia, mApps and Innovation Manager<br />October 2010, Kuala Lumpur<br />
Agenda<br />1.<br />Background<br />2.<br />Market Overview<br />3.<br />7Key Learnings<br />4.<br />Vendor Selection Crit...
Market overview<br />                                  84 Live Deployments<br />as of 01.09.2010<br />                    ...
7 key learnings<br />4.<br />Look for vendors with live deployments and local expertise<br />Ensure your vendor’s success ...
Technology and Security are essential<br />Before<br />60%<br />of mobile operators included technology and security as to...
Engage with vendors while you are defining your business strategy<br />Set the strategic context<br />Data analysis and Re...
Process Mapping & Re-engineering
Requirements Analysis
Conduct research
Shortlist vendors
Define selection criteria
Apply  multi-criteria decision framework
Negotiations
References checks
Allocate resources
Ensure appropriate support
Operational Support
 Platform refinement
Reporting
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Mobile Money technology solutions

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Mobile Money technology solutions

  1. 1. Mobile Money Technology Solutions<br />Nicola D’Elia, mApps and Innovation Manager<br />October 2010, Kuala Lumpur<br />
  2. 2. Agenda<br />1.<br />Background<br />2.<br />Market Overview<br />3.<br />7Key Learnings<br />4.<br />Vendor Selection Criteria<br />5.<br />Analytic Hierarchy Process<br />6.<br />Conclusions<br />
  3. 3. Market overview<br /> 84 Live Deployments<br />as of 01.09.2010<br /> vv 87 Planned Deployments<br />Planned<br />Live<br />Geographic Distribution<br /># Deployments per Vendor<br />Live<br />Planned<br />
  4. 4. 7 key learnings<br />4.<br />Look for vendors with live deployments and local expertise<br />Ensure your vendor’s success is tied to your own<br />5.<br />1.<br />Technology and Security are essential, but there is more...<br />6.<br />Build a strong relation with your vendor<br />2.<br />Engage with Vendors while you are Defining your Business Strategy<br />7.<br />Data, Data, Data... <br />3.<br />Be realistic with your time-to-market expectations<br />
  5. 5. Technology and Security are essential<br />Before<br />60%<br />of mobile operators included technology and security as top selection criteria<br />After<br />30%<br />Solution<br />Security<br />But there is more...<br /> Supported Transactions<br /> Transaction and Application<br /> Supported bearer channels<br /> User authentication/registration<br /> PCI Compliance<br /> Service authentication<br />Transactional Integrity<br />Hardware Security, Operating System and Database<br />Hardening<br />Scalability and transaction volume<br />Performance / High Availability<br />Operations and Maintenance Security<br />Fraud detection and management<br />
  6. 6. Engage with vendors while you are defining your business strategy<br />Set the strategic context<br />Data analysis and Requirement definition<br />Initial evaluation of potential solutions<br />Vendor selection<br />Implementation<br />Maintenance and Support<br /><ul><li>Market Assessment
  7. 7. Process Mapping & Re-engineering
  8. 8. Requirements Analysis
  9. 9. Conduct research
  10. 10. Shortlist vendors
  11. 11. Define selection criteria
  12. 12. Apply multi-criteria decision framework
  13. 13. Negotiations
  14. 14. References checks
  15. 15. Allocate resources
  16. 16. Ensure appropriate support
  17. 17. Operational Support
  18. 18. Platform refinement
  19. 19. Reporting
  20. 20. Plan for platform upgrades</li></ul>Design effective RFP<br />Visit live deployments in similar markets<br />Conduct workshop with vendors<br />
  21. 21. Be realistic with your time-to-market expectations<br />Set Strategic Context<br />Vendor Selection<br />Contract Negotiation<br />Implementation<br />Pilot<br />Roll-out<br />2M<br />2M<br />3M<br />5M<br />6M<br />10M<br />Expected time-to-market<br />12M<br />>>16M<br />Reality<br />The average time from vendor selection to full scale roll-out has been 16 months<br />
  22. 22. Look for vendors with live deployments and local expertise<br />Few vendors manage platforms with high volumes<br />Local expertise and established relations with key partners<br />
  23. 23. Ensure your vendor’s success is tied to your own<br />Upfront Investment <br />100%<br />Fixed licensing fee per month<br />10%<br />30%<br />Annual fee per active customer<br />20%<br />Annual fee per registered customer<br />20%<br />Fee per transaction<br />MNO<br />Technology vendor<br />Revenue share<br />10%<br />40%<br />Fee for providing managed service<br />Fee for customer support<br />70%<br />m-Wallet data<br />Business Strategy<br />Total Licensing Fees<br />Total Revenue Share<br />MNO overview<br /><ul><li>5 million users
  24. 24. 40% market share</li></ul>Service projections<br /><ul><li>1 million MM users (Year 1)
  25. 25. 50% active customers
  26. 26. Monthly transactions: 500K</li></li></ul><li>Build a strong relationship with your vendor<br />Key Relationship dimensions<br />Relational Success Dimensions<br />Information exchange<br />Trust<br />Conflict<br />Contractual terms<br />Adaptation by client<br />Adaptation by vendor<br />Commitment<br />Mutual obligations<br />Intercultural Competence<br />Traditionally success is measured from a client’s perspective<br />Relational factors play an essential role in achieving success<br />Source: Evaluating the success in International Sourcing of IT projects: the need for a relational client-vendor approach; P.Haried, k.Ramamurthy<br />
  27. 27. Data, data, data...<br />Customer engagement<br />Customer/Agent balance<br />Platform unavailability, New players in the market, change in pricing strategy, agent network <br />Insufficient agent network planning, Customer engagement<br />Identify the cause<br />Aggregate volumes and values<br />Customer base<br />Number of transactions<br />Number of customers<br />Customer engagement<br />Agent engagement<br />Customer/Agent ratio<br />Transactions patterns<br />Data<br />
  28. 28. Vendor selection criteria<br />Set the strategic context<br />Data analysis and Requirement definition<br />Initial evaluation of potential solutions<br />Vendor selection<br />Implementation<br />Maintenance and Support<br />Selection criteria<br />Vendor overview<br />Technology<br />Finance<br />Strategic Relevance<br />Operations<br /><ul><li>Supported products and bearer channels
  29. 29. Technical architecture & IF requirements
  30. 30. Scalability and transaction volumes
  31. 31. Interoperability
  32. 32. Security standards
  33. 33. Performances/High availability
  34. 34. Proven deployment and years of operations
  35. 35. References
  36. 36. Number of employees
  37. 37. Partnership feeling
  38. 38. Other (Ownership structure, capital investors)
  39. 39. Vendor financials
  40. 40. Costs (fixed, variable, additional feature)
  41. 41. Other costs
  42. 42. Legal terms
  43. 43. Risk sharing
  44. 44. Business model
  45. 45. Future roadmap
  46. 46. Time to market
  47. 47. Flexibility to new developments
  48. 48. Training and Support
  49. 49. Reporting
  50. 50. Easy of use
  51. 51. Other stakeholder engagement</li></li></ul><li>Analytic Hierarchy Process (AHP)<br />Model the hierarchy<br />Evaluate the weight of the hierarchy elements<br />Compute the priorities<br />Goal<br />Select the best technology vendor<br />Factors<br />Vendor overview<br />Technology<br />Finance<br />Strategic Relevance<br />Operations<br /><ul><li>Supported products and bearer channels
  52. 52. Technical architecture & IF requirements
  53. 53. Scalability and transaction volumes
  54. 54. Interoperability
  55. 55. Security standards
  56. 56. Performances/High availability
  57. 57. Other
  58. 58. Vendor financials
  59. 59. Costs (fixed, variable, additional feature)
  60. 60. Other costs
  61. 61. Legal terms
  62. 62. Risk sharing
  63. 63. Business model
  64. 64. Future roadmap
  65. 65. Time to market
  66. 66. Flexibility to new developments
  67. 67. Training and Support
  68. 68. Reporting
  69. 69. Easy of use
  70. 70. Other stakeholder engagement
  71. 71. Proven deployment and years of operations
  72. 72. References
  73. 73. Number of employees
  74. 74. Partnership feeling?
  75. 75. Other (Ownership structure, capital investors)</li></ul>Subfactors<br />Alternatives<br />Vendor 1<br />Vendor 2<br />Vendor 3<br />
  76. 76. Analytic Hierarchy Process (AHP)<br />Model the hierarchy<br />Pairwise comparisons<br />Evaluate the weight of the hierarchy elements<br />Compute the priorities<br />Technology<br />Vendor overview<br />Technology<br />Finance<br />Vendor overview<br />Strategic Relevance<br />Finance<br />Vendor 1<br />Strategic Relevance<br />Operations<br />Operations<br />Vendor 2<br />
  77. 77. Analytic Hierarchy Process (AHP)<br />Model the hierarchy<br />Evaluate the weight of the hierarchy elements<br />Compute the priorities<br />Goal<br />Select the best technology vendor<br />Factors and Subfactors<br />Vendor overview<br />Technology<br />Finance<br />Strategic Relevance<br />Operations<br />.25<br />.20<br />.35<br />.10<br />.10<br />0.30<br />0.20<br />0.50<br />Alternatives<br />Vendor 3<br />Vendor 1<br />Vendor 2<br />
  78. 78. Are you happy with your technology provider?<br />MNOs level of satisfaction with m-wallet providers<br />Satisfied<br />3.6<br />3.5<br />3.4<br />3.4<br />3.3<br />3.3<br />Neutral<br />3<br />2.9<br />2.7<br />Dissatisfied<br />Promoters<br />Passive/Detractors<br />0 1 2 3 4 5 6 <br />7 8 9 10<br />Not at all likely<br />Neutral<br />Extremely likely<br />How likely are you to reccomend to a colleague or friend?<br />64%<br />36%<br />System flexibility Client engangement model Responsiveness to service development requests<br />Reporting tools and customer support Local capabilities Product documentation<br />Business process support Price<br />What to improve<br />Approximately one operator out of three is satisfied with their vendor<br />
  79. 79. Our journey so far...<br />1.<br />Create a strong business partnership<br />MNO and vendor need to believe in the success of the platform<br />2.<br />Learn together<br />Leverage the expertise of your vendor and be thorough<br />3.<br />Listen to your client<br />The operator’s success is your success<br />
  80. 80. Q&A<br />
  81. 81. Q&A<br />Unanswered questions?<br />Send them to:<br />e-mail<br />mmu@gsm.org<br />SMS<br />+60123211275<br />(include your name)<br />or<br />

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