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Systems MGCR 620 E-Business:  Skype and its Impact on the Telecom Industry November 9, 2008 Tomotaka Brink Fushimi  [email_address]  (260301050 ) Benjamin Carrion Schafer  [email_address]  (260339078) Tess Hong  [email_address]  (260332417) Ting Miao  [email_address]  (260314135) Tom Takahashi  [email_address]  (260313560)
Skype’s E-business Description ,[object Object],[object Object],[object Object],[object Object],[object Object]
Skype’s E-business Description ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Skype’s E-business Description ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Skype’s E-business Description ,[object Object],[object Object],[object Object],[object Object],[object Object]
Rationale in Starting Business ,[object Object]
Rationale in Starting Business ,[object Object],[object Object],[object Object]
Rationale in Starting Business ,[object Object],[object Object],[object Object],[object Object],[object Object]
E-Business Analysis:  Reasons  for  Success Cost advantage :  lower cost structure  Easy handling Viral spread being  freely downloadable Large community  working on compatible  solutions for Skype Continuous innovation and  expansion of services ( Skype  out  ,  Skype In ,  Video conf .) Agreement with Wal - Mart to  sell Skype - certified hardware  devices and prepaid cards Partnering with certain  computer manufacturers to  include Skype Scaling :  additional  infrastructure is not required
E-business Analysis: Synergies with EBay & PayPal ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
E-Business Analysis: Risks In August 2007, Skype experienced an interruption for two days The decline knocked $1 billion + off eBay’s market cap. eBay shares closed down 2.58%.
Summary: Why Skype was Successful
As a manager, what we learned…
Lesson one: Wide customer base create business opportunities (high economic profit)
Lesson Two:  Create a clear business model with rapid, global expansion ,[object Object],[object Object],[object Object],[object Object]
Lesson Three: New IT technology to circumvent higher entry barriers New Technology
Lesson Four: The Value of Simplicity in IT Easy Install  Easy Use Single tool for: PC2PC calls Video conf. PC2Phone Phone2PC File sharing
Lesson Five: Sustainability in IT ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Technological obsolescence is a risk factor for Skype’s business.
Questions….

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Skype anlaysis

  • 1. Systems MGCR 620 E-Business: Skype and its Impact on the Telecom Industry November 9, 2008 Tomotaka Brink Fushimi [email_address] (260301050 ) Benjamin Carrion Schafer [email_address] (260339078) Tess Hong [email_address] (260332417) Ting Miao [email_address] (260314135) Tom Takahashi [email_address] (260313560)
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9. E-Business Analysis: Reasons for Success Cost advantage : lower cost structure Easy handling Viral spread being freely downloadable Large community working on compatible solutions for Skype Continuous innovation and expansion of services ( Skype out , Skype In , Video conf .) Agreement with Wal - Mart to sell Skype - certified hardware devices and prepaid cards Partnering with certain computer manufacturers to include Skype Scaling : additional infrastructure is not required
  • 10.
  • 11. E-Business Analysis: Risks In August 2007, Skype experienced an interruption for two days The decline knocked $1 billion + off eBay’s market cap. eBay shares closed down 2.58%.
  • 12. Summary: Why Skype was Successful
  • 13. As a manager, what we learned…
  • 14. Lesson one: Wide customer base create business opportunities (high economic profit)
  • 15.
  • 16. Lesson Three: New IT technology to circumvent higher entry barriers New Technology
  • 17. Lesson Four: The Value of Simplicity in IT Easy Install Easy Use Single tool for: PC2PC calls Video conf. PC2Phone Phone2PC File sharing
  • 18.

Editor's Notes

  1. As a manager, when we look back the successful track of Skype, many points are valuable and helpful for us to deal with our future similar project.
  2. Sky owns a 309 million registered users group, a huge customer base 30 percent of Skype retail users also used Skype at work Personal preference and behavior are increasing and creating business opportunities for Skype to go further into business adoption Market penetration & bring positive impact for business decision making Increase chance to attract more users
  3. Create a clear business model Skype business model is clear: Enterprise, Enterprise, Enterprise. Skype as of today delivers lots of products to provide enterprise level business solution Enterprise – key to create attractive profit With the resource is being used in a more rational and efficient way by offering and pricing value-added services in the business, business would like to use it to improve their competitive advantage.
  4. using technology to overcome barriers to entry into industries Telecom industry is a high barrier industry – huge investment in the field of hardware & infrastructure A cheap voice services rived the entry to telecom market – Skype only a replacement of a traditional function is still not enough cost efficiency and value-added services are needed for business scalability Exploration is when people are at least willing to listen and consider potential benefits of the change. One of the benefits of Change Management here is to help people understand the need for the change and identify how they may benefit from the change thereby reducing resistance. Commitment is typically achieved when the need for the change is understood, leadership is committed, goals are aligned, roles and procedures are clear, and the appropriate stakeholders are involved in making the change happen.
  5. Success came from realizing a very BASIC NEED “ Saving money is just the start. Being able to communicate and work efficiently as a team is really important. Skype is also a fun product to use which keeps people motivated and interested in their work.” (Comment from one of Skype business user). Easy install & easy use Quality Security
  6. The importance of customer support service Maintain business sustainability Continuous increasing Necessity of customer support Way to hold registered users Way to attract new users