The New ICT Ecosystem : Architectural Structure SPRING 2012 Team Members : 1. Ganbat T 2. Riri K 3. Teshome W 4. Tri AITTP750:ICT Economics & Management , Professor
ContentIntroductionBasic ICT Ecosystem (The Six Layer)New ICT Ecosystem (The Four Layer)Conclusion
Introduction An Ecological community interacting or aggregating together with Ecosystem its environment functioning as a unit The sector of economic activity operated based on Information and Communication Technologies(ICT)ICT industry The interaction of different units or systems of the technology, business, service etc, in an ICT industry interacting within one unit of working environment
The ICT Ecosystem Layer Model (ELM) Model of the global ICT sector that is developed in order to assist the analyses of the sector, and to help inform the development of appropriate corporate strategies and government policies. A Qualitative model that views the entire ICT sector as a system
Basic ICT EcosystemA layer of ICT Ecosystem consists of 6 layers(The Six Layer of ELM)
ELM : Description of ICT Industry Final consumption Content, application, and services Middleware, navigation, search & innovation platforms Connectivity Network Operating Networked Element
Layer 1 : Networked Elements• Increasing tendency, • Telecom equipment this sector to be • Consumer electronics integrated into • Computers networks • Semiconductors, etc • System software
Layer 2 : Network Operating• Integrating elements in Layer 1 to Information • Telecom operators & Communication • Cable TV Operators Networks • Satellite operators• These integrated • Broadcasting operators elements run by network operator
Layer 3 : Connectivity• New firms were able to enter layer 3 & provide internet connectivity • France Telecom• Some incumbent player • Deutsche Telekom in layer 2 also entered • A.O.L layer 3
Layer 4 : Middleware, Navigation, Search and Innovation Platforms• The demand for search function • Browsers• Function to navigate • Search engines through many hosts on • Security software the WWW
Layer 5 : Content, Application, and Services• Content : – A commonly used term regarding to the Internet and other electronic media (e.g. television and DVDs), or : – A Material, which is inserted to users, such as textual information, images, music, and movies.
Layer 5 : Content, Application, and Services• Application : program or group of programs designed for end-users.• It could be software programs in case of applications software.>>> In this course, the term ‘application’ is also used to include functionalities, such as electronic commerce provided by new Internet companies such as eBay and Amazon.com.
Layer 6 : Final Consumption• The Consuming from layers 1 – 5.• Drawing attention to the importance of the intermediate demand and intermediate markets that exist between layer 1-5.
Interaction Between Layers• The services referred to in layer 5 refer to services for final consumers/users not for intermediate consumers/users.• Example : – New entrant telecom companies purchasing local loop access services from incumbent telecoms operators under LLU regulations are conceived of as making an intra-layer 2 transaction in the access market located in layer 2. – However, in using local loop access to provide Internet access to final users (such as households) they are conceived of as making a market transaction involving layers 2 and 6.
Interaction Between Layers Con’t…• Intermediate demand and supply relationships (and therefore markets) exist both within and between layers.• Example : – In layer 1 systems producers (such as the producers of PCs or mobile phones) demand semiconductors and other devices from component producers. – Telecoms operators in layer 2 demand telecoms equipment from telecoms equipment suppliers located in layer 1.
New ICT Ecosystem(The 4-layer Model) The new immerging of the basic ICT Ecosystem, Formulated due to the merge or convergence of some layers in the basic layer systems, Relatively loose, open and qualitative armework to think, and act about individual’s technologies, social and economic issues. (Frans MA). It aims to offer a conceptual vehicle to analyses and strategizeabout unfolding change in the digital landscape and supportdecision making in: Organizations, firms & Government.Generally, the conceptualization of the new ICT ecosystem into afour-layer model (equipment, networks, services and content)(Didier Lombard,CEO)
The Six-Layer The Four-Layer ELM Model ELM Model(New Model)Layer 6 : Final consumption Layer 4 : Final ConsumerLayer 5 : Content, Layer 3 : Contents,applications, and services applications, services,Layer 4 : Middleware, middleware, navigation,navigation, search, and search, and innovationinnovation platform platformLayer 3 : Connectivity Layer 2 : Network operatingLayer 2 : Network operatingLayer 1 : Networked element Layer 1 : Networked element
Why The Four-Layer ELM Model ?• The first aggregation : Connectivity has been vertically integrated e.g.: Telecoms operator incumbents vs independent ISP• The second aggregation : Activities such as navigation (typified by Google offering) which were in layer 4 of the six-layer ELM model – are intimately connected with the provision of content, application and services.
Architectural Structure Final consumer Final consumers Layer 3 Platform, content & applicationsCont. & App. Providers providers Layer 2 Network operators Converged Networks Networked element providers Layer 1 Networked elements
Key Points considered for the emergance of new Ecosystem, Emergence of new Technologies some layers become complimentary The term convergence is often used for this phenomenon. For example, layer 1&2 in the basic ICT Ecosystem were separated functionally, but with the new system, they become interconnected, and their service is getting to be substituted. This brought vertical integration, or merger. The advent of internet had contributed for the impact on the structure of the new Ecosystem. TCP/IP facilities the movement of packets of information across different networks, allowing them to become interoperable, and sometimes substituted.
Key Points Con’t…….. This has facilitated the emergence of the process of convergence. Different firms give the same service, this may bring on the firms to merge or compete. TCP/IP has another equally profound effect facilitated the emergence of new layers consisting of new functionalities (Layer 3-5). It has allowed the technical separation of layer 1&2 from the upper layers This brings the entry of new players into the new ICT ecosystem, providing new functionalities. The aggregation of layer 4(Middle ware, navigation, search & innovation platform) & 5(Content, Application & Service in the 6 model to get layer 3 in the 4-layer model. The reason for this aggregation is that: Middle ware products are increasingly being provided by firms involved in navigation, content, application & services.
ConclusionNew ICT Layer ModelSystem & Devices substituted each other,Convergence from Heterogonous System to simplified (single )systemAllowing firms to vertically integrated (merged),Competition between firms increase QoS for buyers,A step forward for Anywhere & Anytime service,