Business case for openning the network
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The document discusses the challenges faced by telecom operators in engaging developers and adapting to market changes, highlighting issues in product development processes and the importance of supporting developer communities. It emphasizes the need for operators to adopt innovative APIs and simplify the developer experience to prevent losing talent to competitors like Apple and Android. Furthermore, it explores the potential impact of opening networks on business strategies and the importance of a customer-centric approach for future growth.
Business case for openning the network
- 1. The Business Case for Opening the Network Alan Quayle Business and Service Development www.alanquayle.com www.alanquayle.com/blog www.linkedin.com/in/alanquayle 1 © 2008 Alan Quayle
- 2. What’s Developer Changed? Perspective Business Cas Discussion e 2 © 2008 Alan Quayle
- 3. What’s Changed? 3 © 2008 Alan Quayle
- 4. An Operator’s Product Development Process Find Budget Opportunity Market Identified Research 18-30 month 12-18 month s s New product Re-Launch Launch development process 4 © 2008 Alan Quayle
- 5. What’s Changed? Expectations 5 © 2008 Alan Quayle
- 6. What customers expect 18-30 month 6-12 months s 4 months Weekly 6 © 2008 Alan Quayle
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- 8. High Street Subsidized Network Phones Control S to r e s Customer Relationship Ecosystem Billing Control Relationship Brand 8 © 2008 Alan Quayle
- 9. Developer Perspective of the Initiatives 9 © 2008 Alan Quayle
- 10. Some Developer Quotes We have spent 18 months They (Orange Partner) select working with Orange Partner and what apps their customers see! achieved nothing. Its simpler to How is that a developer directly go to the relevant product community? Isn’t it the customer manager that decides; haven’t they learnt even the basics from Apple! AT&T and Verizon’s developer communities are broken. We’re no longer engaged, we’ve focused our development efforts on iPhone, Android and Ovi because there is a clear path to cash (the customer). An ADC is a large Operators’ ADCs must solve undertaking, Operators the 4 key challenges facing must resource adequately developers: distribution, to not repeat the problems discovery, predictable of the past. process, and a clear way to make money 10 © 2008 Alan Quayle
- 11. Developer Survey on Community Involvement Critical Exodus! Other Operator Store Samsung Mobile Applications Nokia OviStore Orange App Shop Working Worked in past, no longer Android Market Never worked Blackberry App World Windows Mobile Catalogue Apple AppStore 0% 20% 40% 60% 80% 100 % 50 mobile application developers surveyed in June 2009. Roughly 50:50 split between North America and Europe Developers are voting with their feet, makes the problem far greater 11 than awareness, you’ll need to change their minds © 2008 Alan Quayle
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- 13. Sample Developer Survey: Please rank the following initiatives by who best serve the needs of the developer community (UK focused developers) Good OK Bad Unsurprisingly Apple and Android are top. However, Nokia Ovi appears to be in the pack with the other operators 13 © 2008 Alan Quayle
- 14. Mapping the Operator Developer Community Landscape Enterprise App Consumer App Verizon China Sprint ADP Vodafone Telus Orange Mobile Betavine AT&T Three API BT Ribbit Cricket Telenor Globe CPA Enterprise IT Content Only Telus and BT Ribbit have a solid enterprise focus, Orange Partner, VDC and China Mobile are attempts at enterprise, they lack focus 14 © 2008 Alan Quayle
- 15. Mapping the Consumer Electronics / Operating System Developer Community Landscape Enterprise App Consumer App Android Palm Handango Samsung Facebook Sun RIM Salesforce.com Microsoft AppExchange Getjar iPhone Nokia Ovi Enterprise IT Content Apple has successfully executed a plan supporting enterprise app developers and internal enterprise IT developers over the passed year 15 © 2008 Alan Quayle
- 16. Developer Community Magic Quadrant Ability to Challengers Leaders Execute Apple Vodafone Android Orange Verizon AT&T Microsoft Nokia RIM Sprint China Mobile Telenor/Globe 3 Telus Salesforce Sun Samsung BT Palm getjar Handango Niche Visionaries Completeness of Vision 16 Operators have failed to compete in most western markets © 2008 Alan Quayle
- 17. Capabilities Application Developers Seek Potential Telco API capabilities (from App Vendor Survey) • Single sign-on • Authentication & Single Sign-on High • Presence (device, application, call state) • • Home Network Enabler Content Delivery • Address Book API • and Availability Device Capabilities / Software • Policy (Quality of Service) • IPTV enablers • Age Verification • Location (accuracies and freshness), Proximity, Heading, Speed • IPTV STB enablers • Preferences (policies or rules) • Content Enablers • Billing/Charging • Context – a combination of presence, location, device status, application status, • Collaboration Enablers • VoIP / SIP call control including invoking • Identity/Authentication • meeting status (calendar), etc. Customer data (business intelligence) supplementary services • Call Control • Fulfilment and other BOSS capabilities • Location • Messaging • Digital Rights Management • Network address book • Device Management • Messaging • Group List Server (buddy lists) • Local dial in number provisioning Popularity • Enterprise Mobilization • Ringtone purchase integration • Profile API • • VoIP / SIP: tone insertion Call Flow: ACD, IVR, CRM, Helpdesk • Video-ringtone platform • Subscription status • File Browsing • • Charging / Billing Call Log / Call events • • Mobile Video CDR number frequency search • Directory • Browser based API • Message Store • Calling Name dip • Presence And the list goes on, much further on….. Prioritization is critical 8 © 2008 Alan Quayle • SIP/VOIP/Call Control • Mobile Lookup Developers are excited about the • Connection status many capabilities and information • Discoverability an operator has available; but • Short codes getting the community / business • Plus lots and lots more…… basics is more important 17 © 2008 Alan Quayle
- 18. Summary of Telus Developer Ingestion Process • Service Delivery Framework exposes – Current APIs: messaging, location and presence • No website or online ingestion mechanism – No developer community – works with targeted developers As APIs are ParlayX most target developers already have interfaces build into their apps – Consider it a form of collaborative innovation rather than open innovation – NPD (New Product Development) had too many new service ideas to even think about without opening up the innovation process • Developer requests come in through the traditional direct contact with the NPD group • Process is designed to enable Telus to launch more apps and faster with a focus on SME (Small Medium Enterprise) – Achieved a 4 to 40 annual service launch improvement – Reduce cost by 75% in launching new apps • Profitable within the first year of operation Key in Telus’ decision making: too small to create a viable developer community, and more confidence in ability to innovate in enterprise services 18 © 2008 Alan Quayle
- 19. Telus Going Forward • Adopting OneAPI – Will work opportunistically with developers that have innovative consumer applications or apps launched on competitors networks that it needs to emulate • Expanding focus to large enterprise – Examining was to work with IT groups in large enterprise to mobilize their processes • Does not plan to expand this model to consumer – Telus is too small – Working with other Canadian operators in the OneAPI pilot http://canada.oneapi.gsmworld.com/ – Will let CE/OS app stores flourish as it drives data plan adoption • Will expand APIs to other enterprise centric services and enable mash-up capabilities with web-services – Very focused and in close co-operation with specific partners Telus will partner for a consumer-focused developer community but look to build closer ties to IT groups in large enterprise customers 19 © 2008 Alan Quayle
- 20. Business Case 20 © 2008 Alan Quayle
- 21. Scenario Assumptions • Converged operator in a mature internet centric market – 10 million customers 20:80 prepaid : post-pay split • Year 1 – Silo consolidation across messaging, location and billing – Service Exposure business creation • Year 2 – Initial service exposure capabilities Call control, enterprise mash-up, presence • Year 3 – Service exposure expansion IPTV, streaming, and quality of service 21 © 2008 Alan Quayle
- 22. Year 1 Analogy based on Real World Results • BT implemented a service creation process transformation project • Identify and consolidate ‘common capabilities’ – 650 applications that run on top of its IP network • BT measured the benefits by the number of people that managed these common capabilities. – 60% decrease in workforce, a reduction of >1000 staff. • For the Scenario that would mean a saving of 500 staff – Equivalent annual cost of $40 million. – Typically ROI (Return on Investment) within 3 months • Quoting Bhaskar Gorti, senior vice president and general manager of Oracle Communications SDP savings of: – Development cost and time reduced by 50% – Reduced IT support cost of 30% – RFT (Right First Time) improvement of 30% – TTL (Time To Launch) improvement from 30 days to 1 day – Lowered provisioning costs by 30% • In a small operator, SDP improves an operator’s ability to scale its partner management without increasing headcount 22 © 2008 Alan Quayle
- 23. Example Year 2 and 3 Services (example third party applications available today) • Communication enabled business processes – Communication enabled CRM (Voicesage, WorldxChange Communications/Sulaco Technology, Callwave, search-to-phone, local SI) – Communications dashboard / widgets (WIT-Software, FeedHenry) • Enterprise and Voice Mash-ups – eHealth, eGovernment (Agnity, Creative North, local SI) – Voice based messaging/meeting coord (Dial2do, Excendia) • Content 2.0 – Operator community widget (Useful Networks, AirG, PartyStrands, Movial) – UGC widgets (Shozu) – Place-shifting of subscribed and personal content (Quartics) • Presence / Location – M2M, Integrated asset tracking (Kore Wireless, Vianet, Wireless Maingate) – Integrated Field Force Automation (Gearworks) – Location application aggregators (uLocate) – Community location/presence (Aka-Aki, Geo-Me, Gypsii, Locatrix, Sense Networks, Wavemarket) – Enterprise messaging (Tango Networks, Elitnet, GinTel, OptiMobile, Mobile Max, Adomo) • STB services – Widgets (HomeCamera, Miniweb) – TV 2.0 channels on STB (Hulu, Blinx) • QoS enabler – Streaming to place shifting, TV 2.0, music/audio streaming, and other premium web based streaming services Result: $30-75M revenue by Year 3 23 Just from ‘key services’ anything else is “jam” on top © 2008 Alan Quayle
- 24. Why Aren’t Your Customers Already Using These Applications? 24 © 2008 Alan Quayle
- 25. Critical Issues in Opening the Network • Copy Smart – don’t copy dumb – An operators business is not the same as Apple’s – Don’t be a “40 year old” dressed as a “20 year old” • Opening the network impacts all lines of business not just trendy ‘2.0’ stuff – Make business an equal focus • Its not a ground-breaking business case for revenues – But the strategic impact of doing nothing will be fundamental to the business Bottom line: Engaged customer access and a clear path to cash matters above all to developers 25 © 2008 Alan Quayle
- 26. We’ve been talking about it for over a decade, but now its the customer that’s going to decide Utility Service Connectivity Provider 26 © 2008 Alan Quayle