1
4858_04_2002
© 2002, Cisco Systems, Inc. All rights reserved.
TELKOM SA
Executive Briefing
April 14, 2005
Bill Brownell, Vice President
Cisco Internet Business Solutions Group
2
© 2002, Cisco Systems, Inc. All rights reserved.
Outline
•
Introducing IBSG
•
Service Provider Market Trends
•
Next Generation Service Provider
3
© 2002, Cisco Systems, Inc. All rights reserved.
Introduction to IBSG: Capabilities
Financial
Services
Retail
Mfg.
Energy
Health
Care
Public
Sector
Enterprise
eBusiness Solutions
–
Customer Care, eLearning,
Outsourcing, SCM, Web Foundation, Workforce Optimization
Service Provider
Challenger
Mobile
System
integrator
SP Solutions Business Planning
SP eBus and eOps Solutions
Incumbent
4
© 2002, Cisco Systems, Inc. All rights reserved.
Operational
transformation
SP CxO
Agenda
Profitable Service
Creation
Go To Market
Effectiveness
Business
transformation
IBSG Areas of Focus
IBSG Programs
Drive
Revenue
Growth
Drive
Productivity
Improvements
5
© 2002, Cisco Systems, Inc. All rights reserved.
Outline
•
Introducing IBSG
•
Service Provider Market Trends
•
Next Generation Service Provider
6
© 2002, Cisco Systems, Inc. All rights reserved.
Consumers
Enterprises
Small
Business
•
Enable the real
time enterprise
•
Lower costs
•
Broader reach
•
Access to customers
•
Scaleable growth
•
Partnering
•
Learning and
knowledge
•
Entertainment
•
Mobility, convenience
Service Providers Will
Enable the 21
st
Century Economy
Service Provider
Infrastructure
and Services
$1.2T Industry WW
$600B
$400B
$200B
7
© 2002, Cisco Systems, Inc. All rights reserved.
Consumers And Businesses
are spending more on Communications
Talk More, Eat Less?
Source: OECD 2003
8
© 2002, Cisco Systems, Inc. All rights reserved.
Growth in Mobile, Data
0
200
400
600
800
1,000
1,200
1,400
1,600
2004
2005
2006
2007
2008
Value Added
Services
(Layers 4-7)
Layers 2-3
Mobile Voice
Fixed Voice
Source: IDC/Gartner/Ovum/Yankee Cisco IBSG January 2005
$ Billion
-
1.2% CAGR
7.1% CAGR
19.5% CAGR
11.9 % CAGR
9
© 2002, Cisco Systems, Inc. All rights reserved.
Mobile Subscribers (M)
Broadband Households (M)
Growth Engines
IP Voice over Broadband Users (M)
Managed Services: IP VPN ($B)
Source: Cisco IBSG, January 2005; IDC; Gartner Dataquest; Softbank
0
50
100
150
200
2003
2004
2005
2006
2007
2008
0
500
1000
1500
2000
2003
2004
2005
2006
2007
2008
0
5
10
15
20
2003
2004
2005
2006
2007
2008
0
50
100
150
200
250
2003
2004
2005
2006
2007
2008
10
© 2002, Cisco Systems, Inc. All rights reserved.
Customer Are Willing to Pay
(and Stay) for Value
Security
Simplicity
Integration
Personalization
Control
Speed
Reliability
Low cost
Voice
Data
Video
Wired
Wireless
Foundational Requirements
Source: OECD Communications Outlook, 2003
11
11
11
© 2005 Cisco Systems, Inc. All rights reserved.
10652_01_2005
Challenge:
Complex, Costly Operating Models
•
Market change has generated
increasingly complex hybrid
model
New networks for new services
Overlays to create integration,
bundling, and customer care
•
The hybrid model does
not work
High complexity and increasing
costs, despite cost reduction efforts
Limited ability to integrate
Constrained service innovation
Vulnerable to focused competitors
IBSG
-
11
12
12
12
© 2005 Cisco Systems, Inc. All rights reserved.
10652_01_2005
Challenge:
Intensifying Competition (US Example)
Old
–
Static vertical integration: Markets are generally mutually exclusive
Source: Cisco IBSG, January 2005
New
–
Deconstructed model: Competition comes from all directions
Cable Companies
(Comcast)
Service Layer Players
(Vonage, Skype)
Mobile Operators
(Sprint, Verizon, Vodafone)
Application
Core
Access
Incumbent Wireline
Mobile
Cable
Incumbent Wireline
13
13
13
© 2005 Cisco Systems, Inc. All rights reserved.
10652_01_2005
Traditional Revenue Streams Under Attack
Source: IDC, Yankee and Gartner, Q3 2004
Country
2003
2008
CAGR
USA
169
127
-
5.6%
Japan
40
30
-
5.6%
UK
16.9
15
-
2.4%
Spain
7.2
6.4
-
2.3%
Italy
12
11
-
2.3%
France
14.3
12.7
-
1.7%
Germany
19.5
18.2
-
1.3%
Fixed Voice Market Size
$
-
Billions
14
14
14
© 2005 Cisco Systems, Inc. All rights reserved.
10652_01_2005
Level of Innovation
Price
Competition
Low
High
High
Low
Germany
Mexico
Italy
France
Spain
=Less liberarilized competitive structre
UK
U.S.
Canada
Japan
= More liberalized competitive structure
Regional Variations In Pace
General
direction of
customer
demand and
service mix
similar but
pace and
competitive
dynamics vary
15
15
15
© 2005 Cisco Systems, Inc. All rights reserved.
10652_01_2005
Outline
•
Introducing IBSG
•
Service Provider Market Trends
•
Next Generation Service Provider
16
16
16
© 2005 Cisco Systems, Inc. All rights reserved.
10652_01_2005
Keep the
Business On
Track
Change the Engine
While Flying
Grow the
Top Line
Source: Cisco IBSG, January 2005
•
Respond to
deregulation
•
Limit competitive
inroads
•
Get the “house in
order”
•
Improve productivity
•
Improve financial
performance
•
Grow new and
existing segments;
transition to IP
services
•
Manage fixed and
mobile convergence
•
Become more
customer and
marketing oriented
•
Reduce operating
expenses through IP
shift
•
Adapt organization
•
Maintain customer
quality; enhance
customer experience
•
Evolve to a new
business model
Management Agenda for Most Incumbents
17
17
17
© 2005 Cisco Systems, Inc. All rights reserved.
10652_01_2005
Create
Build and Operate
Market, Sell,
Service
Support
Outlines of a New Model:
The Next Generation Service Provider
Service
Innovation and
Partnering
Intelligent Information
Network and Operations
Customer
Agent
Responsive Business Processes
Dramatically change:
•
Cost structure
•
Time
-
to
-
innovation
•
Brand value and customer experience
•
Revenue and profit trajectory
Source: Cisco IBSG, March 2005
18
18
18
© 2005 Cisco Systems, Inc. All rights reserved.
10652_01_2005
Source: Cisco IBSG, March 2005
Note: Dollars expressed as billions; results displayed for U.S. and Western Europe
Customer
agent
$43
Intelligent
information
network
and
operations
$70
2004
Industry
margin
$230B
39%
EBITDA
2008
Industry
margin
$345B
50%
EBITDA
Legacy
revenue
decline
($95)
Responsive
business
processes
$70
Potential for Significant Profit Improvement
and Competitive Strength
Service
Innovation
And
Partnering
$27
19
© 2002, Cisco Systems, Inc. All rights reserved.
Customer Agent:
A Higher
-
Margin Customer Relationship
Services
Reach
Extend network
intelligence to
customer devices
Serve as the network
capabilities manager
for the customer
Services
Management
Use brand to
offer service
packages
customized for
different markets
Market
Segmentation
Solutions
Integration
Provide tools and
services to integrate
third
-
party
applications
20
© 2002, Cisco Systems, Inc. All rights reserved.
Customer Agent: NTT DoCoMo
•
Offers iMode high
-
speed wireless data
services
•
First operator to deploy 3G W
-
CDMA (in
2001)
•
42M subscribers
•
Operating revenues (FY ending March
04)
¥
5T
•
Strong services reach:
Worked closely with device
manufacturers to define handset
specifications
Established content search tools
and navigation aids
Billed customers on behalf of
content providers
IBSG
-
20
21
© 2002, Cisco Systems, Inc. All rights reserved.
Customer Agent: France Telecom Group
Use the best available
Network
Users
’
features
•
Connection kit
•
password
•
Security strategy
•
Users services
Secure
Access
Single
password
Wi
-
Fi public
ADSL
@ Home
GPRS
UMTS
PSTN
IT manager services
•
Contract
•
Bill
•
SLA
•
Service deployment
•
Reporting
•
Administration services & tools
Enhance employee efficiency
with a single,
simple & secure connection to the best network available
© 2005 Cisco Systems, Inc. All rights reserved.
IBSG
-
22
Service Innovation: Top 60 SPs Getting
Traction on a Range of New Services
% Applicable
SPs Offering
2004
Growth Rate of
SPs Offering
2003
–
2004
% of Generally
Available
Services On or
Ahead of Plan
Enterprise
Mobile Office
75%
11%
82%
Layer 3 VPN
62%
20%
80%
Broadband
Video
33%
Not measured in
2003
67%
Metro Ethernet
52%
26%
76%
Broadband
VoIP
58%
65%
83%
Managed
Security
61%
27%
68%
Source: Cisco IBSG, March 2005
23
© 2002, Cisco Systems, Inc. All rights reserved.
MPLS
VPN
Security
CoS
QoS
Enhanced
Voice
IP PBX
VoVPN
Service Innovation:
Gaining Share of Wallet
--
Equant
Built a broader
VoIP
portfolio
based on a strong
MPLS VPN
base
•
Managed End
-
to
-
End solution
•
VPN service with
Quality of
Service
•
Simple
Migration Path
from
traditional telephony to VoIP
•
Broad LAN & WAN support
–
Consulting
–
Deployment
–
Maintenance
IBSG
-
23
24
© 2002, Cisco Systems, Inc. All rights reserved.
Innovating with Others: BT Rich Media
•
BT Rich Media aims to be a
“one
-
stop enabler for the
distribution of content”
•
Hosting and distribution =
premium performance
connectivity:
“BT Rich Media allows you to
create new opportunities from
your existing content … through
the ability to multicast, stream
and download to many
channels.”
•
Web
-
services
-
based billing and
customer care
IBSG
-
24
25
© 2002, Cisco Systems, Inc. All rights reserved.
Communications
Entertainment
Online
Modular service
construction
Source: Cisco IBSG, January 2005
Network operational cost
40
–
60%
Operating Expense
Savings
Shared services
Central office expense
Outside plant
20
–
40%
15
–
30%
5
–
10%
Customer service
5
–
10%
Intelligent IP
infrastructure
Need extensive horizontal scale to manage
billions of IP
-
addressable devices
Operations
Integrated, service
component
“factories”
IP network (policy, QoS, security, multicast …)
Other
networks
Fully
extended
services
The Factory: Intelligent Information Network
and Operations
26
© 2002, Cisco Systems, Inc. All rights reserved.
Total Fixed Network OpEx
0%
20%
40%
60%
80%
100%
2002
2006
0%
20%
40%
60%
80%
100%
2002
2003
2004
Total Wireline CapEx:
Innovative vs Traditional
Traditiona
l
Innovative
Telecom Italia: NGN
Operations expenses decline
through converged core
2004
27
© 2002, Cisco Systems, Inc. All rights reserved.
Customer
Care
Employee
Automation
Supply Chain
Idea
to
Offering
Market
to
Order
Quote
to
Cash
Forecast
to
Delivery
Issue
to
Resolution
Support the Business
Streamlined,
automated
business
processes
Responsive Business Processes
Source: Cisco IBSG, January 2005
Employee productivity
20
–
40%
Processes time reduction
Customer satisfaction
>20%
25
–
50%
Applications
Abstraction layer
Shared
computer
services
Shared
storage
services
Dedicated
computer
services
Dedicated
storage
services
Limited
dedicated
capacity to
help ensure
real
-
time
operations
Web
services
interface
Third
parties
Web
services
-
based
applications
Shared
service
-
oriented IT
infrastructure
WS
WS
WS
WS
WS
WS
WS
WS
28
© 2002, Cisco Systems, Inc. All rights reserved.
Capabilities of BusinessDirect
:
•
Pay bills electronically
•
Place voice, data, and IP orders
and check status
•
Report and track service problems
•
Test circuits
•
Reroute network traffic in real time
Results:
•
Order
-
to
-
bill
-
cycle time reduced by 50%
through unified Web portal
•
One
-
third of all trouble reports managed
on Web
•
18% increase in employee productivity
•
80% maintenance issues automated
•
60% increase in customer satisfaction
Automated, Customer
-
Focused Solutions
29
© 2002, Cisco Systems, Inc. All rights reserved.
Making the Move
•
Approach the process as a broad, synchronized business
transformation
•
Adopt a customer
-
centric perspective
•
Focus on productivity and value improvement, rather than
cost reduction
•
Use a strong leadership strategy. Help ensure business units
work together, silos are removed, and business goals are
achieved
•
Develop a clear roadmap
30
© 2002, Cisco Systems, Inc. All rights reserved.
Evolutionary
(7
–
10+ years*)
Pace Depends on Situation
Accelerated
(3
–
5 years
**
)
NPV* gains 15
–
20% greater
than evolutionary approach
OR
*Net present value
**Estimated time to convert 80% of service revenue to IP
Most appropriate for service
providers with
•
Little or no competition
•
Limited capital
•
Slowly developing service
markets
Business Impact
•
Conserve capital
•
Minimize risk of customer loss
•
Avoid start
-
up OpEx cost
Most appropriate for service
providers with
•
Intense competition
•
Capital availability
•
Rapidly developing service
markets
Business Impacts
•
Maximum OpEx savings
•
New revenue generation
•
Platform for profitability
31
© 2002, Cisco Systems, Inc. All rights reserved.
MS Edge+Core
for IP NGN
Cisco Helping Service Providers to
Transform
Enabling 3G
Services
PSTN Migration
to IP NGN
Broadband for
Triple Play
Largest
MPLS
/
Metro E
Deployment
Biggest Broadband
Metro E for Triple
Play
The All Digital
NGN for Cable
Core for
IP NGN
32
© 2002, Cisco Systems, Inc. All rights reserved.
Enter the password to open this PDF file:
File name:
-
File size:
-
Title:
-
Author:
-
Subject:
-
Keywords:
-
Creation Date:
-
Modification Date:
-
Creator:
-
PDF Producer:
-
PDF Version:
-
Page Count:
-
Preparing document for printing…
0%
Σχόλια 0
Συνδεθείτε για να κοινοποιήσετε σχόλιο