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MIS:
Communication trends and perspective
MarekredniawaInstitute of Telecommunications
Warsaw University of Technology
redniawa Consulting
WUT Business School, Warsaw, June 2005
Marekredniawa2
Introduction
Objectives:
Answer to a question
how telecom can help businesses ?
Give insight into basics of telecommunicationsfrom the business perspective
Emphasize development trends of telecom andtheir impact on business
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Marekredniawa
Moores First Law
xxx doubles every 18 months or 60% increase peryear
Micro Processor speeds
Chip density
Magnetic disk density
Exponential Growth:
The past does not matter
PC costs decline faster than any other platform
Volume & learning curves
PCs will be the building bricks of all future systems
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Metcalfs LawNetwork Utility = Users2
How many connections a user can make? 1 user: no utility
1K users: a few contacts
1M users: many on net 1B users: everyone on net
That is why the Internet is so hot Exponential benefit
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Gilders Telecosm Law:3x bandwidth/year for 25 more years
Today: DWDM technology
10 Gbps per channel 4 channels per fiber: 40 Gbps
32 fibers/bundle = 1.2 Tbps/bundle
In lab 3 Tbps/fiber (400 x WDM)
In theory 25 Tbps per fiber
1 Tbps = USA 1996 WAN bisection bandwidth
1 fiber = 25 Tbps
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Bandwidth and Service Growth
FTTH
Multiple POTS
100M always-on
Cable TV
VoD
video file
sharing
Voice-band
Modem
POTS
56k dial-up
ISDN
Derived POTS
128k dial-up
HDSL,SDSL
n x POTS
ISDN
ADSL
single line POTS
1M always-on
Limited Video
fiber + VDSL
POTS
8M data plus
2xVoD
video file
sharing
Enhanced
Copper
Hybrid
Fiber-
Copper
Pure fiber
1
5
100
1000
??
Analogue
Copper
Digital
Copper
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Telecommunications
The exchange of information in any form (voice, data,text, images, audio, video )
Benefits:
Enables organizations to link computer systems into effectivenetworks
Opens access channel for clients, partners and cooperatingfirms
Improves business in three main ways:
Better communication
Higher efficiency
Better distribution of data
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OSI model and semantic Connectivity
Future pervasive IP-based networks Today, applications implement the network and transport functions needed to
facilitate the seamless mobility of users in the application layer
In the future, the internet protocol stack will be augmented (layer X) to provide thesemantics and application layer information required for intelligent routing
Layer 6:
Presentation
Layer 5: Session
Layer 4: Transport
Layer 3: Network
Layer 2: Media
Access
Layer 1: Physical
Access
Layer 7: ApplicationDiscovery,
Addressing,
RoutingLayer 6:
Presentation
Layer 5: Session
Layer 4: Transport
Layer 3: Network
Layer 2: Media
Access
Layer 1: Physical
Access
Layer 7: Application
Routing,Fixed
Addresses
Traditional Current
Layer 6:
Presentation
Layer 5: Session
Layer 4: Transport
Layer 3: Network
Layer 2: Media
Access
Layer 1: Physical
Access
Layer 7: Application
Layer X: Discovery, Addressing
Future
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Role of telecom in business
Provide effective and efficient electronic movement of all formsof information between various combinations of people and
business applications and devices
Provide support for business strategies and accommodategrowth and changes in the business environment
Constitute a glue for geographically distributed businessprocesses of the company
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Telecommunications Strategic Capabilities
Overcome Geographic Barriers:
Capture information about business transactions from remote locations.
Overcome Time Barriers:
Provide information to remote locations immediately after it is requested.
Overcome Cost Barriers:
Reduce the cost of more traditional means of communications.
Overcome Structural Barriers:
Support linkages for competitive advantage.
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Overcome Business Barriers
Overcome Geographical Barriers Business value:
Better customer service Business examples:
Global presence company portal
Customer care services single 800 contact number
Overcome Time Barriers Business value:
Synchronous/Asynchronous communications
Business examples: Project team collaboration
IVR based information service after hours
Web site available 24x7
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Overcome Business Barriers
Overcome Cost Barriers Business value:
Larger market reach
Transport and travel cost reduction
Business example: E-commerce website
Overcome Structural Barriers Business value:
Interorganization communication
Business example: Extranet for communication with clients, suppliers and
business partners
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Types of Telecommunication Networks
Traditional classification of networks: Private branch exchanges (PBX)
Private voice networks
Public telephone network Public Switched Telephone network (PSTN)
Integrated services digital network (ISDN)
Wide area networks (WAN)
Metropolitan area networks (MAN)
Value-added networks (VAN)VPNs for voice and data
Intelligent Network
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Traditional telecommunicationsapplications and services
Voice services Simple
Fixed
Mobile
Advanced
ISDN CLIP, MSN, .... Supplementary services
Intelligent network based FPH, VPN
Teleconferencing
Videoconferencing
Fax
Voice Mail
Electronic Data Interchange (EDI)
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Intelligent Network services
Technical concept of centralized implementation of
flexible and customized telecom services: FPH, SPL, UAN, PRM number translation services
800 freephone (FPH)
801 split charging (SPL)
804 universal access number (UAN)
701 premium rate (PRM)
707 - televoting (VOT)
PN personal number
VPN virtual private network
LNP / SNP (many variants of number portability)
IN used for deployment of services both in fixed andmobile networks (CAMEL)
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IN services: business impact
Improvement of contact with clients
Building positive image of the company golden and silver numbers
80x service as single contact number for clients to callcentre/customer care
Example - Volvo Poland: 0-801 1 VOLVO
Removing the contact barrier - freephone
Possibility of using IN services for marketing,advertising and PR
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Network access options
Narrowband
PSTN (modem dialled up) ISDN
GSM 2 i 2.5 G (GPRS, HCSD)
PLC (Power Line Communication)
Broadband
ADSL and VDSL
Cable modems
Fixed wireless (WLAN, WLL, LMDS)
Fiber - FTTx (e.g. FTTB fiber to the building)
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xDSL
service/speed
xDSL technologies
ADSL
1Mbps 6Mbps 10Mbps 52Mbps2Mbps
VDSL
Fast Internet
access
Telework,
Teleeducation
Multimedia office/home
Broadcast TV
Fast VPN
Media streaming
videoconference
VPN
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WLANs - ease of use and interworking
OfficeHome Airports and
hotels Coffee shops ...
Evolution
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Evolution of services
Ubiqutous, integrated, wireless, mobilecommunication using any media,anywhere, anytime
Voice Video/audio Text Data
New paradigm of communication andmodel of network intelligence Context aware services:
Presence Availability status
Location User preferences
Terminal capabilities
Bringing philosophy of internetcommunicators to telephony
Voice and telecom services as a
component of IT applications
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Horizontal NGN/3G model
multiservice converged network
Traditional vertical model
Separate networks
Mobilenetwork
Service
CATV
Service
PSTN/ISDN
Service
Data/IP
Service
Application servers and applications
APIOpen
service
platforms
Backbone
Transport
(Internet/IP)
API
Access networks
API
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Services
Networks
Terminals
Telephony Data Broadcasting
phone PC
Notebook, PDA
TV set
VCR
Internet IP
GSM / UMTS PSTN / ISDN / IN WLAN WMAN Broadcasting
Sattelite network
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Business Priorities Drive VoIP Adoption
Improved Cost of
Ownership
Operational Efficiencies
Productivity Enablers
Separate Networks Common, Global IP Network
Enhanced End User / Client
Experience
Local to Global Consistency
Business Continuity /
Migration Assistance
Network
Convergence
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Business companies are increasing installing IP equipmentwith IP enablement but uncertainties remain on VoIP usage
At the start of 2004 largest companies were using VoIP 25% to 30% of American companies
23% of Japanese companies
15% to 20% in Europe where the UK then northern Europe are leadingthe way
Drivers and inhibitors to VoIPs deployment
Increased productivity and mobility
Cost reductions when moving offices,
extending services and changing sites
Reconfiguration of the internal networkSavings on human resources
Difficulty of calculating ROI and TCOTraffic sharing on a single network
SecurityRemoval of a portion of phone access
InvestmentsReduced on-net traffic charges
ObstaclesDrivers
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Value of the next generationtelecommunication services
Mapping of existing
Services in IP domain
Using Internet to add value
to traditional services
(hybrid services)
Novel services and service
features not available in
legacy networks
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Enterprise Adoption of IP Applications
Source: Forrester, Giga Research
IP Contact Centres
IP Telephony
Unified Communications
Unified Conferencing
0%
10%
20%
30%
40%
50%
60%
70%
80%
2003 2004 2005 2006 2007
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Convergence services
Ubiqutous availability of services independent of theaccess technique
Integration of IT applications, media and telecomservices
IP VPN for voice and data
Instant messaging and presence built into services
Integration of voice services with applications
Instant messaging & presence
E-mail active contact lists
Click-to-call
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Status of service convergence
IP VPNconverged business communication
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Business Uses of VPNs
Extend corporate network to new sites
Supplement existing services (FR, ATM, leased line)
Link partners to corporate resources in extranet
Support for telecommuters
LAN extension as well as IP telephony
Road warrior access to corporate resources
Site-to-site multimedia
IP telephony
Video conferencing
Streaming multimedia on demand
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Forecast: Europes Managed NetworkServices Market, 2003 To 2008
Source.
ForresterResearch,
2003
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Needs for higher
bandwidth in
companies through
the increasing use
of ERPs (SAP,
Siebel, Citrix etc.)
BandwidthRequirements
High
Low
Low High
Web-based
Apps
Voice
Medical Telemetry
Video
Conferencing
Latency Sensitivity
AGILE
SMTP
HTTP Web
Microsoft
Exchange
IP Services IP VPN based on MPLSCustomer applications
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Two VPN Paradigms
sharedbackbone
shared
backbone
A VPN is a private network service built on a service providersshared infrastructure
Virtual : appears to be separate physical network, but is not
Private : each VPN maintains routing and addressing separation
Different VPN models can be used
Overlay model / Network Based VPN: Frame Relay, ATM, MPLS
Peer model / Premises Based VPN: IPSec
Network Based VPN Edge Based VPN
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BT Communicator
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Example: Active Phone Book One Simple Interface
video
IM
Collaboration
Tom User 657 555-1234
Searc
h
Mail and Messages Missed
Calls
PrefsPABLogsCallsContacts
Buddy
Source: Lucent Technologies
voice
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Outside office and home
Home
Office area
Access point
Hot Spot
Mobile networkGSM/GPRS & 3G
Wireleless accessWiFi
Residential broadbandADSL i CATV
Private networksLAN i WLAN
PSTN
BT 21CN
SIP/IMS
Service
infrastructure
for:VoIP, video, messaging
And broadband services
Convergent
IM/SMS/MMS
Interfaces to
Vodafone
network
Interfaces to
PSTN
Convergent
Voice mail
BT 21 CN network vision
Instant Messaging & Presence
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Presence: The Best Thing that CouldHappen to Voice
Two Reasons Call completion
Innovative Services
Call Completion Problem A small fraction of calls result in useful conversations
Busy
No Answer
Voicemail
Assistants
Call me back later
Result is user frustration and no provider revenue
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Presence: The Best Thing that CouldHappen to Voice
Solution
Only call if I know where the called party is available, whenthey are available, and how they are available
Presence conveys exactly this information
Increase of successful call completion rates
Services
Presence is one of the key enablers
Examples...
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Presence and availability status
MVNO:
a new business model
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What is an MVNO?
An MVNO does not own spectrum, it leases it from anetwork operator with whom it has a relationship. An
MVNO has everything its own, except for networkinfrastructure (the spectrum, base stations, and basestation controllers)
An MVNO supplies the SIM card and has full controlover its subscribers and handles its own billing
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Business case - Virgin Mobile
Customer care
Billing
Application/Content
control
Switching/routing
Transport
Spectrum Ownership
MVNO MNOThird parties
One2One handles
switching/routing
and transport
functions
Virgin outsources
billing platform
(post-pay and
pre-pay rater)
Virgin is the sole
customer interface
for customer care,
billing and
applications/content
Manages all interactions with the customer, while outsourcing
most operations functions to One2One or third parties
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Business case - Virgin Mobile
Virgin one of most recognized brands in UK in youth
segment
Youth appeal
Peoples champion
Brand
3,450 retail distribution points
330 Megastores and Our Price
3,120 retail partners
Distribution
Virgin Extras include access to all of Virginscontent
music travel entertainment
Content
Virgin brand more powerful toconsumers than incumbent
carriers
More retail distribution points
than any carrier
Content which represents fun
(entertainment) and utility(travel)
Summary
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Microelectronics and Software remain the
most important technology drivers.
All-Optical networks to fulfill the bandwidth
demands.
New spectrum-efficient radio interfaces will
enable mobile high speed data exchange.
Seamless interoperability across
heterogeneous networks.
Universal access to all media from any
device over any network at any place at any
time.
Computing and Communication become part
of our environment (Ambient Intelligence).
I&C Technologies trends - summary
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The Semantic Web will find and structure
content and help to combine facts from
different sources.
Agents take over routine work.
Automation of electronic business processes.
Human Computer Interaction is turning into
Human Computer Cooperation.
Security is a prerequisite for the acceptance
of services, applications and devices.
Decentralization and self-organization will
lead to flexibility of infrastructure and services.
E: y2 =x3+ax+b mod p with
a=2
b=98041560852373919804497702945164778239981033357
p=1461501637330902700854603783655214859383685196123
consists of
10*146150163733090270085460620150685408864185482153points
I&C Technologies trends - summary
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Trends in telecom technology
Internet
Mobile Computing and M-Commerce Wireless networks
Pervasive Computing
Smart Devices
Instant messaging and presence basedcommunication always-on paradigm
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Trends in telecom technology
The Network Computer
Optical Networks
Storage Area Networks - SAN
Intranets & Extranets
The Internet
Web services
The Networked Enterprise
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The Web Based IT Architectures
The Internet
Intranets
Extranets
Corporate Portals
E-commerce Systems
Web-based systems
Applications or services that are resident on a server that is
accessible via a client-side Web browser.
Electronic Storefronts
Electronic Markets
Electronic Exchanges
M-Commerce
Enterprise Web
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General trends of IT/telecom evolution
Four main domains: Being:
digital networked mobile
wireless More terminals are getting MORE connected
Always on-line paradigm
Internet becomes an utility enabling distance-freelife
Networks are getting mobile & wireless Network becomes seamless and ubiquitous Convergence of telecom, IT and media
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MIS:
Communication use
MarekredniawaInstitute of Telecommunications
Warsaw University of Technology
redniawa Consulting
WUT Business School, Warsaw, June 2005
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New Strategic Systems
Electronic commerce (EC)
Handling of business transactions viatelecommunications networks
Internet/Intranet
Innovative and strategic advantages of EC:
Increased market share
Better ability to negotiate with suppliers
Better ability to prevent competitors from entering intotheir territory
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B2B E-Commerce
Inter-corporate communication
Exchange business information between tradingpartners
Supply chain focus
Improve efficiency of transactions
Between different business entities
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B2B E-Marketplaces
Similar to enterprise portal
Categories Commodity e-marketplace
Business services e-marketplace Financial services and process support
Integration services e-marketplace Facilitates process-to-process integration
Vertical and horizontal e-marketplaces
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e-Business, e-Commerce and e-Marketing
e-BusinessInvolves the Use of Intranets, Extranets & the
Internet to Conduct a Companys Business
e-Commerce Involves
Buying & Selling Processes Supported by
Electronic Means
E-Marketing
e-selling side of
e-commerce
Marekredniawa58Source: IDC
0
200
400
600
800
1000
1200
1400
1999 2000 2001 2002 2003
billion dollar
80% of all e-commerce is business-to-business
two thirds of e-commerce is in the USA
Total
B2B
B2C
4
Worldwide e-commerce
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AttractLook and Feel
Performance and
ServiceInformRelevant
Information
CustomizeCustomer
Configuration
TransactBuying &
Selling Models
PersonalizeBuying behavior
Incentives
Pay
Electronic PaymentSystems Security
InteractCustomer Service
Socialization
Deliver
Order Fulfillment
Key Processes
and
Resources
E-Commerce Transaction Cycle
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Benefits to
Buyers
Convenient
Buying is Easy andPrivate
Greater Product Accessand Selection
Access to ComparativeInformation
Buying is Interactive andImmediate
Sellers
Customer RelationshipBuilding
Reducing Costs &
Increasing Speed and Efficiency
Offers Greater Flexibility
Truly Global Medium
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E-Commerce business models
Initiated by
business
Initiated by
consumer
Targeted to
consumers
Targeted to
businesses
B2C
business to consumer
B2B
business to business
C2C
consumer to consumer
C2B
consumer to business
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B2C (Business to Consumer)
Business Models Portal
Google, onet, wp
E-tailer Amazon, merlin
Content provider WSJ.com, CNN.com
Transaction broker Travelplanet
Service provider xDrive.com
Community provider Epinions.com,
about.com
Sales - increase from $34billion in 2001 to $130 billionby 2006.
Provides e-marketers with
access to consumers in allage groups.
More customer-initiated andcustomer-controlled.
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B2B (Business to Business)
Estimates are that B2Be-commerce will reach
$3.6 trillion in 2003.
By 2005, more than500,000 enterprises willparticipate as buyers,sellers, or both.
Much e-commerce takesplace in open trading
networks: http://www.plasticsnet.c
om/
Some companies arealso setting up privatetrading networks (PTNs)
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C2C (Consumer to Consumer)Market Creator
Uses Internet technology to createmarkets that bring buyers andsellers together
Typically uses a transaction fee revenuemodel
EBays C2C - more than $5 billion intrades last year
Allegro
Interchange of informationthrough:
Forums
Newsgroups
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C2B (Consumer to Business)
Consumers can contact and communicate withcompanies
Consumers can search out sellers on the Web,
learn about their offers,
initiate purchases.
Example: Using http://www.priceline.com/, consumers canbid for airline tickets, hotel rooms, etc.
Then, sellers decide whether to accept their offers.
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Source: Business Week European edition 17 January 2000 5
Industry Estimated savings from
B2B e-commerce
Aerospace machiningChemicals
Coal
CommunicationsComputing
Electronic components
Food ingredients
Forest products
Freight transport
Health care
Life Sciences
Machining (metals)
Media and advertising
Oil and gas
Paper
Steel
11%
10%
2%
5-15%11-20%
29-39%
3-5%
15-25%
15-20%
5%
12-19%
22%
10-15%
5-15%
10%
11%
Impact of e-commerce
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Business case: TP S.A. and Market Planet
Problem:
TP S.A. is a leading telecom operator and one of the largestcompanies in Poland
Need for cutting operational costs
Solution: TP S.A. established an Web-based e-procurement and e-
auction (reverse auction) solution to improve itsprocurement and supply chain processes
Reverse auction example of a new Digital Economy business model
Results:
TP S.A. achieved over 110 million PLN in annual savingsfrom e-procurement of only some goods and services
Source: Market Planet
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Marketplanet - basic info
IT partners
Shareholders
Established in 2001 with 35 mln PLN equity
Source: Market Planet
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Marketplanet - business idea
Client B
Client A
Supplier C
Supplier A
Supplier B
Client C
Market Planet as a neutral middleman in exchange of goods and services
offers competitive edge over traditional approach
Electronic market
Reverse auction
Source: Market Planet
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Procurement vs e-procurement
Submission
of offers
Call
For bids
Analysis of
offers
Selection of
Best offers
Negotiations Signing of
anagreement
Marketplanet
process
Call
For bids
Signing of
an
agreement
Traditional procurement process
E-procurement
Time
Source: Market Planet
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Savings due to e-procurement
15(7%)
15(32%)
7(47%)
8(27%)
4(58%)
4(50%)
6(8%)
6(30%)
45(32%)
35(44%)
150
(40%)
3(7%)
300(37%)
1 2 3 4 5 6 7 8 9 10 11 12
Office materials
Security services single region
Cleaning services single region
Paper for copiers Copying machines
Furniture
Envelopes
Paper
Security services total
Cleaning services total
pipes for ducts
car fleet
Total volumemln PLN
(savings %)
Source: Market Planet
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Results 1/2
Benefits for clients:
buyers savings (20-50%) due to migration to the centralized e-procurement/e-auction platform
full control of purchasing of goods and services planning andmonitoring
Faster buying process, shorter negotiation time
Easy comparison of prices and straightforward submitting of bids
Integration with the financial support system
Source: Market Planet
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Results 2/2
Benefits for suppliers:
Cutting costs and time to handle orders
Avoiding errors
Increased sales revenue
Access to other major customers using the Marketplanetplatform and building solid relationship with them
Low cost of acquiring a client
Free user-friendly software
Source: Market Planet
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M-Commerce Business Models
Takes traditional e-commerce business models andleverages emerging new wireless technologies
Key technologies are telephone-based 3G, Wi-Fi, andBluetooth
Main focus SFA (Sales force automation)
Seamless mobile access to ERP/MRP, CRM, SCM systems
However, technology platform continues to evolve
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Example of a mobile applicationBMS - Billboard Management System
Vertical implementation of an Enterprise Portal involving
mobile applications
on-line management of business processes for outdooradvertising company
Software offered for Stroer client
Client follows on-line progress of the campain uisngwww.stroer.pl.
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BMS
Strer WWW
Client
Manager of the installationcompany
DispatcherInstallation team
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BMS technology
Matrix code a special type of bar code
Identification of the billboard (located on theframe)
After fixing of the add matrix code is entered tothe system using mobile phone.
Full control of the process