Communication Trends and Perspective (MIS)

8/14/2019 Communication Trends and Perspective (MIS)

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MIS:

Communication trends and perspective

MarekredniawaInstitute of Telecommunications

Warsaw University of Technology

redniawa Consulting

WUT Business School, Warsaw, June 2005

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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

Mail

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

email

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



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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


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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



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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 %)


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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



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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


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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

Communication Trends and Perspective (MIS)

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