10 Hot Spaces in IT and Comms

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10 Hot Spaces in IT and Comms
Bob Hayward SVP Asia/Pacific
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2001 No Big Thing

• An expected rough patch for the economy,
  globally
• A decrease in the growth of IT spending over
  previous years in some sectors and geographies,
  but no actual decrease in real spending
• Abundant choice in technology many consumers
  have already what they want, for now
• We are over the dot.com hysteria and are much
  more pragmatic and realistic about the prospects
  for new tech companies
• Investment funds are drying up.

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Timing The Hype Cycle
Visibility
Peak of Inflated Expectations
Trough of Disillusionment
Slope of Enlightenment
Plateau of Productivity
Technology Trigger
Time
4
Technology Radar Screen A 10-Year View
Benefit
New business models
Wireless data
E-cash
Wearable computing
Instant-on home devices
Agent intermediaries
Smart cards
Speech recognition
Flexible displays
New processes
Data mining
Virtual reality
Biometrics
Affective computing
Natural language question answering
Portals
Improved processes
Desktop videoconferencing
Synthetic characters
Ubiquitous
Niche
20
40
60
Prevalence by 2010
5
Information Hyperflow Five Emerging Business
Upheavals

• Business Velocity Speeds Up
• Order-to-ship cycle time at new levels e.g.,
  Dell
• Transfer of complex content instantaneously
  e.g., PP soft copy
• Surge in Buyer Power
• Buyers are leveraging extended access to make
  smarter choices
• Sellers must create a presence, but can leverage
  access too
• Extending Decision Making
• Decisions at the point-of-action can by made by
  all employees based on intranet-delivered
  information such as profitability by each
  customer
• Accelerated Business Process Outsourcing
• Administrative functions such as accounting can
  now be outsourced to specialists for performance
  and cost benefits
• Leveraging via Knowledge Management
• Sharing of intellectual capital to outperform
  competition
• Gaining loyalty of customers via useful
  information and/or knowledge access

6
Emerging Business StrategiesIntegration
Gateways

• Integration of Sales Service Applications/System
  s
• Consistent (seamless) experience
• Integrated information flow
• Channel and relationship integration
• Single CIMS access consistent (branded)
  customer facing
• Cascading to right channel
• Intranet/extranet integration of virtual business
  units
• Browser-based solutions
• Integrated applications through
• A component-based, reusable object architecture,
  and
• Middleware backbone

Retail
Home
Branch
Retail Sales
Travel
Locations
Locations
Consumer's
Services Provider
Other Income
Pre-Authorized
Employer
Brokers, Advisors Planners
Sources
Debit Payments
7
XML Schema a Multi-Purpose Contract
XMLDocument
Trading Partner
Trading Partner
Schema
Transaction (Content)
Protocol
Dictionary (Common Objects)
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ASP Accelerators and Inhibitors
Obstacles/ Concerns
Security and reliability
Demand Drivers
Inadequate user IT infrastructure
Market confusion and hype
Need for customization, integration
Mobile workforce
Resistance to change
IT skills shortage
Lack of focused offerings
World-class processes/SPOC
Quality of service
Improved ROI

Unknownvendors
Need for speed
IT Infrastructure complexity and cost
Network-ubiquitous, low-cost delivery
Re-architecting of software as a service
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ASP Value Proposition by Segment
Market Size
Global 2000
Aggressive Growth
SMEs
SOHO
Messaging
F U N C T I O N S
CRM
Procurement
Finance
HR, Payroll
Other
Other
Market Vertical
Retail
Public
Financial
Healthcare
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Wireless AccessA Growth Hormone for eBusiness
News, Sports, Weather and Entertainment
The wired world built the Internet The wireless
world will deliver it to people
Corporate Access
Financial Services
E-Mail and Internet Access
Retail Shopping
The Networked Economy
1 Billion Wireless Users, 2005
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Ubiquitous Mobile Computing, Ubiquitous Mobile
Connectivity

• Client devices
• Phones
• PDAs
• Cameras
• Combined devices
• MP3 players
• Consumer electronics
• Set top boxes
• Base stations
• ATM machines, kiosks
• Parking meters
• Cash registers
• Vending machines
• .

Range(M) Global 1000 100 10 1
GSM, GPRS
Bluetooth
3G
Wireless LAN
.1 1 10 100Data rate (MbpS)
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PDAs/Phones Wow Features
0
2 years
5 years
Increased watts/function

• MP3

• Integrated Bluetooth
• Integrated voice/data
• Phrase recognition

• 16-bit color
• 2x resolution

• 24-bit color
• 1 megapixel resolution
• Integrated scanner/camera
• 5GB storage

• Voice/data module
• Bluetooth module
• Video module
• Location module

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Me-business

• Roles of a Mobile Phone
• Voice, tone or SMS channel
• Micro browser, WAP browser
• Application client, Java or PDA O/S
• Host for smart card applications data
• Data channel to another device - Bluetooth
• Identity and location information
• Next generation features
• Voice recognition, fingerprint recognition, 2nd
  card slot, microcharging, high network data
  rates...

• Me-business
• Value-added services from network provider
• Microcharging
• Personal finance
• e-tickets tokens
• Information, news, alerts
• Location dependent services / information
• e-commerce - with limitations
• Generic terminal (e.g. for field service)

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e Business Strategies

• Buyer Advice
• Channel Expansion

High

• Electronic Marketplace
• Channel Expansion

• Three Primary Strategies
• Channel Enablement
• Channel Expansion
• Consumer Self-Service

• Referrals
• Channel Enablement

• Order Management
• Self-Service

Consumer Value

• Nonorder Mgmt.
• Self-Service

• Electronic Catalog
• Channel Expansion

• Auctions
• Channel Expansion

• Brochureware
• Channel Enablement

High
Low
Cost to Implement

• Decrease Expenses

• Increase Sales

• Both

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B2C - Building Online Relationship Commerce
1 Get Consumers to Come

• Traditional advertising
• Affiliate Networks
• Online sales channels
• Unusual Partners

2 Once They Are There, Add Value

• Consumer channel enabled
• Personalization
• Consumer-centric selling

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Personalization A Three-Step Process
Input
Output
Event in Customers Life Moving House Birth of
Child Retiring
Use This Channel Call Center Direct Mail Web
Site
Rules
To Send This Message We value your business You
need a mortgage Visit our Web site
Evolving Customer Relationship First-time
Purchase Request for Service Declining Spending
In This Way Premium Service Loyalty
Discount Cost Effective
New Competitive Environment Industry Report
Published New Market Entered Competitors Merge
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E-Market-Makers Affect Most Industries
What circumstances provide opportunities for
e-market-makers?

• Whenever buyers and sellers have unmet needs
• When buyers need a neutral party to help solve a
  complex problem
• When buyers want to save time researching sellers
• When sellers lack brand equity
• When sellers only offer part of a solution
• Whenever there are distributors and resellers,
  there will be new intermediaries

What hurdles limit opportunities for
e-market-makers?

• The challenge of integrating to buyers and
  suppliers back-end systems
• Cultural barriers, regulations and protectionism
• Customer service and CRM

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E-Marketplaces Affect Customer Life-Cycle
Management
Todays Considerations
Build awareness
Extension
Selection
Upgrade

• What is the least-expensive available channel?
• What is most convenient for the customer?

Build credibility
Sales force
Branch
Retail
EMs
Renew
Provide value
Direct mail
Tomorrows Considerations
Call ctr.
Service support
Internet

• What is the customer worth to us today?
• What is the customers potential value?

Configure solution
Make transaction
Retention
Acquisition
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E-Market-Makers Will Increase Customer Data
120
90
Third-Party Sites
External Customer Data
Merged Data (in Tera- bytes)
60
Web/DataWarehouseIntegration
Company Web Site
30
SyndicatedData
Internal Customer Data
DataWarehouse
MarketingDatabase
1989
1994
1999
2004
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Technology Trends
Bob Hayward SVP Asia/Pacific