Showing papers on "Value proposition published in 2002"

Customer perceived value: a substitute for satisfaction in business markets?

Abstract: In recent years, there has been a resurgence of interest in the value construct among both marketing researchers and practitioners. Despite a growing body of research, it is still not clear how value interacts with related marketing constructs. Researchers have called for an investigation of the interrelationship between customer satisfaction and customer value to reduce the ambiguities surrounding both concepts. Investigates whether customer value and satisfaction represent two theoretically and empirically distinct concepts. Also addresses whether value is a better predictor of behavioral outcomes than satisfaction in a business marketing context. Two alternative models are developed and empirically tested in a cross-sectional survey with purchasing managers in Germany. The first model suggests a direct impact of perceived value on the purchasing managers' intentions. In the second model, perceived value is mediated by satisfaction. This research suggests that value and satisfaction can be conceptualized and measured as two distinct, yet complementary constructs.

Ports as elements in value-driven chain systems: the new paradigm

Abstract: This paper argues that, with the rapid and pervasive restructuring of supply chains and of the logistics pathways in which ports are embedded, existing paradigms no longer offer adequate insights into the functions of ports or port authorities. Rather, ports must now be seen as elements in value-driven chain systems or in value chain constellations. They deliver value to shippers and to third party service providers; customer segmentation and targeting is on the basis of a clearly specified value proposition; and the port captures value for itself and for the chain in which it is embedded. The role of ports and port authorities, and the way in which they position themselves in the new business environments beyond 2001 must be defined within a paradigm of ports as elements in value-driven chain systems, not simply as places with particular, if complex, functions.

Value creation in mobile commerce: findings from a consumer survey

Abstract: Although little is known about consumers’ attitudes towards wireless marketing channels, many organizations are today making considerable investments to take advantage of the new business possibilities offered by wireless technologies - encouraged by optimistic, yet contradictory forecast on the future volume of m-commerce. This paper highlights the importance of setting out from a consumer perspective when developing m-commerce strategies, proposing an analytical framework that can be used to assess whether, and in what ways, specific mobile services are likely to offer value for wireless Internet users. The paper reports on a national consumer survey conducted to investigate the Finnish consumers’ willingness to use a number of initial mobile services, and to explore whether consumers recognize the value proposition of these applications. Besides offering theoretical and empirical insights relating to the value-creating features of m-commerce from a consumer’s point of view, the study presents results indicating a rather low willingness to use mobile services in general, but an exceptionally high willingness to use some applications. The results do not, however, support the supposition that m-commerce is likely to increase the overall volume of ecommerce significantly by penetrating into untapped markets (non-PC users).

The Product Market and the Market for 'Ideas': Commercialization Strategies for Technology Entrepreneurs

Abstract: This paper presents a synthetic framework identifying the central drivers of start-up commercialization strategy and the implications of these drivers for industrial dynamics. We link strategy to the commercialization environment - the microeconomic and strategic conditions facing a firm that is translating an "idea" into a value proposition for customers. The framework addresses why technology entrepreneurs in some environments undermine established firms, while others cooperate with incumbents and reinforce existing market power. Our analysis suggests that competitive interaction between start-up innovators and established firms depends on the presence or absence of a "market for ideas." By focusing on the operating requirements, efficiency, and institutions associated with markets for ideas, this framework holds several implications for the management of high-technology entrepreneurial firms.

Netsourcing: Renting Business Applications and Services Over a Network

Abstract: From the Publisher: The definitive decision-maker's guide to renting business applications over a network. Netsourcing: The market, the players, the services A guide to the fast-changing netsourcing playing field Integrating netsourcing options within a total IT sourcing portfolio Even large-size customers can benefit from selective netsourcing Best practices for evaluating and selecting providers Choosing partners that fit your approach to business—and have real staying power Minimizing the risks of netsourcing partnerships Realistic best practices for managing technical, contractual, operational, and managerial risk Previewing new strategic options in netsourcing What you need to know about "next-generation" netsourcing services—and service providers Managing the netsourcing relationship successfully Achieving the "holy grail": the "win-win" outsourcing relationship Enterprise case studies: key outsourcing successes and failures What works, and what doesn't: the experiences of today's leading global companies Netsourcing is the practice of renting or "paying as you use" access to supplier-managed business applications, made available to multiple customers over the Internet or other networks. The concept of delivering business applications as a service—or "apps on tap"—was initially called application service provision (ASP). But that term has proved too narrow. Today customers are using netsourcing to hand over entire business processes to service providers, smanage customer-grown applications. The netsourcing value proposition to customers is compelling: no upfront infrastructure costs or costly software licenses, business applications delivered in days/weeks, scalable solutions that grow or contract with the customer's business, flexible solutions with minimal switching costs, and minimal expensive in-house support staff—to name a few. Given these benefits, who wouldn't want to netsource? On the downside, there are significant netsourcing risks that must be mitigated. The netsourcing of business applications is still seen as an immature option primarily offered by unstable dot.com start-ups. Business managers worry about the reliability and security of the Internet, feel that their business requirements are too idiosyncratic for canned, "one-to-many" solutions, and do not trust outsiders to supply mission-critical systems. So how can businesses leverage the value offered by netsourcing while reducing its risks? How can businesses compare and integrate netsourcing with other sourcing options? Every business is asking questions like these. Netsourcing delivers the answers. Based on unparalleled research at the world's leading enterprises, this book identifies the key factors associated with successful outsourcing—from planning through ongoing relationship management, and beyond. The authors show you how to take full advantage of the dramatic changes roiling the outsourcing marketplace, helping you realistically assess the promise of next-generation outsourced services—and the capabilities of the service providers who offer them.

Pathways to Leadership for Business-to-Business Electronic Marketplaces

Abstract: More than 1000 B2B e-marketplaces, consisting of third-party exchanges, industrysponsored marketplaces and private trading networks, have been formed in three successive waves. Their value propositions centre around two key dimensions: demand and/or supply aggregation to overcome market fragmentation (through search cost efficiency, price transparency and product-cost savings, market liquidity, network externalities and customer lock-in), and inter-firm collaboration for greater supply chain performance (through streamlined workflows and process-cost savings, customer lock-on, and business process integration). These two value dimensions produce a four-quadrant matrix that conceptually maps out three pathways to market leadership: liquidity early, process integration first, or liquidity and process integration simultaneously. Each of these pathways logically appeals to one of the three e-marketplace models, but is not without serious execution hurdles. The quest for leadership among e-marketplaces along t...

A strategic approach to employee retention.

Abstract: A sound retention strategy should incorporate a business plan, a value proposition, progress measures, and management influences. The business plan will indicate whether a healthcare organization will achieve a return on investment for its effort. A value proposition will showcase an organization's strengths and differentiate it from its competitors. Measuring progress toward meeting retention goals at regular intervals will help keep an organization on track. The best managers require accountability, rewarding employees for their successes and taking corrective action as necessary. Retention rate targets must be at a level that will achieve a competitive advantage in the served market.

Keep Your Options Open: Extreme Programming and the Economics of Flexibility

Abstract: Financial evaluation and strategic analysis have long been considered two distinct approaches to evaluating new capital initiatives. An emerging valuation approach, known as real options, attempts to align finance and strategy through a new perspective: The value of an asset lies not only in the amount of direct revenues that it is expected to generate, but also in the options that it creates for flexible decision making in the future. In general, the more uncertain the future is, the higher the value of flexibility embedded in an asset, whether financial or real. This perspective has significant implications for the economics of flexible processes. Applied to software development, it could imply that a lightweight process that is well positioned to respond to change and future opportunities creates more value than a heavy-duty process that tends to freeze development decisions early. Thus, the feasibility of Extreme Programming (XP) can be supported by the option value of flexibility inherent in it. What is the theory that underlies this statement? How does it relate to the fundamental assumptions of XP? How does it impact the value of an XP project? What are the implications of such value propositions for project decisions? If you are curious, read on ...

Development of an e-government service model: a business model approach

Abstract: Most discussions on electronic government have provided ad hoc guidelines. For a systematic framework for e-government service, this article adopts a business model approach and develops an e-government service model. Based on the analysis of business model researches and a comparison between e-business and e-government service, the paper defines and identifies the characteristics of the components of an e-government service model. These components are objectives, value proposition, service offering, activity configuration, and financial sustainability. Based on this framework, the authors perform a case analysis of the electronic services in the offices of the presidents of Korea and the U.S.A.

Networking lessons in delivering Software as a Service---part I

Abstract: This is a two-part paper. In part I, we describe the origins of Software as a Service (SaaS) and its value proposition to Corporate IT, Service Providers, Independent Software Vendors, and End User...

New Developments in Practice III: Riding the Wave: Extracting Value from Mobile Technology

Abstract: New mobile devices, combined with content digitization, promise the creation of a vast global communications network that will have enormous and far-reaching impacts on how we work and live. Who will benefit from this technology, where its real opportunities lie, and how it will impact our organizations and our personal lives is not yet clear. We know that changes will occur and that these impacts will likely vary by firm, industry, and segment of society. What we don’t know is how and when these changes will happen. This uncertainty leaves business with the challenge of navigating between the opportunities presented by the new capabilities offered by mobile technology and the risks of being in the wrong place at the wrong time as their business ecosystem alters. This paper is a tutorial for both the IS practitioner and the IS academic. It presents the issues faced in applying wireless technology in business and suggests areas in which research might be fruitful. It concludes that mobile computing is a new and unstable technology that potentially can change much about how organizations work. However, the uncertainty surrounding mobile computing can make decision-making a challenge for many senior executives who would like to see a clear business case for their investment. Unfortunately, this goal is not always possible. Instead, executives must learn to recognize a variety of options for the future and manage these effectively and dynamically while keeping a close eye on the value proposition.

B2B E-Marketplaces - Interconnection Effects, Strategic Positioning, and Performance

Abstract: Electronic markets theory leads to the prediction that the “interconnection effects” of information technology will lower coordination costs in market transactions, prompting a move from hierarchical to market arrangements. This prediction was apparently validated by the proliferation of B2B e-marketplaces in the mid-1990s. But the subsequent abrupt consolidation of public, independent e-marketplaces raises questions about what it takes for e-marketplaces to succeed. Experience with actual e-marketplaces suggests that electronic interconnection effects alone may not explain e-marketplace success. The strategic management literature provides a complementary view, emphasizing the fit between an e-marketplace's value proposition, its product-market focus, and its value activities. The purpose of this paper, therefore, is to explore the degree to which the strategic positioning perspective contributes to the explanation of e-marketplace success. We analyzed a pair of e-marketplaces sharing the same competitive space, one successful and the other less so. We found that the number and types of interconnection benefits alone did not make a good explanation of e-marketplace success. However, the additional concepts provided by strategic positioning theory - particularly the holistic fit between benefits types offered (value proposition), product-market focus, and value activities - do appear to explain well the observed differences in e-marketplace performance. Future research should extend our exploratory investigation of e-marketplace success.

The new marketing : transforming the corporate future

Abstract: New marketing: drive the digital market or it will drive you Building the future on solid foundations: defining markets and understanding value Planning for market transformation: determining the value proposition Making the future happen: communicating and delivering value Staying on track: monitoring the value delivered Avoiding pitfalls: implementation issues Focusing on tomorrow's customer: future trends and the implications for marketing practice.

Go-to-market strategy : advanced techniques and tools for selling more products, to more customers, more profitably

Abstract: Foreword by Neil Rackham Go-to-market strategy: a brief tour of the issues and opportunities The Ten Commandments of going to market Targeting the right markets Aligning with your customers Choosing the right channels and partners Rethinking your products and value proposition Putting it all together: the integrated multi-channel model Getting started: the ninety-day go-to-market action plan.

Go To Market Strategy

Abstract: In this path-breaking new book, best-selling author and leading go-to-market strategist Larry Friedman provides a practical and battle-tested approach for taking products, services, divisions, or even an entire company to market! Drawing on dozens of examples and best-practices across a variety of industries, 'Go To Market Strategy' lays out a clear and actionable blueprint for building a winning go-to-market plan - one that will enable you to do more business, with more customers, more often, and more profitably. In this book you'll find all of the techniques and tools you need to answer today's crucial go-to-market questions:· Which markets offer the best opportunities for profitable growth?· What do my target customers need? How can I do a lot more business with them?· What mix of channels and partners will help me reach and sell to the most customers at the lowest possible cost? · Do I have the right product or solution? How can I create broader customer interest in my offerings?· Do I have a winning value proposition? What would make the 'message' more compelling - and drive more purchasing activity? 'Go To Market Strategy' is not about incremental change. As Friedman points out, it is for executives seeking nothing less than double-digit revenue growth and the slashing of at least 10-15 percent of selling costs - absolutely realistic results that go-to-market innovators have consistently achieved. This book lays out all of the techniques used by the world's top go-to-market leaders, so you too can achieve those kinds of results, and gain a real go-to-market competitive advantage in your markets.

Innovating at the Edge

Abstract: All organizations who are looking to improve performance through embracing new ideas, work in new ways, create new products and services, challenge the status quo or redefine their existing business environment have much to gain from this book 'Innovating at the Edge' not only provides readers with an informed understanding of the latest developments in innovation practice but also presents them with the bigger picture This enables them to determine how to build these advances into overall development of their own innovation capabilities and how to capitalize on the benefits available to them Today as the new economy is brought into line with the old, increasing fragmentation of a global economy drives change across multiple sectors Organizations operating at the leading edge of the innovation paradigm are adopting a whole new set of approaches to help them redefine the present and build the future Learn how companies such as Egg, Dyson and Smint are redefining their markets, how organizations such as ARM and Qualcomm are deriving their soaring revenues wholly from licensing, and how firms such as Nokia and Nike are constantly evolving their product portfolios and associated value propositions These real-life examples provide key lessons for all involved in creating and delivering new businesses, products and services Readers will understand where all these strands fit within an overall context of innovation evolution, and recognise that the inter-relationships between strategy, process and organization are the key enablers for achieving innovation improvements Firms can then grasp and appreciate what they need to do in order to emulate these innovation leaders operating at the edge of contemporary practice

Maximizing Value in the Digital World

Abstract: The information age has created a host of digitized products ? in the realms of software, databases, music, videos and electronic books ? for which the potential for piracy, defined as duplication and distribution of a product without the permission of or payment to the content owner, is extremely high. Up to now, efforts to control piracy have been primarily legal in nature, relying upon the assumption that creators of digital products have absolute ownership rights to the content they create. Under the same assumption, companies have also sought to limit piracy with technological safeguards such as click-wrap contracts, encryption, password-limited access to distribution sites and copy proofing. However, say the authors, the belief in absolute ownership of digital content is incorrect from a legal standpoint, and antipiracy tactics that rely upon it will ultimately prove ineffective. What's more, these tactics may even reduce authorized usage by paying customers. A far better solution, the authors suggest, is to recognize the dynamics of the marketplace, segment that market into innovators (potential pirates) and the mainstream (potential paying customers), and address each segment differently to gather information and establish market leadership. The authors use a variety of cases to illustrate the tactics whereby content creators can coexist with the innovator segment of their audiences while still controlling product price and distribution standards. The key to setting an effective, "priced" value proposition for majority users lies in incorporating the innovator's technology before it reaches the mainstream. In such a scenario, brand identity encourages the majority to recognize quickly the content provider as the standard source for the product. Brand strength is then enhanced through fair pricing, product enhancement and superior distribution mechanisms.

Peer-to-Peer Computing Enabled Collaboration

Abstract: This paper discusses how peer-to-peer computing is emerging as a disruptive technology for global collaborative solutions. It explains how peer-to-peer computing can enable new collaborative solutions while significantly decreasing IT costs and improving IT asset utilization. An overview of the technology and usage models are discussed whilst the benefits are illustrated through a short case study from Intel. Finally the value proposition for peer-to-peer computing is summarized.

Market Bundling Strategies in the Horizontal Portal Industry

Abstract: The arrival of the Internet offers opportunities both for incremental efficiency gains and for complete industry redefinition, presenting new value propositions and hence leading to the emergence of new businesses and industries. One particular case is that of the horizontal portal industry, such portals being consistently the most visited sites on the Web. Nevertheless, despite ongoing market concentration, overall profitability remains low. In this paper we contend that, although the industry has great potential for value creation, value appropriation in these information-based businesses remains problematic and can be achieved only through cross-market bundling, that is, by selling the portal product packaged with Internet access and proprietary content through system competition. We support our claims with theoretical arguments and empirical evidence, analyzing the information distribution value chain in its entirety.

Better New Business Development DuPont-II: A "Business Initiative Process" Provides Teams and Their Leaders with Frameworks and Tools to Support the Application of Judgment and Learning to Their NPD Projects

Abstract: DuPont is involved in a systematic effort to improve the overall return from its investment in new business development (NBD) by developing and implementing a set of processes, tools and organizational structures to help business management and project teams significantly enhance NBD performance. The objective of this effort is to find or develop a set of benchmarked best practices to support/manage the full range of NBD tasks, from strategy development through to full market launch, with a particular focus on alliance formation and management. In Part I of this article (1) we presented an overview of DuPont's Business Initiative Process (BIP)--one of a number of frameworks DuPont has developed and implemented to structure/organize both the NBD decision making of the business leadership team and the work of development teams driving specific NBD projects. This process was built on the foundation of DuPont's existing corporate best practice for product/ process development--(PACE, for Product And Cycle-time Excellence (2)--but expanded on it to incorporate a broad array of NBD best practice tools and frameworks. BIP has been used with more than two dozen venture projects, including more than 10 in China (an area of major NBD activity for DuPont). In this article we present a more comprehensive view of the work that an NBD team must complete as it executes a project using BIP. In particular, we describe the key "steps" (blocks of work) that a project team completes as it moves through the five phases of BIP (see Figure 1) and we describe some of the tools that facilitate the team's work. This work has been detailed in the BIP Guideline Manual and a number of task-specific guides, templates and procedures that are available to DuPont's NBD teams. Our purpose in this article is to provide a picture of "what a team does" as it follows the process. [FIGURE 1 OMITTED] Business Case Phase The first step in launching an NBD initiative (once an opportunity has been identified) is to build the business case. The NBD project team must define potential strategies and assess their fit with the overall strategic direction of the business. At this point, the NBD team develops options for what the new business venture might look like when fully commercialized and develops a preliminary plan of how the organization will reach that point. The flow of work to develop a business case is shown in Figure 2. [FIGURE 2 OMITTED] Key questions that the team needs to explore (and options identified) include: * Target Customers--Who are the organizations/ individuals you are targeting to purchase your product/ service? Identify the end-user and the people who control the direct buy decision for your product/service: assess the entire value chain down to the end user. * Value Proposition--What is the "value" you are offering your target customers that they will be willing and eager to pay for? Capture what differentiates your offering from your competitors: what is it that customers are "buying" from you that they cannot get elsewhere? * Program Objectives and Criteria for Success--What are the goals/targets for the program in terms of scale, market penetration, growth rate, competitive position, etc? * Business Model--How do you plan to organize/ structure the pieces of the enterprise to develop-produce-support-deliver your value proposition to your target customers? * Business Strategies--Identify potential business strategies; explore, as appropriate, technology protection, country issues, infrastructure, entry barriers, legal restrictions, etc. * Development Plan--Show a high-level view of the work required to build/establish an ongoing business based on an assessment of the capabilities currently in place vs. capabilities required to win in the marketplace ("strategic gaps analysis," next page). * Business Case--Describe how the business will "make money" with this NBD initiative. …

The Economics of Delivering Mobile Wireless Value

Abstract: As mobile wireless unfolds, the business-world looks for an assessment of the technical and competitive landscape, for a high return on investment opportunities, for sweet spots in the value chain, and for value propositions of the industry. In short, mobile wireless stakeholders must understand the economics of delivering mobile wireless value. This paper summarizes the mobile wireless economics to help the stakeholders discharge their responsibilities. Because customers' perception of mobile wireless value decides the success of the industry's offering, this paper describes the value propositions that the mobile wireless chain is evolving to offer. Then, it traces chronological roots of the chain to describe how fundamental drivers and key economic characteristics of the evolutionary phases have led the growth of the evolving industry. Mobile network operators' regulatory environment and spectrum acquisition strategies, and technology investment and subscriber penetration life cycles have been discovere...

Reinventing Corporate Research

Abstract: Research organizations in established enterprises need to take advantage of, and optimally leverage, venture-funded companies and their associated management practices. OVERVIEW: Internal research and development organizations can become more effective by learning to leverage products and learnings from venture-funded companies, and by adopting some of the management practices of venture managers and of start-ups run by venture capitalists. These include identifying ideas with the potential to replace existing businesses, demanding performance to specific milestones, applying pre-IPO valuation techniques, and searching out high-growth industries and markets. Even so, corporate research continues to play an important role in the creation of value, a role that is different from that of companies funded by venture funds. Venture capital funding for new companies has increased dramatically during the past five years, returning on average about 40 percent/year despite negative returns from June 2000 through June 2001 (1). The large number of new start-ups provides a new set of options for established enterprises to grow. As a result, acquisitions and minority equity investments in start-ups have become important elements in the strategies of some companies, while diverting some resources that were previously spent on internal R&D. Cisco, for example, has reported that up to 30 percent of its new products come from external investments rather than internal product development (2). Some observers might conclude that the future of corporate research in innovation and new business creation is threatened by this trend. In this article, I examine how research and development organizations in established enterprises can become more effective by leveraging products and learnings from venture-funded companies, and by adopting some of the management practices of venture fund managers and start-ups (referred to as the "venture community" throughout). I will argue that corporate research continues to play an important role, one that is different from the portfolio of start-ups managed by a venture capitalist. This article specifically addresses possible interactions that established companies could have with venture-- funded companies and venture fund managers. Although there are a number of well-known interactions that established companies have with other established companies, such as technology licensing, partnerships and joint ventures, these management practices are well described in the literature and are not my primary focus here. Nor will I directly address the broader question of how an established enterprise should expand into new businesses. Options would include the creation of new ventures internally, externally, by acquisition, by investment, or by some combination. They have also been thoroughly covered in the literature (3-6). The Investor Value Proposition For an investor or shareowner, the value proposition provided by an established company is different from a start-up. An established company has an ongoing business with a set of strengths and competencies that can be leveraged to make the company grow. Important factors influencing market capitalization for an ongoing business are earnings and the anticipated future growth in revenue and earnings. The goal of an established company's management team is to leverage the strengths and competencies of the current businesses to increase revenues and earnings, and thus increase shareowner value. If an established company consists of component businesses with little synergy, then a divestiture may create more shareowner value. An investor in a start-up is looking to achieve a high rate of return on his investment with a higher level of risk compared to an equity investment in an established firm. The venture fund manager identifies industries with rapid growth potential and funds business plans to address these opportunities (7). …

Train of Thoughts: designing the effective web experience

Abstract: From the Publisher: In Train of Thoughts - Designing the Effective Web Experience, Web strategy and design consultant John Lenker provides insight for how Web enterprises must interact with people to be successful in the twenty-first century. This book is non-technical and is written not only for Web designers and developers, but also for any stakeholder in a Web enterprise that has a vested interest in ensuring that their online resources become more meaningful and valuable. In Train of Thoughts, you'll learn to: understand what motivates people's online behavior and then convert that motivation into online results; communicate with people effectively online so that they really understand what the value proposition of an online resource is; combine forward-thinking information design techniques with systems that pave experiential pathways for people to journey along in pursuit of their interests and goals; properly employ personalization to build relationships; understand the true role of creativity online; uncover screen-space designs that aid and inspire the mind; reconcile business objectives with stakeholder needs; approach process in a way that keeps projects on time, on budget, and on target; create online resources that actually work when they're completed; actualize creative vision appropriately for the Web.

Building professional services : the sirens' song

Abstract: Introduction. Why Product Companies Jump In. The Sirens' Song of Services. The Product-Services Wheel. Good Reasons to Offer New Services. 1. Mapping the Voyage. Parameters for Success. Primary Audience. Chapter Structure. Secondary Audiences. Chapter Overview Table. 2. Setting the Parameters. Are You Sure? Four Qualifying Questions. Mission. Format. Audience. Overarching Objective. Mission and the SAR Factor. Business Model. Objectives. Guiding Principles. 3. Levers for Profitability. Revenue. Revenue Types. Revenue Mix. Revenue Growth Rate. References. Product References. Capabilities References. Solution References. Industry References. Repeatability. Tale of Two Business Units. 4. Organizational Overview. Professional Services Functional Map. Selling. Delivering. Productizing. Promoting. Operations. Professional Services O-Map. General PS Interfaces. O-Map Interfaces. 5. Selling. Supply and Demand in Professional Services. Warning! Function Overview. Critical Success Factors. Services Sales Charter. Identify and Close. Identify. Qualify. Propose. Negotiate. Forecast. Roles and Responsibilities. Key Interfaces for Sales. Compensation for Sales. Key Variables. Key Metrics for Sales. Organizational Structure and Sizing. Target Revenue. Rep Quotas. Geography versus Industry Based. Sample Organizational Structure. Sample Budget. Issues to Watch. 6. Delivering. Function Overview. Critical Success Factors. Services Delivery Charter. Estimate. Execute. Requirements Review. Plan. Design and Develop. Implement. Sign-Off. Review. Follow-On. Educate. Roles and Responsibilities. Key Interfaces for Delivery. Compensation for the Delivery Function. Key Metrics. Organizational Structure and Sizing. Revenue Mix. Billable Utilization Rate. Billable Rate. Sample Organizational Structure. Sample Budget. Issues to Watch. 7. Productizing. Function Overview. Critical Success Factors. Services Engineering Charter. Capture. Project Review. Solution Review. IP Capture. Improve. Solution Development. Sample Architecture. Sample Project Plan. Sample Proposal. Engagement Framework and Engagement Activity Forms. Resource Profiles. Partner Profiles. Source Code. Training Materials. Demonstrations. Leverage. Solution Rollout. Sales Support. Solution Evaluation. Roles and Responsibilities. Key Interfaces for Services Engineering. Compensation for Services Engineering Staff. Key Metrics for Services Engineering. Organizational Structure and Sizing. Target Mix. Number of Solutions. Sample Organizational Structure. Sample Budget. Issues to Watch. 8. Promoting. Function Overview. Critical Success Factors. Services Marketing Charter. Differentiate. The Solution Review. Solution Rollout. Campaign Development. Validate. Demos. Benchmarking. Evangelize. Sales Training. Channel Management. Lighthouse Accounts. Roles and Responsibilities. Key Interfaces for the Services Marketing Function. Compensation for Services Marketing. Key Metrics for Services Marketing. Organizational Structure and Sizing. Unique Regions. Number of Solutions. Sample Organizational Structure. Sample Budget. Issues to Watch. 9. Operational Infrastructure. The Framework. Critical Success Factors. Operational Process. Legal Support. PS Automation. Operational Reports. Funnel Reports. Bookings Reports. Billings Reports. Backlog Reports. Web Sites. Electronic Newsletters. Internal Distribution Lists. Financial Reporting. Executive Dashboard. Metrics Reporting. Project Processes. Partner Management. Resource Management. Solutions Assurance Review. Project Accounting. Project Reports. Knowledge Management. Staff Processes. Commission Payments. Proposal Generation. Professional Development. Project Management Certification. General Training. PS Specific Training. Staff Reports. Time Reporting. Roles and Responsibilities. Key Interfaces for Operations. Compensation for Operations. Organizational Structure and Sizing. 10. Putting It All Together. Organizational Parameters. Organizational Interfaces. Interfaces within Professional Services. Interfaces with the Larger Company. External Interfaces. Interfaces by Function. Technical Staff versus Sales and Marketing Staff. Field Staff versus Corporate Staff. Organizational Structure. Roles and Responsibilities. Processes and Metrics. Compensation. Business Model and Budget. Summary. 11. Customer Engagement Workflow. Workflow Overview. Step 1: Request. Step 2: Qualify. Step 3: Bid. Step 4: Negotiate. Step 5: Develop. Step 6: Implement. Step 7: Sign-Off. Step 8: Review. Summary. 12. Four Phases of Building PS. Overview of Phases. Phase I-Implementation Services. Value Proposition. Profitability Triangle Focus. Critical Skills. Required Operational Infrastructure. Target Mix. Revenue Growth Rate. Target Gross Margin. Target Operating Profit. Phase II-Integration Services. Value Proposition. Profitability Triangle Focus. Critical Skills. Required Operational Infrastructure. Target Mix. Revenue Growth Rate. Target Gross Margin. Target Operating Profit. Phase III-Consulting Services. Value Proposition. Profitability Triangle Focus. Critical Skills. Required Operational Infrastructure. Target Mix. Revenue Growth Rate. Target Gross Margin. Target Operating Profit. Phase IV-Productized Services. Value Proposition. Profitability Triangle Focus. Critical Skills. Required Operational Infrastructure. Target Mix. Revenue Growth Rate. Target Gross Margin. Target Operating Profit. Maturity Time Line. Services Phases Graph. Skipping a Phase. Stalling in a Phase. Services Market Landscape. Hewlett Packard: More Than Just an Integrator? Compaq: Buying Its Way Around the Wheel. Sun: Not Sure They Want In. EMC: Knows the Way to Go. Management Positioning. 13. Unique Issues. Alignment. Vertical Alignment: Aligning Service Solutions and Capabilities. Horizontal Alignment: Aligning Service Departments. Aligning Skills. Overlap. Partner Conflict. Product Infrastructure versus Service Infrastructure. Internal Education and Promotion. Global Differences. Closing Comments. 14. Summary of Key Concepts. The SAR Factor. Four Qualifying Questions. Ten Parameters for Running a Business. Key Levers of a Professional Services Business. Organization Structure, Metrics, and Compensation. Business Model and Objectives. Maturity Time Line. Unique Issues. Sirens' Song. Appendix A. Evaluating Your Service Vendors. Tier I-Solutions and Capabilities. Tier II-Ability to Execute. Tier III-Strategic Fit. Appendix B. Key Financial Models. Appendix C. PS Business Review. Timing. Attendees. Agenda. Sample Review Packages. Appendix D. Sample Project Review. Project Review Executive Summary. 1.0 Project Overview. 2.0 Project Team. 3.0 Project Statistics. 3.1 Phase I: Detailed Design. 3.2 Phase II: Interpretation. 3.3 Project Statistics Interpretation. 4.0 Repeatable Components. 5.0 Conclusions. Appendix E. Solution Portfolio Management. Solution Portfolio Graph. Solution Revenue. Solution Maturity. Solution Margin. Portfolio Ownership. Services Marketing. Services Engineering. Appendix F. Customer Request and Qualification Form. Request and Qualification Form. Customer Qualification Information. Glossary. Glossary of Terms. Selected Bibliography. Index.

Network convergence: where is the value?

Abstract: The entire telecommunications industry is going through very difficult times. Rapidly changing technology, lack of good business models, and lack of visibility in the near-term for renewed growth all create an uncertain environment. Yet, the global Internet is becoming a multi-service network infrastructure that can potentially replace existing disparate voice and data networks. Although it is widely believed in the telecommunications industry that network convergence of voice, data, video, and images is an industry driver, not much attention has yet been paid to a key proposition: what value does network convergence bring to business and residential customers? This paper explains how different industries are converging; the technological, economic and regulatory forces that are at play and how the various customer segments can benefit from network convergence. While technological advancement is transforming industry and business models rapidly, one question keeps coming back to haunt managers: Where is the business value? We illustrate the value proposition of convergence (for various players) by first explaining the paradigm shifts happening across industries and then highlighting the “high velocity spiral” of knowledge dissemination theory that is fueled by convergence.