Business Implications of Digital Convergenceold.hsn.or.kr/hsn2007/document/8/III-1.pdf10 IT...
Transcript of Business Implications of Digital Convergenceold.hsn.or.kr/hsn2007/document/8/III-1.pdf10 IT...
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Business Implications of Business Implications of Digital ConvergenceDigital Convergence
Lee, SanghoonLee, SanghoonKTKT
2007. 2. 82007. 2. 8
: A Telco Perspective: A Telco Perspective
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I
II
Digital Convergence
From Technology to Value
III Telco Business Direction
IV Network & Platform
V Concluding Remarks
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Digitized Information Explosion
Source : UC Berkeley, School of information management and systems
Cave paintings,Bone tools 40,000 BCE
Writing 3500 BCE
Paper 105
Printing 1450
Electricity, Telephone 1870
Transistor 1947Computing 1950Internet (DARPA) Late 1960s
The Web 1993
2000: 3B
2001: 6B
2002: 12B
2003: 24B
Volume of data(Gigabytes)
57 Billion Gigabytes in 2005
93% of all data is born digital
17 Billion devices will be connected by 2012
Time
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Convergence: The Natural Next Step
NewsNews
EditionEdition
DeliveryDelivery
SubscribeSubscribe
VideoAudioVideoAudio
EditionEdition
CableCable
viewingviewing
DesignDesign
MakingMaking
MarketMarket
PurchasePurchase
FinanceFinance
OperationOperation
FinancialNetworkFinancialNetwork
DepositDeposit
VoiceVoice
ConnectionConnection
NetworkNetwork
SubscribeSubscribe
Terminal
ServiceProviding
Delivery
Packaging
Producing News, Movies, Music, Finance News, Movies, Music, Finance
Media ConvergenceMedia Convergence
Broadband InternetBroadband Internet
Subscribe, Purchase, DepositSubscribe, Purchase, Deposit
Digitalization
Terminal
ServiceProviding
Delivery
Packaging
Producing
Being Digital: All information having the common format
Service Convergence Network Convergence Terminal Convergence
They can easily mixThey can be delivered using
the common mechanismThey can be easily used
in the same terminal
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Impacts on the Industry
Traditionally separate market boundaries blurred
Competition horizon expanded almost without limit
Opportunities or threats: which is bigger?
* Source: ITU-T July 2006
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Impacts on the Value Chain
Competition within the same value chain boundary
Competition beyond the traditional value chain boundary
Producing Packaging Delivery Window /Service Providing
Past
Now
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Google (16.2)
2.0
3.0
4.0
5.0
> 5.0Yahoo (7.9)
Value in-flow
Value out-flow
High
Low
Market ValueSales
Value dragging
0.5
1.0
0.0
1.5
High LowOperating Profit Growth
Microsoft (5.2)
Disney (2.0)
KT (1.4)KTF (1.4)
* Source: Mercer Value Migration Database
Producing Packaging Delivery Window /Service Providing
Value Migration
Packaging or Window/Service Providing
Delivery(Traditional Comm.domain)
Ebay (9.5)
TW (2.2)
Verizon (1.8)
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Share of overall
value(in %)
Converged Communications global value migration
Wireless
WirelineTraditional Carriers
WirelineNon-Traditional CarriersISPs
Cable / Satellite
0%
20%
40%
60%
80%
100%
1990 1995 2000 2005
Delivery Segment
Producing Packaging Delivery Window /Service Providing
* Source: Mercer Value Migration Database
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From Technology to Value
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IT evolution = better convenience and more functions at lower price.
Evolution of Technology
80
7065
60
45
30
20
0
10
20
30
40
50
60
70
80
90
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Gate
Leng
th(n
m
1588
529
272
2.523.437.5
19941995199619971998199920002001200220030
3
10
20
50
100
(Mbps)
56KD/U
ADSL VDSL 50MVDSL
100MVDSL
FTTH(x-PON)
Internet connection fee
(won/Mbps)
Evolution of Access Network
Convenience
Function
Price
Convergence Devices(Mobile+Camera+MP3)
But, IT evolution does not guarantee Telco’s revenue increase.
ASIC Tech. prospect(source:ITRS)
Internet connection Fee per 1Mbps
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Creating Value Out of Technology
Communication
Content/Application
Intelligence
Secure
User Interface
Design
crystal clear voicecrisp videoubiquitous connectivity
personalizationlocation/device-aware
identity protectiontheft-free
Technology
Valueeasy & intuitive
art
informationeducation, health, …
Computing high processing powerlarger/faster storage
Σ CustomerValueInnovation
=
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•Interesting News•Today’s schedules •Real-time traffic information
•Multimedia contents
• Various information for business use
Morning
Working
Dinner time
Going to work
•Suggesting menu & restaurant considering participants’ taste, schedule, and weather.
“How about ‘MiSS &Mr.’ today at 63 Tower?”
Change of Life Style
CustomerValue
(Technology + Emotion)
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A Key Factor for Future Business
Identity & Privacy Protection
Big brother ?
Wonderful Life ?
<KBS News : whole day captured by CCTV 2006.04.12>
Going to Work by Elevator, Walking Street,Taking a Subway, Studying at institute,Using ATM, Eating meals in restaurant, Coming back home by bus …
Eyes watching me in everywhere2005.4.20
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MasterCard
Telecom
Leisure
Travel
Shopping
Work
Payment
Health Care
HealthStatus
CreditRating
Age
DrivingLicense
TaxStatus
Name
Birthday
Birthplace
Insurance
PhoneNumber
BloodGroup
ForeignLanguages
Income
PictureAddress
Likes &Dislikes
Internet
InternetID
Socialnetwork
CommunityRole 1: ID & Privacy protection
Secure/Trusted Activities in the On/Offline World
Make Life Simple and Secure
secure transaction
trusted brokering
social networking
credential protection
Interests
Reputation &Trust System
Role 2: Trusted Agent for the User
Government
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Telco Business Direction
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- Leverage Telco's connections with the customers
- Expand the ability to manage Telco's facilities to u-Thing
Provide Ubiquitous Total Care Service based on NM Capacity
Regular Maintenance
•Monitoring•Preventive
Maintenance
In Emergency,• Automated dispatch• Auto. Job Allocation• Tech. Support
Centralized Control
Dispatch MOS Team
Residents/Managersi-Frame
Internet
ElevatorControl
···
PowerControl
CCTV
Telemetering
EntryControl
Expand to Neighboring Fields
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Expand Core Competency
- Deliver diverse multimedia content including images and videos
- Provide diverse image delivery services including u-Theater, u-Ad., IP-TV, i-Frame
Voice/Fax
Expand Controllability of POTS to Display Devices
Tomorrow
Content Production
Now
Multimedia On demand Delivery ofImage/video
Home(TV, PC, i-Frame)
Theater(Screen)
Entertainment(Karaoke, DVD Room)
Restaurant(Menu)
Delivery(Taxi, Cart,
u-Billboard, e-Paper)
Image Delivery Platform
Large-capacityMultimediaData
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Total Care Service
u-Office
u-Healthu-Traffic
Navi. Manage car stateControl Weight
Custo
mer C
ontext an
alysis platfo
rm
Privacy pro
tection p
latform
man
agem
ent/co
ntro
l
24hours
*365days
CustomersNavigation
Manage
Emergence
WeightDiagnose
Diabetes HeartBlood
ManageVideo Conf.
VoIPPortal
Mobility
Total Care Total Care ServicesServices
VariousVariousServicesServices
Customer Customer NeedsNeeds
u-Health + u-Traffic+ u-Office + u-Edu
u-Health + u-Home + u-Traffic
An integrated service set that suits varying customer demands.
Safe, secure, & uninterrupted service.
u-Home
MeteringAppliance
VisitorViewer
Manage Invasion
u-Edu.
ManageCounsel
LanguageMobile Edu.
Remote diagnoseRemote metering
Remote Foreign Lang. conversation
Control weight Mobile Office
NavigationControl
sugar diabetes
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· · ·
1St Tier
2nd Tier
3rd Tier
KT Ubiquitous Network InfraKT Ubiquitous Network Infra
24*365 Monitoring24*365 Monitoring
Broadband
PSTN Leasedline WiBro
WiFi
Manpower Technology Infra. System & Culture
Security
Revenue Mgt.
Shop Mgt. FinancialMgt.
CustomerMgt.
Approval Mgt.
- Provide solutions for u-Health, u-Building, u-School, u-Shop
- Enhance customer value by offering appropriate solution at the right time
Requires big changes in the business nature & culture
Develop new solutions tailored to individual customer’s needs based on u-Block concept
Change the Way of Doing Business
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The Network & Platform
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Why the Network & Platform Again?
Broadcast
Voice
App
Delivery
Broadcast
Voice
App
Delivery
Broadcast
Voice
App
Delivery
Broadcast
Voice
App
Delivery
App
BroadcastVoice/Video
Delivery
Present: Separate Service Competition Bundle Competition Converged Service Competition
Marketing Competition Marketing Competition Innovation Competition
t
Innovation competition is awaiting
Differentiation in the network capability
Fast service creation/delivery platform
Integrated platform for the upcoming converged services
Holistic management & maintenance capability
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Regain Bandwidth Controllability
Premium network with the high level of QoS & security
- High-value service through bandwidth control of wire & wireless networks
- Offer various differentiated service based on Premium network
BestEffort
Services
PCNon-PC Edge Router
Best effortNetwork
PremiumNetwork
Access Network
(Wire & Wireless)
Premium Services IP-TV,
Video-Conferencing,Video-Learning,
etc..
RGW
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Managed Broadband Network & Deployment
TGWPremium-Network
(All-IP)
AGW
PSTN
MediaGateway
AGW : access gateway, TGW : trunk gatewayRGW : residential gatewaySER : service edge router
QoS Manager
Best-EffortNetwork
Access Network
VDSL,LAN,
FTTH,
WiBro
RGWPC
BestEffort
Services
Non-PC
Premium Services
IP-TV,Video-Conferencing,Video-Learning,Robot
etc..
111
222
333
444
Managed access & backbone network as the major leverage
- Strengthen bandwidth control of wire & wireless networks
- Offer various differentiated services based on the Premium network
222
555
111 New authentication Platform
222 Premium Network
333 FTTH(Wired Access)
444 WiBro(Wireless Access)
555 Home Network with RGWControl/DHCP/Web System
111
SER
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Platform as Another 1st Class Asset
CAPEX/OPEX efficiencyFast service creation/deliveryEasier 3rd party integrationMulti-terminal supportEnabling integrated/blended service
EdgeServiceNode
ManagedIP core
Best EffortInternet
EdgeServiceNode
fixed/wirelessaccessnetwork
Control Layer (AAA, QoS, Security, Mobility)
Integrated Service Platform
App App App…응용 서비스
fixed/wirelessaccessnetwork
Integrated Service Platform
The past is re-appearing (with wider acceptance now)
- Telecom Information Networking Architecture (TINA) in the ATM+Corba era
- Integrated Service Platform in the IP+Web Service era
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Re-Shaping the Telco Business in theDigital Convergence Era
Value-focused business design
Big changes in the business nature and culture
• Total Care Services : An integrated service set that suits varying customer demands
Expansion from the core competency to neighboring fields
• Telephone PC ComputingPowerHosting/Image
• On-offline service binding with holistic management capability
Right Infra for the right business
Network
• Premium network: QoS, New authentication platform, FTTH
• Customer premise network: RGW-based home network
Integrated service platform
• Basic asset for the upcoming service innovation
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Thank You !