Collaborative Product Development The case of network operators introducing Cloud Services

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Collaborative Product Development –

The case of network operators introducing Cloud Services

Prof. Dr. Nico Grove

Assistant Professor

Institute for Infrastructure Economics & Management

www.infrastructure-economics.com

Honolulu, 22

nd

_{November 2013}

Robin Haeberle / Nico Grove

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COLLABORATIVE PRODUCT DEVELOPMENT: THE CASE OF NETWORK OPERATORS

INSTITUTE FOR INFRASTRUCTURE ECONOMICS & MANAGEMENT PROF. DR. NICO GROVE

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Table of Content

Research Questions

Definitions and Methodology

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Structure of the Interview

Key Findings and Suggested Framework Summary and Outlook

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Table of Content

Definitions and Methodology Definitions and Methodology

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Research Questions

Importance: What role do Cloud Services play in the strategy of an Integrated Service Provider?

Can we put them into perspective?

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Defining the cause: Why are Integrated Service Providers not successful in launching Cloud

Services? Can we pinpoint the root cause?

Collaborative Product Development: Could working with other companies optimize product

development? Can we outline a recommended course of action?

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Table of Content:

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Definitions and Methodology:

Definitions

Cloud computing is the delivery of computing as a service rather than a product, whereby shared resources, software, and information are provided to computers and other devices as a utility (like the electricity grid) over a network (typically the Internet).

Cloud:

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the electricity grid) over a network (typically the Internet).

For the sake of clarity we will include all three main service categories (IaaS, PaaS, SaaS) and all three most important deployment models (Public, Hybrid and Private). However, we will focus on

Enterprise Services / B2B.

Cloud Services:

The terms (fully integrated) network operator and integrated service provider are used

synonymously. They provide telecommunication and ICT services to enterprise customers using

mostly their own infrastructure.

Network Operator:

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Research questions:

The starting point for this paper

Central

Computing

Delivery

to customer

Consumption

on endpoint

Simplified Cloud Value Chain

Collaborative product development

as the key to the Cloud?

Network Operator

Network operators can bring significant value added such as localization, SLA and leveraging the customer base.

Network operators are not among the big Cloud

companies and mostly considered commodity.

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Definitions and Methodology:

Methodology of the framework

Make

Technology

Supplier

“Pure” Service Provider

System

Integrator

Simplified Cloud Eco-System

Network Operator

Technology “Pure” SP Network System

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Buy

Ally

Technology Vendor “Pure” SP Network Operator System Integrator Technology Sourcing Re-Selling Co-Branding Joint Develop.

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Definitions and Methodology:

Methodology of data gathering

Collaborative product development as the key to the Cloud? Central Computing Delivery to customer Consumption on endpoint

Simplified Cloud Value Chain

Network Operator Network operators can bring significant value added such as localization, SLA and leveraging the customer base.

Network operators are not among the big Cloud companies and mostly considered commodity.

Secondary

Data:

- Semi- Structured

Interviews:

Technology Vendor “Pure” SP Network Operator System Integrator Sourcing from Re-Selling Co-Branding Joint Develop. - > 50 Sources

- Leading analysts &

reports - Conference Papers - Semi- Structured - Complete Eco-System - Management Level - Over 90 Minutes

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Structure of Interview:

Participants – Not all interviews yet conducted

Microsoft

Google

terremark

dimension data

Computacenter

vodafone

Telefonica

Cisco

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Structure of Interview:

- Introduction and data privacy (10 Min.)

- Role of the network operator in the cloud (15 -30 Min.)

- Product Development: Success metrics of new services (15 -30 Min.) - Product Development: Development process of new services (15 -30 Min.)

Suggested Agenda:

(90- 120 Min.)

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- Product Development: Collaboration within the Cloud eco-system (30 – 40 Min.) - Follow-Up and closing (10 Min.)

- Semi-structured interviews include a significant degree of individual freedom: Questions can be

skipped, deep dives and clarifications are always appreciated.

-. All questions are directed towards the interviewee’s perceived behavior of the network operator

he or she works with or for. For instance, when the interviewee represents a software supplier for a network operator than he shall answer with his perception on how the network operator acts.

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Table of Content:

Key Findings and Suggested Framework

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Key Findings and Suggested Framework

:

Key Findings

Importance: Cloud is rather a Prio 2 Topic for most Integrated Service Providers.

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Defining the cause: Over- engineering within product development and not enough resources.

Collaborative Product Development: Product development one key to increased footprint in Cloud

Services.

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Key Findings and Suggested Framework

:

Suggested Framework Strategic Evaluation Small High Far Dismiss Product Development

Market Size

P

ro

x

im

it

y

t

o

C

o

re

Development Close Feature Development

P

ro

x

im

it

y

t

o

C

o

re

Product Develop-ment Short Long High External Product Development Internal Product Development Low

Re- Sell Collaboration

Time to Market

In

te

g

ra

ti

o

n

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Table of Content:

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Key Findings and Suggested Framework

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Summary and Outlook:

- Cloud Services are not Prio 1 for ISPs

- (Partially) as a result Product Development is to slow, leading to sub- optimal results - Collaborative Product Development will yield significant advantages

- However – degree on collaboration depends on several factors

Summary:

- No „one size fits all mentality“

- So far confirmed by interviews executives

- Framework will be further validated with semi- structured interviews - Framework is under discussion with all participants

- Validation against over 60 product development projects next priority - International benchmark and comparison desirable