Life Cycle and Portfolio Management Why should NRENs

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Life Cycle and Portfolio Management Why should NRENs bother at all? TERENA General Assembly,

Life Cycle and Portfolio Management Why should NRENs bother at all? TERENA General Assembly, Catania, 18 May 2006 © SWITCH

Terminology Life Cycle and Portfolio Management Product Life Cycle Management Lifecycle management steers the

Terminology Life Cycle and Portfolio Management Product Life Cycle Management Lifecycle management steers the process in which a concept evolves into a new service, including the ensuing production phase and the phase in which a service is closed down Product Portfolio Management Portfolio management is steering the process that should result in a well-balanced and well-aligned set of services, offered to the connected institutions 2006 © SWITCH 2

The Life of Sir Viss at an NREN • The cool open source tool

The Life of Sir Viss at an NREN • The cool open source tool Sir Viss is announced • A NREN staff member untars the piece and gets Sir Viss running • He shows Sir Viss to some colleagues at University IT departments • He convinces his boss, that Sir Viss is cheap to operate and that Universities are interested in Sir Viss • So Sir Viss becomes the official status as an NREN Sir Viss • And Sir Viss lifes forever 2006 © SWITCH 3

Technology Push versus Demand Pull Your logo here NREN User 2006 © SWITCH 4

Technology Push versus Demand Pull Your logo here NREN User 2006 © SWITCH 4

Technology Push versus Demand Pull Technology Push more features higher availability new services things

Technology Push versus Demand Pull Technology Push more features higher availability new services things we want to push things we feel necessary things we got funded to do User not enough resources 2006 © SWITCH generally enough resources 5

Another view at new services EU/national funding bodies fund new projects offer innovative services

Another view at new services EU/national funding bodies fund new projects offer innovative services User 2006 © SWITCH 6

Another view at new services Funding request EU/national funding bodies need demanding User 2006

Another view at new services Funding request EU/national funding bodies need demanding User 2006 © SWITCH fund new projects offer innovative services 7

Another view at new services Funding request EU/national funding bodies need demanding User 2006

Another view at new services Funding request EU/national funding bodies need demanding User 2006 © SWITCH fund new projects Pros: Works for 2 -3 years Cons: High cost Small customer base Stochastic portfolio offer innovative services 8

The classical model Service Sales Producer Consumer Product Customer Value Pricing Costs Place Convenience

The classical model Service Sales Producer Consumer Product Customer Value Pricing Costs Place Convenience Promotion Communication Time Introduction Growth Maturity Decline (Theodore Levitt – 1965) 2006 © SWITCH 9

Introduction stage Building service awareness and develop market for the product: Services Sales Product:

Introduction stage Building service awareness and develop market for the product: Services Sales Product: branding and quality level established, Pricing: low penetration pricing or high skim pricing Distribution: selective until the product is accepted Time Introduction Growth Maturity Decline 2006 © SWITCH Promotion: aimed at innovators and early adopters – building awareness and learning 10

Growth Stage Building the brand preference and increasing the market share: Services Sales Product:

Growth Stage Building the brand preference and increasing the market share: Services Sales Product: maintaining the quality, additional features and services may be added Pricing: maintaining the initial strategy Time Introduction Growth Maturity Decline Distribution: new channels are added, demand is increasing Promotion: aimed at broader audience 2006 © SWITCH 11

Maturity Stage Defending the market share while maximizing profit: Services Sales Product: feature may

Maturity Stage Defending the market share while maximizing profit: Services Sales Product: feature may be enhanced to differentiate the product from that of competitors Time Introduction Growth Maturity Decline Pricing: lower because of the competition Distribution: more intensive, some incenitves offered Promotion: emphasizes the product differentiation 2006 © SWITCH 12

Decline Stage Services Sale is declining so there are several options: Maintain the product,

Decline Stage Services Sale is declining so there are several options: Maintain the product, possibly rejuvenating it by adding new features and finding new uses Time Introduction Growth Maturity Decline 2006 © SWITCH Reduce costs and continue the offer Discontinue the product 13

Life cycle of a service Life. Cycle Technologydevelopment Technology Scouting -------Customer Scoping of requirements

Life cycle of a service Life. Cycle Technologydevelopment Technology Scouting -------Customer Scoping of requirements Customer Requirements 1 Research study 2006 © SWITCH Impact Analysis Servicedevelopment production 2 Servicedevelopment plan Serviceshut-down 3 4 Start of service Service discontinuance plan 5 Turn-off service 14

Areas of potential synergies Joint Development? Life. Cycle What is promising? Synchronisation? Technology Scouting

Areas of potential synergies Joint Development? Life. Cycle What is promising? Synchronisation? Technology Scouting -------Scoping of Customer Requirements? 2006 © SWITCH Impact Analysis Servicedevelopment production Serviceshut-down Joint Operation? 15

Deliverables Joint Development? Life. Cycle What is promising? Synchronisation? Technology Scouting -------Scoping of Customer

Deliverables Joint Development? Life. Cycle What is promising? Synchronisation? Technology Scouting -------Scoping of Customer Requirements Bo. F on new Ideas: low profile, first contact, no blame 20 attendees 2006 © SWITCH Impact Analysis Servicedevelopment production Serviceshut-down Joint Operation? Service Descriptions Service Level Agreements 16

2005 © SWITCH 17

2005 © SWITCH 17