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

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

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2006 © SWITCH

Life Cycle and Portfolio Management

Why should NRENs bother at all?

TERENA General Assembly, Catania, 18 May 2006

2006 © SWITCH 2

Terminology

Life Cycle and Portfolio Management

Product Life Cycle Management

Product Portfolio 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

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 3

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 4

Technology Push versus Demand Pull

User

Your logo here

NREN

2006 © SWITCH 5

Technology Push versus Demand Pull

User

Technology PushDemand Pull

things we want to push

things we feel necessary

things we got funded to do

more features

higher availability

new services

generally enough resourcesnot enough resources

2006 © SWITCH 6

Another view at new services

EU/nationalfundingbodies

User

fundnewprojects

offerinnovativeservices

2006 © SWITCH 7

Another view at new services

EU/nationalfundingbodies

Userdemanding

need

Fundingrequest

fundnewprojects

offerinnovativeservices

2006 © SWITCH 8

Another view at new services

EU/nationalfundingbodies

Userdemanding

need

Fundingrequest

fundnewprojects

offerinnovativeservices

Pros:

Works for 2-3 years

Cons:

High cost

Small customer base

Stochastic portfolio

2006 © SWITCH 9

(Theodore Levitt – 1965)

Service Sales

Introduction Growth Maturity Decline

Time

Producer Consumer

Product Customer Value

Pricing Costs

Place Convenience

Promotion Communication

The classical model

2006 © SWITCH 10

Services Sales

Introduction Growth Maturity Decline

Time

Building service awareness and develop market for the product:

Product: branding and quality level established,

Pricing: low penetration pricing or high skim pricing

Distribution: selective until the product is accepted

Promotion: aimed at innovators and early adopters – building awareness and learning

Introduction stage

2006 © SWITCH 11

Services Sales

Introduction Growth Maturity Decline

Time

Building the brand preference and increasing the market share:

Product: maintaining the quality, additional features and services may be added

Pricing: maintaining the initial strategy

Distribution: new channels are added, demand is increasing

Promotion: aimed at broader audience

Growth Stage

2006 © SWITCH 12

Services Sales

Introduction Growth Maturity Decline

Time

Defending the market share while maximizing profit:

Product: feature may be enhanced to differentiate the product from that of competitors

Pricing: lower because of the competition

Distribution: more intensive, some incenitves offered

Promotion: emphasizes the product differentiation

Maturity Stage

2006 © SWITCH 13

Services Sales

Introduction Growth Maturity Decline

Time

Sale is declining so there are several options:

Maintain the product, possibly rejuvenating it by adding new features and finding new uses

Reduce costs and continue the offer

Discontinue the product

Decline Stage

2006 © SWITCH 14

Life cycle of a service

Researchstudy

Service-development

plan

Startof

service

Servicediscontinuance

plan

Turn-offservice

Service- development

Service-production

Service-shut-down

Technology

Scouting--------------

Scoping ofCustomer

Requirements

1 2 3 4 5

Technology-development

Customerrequirements

Life-Cycle

Impact Analysis

2006 © SWITCH 15

Areas of potential synergies

Service- development

Service-production

Service-shut-down

Technology

Scouting--------------

Scoping ofCustomer

Requirements

Life-Cycle

Impact Analysis

Joint Development?

Joint Operation?

Synchronisation?What is promising?

Requirements?

2006 © SWITCH 16

Deliverables

Service- development

Service-production

Service-shut-down

Technology

Scouting--------------

Scoping ofCustomer

Requirements

Life-Cycle

Impact Analysis

Joint Development?

Joint Operation?

Synchronisation?What is promising?

BoF on new Ideas:

low profile, first contact,no blame

20 attendees

Service Descriptions

Service Level Agreements

2005 © SWITCH 17