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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
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