Services Strategy
Johnson Sherng , Dec.21, 2002
Core functions Non-core functions
Businessservices
IT services
Core Business Services
Services support that improves the efficiency and effectiveness of core business functions
Business Process Services
Third party services that take responsibility for non-core business functions
IT Productivity Services
Services that improve the value IT systems deliver to the core business functions
Strategic Outsourcing
Third parties that take responsibility for IT systems supporting non-core business functions
Customers Express Needs in Four Areas
Core Business Services Business Process Services
Core IT Productivity Services Strategic Outsourcing
Businessservices
IT services
e-commerce Customer intimacy (CRM) Supply Chain Enterprise Resource Planning Knowledge Management Business Intelligence
Systems Integration IT Consulting Application Development Mergers & Acquisitions Maintenance Total Systems Management IT Consolidation Business Recovery
Data Center Desktop Application Network Web Hosting
Billing & Claims Payroll Processing Logistics and HR Credit Services
Customers Express Needs in Four Areas
Business Innovation Services
Businessservices
Business Process Services
Integrated Technology Services
Strategic Outsourcing Services
Core functions Non-core functions
IT services
Our Lines of Business
StrategicOutsourcing
Services
BUSINESS
IT
HELP ME DO IT MANAGE IT FOR ME
Integrated Technology Services
Business Innovation Services
WHAT SHOULD I DO ?
Industry-oriented business and process consulting, combined with e-business strategy, Web design and systems integration expertise
Speed in delivering integrated, end-to-end e-business solutions
Design, deploy and support the e-business infrastructure Maximize value of IT infrastructure investments Keep e-business and IT systems up and running
World class IT talent, infrastructure and management processesContinuous, reliable management of Web sites and core business operations
Our Portfolio
StrategicOutsourcing
Services
Hosting Services Application Management
Services (ASPs, e-Markets) IT Outsourcing Services
BUSINESS
IT
HELP ME DO IT MANAGE IT FOR ME
Integrated Technology Services
Business Innovation Services
e-business Infrastructure Services IT Optimization Services Systems Management Services Business Continuity & Recovery Services
e-business Strategy & Design Consulting
Digital Marketing & Branding
E-commerce ServicesSecurity & Privacy ServicesCustomer Relationship Management ERPSupply Chain Management Business Intelligence ServicesProcurement Services
e-MarketsWeb Application Developmente-business Skills DevelopmentCustom Systems Integration Knowledge Management Services
Networking & Connectivity Services Hardware & Software Technical
Services IT Product Training Services
WHAT SHOULD I DO ?
Our Portfolio
Strong global competency & support sturcture Wide scope of services coverage Best of breed customer service quality
IGS Offerings Blueprint
PLAN DESIGN IMPLEMENT RUNACCESS
BusinessConsulting
ITConsulting
Total Systems Management Services
Business Transformation Services StrategicOutsourcin
gServices
Business Management Services/ERP
Business Intelligence Services
Supply Chain Management Services
CRM Services
e-commerce Services e-business Enablement
Services Hosted Business
Application Services Distributed Learning
Services
Global Transformation 2000 Services
Custom Systems Integration Services
Business Transformation Knowledge
Management e-business Advisory
Services
Site and Connectivity ServicesBusiness Recovery ServicesIT Product Training Services
Business Process Management Services
Application Management Outsourcing Services
IT Outsourcing Services
Network Outsourcing Services
e-business Services
Hardware and Software Support ServicesSystems Management and Networking Services
IT Strategy Business Recovery
Consulting Network Consulting Systems Management
Consulting
BUSINESSSERVICES
ITSERVICES
BusinessCycle
IGS Services Value Proposition
IBM Global Services
Greater China Group
Businessprocesses
IT
Distance between IT and businessTraditional business modelsConsumer interacts with organisation
Convergence of IT and business Inter Enterprise business
(B2B/B2C) Increase of Global reach e-business models Consumer interacts with IT
customer organization informationtechnology
Businessprocesses
IT
increased risks
increased need for IT capability, availability &
security
customer organizationinformationtechnology
IT & business processes are converging while customers are interacting directly with IT... this leads to increased needs for IT capability, availability and security
Legacy model New world model
What is changing in the market?
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
1998 2003
$1.0 trillion
Hardware30%
Software14%
$1.7 trillion
e-business
Services56%
EmbeddedTechnology
TraditionalComputing
19%
11%
5%
CAGR
e-business is a Services Play
Performing ManagementQuality Delivery Accountability
Client Satisfaction
¿é¤J¤å¦r
Verifiable Outcomes
&Sell Cycles
Services Management
Market ManagementCoverage Model
Client ValueMarketing
Resources ManagementSkill Certification
UtilizationRecognition
Opportunity Management
Prioritize opportunities
Solution designOfferings package
Business Management
ProfitabilityQuality Process
Forecasting
Source: Dr. Rowland Moriarty, Cubex CorporationOxford Associates Inc
Cost of Sale
Value- Added of
Sale
"Off-the-Rack"
Customized
Low High
A simplified channel segmentation based on Value and Cost
Channel selection
Speed is the New Currency
Customers now require... Adaptive e-business strategies Integrated business processes A flexible, robust infrastructure Bulletproof, earthquake-proof systems Deep, broad technical skills...
And they need them fast!
Introduction Growth
Maturity
decline
Time
$$$
Different SVCS offering maturity stages fit better different channel families
FTF, VARS, Web*
Selected indirect
Start migrating onto DM
BP,DM (TS.TMKTG,
Web)
FTF And whole
spectrum of Indirect
Mindset share
Market share
Revenue maximisation
Profit maximisation
* Especially fit if the offering has an exclusivity attribute
Main goal
Lifecycle phase
Channel selection
Services Marketing Strategy
Product
SYS MGMTNW MGMT
BI , CRM , ERP , SCM
E-Business
Value Selling
Solution Selling
Services Selling
Product Selling
Infrastructure
Traditional Companies
Expanding business
processes to the Web
e-Markets
Run by intermediaries
ASPs / ISPs / ISVs
Renting applications to
businesses
Dot.Coms
Selling products & services
Customers
Technology
Delivery
Outsourcing Services to Hosting Partners
Architecture
What's Hot Today?
Web Hosting
Operations
System Integration
Application Development
Interactive Design
Marketing
Business Processes
Business Strategy
Arc
hite
ctur
e an
d Te
chno
logy
What's Hot Today?
e-business Strategy and Design
e-Business Roadmap
Information transmission
Data access
Growth based on experience Commercial
transactions
Val
ue
Source: McKenna Group
RecognitionAppear-ance Pilot Formal
adoption
Process invest-
ment
Action stages
3rd stage
Open a Web site
Connect to key systems
Improve business processes
2nd stage
1st stageB
usi
ne
ss-m
ech
an
ism
ba
rrie
r
Se
curit
y b
arr
ier
It is said that irrespective of their industries, most corporations tackling e-business will follow much the same action stages.
As their e-business grows, corporations will be inevitably required to get over the security barrier and the business-mechanism barrier.
In the process of developing e-business, corporations have to get over the security barrier and the business-mechanism barrier. That is, you have to further sophisticate your systems and innovate your business processes and business models.
redefine coreProcess
Integrate with Partner
Next Generation e-Business
and how it's redefining itselfat Webspeed...It's a fast-moving market converging towards ASP and transaction- based business portal models with new players entering daily.
Access ISPsBasic accessSearch & navigationAdvanced media
Telco NSPsPSTNIP backboneVoice over IP
Web HostersShared hostingDedicated hostingCollocation
Wholesale ISPsIP backboneWholesale bandwidth
ISVsPackaged apps VerticalsCross-industry
Licenses Subscriptions Services Rentals Transactions ALL
Revenue Model
ASPsApplication services (providing apps)Managed services (e-commerce, messaging)Outsourced function (managing infrastructure and apps)
Born-on-the-webAuctionsExchangesMarketplaces
VARs, SIsConsultingServicesFulfillment
Net.Gen ISVsWeb appsWeb Services
B2C B2B
Growth in B2B Market
Bus to Bus Purchasing on Internet1998-2003
0
200
400
600
800
1000
1200
1400
1998 1999 2000 2001 2002 2003
Billions ofDollars
Forrester forecasts B-to-B purchasing on Internet to grow from $43 Billionto $1.3 Trillion
B-2-B Commerce has gone from $0 - $143 Billion (Source: Goldman Sachs)
125% CAGR in B-to-B Purchasing on Internet from 1998 to 2003 (Source: Forrester)
WW Businesses running Internet procurement applications will generate $103B in savings in 2003(Source: IDC)
Early adopters of e-procurementrealizing 300% ROI in year 1(Source: Aberdeen Group)
Operating costs being lowered by70% as a result of e-procurement(Source: QPEC Research)
105% CAGR for e-procurementapplication revenue to $5.3 Billionby 2003 (Source: IDC)
By 2003 B-2-B will be six times as large as B-2-C
e-businessApplication
Access e-ContentInformation
PervasiveComputing(e-Life)
e-businessInfra-Structure
Traditional
Net. Generation
Enterprises
Proprietary
Openenvironment
IT
M & E
e-ChannelMedia Propagation
VirtualDigital
Real
BroadBand/Mobile Analog/
Wired
Telcom
<SP ©w¦ì>
Portal
Net.Gen
ICP
ISP
TelcoASP
Positioning of Service Providers
Business ModelLocation Partner Contents Providers
ISDN/ADSLBroad Band Network
Order/Delivery
Payment
Operatation center Fiancial Services
Merchants
Banking branch,
Self service area
Conveninence Store
Public AreaStation
Shopping Mall
Book storeChain Store
Credit Card/Debit Card
TicketingBanks
Seller CentricCatalogPromotionsPricingOrderPayment
Buyer CentricProcurement
DirectIndirect
Ship Schedules Production Schedule
FunctionalityBuyer
ApplicationsSeller
ApplicationsFull Services
Invoicing & payment
FinancingLogisticsCommunity
Market StructureVerticalHorizontal
ModelsCatalogAuctionRFP/RFQExchange
e-Marketplace
Seller Solution
B
B
B
B
B
Buyer Solution
S
S
S
S
S
S
B
S
B
S
B
S
B
S
B
e-MarketplaceSolution
e-Marketplaces define a new e-commerce model
Su
pp
lier
s
Cu
stom
ers
EnterpriseResourcePlanning
SupplyChain
Management
ProductDesign
Management
CustomerRelationshipManagement
Business Integration (inter/intra-enterprise)
WebSphere Commerce Suite
Enterprise e-Environment
Delivering, Growing and Differentiating to meet Business Objectives
Ap
pli
cati
on
S
ervi
ces
Web Application Servers and Messaging
Web Site Services IT Services
Commerce
Customer & Partner Applications
SCM ERP
MRO CRM
PortalB2B
WebSphere Web Page Builder
WebSphere Application Servers MQSeries
WebSphere Transcoding Pu
blisher
Development Services
Enterprise Site Analyzer
SecureWay Policy Director
WebSphere Performance Pack
VisualAge Rules
VisualAge for Java
WebSphere Commerce Suite
WebSphere B2B Integrat
or
WebSphere EveryPlace SuiteF
ou
nd
atio
n
Ser
vice
sF
oun
dat
ion
MQSeries Integrator
MQSeries WorkFlow
PDM
Del
ive
rG
row
Dif
fere
nti
ate
ContentManagement
BusinessIntelligence
RDBMSDB2
DirectoryLDAP
SecuritySecureWay
Network MgtTivoli
EnterpriseInformation
Portal
WebSphere Domino Integratio
n
Collaboration
WCS Marketplace
Edition
e-Marketplace