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MOVING FROM APPLICATIONS TO BUSINESS PROCESSES
How to turn Home Networking into a source of revenues for operators
Mark Herterich, Chief Marketing Officer, Homeportal Inc. 10.23.03
E-Home: End-to-end architecture
Home
Gateway
Network
Ehome Operator
Browser Service Providers
PDA
Devices UI
Last Mile
Internet
User Interface
Control
Applications
Content
Service AggregationPlatform
User Management,
Billing, CRM
Provider Provider
Web Services
©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com]
Consumers pay for devices and services
Home
Gateway
Network
Ehome Operator
Browser Service Providers
PDA
Devices UI
Last Mile
Internet
User Interface
Control
Applications
Content
Service AggregationPlatform
User Management,
Billing, CRM
Provider Provider
Web Services
©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com]
Consumers pay for devices and services
Inside the home
people buy hardware and software products
devices and networks
software and applications
people pay for functionality and life-style
Outside the home
people buy services
recurring revenues
combination of digital and human services
people pay for peace-of-mind, that somebody else takes care
of their problems
©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com]
But: Central role of the e-home operator within the
value chain
©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com]
Home
Gateway
Network
Ehome Operator
Browser Service Providers
PDA
Devices UI
Last Mile
Internet
User Interface
Control
Applications
Content
Service AggregationPlatform
User Management,
Billing, CRM
Provider Provider
Web Services
Operator
Business
Area
Homeportal XTN Digital Services Hub:
The off-the-shelf platform solution for operators
©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com]
Home
Gateway
Network
Ehome Operator
Browser Service Providers
PDA
Devices UI
Last Mile
Internet
Provider Provider
Web Services
Operator
Business
Area
Deploy, don’t develop!
•Off-the-shelf solution
•Homeportal licenses
software to operators
Point-to-point?
©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com]
Does not work in the long run
Business relationships are too complicated
Technologically cumbersome
Service Provider
Service Provider
Service Provider
Device Network
Device Network
Device Network
Hub-and-spoke
©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com]
Operators – key position in value chain
Bundles own and third-party services
as a trusted partner to consumers
Economies of scale (marketing, CRM, billing)
e-Home
Operator
Service Provider
Service Provider
Service Provider
Device Network
Device Network
Device Network
That’s what it could look like
©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com]
HW & SW platform as local hub Homeportal XTN as operator hub
OSGi gateway
ProSyst mBedded Server
Homeportal Bundle
CAD Bundle
Music Service Bundle
Industry developments converge towards
operator’s golden egg
©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com]
CPE-oriented Network-oriented
PointSolutionMultiService
Profitable business
for operator
Traditional Devices,
but with wide-area connectivity
•HVAC
•security
Point services
(security, metering, diagnostics…)
•ENEL
•Centrica
•…..
First OSGi products
•Philips
•BSH
•…..
New service packages as a result of re-designing
business processes
©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com]
Transport: POTS, ISDN, DSL, GSM, GPRS, UMTS
Intelligent Networks (IN) and Operational Support Systems (OSS)
Customer Relations: CRM, billing, hotline, sales support, field service
Software bundle distribution, remote gateway and device management
Remote user access to home, digital service subscription
Legacy service infrastructure: CRM, billing, ERP, CTI (call center),
monitoring station, sales support, field service
New service packages (digital and human services)
Diagnostics
Security
HealthCare
Maintenance
Entertainment
Telematics
RemoteHome
Automation
Traditional
operator
infrastructure
Added by
OSGi
Service
verticals
Legacy
systems
Glueingitalltogether:
interfaces,processes,organization
Central task of the e-home operator:
Glueing it all together
©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com]
tmConsumers
Devices
Internet
content
Service
providers
Homeportal
XTN Hub
Homeportal
XTN Hub
End user portal
Offering, launching, delivering services
Managing accounts and billing
Aggregating content
Handling smart home devices
Event response
Integrating with legacy service infrastructure
Enabling improved business processes
Service delivery platform is key
Networks and application independent
Bridge between service providers, operators,
infrastructure, devices
Services-centric, not device-centric
Supports any mixture of ‘thin’ and ‘thick’ gateways,
devices and protocols
Industrial-grade, open standards, robust, reliable, secure
and scalable
Integrates with existing service backend infrastructures
©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com]
Two kinds of services
Substitution
Improve and optimize existing services
Metering, diagnostics
Advantage: Business Case is simple (independent of
consumer)
Disadvantage: Need to get Service Providers in boat
New Services
Tap consumer budgets with new services
Advantage: Can start by going it alone; tap new revenues
Disadvantage: Risk of consumer adoption; heavy on
marketing
©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com]
Complex process and organization design:
Example from HVAC diagnostics and maintenance
©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com]
e-Home
Operator
Gateway
Management
Call Center
Gateways
Devices
Service
Provider
OSS
Billing
CRM
Field
service Sales
Revamping the device service business
Pulling together all the pieces
new device connectivity
new application software
existing service infrastructure
Revamping the business to actually capitalize on savings
from new technology
not just interfacing existing systems
complete redesign of business processes
workflows
organizational structure
training and qualification
©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com]
Moving from applications to business processes
Operator’s can capitalize on home networking by
providing a framework to decisively improve the delivery
of services to consumers
by increasing convenience
by reducing costs
by increasing productivity
Comparative effort
designing and implementing processes (70%)
implementing link with home networks (30%)
Only by implementing non-trivial, seamless and efficient
business processes can operators participate in high-
margin businesses
©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com]
Questions?www.homeportal.com

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Moving from Applications to Business Processes - M Herterich

  • 1. MOVING FROM APPLICATIONS TO BUSINESS PROCESSES How to turn Home Networking into a source of revenues for operators Mark Herterich, Chief Marketing Officer, Homeportal Inc. 10.23.03
  • 2. E-Home: End-to-end architecture Home Gateway Network Ehome Operator Browser Service Providers PDA Devices UI Last Mile Internet User Interface Control Applications Content Service AggregationPlatform User Management, Billing, CRM Provider Provider Web Services ©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com]
  • 3. Consumers pay for devices and services Home Gateway Network Ehome Operator Browser Service Providers PDA Devices UI Last Mile Internet User Interface Control Applications Content Service AggregationPlatform User Management, Billing, CRM Provider Provider Web Services ©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com]
  • 4. Consumers pay for devices and services Inside the home people buy hardware and software products devices and networks software and applications people pay for functionality and life-style Outside the home people buy services recurring revenues combination of digital and human services people pay for peace-of-mind, that somebody else takes care of their problems ©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com]
  • 5. But: Central role of the e-home operator within the value chain ©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com] Home Gateway Network Ehome Operator Browser Service Providers PDA Devices UI Last Mile Internet User Interface Control Applications Content Service AggregationPlatform User Management, Billing, CRM Provider Provider Web Services Operator Business Area
  • 6. Homeportal XTN Digital Services Hub: The off-the-shelf platform solution for operators ©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com] Home Gateway Network Ehome Operator Browser Service Providers PDA Devices UI Last Mile Internet Provider Provider Web Services Operator Business Area Deploy, don’t develop! •Off-the-shelf solution •Homeportal licenses software to operators
  • 7. Point-to-point? ©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com] Does not work in the long run Business relationships are too complicated Technologically cumbersome Service Provider Service Provider Service Provider Device Network Device Network Device Network
  • 8. Hub-and-spoke ©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com] Operators – key position in value chain Bundles own and third-party services as a trusted partner to consumers Economies of scale (marketing, CRM, billing) e-Home Operator Service Provider Service Provider Service Provider Device Network Device Network Device Network
  • 9. That’s what it could look like ©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com] HW & SW platform as local hub Homeportal XTN as operator hub OSGi gateway ProSyst mBedded Server Homeportal Bundle CAD Bundle Music Service Bundle
  • 10. Industry developments converge towards operator’s golden egg ©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com] CPE-oriented Network-oriented PointSolutionMultiService Profitable business for operator Traditional Devices, but with wide-area connectivity •HVAC •security Point services (security, metering, diagnostics…) •ENEL •Centrica •….. First OSGi products •Philips •BSH •…..
  • 11. New service packages as a result of re-designing business processes ©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com] Transport: POTS, ISDN, DSL, GSM, GPRS, UMTS Intelligent Networks (IN) and Operational Support Systems (OSS) Customer Relations: CRM, billing, hotline, sales support, field service Software bundle distribution, remote gateway and device management Remote user access to home, digital service subscription Legacy service infrastructure: CRM, billing, ERP, CTI (call center), monitoring station, sales support, field service New service packages (digital and human services) Diagnostics Security HealthCare Maintenance Entertainment Telematics RemoteHome Automation Traditional operator infrastructure Added by OSGi Service verticals Legacy systems Glueingitalltogether: interfaces,processes,organization
  • 12. Central task of the e-home operator: Glueing it all together ©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com] tmConsumers Devices Internet content Service providers Homeportal XTN Hub Homeportal XTN Hub End user portal Offering, launching, delivering services Managing accounts and billing Aggregating content Handling smart home devices Event response Integrating with legacy service infrastructure Enabling improved business processes
  • 13. Service delivery platform is key Networks and application independent Bridge between service providers, operators, infrastructure, devices Services-centric, not device-centric Supports any mixture of ‘thin’ and ‘thick’ gateways, devices and protocols Industrial-grade, open standards, robust, reliable, secure and scalable Integrates with existing service backend infrastructures ©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com]
  • 14. Two kinds of services Substitution Improve and optimize existing services Metering, diagnostics Advantage: Business Case is simple (independent of consumer) Disadvantage: Need to get Service Providers in boat New Services Tap consumer budgets with new services Advantage: Can start by going it alone; tap new revenues Disadvantage: Risk of consumer adoption; heavy on marketing ©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com]
  • 15. Complex process and organization design: Example from HVAC diagnostics and maintenance ©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com] e-Home Operator Gateway Management Call Center Gateways Devices Service Provider OSS Billing CRM Field service Sales
  • 16. Revamping the device service business Pulling together all the pieces new device connectivity new application software existing service infrastructure Revamping the business to actually capitalize on savings from new technology not just interfacing existing systems complete redesign of business processes workflows organizational structure training and qualification ©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com]
  • 17. Moving from applications to business processes Operator’s can capitalize on home networking by providing a framework to decisively improve the delivery of services to consumers by increasing convenience by reducing costs by increasing productivity Comparative effort designing and implementing processes (70%) implementing link with home networks (30%) Only by implementing non-trivial, seamless and efficient business processes can operators participate in high- margin businesses ©2003 Homeportal, Inc. Mark Herterich, CMO [mh@homeportal.com]