business models in the internet of services
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Business Models in the Internet of Services. Nikolay Mehandjiev, University of Manchester Benjamin Gil, Atos Origin. What is a Service. Services Today. Types of services “Conventional” services Software services What about the Amazon book delivery service?. - PowerPoint PPT PresentationTRANSCRIPT
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Business Models in the Internet of Services
Nikolay Mehandjiev, University of Manchester
Benjamin Gil, Atos Origin
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What is a Service
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Services Today
Types of services• “Conventional” services• Software services
What about the Amazon book delivery service?
Buying a Book on Internet
Order Reserve Pay Package Deliver
Virgin/ T-MobileAmazon
VISA, MasterCardBarclays
Royal MailDHLC
ompa
nies
In
volv
edManual Automated
Manual with service front-end
ManualAutomated
The interplay is the focus of some interest within the Centre for Service Research
• Using IT to Design Innovative Services
• Designing Better Software using ideas from Org. Services
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About Web Services
What is a Web Service?
• It is a functionality that can be discovered on the web.
• Executes a specific business task
• Can be combined with other services to create a composite application, more complex & complete
• Allow intercommunication between systems from any platform and used as integration tool in organizations and between business partners
Web Services
Connecting Applications
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I. The Internet of Services
Core ideas- WWW: Scale and complexity into (Web) Service Systems- Web 2.0: user-performed discovery, composition and adaptation
Currently “on the front pages” (on the “hype” stage of uptake) For example, Yahoo! Pipes provides tools for users to compose their
own information filtering service:
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The Future Internet
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Internet of Services, Service Web
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What kind of WS do we have today?
8
Number of web services found during the past 25 monthsSource: http://seekda.com/about/web_services
• Number of services coming from the SEEKDA service crawler (services defined by a WSDL file: technical interface specification)
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Web Service “Providers”
Open Services ConstellationIT Industry Service Parks
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SOA Users
Several industry sectors such as the financial sector
(banking and insurance), telecommunications,
retailers, education, transportation, energy-oil and
gas, media, professional services or wholesalers are moving towards
SOA
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SOA After SOA4ALL
SOA4All is a platform that enables Everyone to :
• Find
• Analyse
• Combine
• Create
Business Services
In an EASY Way
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Innovative Business Models
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SOA benefits
• Supports– New business processes– Changing business models– Reusing Business processes
and applications
• Improve – Utility of existing applications– Business agility– Standarization
• Reduce – Costs– Time to solution
Find out where SOA benefit your business the most
Source; SOA Value Assessment Brochure, Forrester, 2007
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SOA benefits
• A business model is the method (a collections of activities) of doing business and generates revenue. The business model spells-out how a company makes money by specifying where it is positioned in the value chain.
• Technology must support Business Models.
• The actual is a changing market so technology must be fast and adaptable.
• Web Services can support the Business Models used as a sequence or combination of atomic functionalities.
• Conclusion: Using Web Services it is easy to adapt to new Business Models competitive advantage
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1-Sided Business Model (Traditional Telco)
TelcoSuppliers Customers€ €
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2-Sided Business Model
Newspapers
Advertisers
Readers€
Suppliers€
€
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Service Wrap
2-Sided/Multisided Business Model
TelcoService
ProvidersService
Consumers
€ €
Advertising
€• REVENUE SHARE• PAY FOR PUBLICATION
• PAYG• SUBSCRIPTION• PREMIUM
Gov
ern
men
t
Ret
aile
rs
Dev
elop
ers
Con
tent
Te
lco
(R
eta
il)
Sec
urity
Bill
ing
Com
mun
ity
Too
ls
…
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From Telco to SoftTelco
• Significant shift in business model– N-sided business models– Multiple revenue profiles (PAYG, subscription, …)– Disruption to current pricing structures– Price sensitivity determines the price balance
between the market sides– Goal is to maximise revenue overall– Example: newspapers typically have lower cover
prices to maximise readership, which maximises advertising revenues
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19
SoftTelco – The Long Tail
New growth opportunities
Ribbit focus is on large number of niche
applications in ‘the tail’
Traditional focus on mainstream products
& markets
Long Tail [SoftTelco]
Short Tail [Traditional]
Dem
and
Number of Products
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Internet-based business models
Internet creates new ways to promote, distribute and support products and services
Internet creates new ways to promote, distribute and support products and services
Internet has changed the commerceInternet has changed the commerce
Internet opens opportunities to develop new and different business models
Internet opens opportunities to develop new and different business models
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WS Business Models
1) The problem with many proposed Internet services is that you are left with nothing when the service stops/disappear.
2) When users buy a service, especially one that holds their data, they are more worried about the seller's long-term survival.
3) Services are easier for big and established companies to implement, and harder for smaller, new entrepreneurial ones.
4) It is difficult to change mind, leave traditional IT systems and adapt them to news trends when “we have something that works”.
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WS Business Models
1) The problem with many proposed Internet services is that you are left with nothing when the service stops / disappear.
2) When users buy a service, especially one that holds their data, they are more worried about the seller's long-term survival.
Will search Web Services in IT Industry Service Parks.
Will search Web services in the cloud, where users like you are publishing their services, you can
Making it yours
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WS Business Models
3) Services are easier for big and established companies to implement, and harder for smaller, new entrepreneurial ones.
• Will allow anybody to search a needed service, to check it and to use it. Also we will create new ones by combining
exiting ones and having a custom functionality easily
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WS Business Models
4) It is difficult to change mind, leave traditional IT systems and adapt them to news trends when “we have something that works”.
To organize a Company’s IT infrastructure and guiding it towards SOA can be a complex process Web Services
can be used in a scalable way, first we can improve our current systems using Web Services to give solutions to new business processes needs and gradually “evangelize” people to use them.
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SOA4ALL Business Models
•Community Model Open content
•Advertising Model Query Based Paid PlacementContext Targeted Advertising
•Merchant Model Virtual Merchant
•Subscription Model Content Services
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Thank You!
www.soa4all.euwww.soa4all.eu