mobile money technology solutions
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Restricted - Confidential Information
© GSMA 2009
All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy
The MMU programme is funded by a grant from the Bill & Melinda Gates Foundation
Nicola D’Elia, mApps and Innovation ManagerOctober 2010, Kuala Lumpur
Mobile Money Technology Solutions
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Agenda
Vendor Selection Criteria
Background
Analytic Hierarchy Process
4.5.
1. Market Overview2.
Conclusions6.
7 Key Learnings3.
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vv 87 Planned Deployments 84 Live Deployments
Market overview
Geographic Distribution
as of 01.09.2010
Live Planned
# Deployments per Vendor
PlannedLive
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7 key learnings
Build a strong relation with your vendor 6.1.
4.
Data, Data, Data... 7.
5.
2. 3.
Technology and Security are essential, but there is more...Engage with Vendors while you are Defining your Business StrategyBe realistic with your time-to-market expectations
Look for vendors with live deployments and local expertise
Ensure your vendor’s success is tied to your own
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Technology and Security are essential
Supported Transactions
Supported bearer channels
PCI Compliance
Transactional Integrity
Scalability and transaction volume
Performance / High Availability
Solution
Transaction and Application
User authentication/registration
Service authenticationHardware Security, Operating System and DatabaseHardeningOperations and Maintenance Security
Fraud detection and management
Security But there is more...
Befo
reAf
ter
60%
30%
of mobile operators included technology and security as top selection criteria
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Set the strategic contextData analysis and
Requirement definitionInitial evaluation of potential solutions Vendor selection Implementation Maintenance and Support
Market Assessment Process Mapping & Re-
engineering Requirements Analysis
Conduct research Shortlist vendors
Define selection criteria Apply multi-criteria
decision framework Negotiations References checks
Allocate resources Ensure appropriate
support
Operational Support Platform refinement Reporting Plan for platform upgrades
Design effective RFP Visit live deployments in similar markets
Engage with vendors while you are defining your business strategy
Conduct workshop with vendors
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Be realistic with your time-to-market expectations
Set Strategic Context Vendor Selection Contract Negotiation Implementation
Pilot Roll-out
2M12M
The average time from vendor selection to full scale roll-out has been 16 months
2M 3M 5MExpected time-to-market
Reality 6M 10M>>16M
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Look for vendors with live deployments and local expertise
Few vendors manage platforms with high volumesLocal expertise and established relations with key partners
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Ensure your vendor’s success is tied to your own
MNO
Upfront Investment
Fixed licensing fee per month
Annual fee per active customer
Annual fee per registered customer
MNO overview• 5 million users• 40% market share
Service projections• 1 million MM users (Year 1)• 50% active customers• Monthly transactions: 500K
Fee per transaction
Revenue share
100%
10%
30%
20%
20%
10% Technology vendor
m-Wallet data Business Strategy
Total Licensing FeesTotal Revenue Share
Fee for providing managed service
Fee for customer support
40%
70%
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Build a strong relationship with your vendor
Source: Evaluating the success in International Sourcing of IT projects: the need for a relational client-vendor approach; P.Haried, k.Ramamurthy
Key Relationship dimensions Relational Success DimensionsInformation exchange
Contractual terms
Adaptation by client
Adaptation by vendor
Mutual obligations
Intercultural Competence
Trust
Commitment
Conflict
Relational factors play an essential role in achieving success
Traditionally success is measured from a client’s perspective
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Data, data, data...
Customer engagement Customer/Agent balance
Identify the cause
Data
Platform unavailability, New players in the market, change in pricing strategy, agent network
Aggregate volumes and valuesCustomer baseNumber of transactionsNumber of customers
Customer engagementAgent engagementCustomer/Agent ratioTransactions patterns
Insufficient agent network planning, Customer engagement
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Vendor selection criteria
Selection criteria
Supported products and bearer channels
Technical architecture & IF requirements
Scalability and transaction volumes
Interoperability Security standards Performances/High
availability
Vendor overview Technology Finance Strategic Relevance Operations Proven deployment and
years of operations References Number of employees Partnership feeling Other (Ownership
structure, capital investors)
Vendor financials Costs (fixed, variable,
additional feature) Other costs Legal terms Risk sharing
Business model Future roadmap Time to market Flexibility to new
developments
Training and Support Reporting Easy of use Other stakeholder
engagement
Data analysis and Requirement
definition
Initial evaluation of potential solutions Vendor selection Implementation Maintenance and
Support
Set the strategic context
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Analytic Hierarchy Process (AHP)
Model the hierarchy
Evaluate the weight of the hierarchy elements
Compute the priorities
Goal
Alternatives
Factors
Subfactors
Vendor overview Technology Finance Strategic Relevance Operations Proven deployment and
years of operations References Number of employees Partnership feeling? Other (Ownership
structure, capital investors)
Supported products and bearer channels
Technical architecture & IF requirements
Scalability and transaction volumes
Interoperability Security standards Performances/High
availability Other
Vendor financials Costs (fixed, variable,
additional feature) Other costs Legal terms Risk sharing
Business model Future roadmap Time to market Flexibility to new
developments
Training and Support Reporting Easy of use Other stakeholder
engagement
Select the best technology vendor
Vendor 1 Vendor 2 Vendor 3
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Analytic Hierarchy Process (AHP)
Model the hierarchy
Evaluate the weight of the hierarchy elements
Compute the priorities
Pairwise comparisons
Technology
Vendor overviewFinance
Strategic Relevance
Operations Vendor 1 Vendor 2
Technology
Finance
Strategic Relevance
Operations
Vendor overview
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Analytic Hierarchy Process (AHP)
Model the hierarchy
Evaluate the weight of the hierarchy elements
Compute the priorities
Goal
Alternatives
Factors and Subfactors
Vendor overview Technology Finance Strategic Relevance Operations
Select the best technology vendor
Vendor 1 Vendor 2 Vendor 3
.35 .25 .20 .10 .10
0.30 0.20 0.50
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3.6 3.5 3.4 3.4 3.3 3.3
32.9
2.7
Approximately one operator out of three is satisfied with their vendor
Are you happy with your technology provider?
MNOs level of satisfaction with m-wallet providers
64% 36%
What to improve
System flexibility Client engangement model Responsiveness to service development requestsReporting tools and customer support Local capabilities Product documentationBusiness process support Price
Passive/Detractors Promoters
0 1 2 3 4 5 6 7 8 9 10
Not at all likely
Neutral Extremely likelyHow likely are you to reccomend to a colleague or friend?
Dissatisfied
Neutral
Satisfied
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Our journey so far...
1. 2. 3.
Create a strong business partnershipMNO and vendor need to believe in the success of the platform
Learn togetherLeverage the expertise of your vendor and be thorough
Listen to your clientThe operator’s success is your success
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Q&A
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Q&A
Unanswered questions?Send them to:
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