the digital enterprise
DESCRIPTION
TRANSCRIPT
The Digital Enterprise
Introduction to e-Business
Discussion of Digital Media and e-Business
Supply Chain Essentials – Key Players
Supply Chain Essentials - Processes
Supply Chain Essentials - The Value Chain
Supply Chain Management (SCM)
• SCM is management of product life from buying, making, moving, and warehousing to selling
BuyingBuying
What is SCM?
SellingSelling
MakingMaking
MovingMoving
WarehousingWare
housing
SOURCE: i2
Business Before ERP (Enterprise Resource Planning)
Customers
CustomerDemographic
FilesSales Dept.
Vendor
OrdersParts
Accounting
AccountingFiles
PurchasingPurchasing
Files
Order is placedwith Vendor
Invoicesaccounting
InventoryFiles
Warehouse
Checks for Parts
Calls back “Not in stock”
“We ordered the parts”
“We Need parts #XX”
“We ordered the parts”
Sends report
Sends report
Sends report
Ships parts
Business With ERP
Database
Customers Sales Dept.
PurchasingWarehouse
Accounting
Vendor
Inventory DataIf no parts,
order is placedthrough DB
OrdersParts
Order is submittedto Purchasing.
Purchasing recordorder in DB
Order is placedwith Vendor
And invoices accounting
Financial Data exchange;Books invoice against PO
Books inventoryagainst PO
Ships parts
Procter & Gamble Supply Chain
Customer wantsdetergent, goes to Giant Eagle
Customer wantsdetergent, goes to Giant Eagle
Giant EagleSupermarketGiant Eagle
Supermarket
Giant Eagle or Third PartyDistributor
Giant Eagle or Third PartyDistributor
P&G or OtherManufacturerP&G or OtherManufacturer
PlasticProducerPlastic
Producer
ChemicalManufacturer
(e.g. Oil Company)
ChemicalManufacturer
(e.g. Oil Company)
TennecoPackagingTenneco
Packaging
Paper Manufacturer
Paper Manufacturer
TimberIndustryTimber
Industry
ChemicalManufacturer
(e.g. Processed Minerals)
ChemicalManufacturer
(e.g. Processed Minerals)
MiningIndustryMining
Industry
SOURCE: SANJAY CHOPRA
Loan Application Workflow
e-Business Defined
According to one consulting firm: “e-Business refers to all business processes that take place
across electronic networks. This includes everything from buying and selling of goods and services through the World Wide Web, to interactive television and a whole host of other emerging technologies. E-Business integrates [Information Technologies] with traditional business processes, introducing efficiencies that cut costs and increase profits.”
e-Business Examples
e-Business is any commercial activity conducted over networks linking electronic devices (typically computers). Often includes: Commercial transactions over the Internet, telephone, or fax; Electronic banking and payment systems; Trade in digitized goods or services; Servicing customers and collaborating with business partners;
and Procurement and inventory control.
Potential Marketplace for e-commerce…..
The Internet - Catching on at Net Speed for 50 million users
Years0 10 20 30 40
Radio38
Years
PC16 Years
Television13 Years
Internet4 Years
Users
50 million users
Growth of the Internet
Potential Marketplace
World penetration of broadband/100 people Q2 2005
Consumption of digital media is growing
Video Streams Served, Year Ending (millions)
12 billion video streams served/viewed in 2005
Source: Accustream iMedia Research
0
2000
4000
6000
8000
10000
12000
14000
1999 2000 2001 2002 2003 2004 2005 2006
Million
s
Why is Consumption Growing?
1. Infrastructure
2. Consumer Applications
3. Revenue
4. Business Applications
Source:Source:
1. Infrastructure
194.5m mobile subscribers
47m broadband subscribers
Converging wired and wireless
networks for IP delivery of
media
Ubiquitous High Bandwidth IP Networks
Source: CTIA.org, Computer Industry Almanac, Nov 2005
2. Consumer Applications
• Surge in the deployment of streaming technology in applications that provide access to libraries of digital shows, movies, and other media
• Streaming to mobile devices is driving usage– Consumer demand for multi-media experiences is
prompting huge increase in demand for streaming platforms to portable wireless devices
New Consumer Applications
Source: Frost and Sullivan 2004
3. Revenue
Digital Media Digital Media Generates RevenueGenerates Revenue
•Streaming audio and video advertising valued at $343 millionin
2005, up 78% over $193 million dollars billed in 2004
•Streaming subscription revenue is forecast to rise by 35% in 2006 to $821 million dollars(excluding download revenue)
Source: AccustreamiMediaResearch
1
2003 2008
BIL
LIO
NS
Online Advertising
2
3
4
5
6
7
11
2003 2008
BIL
LIO
NS
Online Advertising
22
33
44
55
66
77
Online AdvertisingOnline Advertising
Streaming PortionStreaming Portion
Online AdvertisingOnline Advertising
Streaming PortionStreaming Portion
4. Business Applications
Business are Extending Usage
Enterprises are implementing streaming media along with their other core technologies, treating it as a real business communication tool in every vertical imaginable.
Source: Aberdeen Group/Streaming Media Inc
Source: Gartner
50%
70%
New Applications Investment
% of 2005 Spend or Rich Media Based E-
business Transformation
New IT Infra Investment
Digital Media Value Chain
• Simple example:
• Exercise: come up with another example
CREATE DELIVER PLAYBACK
The Current Landscape - Coexistence of Competing Cooperative Heterogeneous Infrastructures
FWA, LMDSMMDS
GSM/GPRSUMTS
Wireline
xDSL
Wireline
xDSL
BroadcastingDAB/DVB FibreFibre
CableCable
SatellitePLCPLC
IP Optical based core
network
Short RangeEdge and Moving
Networks:UWB, BANs,
PANs, WLANs etc
BROADBANDEntertainment,E-Business, Services
MEDIAPre-Recorded ContentPersonal Media
MOBILE MULTIMEDIAEntertainment,Personal Pictures and Video, Services
BROADCASTServices,Entertainment
Future Scenario - Co-operative interoperable devices
Consumers want theirdevices to work together
and share content
Consumers want theirdevices to work together
and share content
Consumers want theirdevices to work together
and share content
Consumers want theirdevices to work together
and share content
MEDIAMEDIAPre-Recorded Content
Personal Media
MOBILE MULTIMEDIAMOBILE MULTIMEDIAEntertainment,
Personal Pictures and Video,Services
BROADCASTBROADCASTServices,
Entertainment
BROADBANDBROADBANDEntertainment,
E-Business, Services
Consumers want theirdevices to work together
and share content
Consumers want theirdevices to work together
and share content
Some Challenges
Digital Rights Management New Functional and Architectural Framework Security and privacy
Media Format Media technologies Media players
Middleware New APIs, support new Business Model Platform (hardware & Software + Resources)
Network Aspects (Local/Ad Hoc and Wide Area networks) QOS (Quality Of Service) Security Transportation
Communications Full range of Wired & Wireless Technologies
Challenges - NAB 2006 Multimedia World Keynote Session
• Consumers .. are increasingly more comfortable with new ways of obtaining and enjoying content. “Appointment TV” no longer fully meets the expectations of a new generation of consumer.
• The traditional distribution channels are being replaced by increasingly on-demand ways of obtaining entertainment content.
• Media & entertainment companies have to decide what strategies they will pursue to capitalize on the disruption that is beginning to occur as a result of digital technologies and the internet.
• The winners will be those who anticipate and respond to shifting consumer desires and expectations, by embracing IT to deliver better consumer experiences and more flexible and efficient supply chains that:– are scalable and adaptable, enabling broad, rather than point solution capabilities
and are effectively “future-proof”, and;– leverage digital content delivery, content metadata, customer profile and behavior
data to deliver breakthrough, highly targeted content sell-through services that extend to the delivery of highly targeted promotional and ad content.
Potential Benefits - NAB 2006 Multimedia World Keynote Session
• The benefits available are compelling and will form the basis of competition in the coming decades– Speed: shortening the time-to-market and time-to-profit for newly released titles
– Responsiveness: making content available quickly for an increasing variety of distribution models and consumer formats and devices
– Visibility: having immediate, real-time access to all of your assets – knowing exactly where and in what formats they reside
– Cost efficiency: driving lower cost structures through more automated workflows, less repetitive work and reduction of physical inventory
– Global scalability: easily enable growth and extension of the business, both via increasing global reach and increasing volume
– And ultimately, better consumer choice and experience that should translate in higher revenues and higher profits
Where companies are putting their bets
Commercial content- Movies, television, games, music- Formats- DVDs, hi-def DVDs, electronic files, broadcast signals- Delivery channels
• Satellite, terrestrial broadcast, cable• Physical store, mail,• Download, streaming, webcast, cell phone
- Business models• Purchase, rental, subscription, advertising-supported
- Playback experience• TV, DVD player• PC, portable video player, mobile devices
ERP-style applications to support the new Media market
A new “digital media exchange” for secure, published content will emerge where• eMasters and eSKU are produced;• orders are placed and fulfilled;• license and royalty transactions are executed;• titles are distributed and sold;• and targeted, relevant advertising is added;• all in near real-time, and all without a tape, a courier, a phone call, a fax, or a printed invoice
Big Players – e.g. IBM, HP
IBM - MediaHub Solution Framework
BusinessSystems
ContentSystems
Production &DistributionTransformation
Transforming the Back Office and Supply Chain
Analog to Digital Transformation
Customer Sales & Service TransformationCRMCustomer Analytics Call Center Consolidation
Intellectual PropertyManagement
Ad Sales Transformation
Digital
Media Framework
Optimize business customer offerings
Drive direct - to - consumer relationships
Prepare for integrated media
Consolidate overhead
Integrate operations
Requirements - MediaHub
Media companies need to know where content is and how manage it through the production and distribution process
New requirements…Understand different workflow
dependencies, perform intelligence forecasting and execute actions across the organization
Handle content as digital objects, and remove analog dependencies
Reduce the time and cost to create, manage and distribute media assets
Dynamically change business processes and launch new business models using existing/legacy assets
Home Entertainment Home Entertainment
MusicMusic
Filmed Entertainment (Film & TV)
Filmed Entertainment (Film & TV)
Newspaper/MagazinesNewspaper/Magazines
BooksBooks
Pay TV Networks (Cable)
Pay TV Networks (Cable)
Online Service ProvidersOnline Service Providers
Broadcast Networks Broadcast Networks
CONTENTCONTENTCONTENTCONTENT
CONTENTCONTENTCONTENTCONTENT
CONTENTCONTENTCONTENTCONTENTCONTENTCONTENTCONTENTCONTENT
CONTENTCONTENTCONTENTCONTENT
CONTENTCONTENTCONTENTCONTENT
BUSINESSBUSINESSBUSINESSBUSINESSBUSINESSBUSINESSBUSINESSBUSINESS
BUSINESSBUSINESSBUSINESSBUSINESS
BUSINESSBUSINESSBUSINESSBUSINESS
BUSINESSBUSINESSBUSINESSBUSINESS
BUSINESSBUSINESSBUSINESSBUSINESS
Business &ContentSystems
Business &ContentSystems
Today’s chaotic environment
Built on Existing Applications
The MediaHub Solution Framework is built on the IBM portfolio of software and media industry Business Partners
Solution ComponentsMedia Hub Solution Framework
Management
Business System & Content System Connectors
Business Process Status, Dashboards…
Assembly & Deployment
Business Modeling
Media-tuned Professional Services
WebSphere Business Monitor
Connector FrameworkRich Content Infrastructure
WebSphere Portal / Wiki
WebSphere Studio Application, WebSphere Information Integrator Content Edition, WebSphere Business
Integration Server Foundation
WebSphere Business Modeler
Media & EntertainmentBusiness Consulting Services
Media Industry ApplicationsApple, Ardendo, Avid, Documentum, Telestream,
Pinnacle, Sintec, Xytex….and others
HP Digital Media Platform
The HP Digital Media Platform includes storage, processing, management and distribution capabilities. It serves as a technology foundation to enable a wide range of applications, solutions and services that are built on top of the platform.
HP digital media services.
HP digital media offerings include HP Digital Vault Services and HP Video Merchant Services.
Discussion
How would this technology be applied to the Supply Chains discussed earlier?