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Slide 1: The Digital Enterprise Introduction to e-Business Discussion of Digital Media and e-Business
Slide 2: Supply Chain Essentials – Key Players
Slide 3: Supply Chain Essentials - Processes
Slide 4: Supply Chain Essentials - The Value Chain
Slide 5: Supply Chain Management (SCM) • SCM is management of product life from buying, making, moving, and warehousing to selling Making Moving Buying What is SCM? Selling Ware housing SOURCE: i2
Slide 6: Business Before ERP (Enterprise Resource Planning) Orders Parts Sends report Sales Dept. Customer Demographic Files Customers Checks for Parts Calls back “Not in stock” Accounting Files “We ordered the parts” Accounting Sends report Invoices accounting Sends report Vendor Order is placed with Vendor Purchasing Files Ships parts Warehouse “We Need parts #XX” Inventory Files Purchasing “We ordered the parts”
Slide 7: Business With ERP Orders Parts Inventory Data If no parts, order is placed through DB Customers Sales Dept. Accounting Financial Data exchange; Books invoice against PO Order is submitted to Purchasing. Purchasing record order in DB Order is placed with Vendor Database Books inventory against PO Vendor Ships parts Warehouse Purchasing And invoices accounting
Slide 8: Procter & Gamble Supply Chain P&G or Other Manufacturer Giant Eagle or Third Party Distributor Giant Eagle Supermarket Customer wants detergent, goes to Giant Eagle Plastic Producer Tenneco Packaging Chemical Manufacturer (e.g. Processed Minerals) Chemical Manufacturer (e.g. Oil Company) Paper Manufacturer Timber Industry Mining Industry SOURCE: SANJAY CHOPRA
Slide 9: Loan Application Workflow
Slide 10: 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.”
Slide 11: 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.
Slide 12: Potential Marketplace for e-commerce….. The Internet - Catching on at Net Speed for 50 million users 50 million users Internet Television PC 4 Years 13 Years 16 Years Radio 38 Years Users 0 10 Years 20 30 40
Slide 13: Growth of the Internet
Slide 14: Potential Marketplace World penetration of broadband/100 people Q2 2005
Slide 15: Consumption of digital media is growing Video Streams Served, Year Ending (millions) 14000 12000 10000 Millions 8000 6000 4000 2000 0 1999 2000 2001 2002 2003 2004 2005 2006 12 billion video streams served/viewed in 2005 Source: Accustream iMedia Research
Slide 16: Why is Consumption Growing? 1. Infrastructure 2. Consumer Applications 3. Revenue 4. Business Applications Source:
Slide 17: 1. Infrastructure Ubiquitous High Bandwidth IP Networks 47m broadband subscribers Converging wired and wireless networks for IP delivery of media 194.5m mobile subscribers Source: CTIA.org, Computer Industry Almanac, Nov 2005
Slide 18: 2. Consumer Applications New 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 Source: Frost and Sullivan 2004
Slide 19: 3. Revenue Online Advertising 7 6 BILLIONS Digital Media Generates Revenue • Streaming audio and video advertising valued at $343 million in 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) Online Advertising Streaming Portion 5 4 3 2 1 2003 2008 Source: Accustream iMedia Research
Slide 20: 4. Business Applications Business are Extending Usage % of 2005 Spend or Rich Media Based E-business Transformation 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 70% 50% New Applications Investment Source: Gartner New IT Infra Investment
Slide 21: Digital Media Value Chain • Simple example: CREATE DELIVER PLAYBACK • Exercise: come up with another example
Slide 22: The Current Landscape - Coexistence of Competing Cooperative Heterogeneous Infrastructures B ROADB AND Entertainment, E-Business, Services B ROADC AS T Services, Entertainment Broadcasting DAB/DVB MOB ILE MULTIME DIA Entertainment, Personal Pictures and GSM/GPRS Video, Services UMTS Satellite PLC IP Optical based core network Fibre Cable FWA, LMDS MMDS ME DIA Pre-Recorded Content Personal Media Short Range Edge and Moving Networks: UWB, BANs, PANs, WLANs etc Wireline xDSL
Slide 23: Future Scenario - Co-operative interoperable devices BROADBAND MOBILE MULTIMEDIA Entertainment, E-Business, Services Entertainment, Personal Pictures and Video, Services Pre-Recorded Content Personal Media MEDIA Consumers want their devices to work together Consumers want their and share content devices to work together and share content Services, Entertainment BROADCAST
Slide 24: 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
Slide 25: 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. • • •
Slide 26: 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
Slide 27: 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
Slide 28: 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
Slide 29: IBM - MediaHub Solution Framework Business Systems Production & Distribution Transformation Transforming the Back Office and Supply Chain Analog to Digital Transformation Content Systems Consolidate overhead Integrate operations Customer Sales & Service Transformation CRM Customer Analytics Call Center Consolidation Ad Sales Transformation Intellectual Property Management Optimize business customer offerings Digital Media Framework Drive direct - to - consumer relationships Prepare for integrated media
Slide 30: Requirements - MediaHub Media companies need to know where content is and how manage it through the production and distribution process Today’s chaotic environment 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 Business & Content Systems BUSINESS CONTENT CONTENT CONTENT BUSINESS BUSINESS Books Filmed Entertainment (Film & TV) Music Newspaper/Magazines Home Entertainment Broadcast Networks BUSINESS BUSINESS Pay TV Networks (Cable) Online Service Providers CONTENT CONTENT CONTENT Business & Content Systems BUSINESS
Slide 31: Built on Existing Applications The MediaHub Solution Framework is built on the IBM portfolio of software and media industry Business Partners Media Hub Solution Framework Media-tuned Professional Services Solution Components Media & Entertainment Business Consulting Services Business Modeling WebSphere Business Modeler WebSphere Studio Application, WebSphere Information Integrator Content Edition, WebSphere Business Integration Server Foundation WebSphere Business Monitor Assembly & Deployment Management Business Process Status, Dashboards… WebSphere Portal / Wiki Business System & Content System Connectors Connector Framework Rich Content Infrastructure Apple, Ardendo, Avid, Documentum, Telestream, Pinnacle, Sintec, Xytex….and others Media Industry Applications
Slide 32: 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.
Slide 33: HP digital media services. HP digital media offerings include HP Digital Vault Services and HP Video Merchant Services.
Slide 34: Discussion  How would this technology be applied to the Supply Chains discussed earlier?