Life Cycle and Portfolio Management
Why should NRENs bother at all?
TERENA General Assembly, Catania, 18 May 2006
2006 © SWITCH
Terminology
Life Cycle and Portfolio Management
Product Life Cycle Management
Lifecycle management steers the process in which a
concept evolves into a new service, including the ensuing
production phase and the phase in which a service is
closed down
Product Portfolio Management
Portfolio management is steering the process that should
result in a well-balanced and well-aligned set of services,
offered to the connected institutions
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The Life of Sir Viss at an NREN
• The cool open source tool Sir Viss is announced
• A NREN staff member untars the piece and gets Sir Viss running
• He shows Sir Viss to some colleagues at University IT departments
• He convinces his boss, that Sir Viss is cheap to operate and that
Universities are interested in Sir Viss
• So Sir Viss becomes the official status as an NREN Sir Viss
• And Sir Viss lifes forever
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Technology Push versus Demand Pull
Your logo here
NREN
User
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Technology Push versus Demand Pull
Demand Pull
Technology Push
more features
higher availability
new services
things we want to push
things we feel necessary
things we got funded to do
User
not enough resources
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generally enough resources
5
Another view at new services
EU/national
funding
bodies
fund
new
projects
offer
innovative
services
User
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Another view at new services
EU/national
funding
bodies
Funding
request
need
demanding
User
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fund
new
projects
offer
innovative
services
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Another view at new services
EU/national
funding
bodies
Funding
request
need
demanding
User
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fund
new
projects
Pros:
Works for 2-3 years
Cons:
High cost
Small customer base
Stochastic portfolio
offer
innovative
services
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The classical model
Service Sales
Producer
Consumer
Product
Customer Value
Pricing
Costs
Place
Convenience
Promotion
Communication
Time
Introduction Growth Maturity Decline
(Theodore Levitt – 1965)
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Introduction stage
Building service awareness
and develop market for the
product:
Services Sales
Product: branding and quality
level established,
Pricing: low penetration
pricing or high skim pricing
Distribution: selective until the
product is accepted
Time
Introduction Growth Maturity Decline
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Promotion: aimed at
innovators and early adopters
– building awareness and
learning
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Growth Stage
Building the brand
preference and increasing
the market share:
Services Sales
Product: maintaining the
quality, additional features
and services may be added
Pricing: maintaining the
initial strategy
Time
Introduction Growth Maturity Decline
Distribution: new channels
are added, demand is
increasing
Promotion: aimed at broader
audience
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Maturity Stage
Services Sales
Defending the market share
while maximizing profit:
Product: feature may be
enhanced to differentiate the
product from that of
competitors
Time
Introduction Growth Maturity Decline
Pricing: lower because of the
competition
Distribution: more intensive,
some incenitves offered
Promotion: emphasizes the
product differentiation
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Decline Stage
Services Sales
Sale is declining so there are
several options:
Maintain the product,
possibly rejuvenating it by
adding new features and
finding new uses
Time
Introduction Growth Maturity Decline
Reduce costs and continue
the offer
Discontinue the product
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Life cycle of a service
LifeCycle
Technologydevelopment
Technology
Scouting
-------------Customer
Scoping of
requirements
Customer
Requirements
1
Research
study
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Impact
Analysis
ServiceServicedevelopment production
2
Servicedevelopment
plan
Serviceshut-down
3
4
Start
of
service
Service
discontinuance
plan
5
Turn-off
service
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Areas of potential synergies
Joint Development?
LifeCycle
What is promising?
Synchronisation?
Technology
Scouting
-------------Scoping of
Customer
Requirements
Requirements?
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Impact
Analysis
ServiceServicedevelopment production
Serviceshut-down
Joint Operation?
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Deliverables
Joint Development?
LifeCycle
What is promising?
Synchronisation?
Technology
Scouting
-------------Scoping of
Customer
Requirements
BoF on new Ideas:
low profile, first contact,
no blame
20 attendees
2006 © SWITCH
Impact
Analysis
ServiceServicedevelopment production
Serviceshut-down
Joint Operation?
Service Descriptions
Service Level Agreements
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