Friday, February 29, 2008
Using VoIP to compete
Distributive trends have been part of human lives since the beginning! Just as the mode of transportation has changed the way people move and the way commerce is conducted. Such trends have spurred a slew of other trends to follow and new terms have evolved such as ‘Disruptive Technologies’. For such a trend, the cornerstone of the 20th Century has been the invention of electricity which has started the global industrial revolution!
In today’s recent history, the most notable Distributive Technology has been the Internet! The Internet has had an incredible impact worldwide across many sectors including industrial as well as global commerce. One of the greatest areas where the Internet had the greatest impact is the online industry, namely VOIP (Voice over IP). VOIP has created new term which has defined the future of communication since its invention by Alexander Graham Bell. The introduction of VOIP has created the economical alternative for the world to communicate; not only in regional communication but also in transatlantic communication.
The simplicity and cost effectiveness of VOIP has made it into one of the greatest invention in recent history. The Internet has been the home for all IP communication especially VOIP at the global level. VOIP works through utilization of the global Internet networks providing connectivity between computer-to computer and computer-to-telephony communications. Using the available global Internet connectivity, VOIP delivers the voice communication across a medium that spans borders at very competitive rates than delivering the same signal on dedicated telecom networks.
Initially VOIP was simply adapted because of its wide availability regardless of its quality of service. However, today with the vast improvement in VOIP technology, the number of VOIP terminated calls has multiplied globally and the technology has been adopted by the majority of telecom operators. The view of VOIP model being based on low cost is not the case any longer because the technology has been streamed through dedicated voice networks capacity on the Internet using the latest of voice compression means.
The continued development in VOIP coupled with the wide adoption of it as a means of all future voice communication, has transformed voice communication globally. One of the major areas which have the brunt of this transformation has been pricing structure of international voice communication.
Given that the Internet usage has been exponentially increasing globally, has facilitated for an alternate means for voice communication. Such adaptation has put immense pressure on voice communication charges globally and has destabilize the ‘per minute’ charges for voice communication. Such destabilization has created a slew of alternative voice communication companies utilizing the Internet as the gateway for VOIP communication with its latest technologies. Such transformation has deregulated, as well as significantly increased the level of competition in international voice connectivity offering; and therefore, bringing down the prices for such services.
Examples of which VOIP has created an impact can be seen on international voice communication as well as domestic voice communication.
On the international arena, VOIP has gained an acceptance globally and as such, has pressured the international per minute charges of voice communication to an extremely competitive level. As an example, the per-minute charges for a call between the Middle East and the US on Telco networks averages $1.50, whereas the per-minute VOIP charge averages $0.10. Such price discrepancies have actually increased the number of minutes for international voice minutes in total, in addition, to having increased the total revenue for international voice charges. However, most of the exponential revenue increase has been seen on the VOIP side, especially with its improved quality of service due to advances in technology.
Furthermore, with such transformation as well as financial impact, Telecom companies have transformed their international voice network to greatly adopt VOIP communication in order to increase network efficiency as well as bring competitiveness to its pricing offering.
On the domestic voice communication side, VOIP has transformed the entire offering, whereby forcing most operators to bundle the service at a flat monthly fee with services such as cable TV and high-speed Internet. Such offering has set the standard for domestic voice communication offering and has been adopted by operators globally.
The above examples have illustrated the transition in voice communication on the domestic and global arena by bringing network efficiency to an all time high and by bringing the pricing to meet market dynamics; i.e. supply and demand.
Given these facts of market adoption as well as consumer pricing incentives, VOIP proliferation will continue see an expanding use of the technology globally. As such, full fledge VOIP operators will continue to expand and offer their services across boundaries.
In today’s recent history, the most notable Distributive Technology has been the Internet! The Internet has had an incredible impact worldwide across many sectors including industrial as well as global commerce. One of the greatest areas where the Internet had the greatest impact is the online industry, namely VOIP (Voice over IP). VOIP has created new term which has defined the future of communication since its invention by Alexander Graham Bell. The introduction of VOIP has created the economical alternative for the world to communicate; not only in regional communication but also in transatlantic communication.
The simplicity and cost effectiveness of VOIP has made it into one of the greatest invention in recent history. The Internet has been the home for all IP communication especially VOIP at the global level. VOIP works through utilization of the global Internet networks providing connectivity between computer-to computer and computer-to-telephony communications. Using the available global Internet connectivity, VOIP delivers the voice communication across a medium that spans borders at very competitive rates than delivering the same signal on dedicated telecom networks.
Initially VOIP was simply adapted because of its wide availability regardless of its quality of service. However, today with the vast improvement in VOIP technology, the number of VOIP terminated calls has multiplied globally and the technology has been adopted by the majority of telecom operators. The view of VOIP model being based on low cost is not the case any longer because the technology has been streamed through dedicated voice networks capacity on the Internet using the latest of voice compression means.
The continued development in VOIP coupled with the wide adoption of it as a means of all future voice communication, has transformed voice communication globally. One of the major areas which have the brunt of this transformation has been pricing structure of international voice communication.
Given that the Internet usage has been exponentially increasing globally, has facilitated for an alternate means for voice communication. Such adaptation has put immense pressure on voice communication charges globally and has destabilize the ‘per minute’ charges for voice communication. Such destabilization has created a slew of alternative voice communication companies utilizing the Internet as the gateway for VOIP communication with its latest technologies. Such transformation has deregulated, as well as significantly increased the level of competition in international voice connectivity offering; and therefore, bringing down the prices for such services.
Examples of which VOIP has created an impact can be seen on international voice communication as well as domestic voice communication.
On the international arena, VOIP has gained an acceptance globally and as such, has pressured the international per minute charges of voice communication to an extremely competitive level. As an example, the per-minute charges for a call between the Middle East and the US on Telco networks averages $1.50, whereas the per-minute VOIP charge averages $0.10. Such price discrepancies have actually increased the number of minutes for international voice minutes in total, in addition, to having increased the total revenue for international voice charges. However, most of the exponential revenue increase has been seen on the VOIP side, especially with its improved quality of service due to advances in technology.
Furthermore, with such transformation as well as financial impact, Telecom companies have transformed their international voice network to greatly adopt VOIP communication in order to increase network efficiency as well as bring competitiveness to its pricing offering.
On the domestic voice communication side, VOIP has transformed the entire offering, whereby forcing most operators to bundle the service at a flat monthly fee with services such as cable TV and high-speed Internet. Such offering has set the standard for domestic voice communication offering and has been adopted by operators globally.
The above examples have illustrated the transition in voice communication on the domestic and global arena by bringing network efficiency to an all time high and by bringing the pricing to meet market dynamics; i.e. supply and demand.
Given these facts of market adoption as well as consumer pricing incentives, VOIP proliferation will continue see an expanding use of the technology globally. As such, full fledge VOIP operators will continue to expand and offer their services across boundaries.
Thursday, February 7, 2008
The "Innovation Bazaar"
I remember during college times, we used to hold a “bazaar” once a year at the college campus. The “bazaar” was our marketplace where we present our handmade products, food and many other items. Of course the invitation is extended to our family, students from other schools and businesses as well. I remember a girl who was very talented in drawing and handmade arts that has been sponsored in spot by a company that has organized an exhibition for her work as well as offered her a job after graduation.
Companies do the same thing; they do their shopping from the “Innovation bazaar” where they make their selection out of assortments of different ideas that can vary from raw ideas to market ready ones. In another words, companies can shop for products, business models and technologies that have been developed and are ready to be offered to the market, or shop for undeveloped ideas where they can invest in the development and marketing.
Companies have discovered tremendous value from shopping out of external sources of innovation; they navigate carefully the “Innovation bazaar” and then cherry pick the solutions from the various vendors (inventors).
InnoCentive.com
Companies rely on innovation intermediaries to find solutions for their dilemmas through the inventors, and “InnoCentive.com” is an example of an electronic intermediary that takes R&D problems in a broad range of disciplines (e.g. Engineering, Computer Science, Math, Chemistry and business), frames them as “challenge problems” and opens them up for anyone to solve them. Cash rewards are given to the “solvers” who come up with the best solutions that meet the challenge criteria.
InnoCentive.com has signed an agreement with Rockerfeller Foundation in 2006 to add a non-profit area designed to generate science and Technology solutions to critical problems in developing world.
It worth mentioning that InnoCentive.com forces its “seekers” companies to agree to “Intellectual Property” audits so that once a solution is provided to the company, it can guarantee that the IP is not used if the company decided not to award it.
Problems Solved
InnoCentive.com provides a solution for the following:
1. The Companies (seekers)
They find solutions for their blocked projects and review the delayed ones. The companies also would have the chance to improve their current products/services or to complement it with a new invention. Companies can reduce their R&D costs by finding the solutions through the intermediary companies as well as they can save the time if the invention was almost ready to market.
2. The innovators (solvers)
They are given the chance to have an intellectual challenge and to work on business development opportunities. Also, solvers are rewarded financially and get the recognition internationally.
3. The website developers
They got the chance to host and incubate all the inventions submitted by the solvers, as well as, build a long lasting relationship with the big companies. They will be the first to know about the obstacles facing big companies and therefore, try to find suitable solutions for them.
Description of the customer groups served
Companies like InnoCentive.com and others are serving mainly two parties, the first one is the company (the seeker) which lacks the internal innovation capabilities and is searching for ways to improve its reach and process.
As to the innovators, they are striving to be recognized and appreciated; they are thrilled with the challenges thrown at them, and enjoy working on finding the suitable solutions. They are intelligent individuals that are stimulated by the financial incentives.
Revenue sources
The website of InnoCentive.com does note clearly specify the revenue collection method, therefore, I assume the following could be the sources of revenue:
• The commission from the companies “seekers”
• Fees for consultancy services offered targeting the “seekers” to enable them to make the most of its solvers solutions
• Fees for consultancy services offered targeting the “solvers” to advise them and help them define the problem.
Competitors’ websites
1. Ninesigma.com
2. Yet2.com
Ninesigma.com has been launched in the year 2000 to leverage the revolution in open innovation. They have leveraged the independent inventors and have developed huge proprietary network of scientists, university, researchers who signed up to become partners. Ninsigma.com keeps it clients informed and updated on the current requirement of the seekers. The company sends an RFP to the inventors based on their specific area of expertise. Also, the company uses the newsletter and appearances at conferences and information forum as a method of communicating with its clients.
The compensation method used is based on a shared risk model between them and the clients. Therefore, they are rewarded by helping the client make the suitable connections that would result in transaction that solve the client problems. (http://www.ninesigma.com)
Yet2.com founded in 1999, it focused on bringing buyers and sellers to technologies together so that all parties maximize the return on their investment. The company offers a full suit of services for technology evaluation, licensing, technology acquisition, business development and R&D needs. Yet2.com is dealing with most of the leading companies in the sector of Technology that have an enormous R&D capacity. (http://www.yet2.com)
Applicability of the model offline
InnoCentive.com business model is applicable offline for sure as the same concept could be taken up by a company that can build a wide network connection with (seekers) and the (solvers).
Scalability and Sustainability of the model
Innocentive.com business model is for sure sustainable, however, as to the scalability; I can’t see a way to scale up this business model more than how it is right now, because it touches all areas and disciplines without restriction.
If I owned the business, I will develop it on the following areas:
1. Increase the customers
By expanding globally and exist in important markets like India, Russia and China. Target the local companies (seekers) on these markets as well as the inventors (solvers), will surely increase the customers’ base for the company.
2. Expand the revenue
InnoCentive.com can spread out its revenue by specializing in providing client companies with access to an extensive array of innovation product or technology ideas that are nearly market ready, thus, they mitigate early stage innovation risks and reduce the time to market. In return they demand a share of the revenue that client companies get from commercializing the new products.
Another source could be by investing on developing the invention ideas and therefore, guarantee a share with the inventor royalties on revenue generated for the company that acquired the innovation.
Companies do the same thing; they do their shopping from the “Innovation bazaar” where they make their selection out of assortments of different ideas that can vary from raw ideas to market ready ones. In another words, companies can shop for products, business models and technologies that have been developed and are ready to be offered to the market, or shop for undeveloped ideas where they can invest in the development and marketing.
Companies have discovered tremendous value from shopping out of external sources of innovation; they navigate carefully the “Innovation bazaar” and then cherry pick the solutions from the various vendors (inventors).
InnoCentive.com
Companies rely on innovation intermediaries to find solutions for their dilemmas through the inventors, and “InnoCentive.com” is an example of an electronic intermediary that takes R&D problems in a broad range of disciplines (e.g. Engineering, Computer Science, Math, Chemistry and business), frames them as “challenge problems” and opens them up for anyone to solve them. Cash rewards are given to the “solvers” who come up with the best solutions that meet the challenge criteria.
InnoCentive.com has signed an agreement with Rockerfeller Foundation in 2006 to add a non-profit area designed to generate science and Technology solutions to critical problems in developing world.
It worth mentioning that InnoCentive.com forces its “seekers” companies to agree to “Intellectual Property” audits so that once a solution is provided to the company, it can guarantee that the IP is not used if the company decided not to award it.
Problems Solved
InnoCentive.com provides a solution for the following:
1. The Companies (seekers)
They find solutions for their blocked projects and review the delayed ones. The companies also would have the chance to improve their current products/services or to complement it with a new invention. Companies can reduce their R&D costs by finding the solutions through the intermediary companies as well as they can save the time if the invention was almost ready to market.
2. The innovators (solvers)
They are given the chance to have an intellectual challenge and to work on business development opportunities. Also, solvers are rewarded financially and get the recognition internationally.
3. The website developers
They got the chance to host and incubate all the inventions submitted by the solvers, as well as, build a long lasting relationship with the big companies. They will be the first to know about the obstacles facing big companies and therefore, try to find suitable solutions for them.
Description of the customer groups served
Companies like InnoCentive.com and others are serving mainly two parties, the first one is the company (the seeker) which lacks the internal innovation capabilities and is searching for ways to improve its reach and process.
As to the innovators, they are striving to be recognized and appreciated; they are thrilled with the challenges thrown at them, and enjoy working on finding the suitable solutions. They are intelligent individuals that are stimulated by the financial incentives.
Revenue sources
The website of InnoCentive.com does note clearly specify the revenue collection method, therefore, I assume the following could be the sources of revenue:
• The commission from the companies “seekers”
• Fees for consultancy services offered targeting the “seekers” to enable them to make the most of its solvers solutions
• Fees for consultancy services offered targeting the “solvers” to advise them and help them define the problem.
Competitors’ websites
1. Ninesigma.com
2. Yet2.com
Ninesigma.com has been launched in the year 2000 to leverage the revolution in open innovation. They have leveraged the independent inventors and have developed huge proprietary network of scientists, university, researchers who signed up to become partners. Ninsigma.com keeps it clients informed and updated on the current requirement of the seekers. The company sends an RFP to the inventors based on their specific area of expertise. Also, the company uses the newsletter and appearances at conferences and information forum as a method of communicating with its clients.
The compensation method used is based on a shared risk model between them and the clients. Therefore, they are rewarded by helping the client make the suitable connections that would result in transaction that solve the client problems. (http://www.ninesigma.com)
Yet2.com founded in 1999, it focused on bringing buyers and sellers to technologies together so that all parties maximize the return on their investment. The company offers a full suit of services for technology evaluation, licensing, technology acquisition, business development and R&D needs. Yet2.com is dealing with most of the leading companies in the sector of Technology that have an enormous R&D capacity. (http://www.yet2.com)
Applicability of the model offline
InnoCentive.com business model is applicable offline for sure as the same concept could be taken up by a company that can build a wide network connection with (seekers) and the (solvers).
Scalability and Sustainability of the model
Innocentive.com business model is for sure sustainable, however, as to the scalability; I can’t see a way to scale up this business model more than how it is right now, because it touches all areas and disciplines without restriction.
If I owned the business, I will develop it on the following areas:
1. Increase the customers
By expanding globally and exist in important markets like India, Russia and China. Target the local companies (seekers) on these markets as well as the inventors (solvers), will surely increase the customers’ base for the company.
2. Expand the revenue
InnoCentive.com can spread out its revenue by specializing in providing client companies with access to an extensive array of innovation product or technology ideas that are nearly market ready, thus, they mitigate early stage innovation risks and reduce the time to market. In return they demand a share of the revenue that client companies get from commercializing the new products.
Another source could be by investing on developing the invention ideas and therefore, guarantee a share with the inventor royalties on revenue generated for the company that acquired the innovation.
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