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IPv6: Making your Business Case

IPv6: Making your Business Case. North American Global IPv6 Summit June 24-27 2003 Yurie Rich Business Director - North American IPv6 Task Force President - Native6, Inc. . Who am I? Who is Native6. President - Native6, Inc. IPv6 Training & Consulting Business Director, NAv6TF

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IPv6: Making your Business Case

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  1. IPv6: Making your Business Case North American Global IPv6 SummitJune 24-27 2003 Yurie Rich Business Director - North American IPv6 Task Force President - Native6, Inc.

  2. Who am I? Who is Native6 • President - Native6, Inc. • IPv6 Training & Consulting • Business Director, NAv6TF • Active in IPv6 Forum activities • Focus on IPv6 business case! • Identifying Opportunities • Marrying technical advocacy with business fundamentals June 2003

  3. Presentation Agenda • Technology Evaluation Methods • Method for evaluating IPv6 • Balanced Scorecard • Financial Measures • Customer Impact • Internal Business Perspective • Improvement & Growth • Conclusions June 2003

  4. The IPv6 Business Case • The business case for IPv6 is simple! And the answer is.... For Who? Consideration of IPv6 will vary greatly depending upon your business model and your organizational IT goals June 2003

  5. Evaluating Technology

  6. Technology Adoption Standards • As with any business acquisition, technology adoption must meet basic fundamentals: • Yield cost savings • Create or enhance revenue streams • Generate a competitive or strategic advantage • Meet a technological imperative Technology Adoption = Positive ROI June 2003

  7. Return on Investment (ROI) • In today’s economic climate, many IT decisions are viewed mainly by their ROI • Return on Investment (ROI) can evaluated a number of ways: ROI: NPV of input/NPV of output NPV: CF1/(1+r)1 + CF2/(1+r)2 +.... CFn/(1+r)n IRR: CF1/(1+r)1 + CF2/(1+r)2 +.... CFn/(1+r)n June 2003

  8. Other Factors • ROI is meant to be a precise measurement • ROI provides financial measurement, but often fails to capture other factors: •  Risks  Complexity •  Intangibles  Options Critical to take a broader approach to technology evaluation...particularly IPv6 June 2003

  9. Financial Performance Technology Evaluation Customer Impact/Influence Improvement & Value Creation Internal Business Perspective Balanced Scorecard Approach Strategic Objectives June 2003 *Source: HBR, Kaplan & Norton

  10. Evaluating IPv6 in the Scorecard

  11. Financial Measures • Cash Flow sources for ROI measurements will come from • Cost Savings • Revenue Streams • Cost saving can come from operational improvements, reduced administration, improved integration, cost avoidances • Revenue streams driven by product/service sales June 2003

  12. Cost Saving Opportunities • Most compelling is the long term cost of maintaining/expanding IPv4 networks • NAT • Address space • Complexity • Limitation in new technology deployment • Security • QoS Source: Takashi Arano June 2003

  13. Revenue Streams • Generated from multiple sources • Extending the product life cycle of existing products (porting) • Innovating products that leverage aspects of the protocol (new product) • Innovating new services/features into existing product lines (product extension) • Service creation (product support) June 2003

  14. Customer Impact/Influence

  15. Customer Influences • Customer perception of your product/services affected by many factors, including: • Price • Quality • Usability • Innovative or “cool” factor • Value perception (quality/price) • Public opinion • Peer influence June 2003

  16. IP Address Space • Internet usage continues to increase, despite market conditions* • As consumption continues, successful acquisition of additional global v4 address space decreases • IPv4 address space not well structured to scale to the needs of tomorrow’s network infrastructure • Companies/Consumers must use NAT • High proliferation of NAT in home networking, despite its significant drawbacks June 2003 *Source: ISP-Planet.com, 2003

  17. IPv6 & Product Tethering • Ability for user and manufacturer to access online devices. • Current model has severe limitations • IPv6 address space offers ability to uniquely identify each device • Remote access with an improved security model June 2003

  18. Product Tethering • New product tethering paradigm for any device that can go “online” June 2003

  19. Consumer Benefits of Tethering Remote Access Autoconfiguration Web Interface Service Participation June 2003

  20. Internal Business Perspective

  21. Internal Business Perspective • The category is about an organization’s core competencies • How do your core competencies support your customer influences? • How does your adoption of technology affect your market position? • What are the things you need to do best...to excel at...to service your organizational goals? June 2003

  22. Core Competencies • NTT DoCoMo Core Competencies • Innovation • First-to-Market • Technical Leadership • Tightly controlled business model • Alliance partnerships June 2003

  23. Moving beyond the cell phone • Traditional mobile usage • Voice, SMS • New services in last few years • Picture capture & sending, specialized web content, e-commerce • Growing and future services via wireless • Online gaming, unified communications, video, streaming media, m-commerce • Telematics and Location Based Services* June 2003 *Source: NTT Docomo

  24. Emergency dispatching Entertainment Driving directions Roadside assistance Automotive services Restaurant location Automotive Telematics • Telematics systems can deliver a wide variety of services June 2003

  25. IPv6 in Telematics • Pilot programs in Japan have already developed and tested telematic services enhanced by IPv6* • Nagoya Taxi pilot program • Electronic payment • Passenger information services, driving logs • Tokyo pilot program • Content delivery (location based service information) • Electronic payment and real-time driving information (weather, traffic, construction) June 2003 Source: Internet ITS*

  26. Improvement & Value Creation

  27. Creating Improvement • How do you sustain your ability to change and improve? Improvement & Value Operating Efficiencies Innovation & Growth Continuous Improvement Knowledgeable Workforce Employ supportive technologies June 2003

  28. Creating Value with IPv6 Employ supportive technologies • Elimination of NAT with IPv6 allows enhanced adoption of tools like: • VoIP • Video Conferencing over IP • IM for business • Mobile access Innovation & Growth Improvement & Value June 2003

  29. Producer Benefits of Tethering (P2P) Service Upgrades Usage Data Telemetry Troubleshooting Warranty June 2003

  30. IPv6 & Workplace Technology Employ supportive technologies June 2003

  31. Conclusions:IPv6 in the Balanced Scorecard

  32. IPv6 Adoption considerations • Identifying how IPv6 will impact • Your product and services • Your customers • Your IT services • Your employees • Also remember, IPv6 is inevitable, so what is cost of waiting to, or not adopting? Financial Performance Internal Business Perspective Customer Impact/Influence Improvement & Value Creation June 2003

  33. Thank you for your time! yrich@native6.com

  34. Internet Growth June 2003

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