STEM newsletter

New-look business-modelling event

30 October 2004

Every year since 1996, Analysys has invited existing and prospective users of the STEM visual software for the reliable modelling of business to a user-group conference in Cambridge, UK. This year, 22–23 September 2004, the event had a markedly different feel. A range of guest speakers shared the platform with Analysys, resulting in a more varied and balanced exchange of views and great insight into industry business-modelling practice for the audience of operators, equipment manufacturers and other consultants.

Operators Consultants Vendors
Broadband Wales
Cable and Wireless
Mobitel d.d.
T-Mobile International
Telkom SA
Turkcell
CEFRIEL
DOK Systeme
IBSe
Mason
RedSoft
Alcatel
Ericsson
Huawei Technologies
Juniper Networks
Marconi
Motorola
Siemens

Please register to download the presentation material from the event and the external material for which we have permission to distribute.

Workshop exploring the case for WiMAX vs DSL in rural areas

The first session of each day of the event was devoted to an interactive modelling exercise, as much a group learning exercise on techniques of model development as a showcase of the agility and flexibility of the STEM tool. On day one, competing topics such as fixed-mobile convergence, VoIP in the core network, and fibre vs. digital terrestrial broadcast were discarded in favour of a comparison of the economics of WiMAX and DSL for the provision of voice, Internet and video services in rural areas.

This first session focused on the development of a high-level specification (six slides in PowerPoint) for a model, including a discussion of the desired results and the scenarios to be evaluated, including the basic WiMAX/DSL comparison and then the impact of possibly limited reach with DSL.

STEM model layout for WiMAX-DSL technology comparison, as created at the STEM User Group Meeting

On the second day, two Analysys consultants led the rapid development of a STEM model. The vendors present were able to provide some quick estimates of component costs, and the operators provided contrasting perspectives on likely penetration rates. Within an hour, a basic modelling framework was established which generated revenue, capex and opex results which could be readily compared across the various scenarios defined.

STEM results for WiMAX-DSL technology comparison, as created at the STEM User Group Meeting

Vendor perspectives on business modelling

Commercial sensitivities discouraged any guest presentations from operators. In contrast, five of the vendors and two external consultants were keen to discuss some of the general techniques and objectives they adopted in business modelling – often in the context of pre-sales support to operators – as a way to stimulate dialogue and learn from their peers, as well as to impress the other delegates. Several vendors presented on their own approaches to customer business cases and the use of tools to demonstrate business value to carriers, as well as technology-specific models including FTTH, NGN, Gigabit Ethernet and WLAN.

Topics such as consistency and credibility of results were prominent, with particular interest focusing on the presentation of business models over an intranet or the Internet as enabled by the new eSTEM technology.

STEM 7.0 launch

The User Group also saw the launch of STEM version 7.0, with intrinsic support for voice and data services, a range of new financial calculations, and allocated Service results broken down by individual Resources. New formatting options in both the Editor and Result programs deliver extra clarity in the presentation of model structure and results.

This keynote product launch was followed by a demonstration of the new fSTEM Web-based service for academics, and a round-table discussion of next-stage development priorities, aiming to strike a balance between the parallel objectives of making STEM easier to learn and more forgiving to the novice while delivering more sophisticated analysis and managing the development of ever more complex and comprehensive network models.

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